AvePoint Q4 profit swings into black at US$15.6 million as AI demand fuels software boom

[SINGAPORE] Data management firm AvePoint’s net profit in Q4 FY2025 swung into the black at US$15.6 million, reversing from a US$17.2 million loss the previous year.

Revenue of AvePoint also rose 29 per cent to US$114.7 million in the fourth quarter, from US$89.2 million in the previous corresponding period.

“We see healthy demand from companies spanning every size, vertical and region of the world,” said Dr Jiang Tianyi, chief executive of AvePoint at the earnings call on Friday (Feb 27).

He added that amid the rise of artificial intelligence (AI) and agentic AI adoption, organisations no longer view data governance as “simple back-office hygiene”, but as a “prerequisite”.

He argued that the next stage of growth with AI agents lies in data governance and operational oversight for AI.

The increase in Q4 profit capped a full-year financial turnaround for the tech company, as it reported a profit of US$34.8 million for 2025, reversing from a US$29.1 million loss in the previous year.

“Saas (Software-as-a-service) continues to drive our business,” said Jim Caci, chief financial officer of the group.

AvePoint provides platforms that help companies with operational oversight for data, ensuring that unstructured data – such as those in text format – will be able to be used for AI training.

Saas – referring to accessing software through cloud – accounted for 78 per cent of total fiscal Q4 revenue. Saas revenue in Q4 grew 37 per cent year on year to US$88.9 million.

“Our fourth-quarter results are a strong conclusion to an outstanding year,” said Dr Jiang. AvePoint was listed on the Singapore Exchange (SGX) in September last year, and has been listed on the Nasdaq since 2021.

However, AvePoint is still facing some headwinds – particularly on the gross retention rates front.

Its gross retention rate – which is a metric showing the percentage of recurring revenue retained from existing customers, excluding expansion – stood at 88 per cent in Q4, which was in line with the Q3 retention rate, noted Caci.

He added that in Q3 and Q4, AvePoint noted a higher migration contribution than in prior years, due to increased customer modernisation around AI deployment.

Nonetheless, both Dr Jiang and Caci remain optimistic that Avepoint will be able to attain its target of US$1 billion annual recurring revenue by 2029.

Annual recurring revenue (ARR) of AvePoint increased 27 per cent to US$416.8 million as at Dec 31. This was the eleventh consecutive quarter of double-digit net new ARR growth, Caci said.

The company ended the year with 820 customers with a total ARR of over US$100,000, a year over year increase of 24 per cent, said Caci.

He also added that it has more than 100 customers with ARR of over US$500,000, as well as 31 customers with ARR of more than US$1,000,000.

“Taken together, these results demonstrate that we are meeting the demands of organisations looking for single-platform vendors that can address multiple strategic use cases,” he said.

Shares of AvePoint closed 7.6 per cent or S$0.97 higher at S$13.80 on Friday.