JERSEY CITY, NJ—Lu Zhijian, a significant shareholder of AvePoint, Inc. (NASDAQ:AVPT), recently sold shares of the company's common stock totaling approximately $471,100. The transactions were conducted over three days, from November 14 to November 18, 2024, at prices ranging from $15.66 to $15.77 per share.
Zhijian's sales were executed under a Rule 10b5-1 trading plan, which provides a pre-determined schedule for selling stocks. Following these transactions, Zhijian retains ownership of 18,290,673 shares, held indirectly through various trusts and LLCs.
AvePoint, Inc., a company specializing in prepackaged software services, is headquartered in Jersey City, New Jersey. This development comes as part of regular trading activities and reflects Zhijian's ongoing management of his investment portfolio.
In other recent news, AvePoint Inc. made significant strides in the third quarter of 2024, surpassing expectations with robust financial results. The company's total revenues reached a noteworthy $88.8 million, marking a 22% increase from the previous year. Additionally, AvePoint's SaaS revenue experienced a substantial year-over-year growth of 45%, accounting for 69% of total revenues. The company's Annual Recurring Revenue (ARR) also saw an increase, climbing to $308.9 million, a 23% rise from the prior year.
AvePoint's leadership, including CEO Dr. TJ Jiang and CFO Jim Caci, have expressed confidence in the company's trajectory, aiming for GAAP profitability by 2025 and raising full-year revenue and ARR guidance. According to recent developments, the company's full-year revenue guidance is set between $327.8 million to $329.8 million, and ARR is expected to be between $324.9 million to $326.9 million.
Furthermore, AvePoint reported a record number of new customers and a slight increase in gross retention rate to 88%, with a target of reaching 90%. The company's focus on its Confidence Platform, which meets the critical needs of data security and governance, has played a key role in its success, particularly given the growing importance of data management in the era of generative AI.
InvestingPro Insights
In light of Lu Zhijian's recent stock sales, it's worth examining AvePoint's current financial position and market performance. According to InvestingPro data, AvePoint (NASDAQ:AVPT) has shown impressive market momentum, with a 91.72% year-to-date price total return as of the latest available data. This strong performance aligns with the company's robust revenue growth of 21.13% over the last twelve months, reaching $315.92 million.
InvestingPro Tips highlight that AvePoint holds more cash than debt on its balance sheet, indicating a solid financial foundation. This strength is further underscored by the fact that the company's liquid assets exceed its short-term obligations, suggesting good short-term financial health.
However, investors should note that AvePoint is trading near its 52-week high, with its price at 95.39% of the 52-week high. An InvestingPro Tip also indicates that the stock's RSI suggests it may be in overbought territory, which could be a factor in Zhijian's decision to sell some shares.
While the company has not been profitable over the last twelve months, analysts are optimistic about its future. An InvestingPro Tip reveals that net income is expected to grow this year, and analysts predict the company will turn profitable. This positive outlook is supported by three analysts who have revised their earnings upwards for the upcoming period.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for AvePoint, providing a deeper understanding of the company's financial health and market position.
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