AvePoint points to MSP contribution in Q3

AvePoint has indicated that the managed services provider (MSP) side of the business is in rude health, with the digital workplace transformation solutions specialist unveiling its third-quarter numbers.

For the three months ended 30 September, the firm delivered a 24% year-on-year (YoY) increase in revenues to $109.7m, with SaaS accounting for $84m, which was an improvement of 28% compared to 2024.

GAAP operating income was $8.1m, compared to $7.7m last year, with GAAP gross profit coming in at $81.6m, compared to $67.6m in the same period a year earlier. ARR was $390m, which was an improvement of 26%. In terms of how the UK business fared, the firm revealed that the EMEA region grew by 42%.

During Q3, the vendor also cut the ribbon on an enhanced global partner programme that is points-based and designed to reward those that are actively engaged with AvePoint and customers.

Speaking to analysts, James Caci, CFO at AvePoint, said MSP was the firm’s fastest growing segment: “Each quarter, we’ve seen a slight improvement in the average contract length. Our third-quarter results underscore our ability to execute in a dynamic environment and deliver the robust top line growth and margin expansion that we have been committed to for many years. We ended the third quarter with total ARR of $390m, representing YoY growth of 26%.”

Tianyi Jiang, CEO and co-founder of AvePoint, said the results demonstrated that the company had been able to support and tap into growth delivered by partners. On the analyst call, he stressed that AvePoint had been growing its vertical customer base via partners, selling across a range of industries and gaining fresh businesses in several areas, including financial services and telecommunications.

Jiang added that there continued to be a significant opportunity for the business and its partners, with customers continuing to look to providers to help them unlock the productivity benefits that were promised by AI.

“Our platform-driven approach to governing and securing data, coupled with our ongoing innovation, especially as agentic AI intensifies existing data management challenges, uniquely positions AvePoint to lead, and we are excited for a strong close to 2025.”

He stressed that the firm is committed to hitting its target of $1bn ARR by 2029, with channel expansion one of the methods that will help achieve that goal, along with investments in AI governance and cloud.

AvePoint held a partner event in London last month where senior executives urged the audience to get to grips with AI, which was one of the most pressing concerns for customers.

“Where you need to help your customers is to show them where AI can make a key impact,” said Dux Raymond Sy, chief brand officer at AvePoint, adding that there were several areas where partners could make a difference. “Number one, harness data for decisions. Number two, scaling creativity and productivity. Number three, being able to ignite transformation and resilience.

“Start thinking about the lines of businesses your customers are in. What smarter solutions can you offer them that they can’t even think of that will help their business, can help scale creativity and productivity, and it can be as simple as freeing teams from repetitive tasks,” he added.