AvePoint, Inc.

Good day and welcome to the AvePoint, Inc. fourth quarter and full year 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jamie Arrestia, Vice President, Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, and welcome to AvePoint's fourth quarter and full year 2025 earnings call. With me on the call this afternoon is Dr. T.J. Jang, Chief Executive Officer, and Jim Cassie, Chief Financial Officer. After preliminary remarks, we will open the call for a question and answer session. Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in our press release for a more complete description. All material in the webcast is the sole property and copyright of Outpoint with all rights reserved. Please note this presentation describes certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, and non-GAAP operating margin, which are not measures prepared in accordance with U.S. GAAP. The non-GAAP measures are presented in this presentation as we believe they provide investors with a means of understanding how management evaluates the company's operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. A reconciliation of these measures to the most directly comparable GAAP financial measures is available in our fourth quarter and full year 2025 earnings press release, as well as our updated investor presentation and financial tables, all of which are available on our investor relations website. With that, let me turn the call over to TJ.

Thank you, Jamie, and thank you to everyone joining us on the call today. Our fourth quarter results were a strong conclusion to an outstanding year. Our leading position in mission-critical data management coupled with market demand for data protection in the AI era enabled us to accelerate revenue growth, deliver our 11th straight quarter of double-digit growth in net new ARR, and achieve double-digit GAAP operating margins. Very few software companies can point to comparable levels of organic growth, GAAP profitability, and strong cash flow generation. And even fewer sit at a critical intersection of data protection and security. And importantly, we see healthy demand from companies spanning every size, vertical, and region of the world, validating our conviction in a large and growing market for secure, automated, and AI-ready data governance and resilience solutions. This broad-based customer demand isn't surprising as it's clear that AI has transformed the speed, scale, and stakes of data security and governance for companies everywhere. Organizations no longer view data governance as simple back office hygiene. It has become the prerequisite for AI and agentic AI adoption. And our customers and partners continue to tell us the same thing. Before they can deploy AI at scale, they need one company, that can secure, govern, and operationalize their data with confidence. In fact, I just met with one of our financial services customers who in Q4 replaced patchwork tools and a vendor they had for over 20 years with AppPoint. Our platform now secures, governs, and guarantees data recovery for nearly 100,000 employees who drive $25 billion in annual revenue. That's not a workflow that gets agented away. It's the trust layer that makes enterprise AI possible in the first place. With stories like these, I'll focus today on the durability of our value and share why, despite speculation about the future of enterprise software in the context of agentic AI, AppPoint will capitalize on the AI data protection opportunity in 2026 and the years ahead. But first, I want to remind you of three longstanding trends that you have heard us discuss for years. The relentless growth of data, the complexity of systems, and the severe consequences of poor data management. These challenges existed long before AI, but have only accelerated in recent years as data now spans cloud platforms, on-premise systems, third-party tools, and AI-driven workflows. AppPoint brings order to this chaos. We ensure that data is reliable, governed, and secure, and we have done this for more than two decades for thousands of customers. While AI is a powerful tool, enterprise-grade software remains essential for managing complex environments and ensuring regulatory compliance. And if your AI relies on inconsistent or poorly governed data, it becomes a liability rather than an asset. The AppPoint Confidence Platform is the solution to this challenge. Specifically, it's our platform architecture, which determines how effectively organizations can discover, govern, protect, and recover data across distributed multi-cloud environments. That not only makes us unique today, but provides a durable competitive moat. To start, our platform serves as a foundational layer within any data protection framework, acting as the control plane for policy management and real-time remediation, and the connectivity tissue for enterprise security operations. By maintaining a robust API framework and interoperability across hybrid cloud environments, we enforce strict identity verification and least privilege access at the data layer. and immediately remediate any potential breach or policy violation. This approach was crucial for one of our largest consumer packaged goods customer who faced significant challenges around ransomware threats, intellectual property protection, and data access compliance before launching Copilot. Using our platform as the core of their data protection strategy, we cleaned up their ROT data, deployed data resiliency, across their 13,000 global employees and implemented granular access controls. By starting at the data layer and utilizing our policy management and real-time remediation capabilities, they now have safe, secure, and compliant data they can trust to power their businesses. Our solutions also ensured that proper, provable access controls are in place for Copilot and other agents. We can solve challenges like this for thousands of companies because of our platform's ability to define all of their unstructured data and then visualize how its attributes, including sensitivity, intent, and lineage, evolve in real time. This contextual data, which is housed with us and which you heard Anthropic discuss on Tuesday as a critical input to their goal of transforming knowledge work, provides AppPoint an enormous competitive advantage because our customers rely on us to govern the data in real time. Customers today know that proper data governance requires more than logs or snapshots. It requires the live context that our platform provides, that AI cannot deliver on its own, and that traditional static databases miss. And it was this technological differentiation that led a large construction company to become a new AppPoint customer in Q4. They were recovering from a major cyber incident and preparing for broader AI adoption, but their core issue wasn't simply storage or cleanup. It was a lack of real-time context into how their sensitive data was evolving and being accessed across their environment. By deploying our unified platform with live visibility and control across unstructured data, they were able to reduce access sprawl and saved up to $1.3 million, improved data quality, and most importantly, governed risk as they emerged. With AppPoint as their strategic partner and restored confidence in their data foundation, they're now positioned to safely expand protection across their cloud and Azure workloads. Our platform is the result of decades of innovation and refinement, and today features a layered, interoperable architecture built for scale. It also functions as a governance and control layer for agentic AI, providing the trusted data foundation that agents need to act safely and effectively in the AI era. This includes a business logic layer, which defines the security and operational rules required by the customer, a elastic scaling data abstraction layer, which allows the platform to meet massive data surges without performance degradation, and AI-specific remediation, which leverages proprietary algorithms to identify threats designed to bypass AI guardrails. We have always aimed for our innovation to keep up with the larger technological changes taking place. Today, as agents proliferate, the missing layer isn't more AI. It's governance and operational oversight for AI. That's exactly why we built our sixth command center, AgentPause, which provides unified visibility, governance, and operational oversight for agentic AI. Affluent customers can now inventory agents across their digital estate. surface usage, risk, and cost signals, monitor performance drift, and ultimately take action when needed. As companies scale their agentic AI deployments, AgentPulse becomes the operational cockpit that ensures safety, compliance, and measurable value. And lastly, building on AgentPulse are a new agentic AI governance and data protection features that we announced earlier this month. which provide customers with better insights about agent security posture and the ability to correct security problems directly in the Confidence Platform, helping them use agentic AI tools safely and efficiently. In short, no other platforms combines modularity with tailored functionality to manage critical data in real time across cloud vendors. This was also validated by Gartner which referenced AppPoint in their latest research on how to build a strategy for M365 co-pilot and agentic AI in 2026. And as we continue to introduce extensions to existing cloud services and to new applications, the Confidence Platform will further consolidate point solutions to drive a faster ROI, which in turn only deepens our competitive advantage. Our conviction in our platform differentiation is not to suggest that every enterprise software company is immune to disruption from AI. In fact, it's quite the opposite. We believe every company, regardless of industry, will be impacted by AI. But those that use AI to drive innovation as their core competency will be successful in delivering durable growth in the years ahead. And specific to software, we believe the winners will offer the market two things. a true platform offering that provides pricing flexibility and ultimately leans on consumption-based and cost-saving focused licenses, and end-to-end vertical organic integration, ranging from development to go-to-market to best-in-class cloud ops and security to continuous enhancements and improvements. We're mindful of this with every strategic decisions we make, and we'll further differentiate ourselves by leveraging our domain expertise, our extensive partnerships, and our global scale and distribution to solidify our leadership position in the responsible and effective deployment of AI across all enterprises. As technology evolves, we're enhancing our go-to-market strategy to prioritize bundle offerings, building on last year's successful launch of our control and resilience packages. These bundles deliver comprehensive outcome-based solutions, addressing data cleanup, lifecycle management, governance, storage optimization, and protection, which customers and partners prefer over fragmented tools. And while we have historically licensed by C-count, we anticipate moving towards a hybrid model that incorporates capacity-based and data volume pricing, especially as AI enhances productivity but retains user-driven workflows. In Q4 and throughout 2025, we proved that AppPoint is built for this moment, and our belief in a long-term market opportunity has only strengthened. As organizations modernize their processes and workflows, the need for a secure, governed, and resilient data foundation that transforms enterprise data into a secure, high-quality signal for AI only becomes structurally more important. That's what our platform delivers, making us the trusted long-term partner for our customers. We have said before that our ambition is big, reaching $1 billion in AR by 2029, but it's grounded in operational discipline, durable market demand, and a platform strategy that is only becoming more relevant as AI adoption grows. And while questions about market cycles or technological disruption will come and go, our conviction in the durability of the market opportunity and our ability to capture it has never been stronger. I want to thank the entire Appoint team for their tireless efforts in making 2025 an exceptional year of execution and continued growth, and we're excited for an even stronger 2026. Thank you again for joining us today. I will now turn it over to Jim.