AvePoint highlights partner contribution to Q1 performance

AvePoint has shared its first-quarter numbers, with the business benefitting from continued customer demand for data security and resilience products.

The channel accounts for half of the security player’s revenues and has played a significant role in helping the firm to deliver its latest numbers. For the three months ended 31 March, revenue climbed by 25% to come in at $93.1m and gross profit rose from $54.1m a year ago to $69.2m in Q1.

During the quarter, AvePoint completed the acquisition of Ydentic, with the ambition of providing managed service providers (MSPs) with an AI-driven platform to manage and secure their customer’s IT environments.

MSPs were also firmly in mind when the firm updated its AvePoint Elements, which automates insights and improves efficiency for partners.

Even before Q1, the security player has been increasing support for MSPs and has been educating the channel about its proposition and offerings over the past year.

AvePoint indicated that opportunities for growth are out there, with the total addressable market for its products and services set to grow from around $81.3bn to $140bn by 2028. The firm has seen that market growth translate into increased customer numbers, with its user base rising from 17,000 in 2022 to more than 25,000. EMEA accounts for 35% of total ARR as the business cranks up revenues outside of the Americas.

An investor presentation highlighted the effect that AI has had on the threat landscape, forcing the channel and customers to change their risk response and business processes.

Q1 also saw the firm release data security solutions for Google and ensuring it has relationships with other major players such as AWS and Microsoft.

AvePoint has improved onboarding by fostering partner loyalty and promoting successes as part of its efforts to increase its volume of indirect sales, with partners targeting small and mid-market enterprises.

Investors were also reassured the business remained committed to getting to $1bn of ARR by 2029, with partners were a critical part of that process.

Tianyi Jiang, CEO and co-founder of AvePoint, said that its first-quarter numbers, “reflect our ability to efficiently address the intensifying convergence of data security, governance and resilience challenges facing companies today.

“Despite the fluid macroeconomic environment, organisations are increasingly implementing AI-driven data management strategies that demand platform solutions which balance security and innovation.

“Our team’s execution to start the year has us steadily advancing toward our vision of becoming the world’s leading data management software company and achieving our billion-dollar ARR target for 2029,” he added.

Speaking to MicroScope last month, ahead of the Q1 numbers, Chris Shaw, UKI&SA country channel manager at AvePoint, stressed how important the channel is to the firm’s performance. “Our partners are going to grow the partnerships we’re fostering with certain accounts. They’re really starting to bear some fruit, and we’re doing all right,” he said.

“It’s about listening, it’s making sure we understand how we help partners, and it’s backing people who want to engage us in the way that we can help them, making sure that we can invest time, effort and a bit of money into people, with a plan, with structures and partnerships.

“That’s ultimately what we want to do: we want to create partnerships that benefit both sides,” he concluded.