AvePoint Inc (NASDAQ:AVPT) Beats Q3 2025 Estimates Despite Stock Dip

AvePoint Inc (NASDAQ:AVPT) reported financial results for the third quarter of 2025 that surpassed analyst expectations on the top and bottom lines. Despite the earnings beat, the company's shares experienced a downturn in after-hours trading, suggesting a more complex market reaction to the full earnings picture.

Quarterly Performance Versus Estimates

The company's third-quarter performance demonstrated robust growth, with key financial metrics exceeding the forecasts provided by Wall Street analysts. The results highlight continued demand for the company's data security and governance solutions.

• Revenue: The company reported total revenue of $109.7 million, surpassing the analyst consensus estimate of $107.8 million.
• Earnings Per Share (EPS): Non-GAAP earnings per share came in at $0.10, beating the estimated $0.07 per share.

This performance represents a significant year-over-year increase, with total revenue growing by 24% and the crucial SaaS revenue segment growing by 38%. The company's profitability also improved, with non-GAAP operating income rising to $24.1 million, up from $17.8 million in the same quarter last year.

Market Reaction and Forward Guidance

Following the earnings release, AvePoint's stock traded lower in the after-hours session. This negative price action occurred despite the earnings and revenue beat, indicating that investor sentiment may be influenced by other factors within the report or the company's future outlook.

The company provided an updated financial outlook for the fourth quarter and full year 2025. When compared to existing analyst estimates, this guidance offers mixed signals.

• Q4 2025 Revenue Guidance: AvePoint expects revenue between $110.0 million and $112.0 million. This range brackets the analyst estimate of $110.2 million, suggesting an in-line to slightly positive forecast.
• Full-Year 2025 Sales Guidance: The company raised its full-year sales outlook to a range of $414.8 million to $416.8 million. This is notably below the analyst consensus estimate of $417.1 million for annual sales.

The discrepancy between the company's raised guidance and the slightly more optimistic analyst sales forecast for the full year may be a contributing factor to the cautious after-market reaction.

Key Business Highlights

Beyond the financial figures, the earnings report highlighted several operational achievements and strategic milestones that underscore the company's growth trajectory.

• Annual Recurring Revenue (ARR) reached $390.0 million, a 26% year-over-year increase, indicating strong future revenue visibility.
• The company maintained a dollar-based net retention rate of 110%, showing its ability to expand business within its existing customer base.
• A robust balance sheet with cash, cash equivalents, and short-term investments of $472.0 million provides significant financial flexibility.
• AvePoint achieved a historic milestone by becoming the first B2B SaaS company to dual-list on both Nasdaq and the Singapore Exchange (SGX), potentially broadening its investor base.

Conclusion

AvePoint delivered a strong third quarter, exceeding profit and sales expectations while showcasing impressive growth in its core SaaS business. However, the market's initial reaction appears tempered, potentially due to a full-year sales guidance that, while raised, did not meet the highest analyst hopes. Investors are likely weighing the solid quarterly beat against the company's future growth trajectory as outlined in its updated forecasts. The company's strong retention rates and growing ARR suggest a healthy underlying business, but the focus will now shift to its execution in the fourth quarter to meet its updated annual targets.

For a more detailed look at historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research before making any investment decisions.