AvePoint (AVPT), the largest Microsoft 365 Data Management Solutions Provider was just listed publicly on Nasdaq last week. The company employs over 1,300 employees in 29 global offices.
AvePoint was founded in 2001 as a company to help ease the complexity of SharePoint installations, which at the time were all on-premise. Today, it has adapted to the shift to the cloud as a SaaS tool and primarily acts as a policy layer enabling companies to make sure employees are using these tools in a compliant way.
Huge diversified blue-chip client base, ~7 million members (as of Sep 30, 2020) with 16k accounts and 25% of Fortune 500 using the company’s services. 7M users represent 3% or 250M Microsoft 365 client base with an estimated addressable market of $33 billion by 2023 (according to IDC).
Company footprint
The Company sells directly to large and mid-market enterprises, and its solutions are also available to managed services providers on more than 100 cloud marketplaces globally. Regarding Microsoft, the company “Bridges the Gap Between What Microsoft Cloud Offers and What the Enterprise Requires.”
Blue chip client base
Compared to other recent SPAC deals and business combinations we just saw, AvePoint has indeed a great track record. Expected 2020 revenues @ USD 148M, a + 26% YoY increase (78% recurring revenues). There are 212 public software companies and AvePoint is one of 5 that is growing at a rate of more than 25% revenue while maintaining a 14% EBIT margin and 30% ARR growth. The company is projecting significant growth for the next two years with revenue estimates of $257 million and ARR of $220 million by the end of 2023.
Strong financials
Great market trends. Explosive data growth, increasing data regulations, shifts to the cloud, hyper growth of Microsoft Teams were all trends that fueled the growth prior to the pandemic. The impacts of COVID-19 have greatly accelerated these trends.
Current potential
The company raised $200 million in January this year led by Sixth Street Partners (formerly TPG Sixth Street Partners), with additional participation from prior investor Goldman Sachs. The company has raised a total of $294 million in capital before the reverse merger announcement.
Bottom line
AvePoint is a Market leading SaaS company, with powerful tailwinds for Microsoft Cloud, a high quality and diversified customer base and compelling historical & expected financial results, business model and valuation
Compared to competitors like JAMF, FASTLY, CLOUDFLARE, etc AVPT is trading at 2-3X discount based on earnings to market cap valuation. Avepoint’s earnings are coming up in August which should be followed by price targets from key analysts that will push the price up to tendy land!
This article was written by u/gothicka112.
