AvePoint (SGX:AVP)'s 3Q25 adjusted EBIT (non-GAAP operating income) beat consensus by ~30%, aided by stronger SaaS mix and disciplined cost control.
Total revenue rose 24% y-o-y to US$110mil ~4% above street, led by 38% y-o-y SaaS growth to US$84mil.
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Subscription expansion and operating leverage drove another quarter of margin outperformance.
Adjusted (non-GAAP) operating income rose to US$24.1mil (+35% y/ y, +29% q-o-q), ~30% above the consensus estimate of US$18.5mil. This was driven by margin expansion and lower-than-expected operating costs. Non-GAAP operating margin expanded to 22% (vs 20.1% in 3Q24), ahead of consensus’ 17.5%, supported by operating leverage from higher SaaS contribution, and improved efficiency across go-to-market and administrative functions.
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Total revenue climbed to US$110mil (24% y-o-y, 8% q-o-q), ~4% above consensus, and 3% above the high end of guidance.
SaaS sales grew to US$84mil (+38% y-o-y, +9% q-o-q), the company’s highest-ever quarterly mix at 77% of total revenue, with management highlighting ongoing strength in governance and AI-readiness workloads.
Backlog strength was reflected in record net-new annual recurring revenue (ARR) of US$22.4mil (vs US$18.8mil in 3Q24) and total ARR up 26% y-o-y to US$390mil (vs US$308.9mil in 3Q24), marking the strongest ARR performance in company history.
Share price dropped ~3% post-3Q25 results
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
