AvePoint, Inc. Class A Common Stock 2026 Q2 Earnings Call

Thank you, operator. Good afternoon, and welcome to AvePoint's second quarter 2026 earnings call. With me on the call this afternoon is Dr. Tianyi Jiang, Chief Executive Officer, and Jim Caci, Chief Financial Officer. After preliminary remarks, we will open the call for a question-and-answer session. Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in our press release for a more complete description. All material in the webcast is the sole property and copyright of AvePoint, with all rights reserved. Please note this presentation describes certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, and non-GAAP operating margin, which are not measures prepared in accordance with US GAAP.

The non-GAAP measures are included in this presentation as we believe they provide investors with a means of understanding how management evaluates the company's operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with US GAAP. A reconciliation of these measures to the most directly comparable GAAP financial measures is available in our second quarter 2026 earnings press release, as well as our updated investor presentation and financial tables, all of which are available on our investor relations website. With that, let me turn the call over to TJ.

Thank you, Jamie, and thank you to everyone joining us on the call today. Q2 was another strong quarter for AvePoint, and our results make clear that in today's rapidly evolving AI-dominated business landscape, our customer value proposition is resonating better than ever. This is true for organizations which are new to AvePoint, as well as for our existing customers, which are now consuming even more of the AvePoint Confidence Platform. This broad-based demand is reflected across our second quarter performance, where we once again outperformed all guided metrics, delivered double-digit growth in net new ARR, our thirteenth straight quarter, and achieved several record KPIs. As Jim and I will discuss, AvePoint has never been in a stronger position to capitalize on the multiple growth opportunities ahead of us. What is that value proposition for customers? This is where I want to spend my time today.

Let's jump in. Agentic AI represents perhaps the largest technological opportunity of our generation, and companies around the world are moving swiftly to ensure that they fully harness its capabilities. In the course of these deployments, employees at organizations of all sizes, in all regions, and across every industry have moved beyond chatbots and Copilots and are now creating autonomous agents that can access sensitive data, make critical decisions, and take action across the enterprise. As these agents proliferate, new challenges are emerging, and we frequently see that many organizations cannot answer some very basic questions, such as how many AI agents are operating in the business and who owns them? What data are they accessing, and are they fully compliant with company policies? What risks are they introducing, and can you proactively recover from any granular damage they cause?

What do these agents cost now and at scale? Perhaps most importantly, are these agents delivering measurable business value? Our customer conversations show that answering these simple questions is, in fact, far more difficult because enterprises today are facing a new form of sprawl. Across Microsoft 365, Google Workspace, Salesforce, Copilot Studio, and countless custom environments, AI agents are being created faster than organizations can manage them. As a result, we're seeing the emergence of shadow AI, agents operating outside traditional governance frameworks, often with access to sensitive information and little organizational oversight. Our formal research proves this as well.

Our recently published State of AI report, which surveys 750 global IT leaders, found that 88% of organizations reported at least one security incident tied to agents in the past year, and that nearly 20% don't know whether their employees are using unsanctioned tools to build AI agents in their own environment. Without answers to those questions, without trust in this new, powerful technology, and without the ability to address shadow AI adoption and ROI at scale will eventually hit a wall. It's not surprising, therefore, that nearly 90% of organizations have delayed their AI deployments by an average of 6 months, citing this lack of trust. Just as cybersecurity became essential to the internet and governance became essential to the cloud, trust will become the essential unifying layer for AI, and this is where AvePoint is uniquely positioned.

For 25 years, AvePoint has helped organizations govern, secure, and manage their most critical enterprise data. We have built deep expertise in understanding who has access to information, how data is being used, and how organizations can scale innovation without scaling risk. That foundation becomes even more valuable in the age of AI, because AI agents are only as trustworthy as the data, governance, and controls surrounding them. This is precisely why we launched AgentPulse, which became GA in Q1 as part of the tiered bundles of our control suite. At a high level, AgentPulse gives organizations unified visibility, governance, and cost control for every AI agent operating across their environment, all from one centralized command center. More specifically, AgentPulse can discover previously unknown agents, identify risky permissions, enforce data governance policies, retire unused agents, assign ownership, and gain visibility into the true economics of their AI investments.

Critically, our approach is platform-neutral. We can do all these things across the most commonly used cloud ecosystems and business applications. Distinguishing AvePoint from the more narrowly focused point solutions, as well as the individual native capabilities of the hyperscalers. This is the value that only AvePoint can provide today, and we believe will drive incremental demand in the years to come. Gartner is currently defining a new agent management platform category, where it projects that by 2029, enterprise investments will exceed $15 billion, and the average Fortune 500 company will be managing 150,000 agents. This creates a powerful strategic position for us. As AI adoption grows, organizations will need more than basic intelligence. They will need the visibility, accountability, compliance, and operational control of the AvePoint Confidence Platform, the unifying trust layer for AI.

Importantly, our ongoing innovation ensures that we will capitalize on this durable and growing market opportunity. This includes the launch of AgentPulse on a standalone basis in early July, as well as our announcement this week at Black Hat of new kinetic classification and rapid recovery intelligence capabilities. Two solutions which work hand-in-hand to continuously evaluate data sensitivity, provide security teams with a real-time view of their critical data, and help them quickly restore it at machine speed when an incident occurs. That's where we see the market going. Let me come back to the quarter and share some examples of the team's success with both new logos and existing customers. One of the largest American retail corporations has been a long-time AvePoint customer, and in Q2 opened up AI agent building to its 36,000 employees, immediately introducing risks around agent sprawl, cost exposure, and compliance.

After evaluating native tools and other leading cybersecurity vendors, they chose AgentPulse through our Control Plus bundle, giving them a single pane of glass to immediately inventory, analyze, and govern more than 10,000 agents. By becoming the trusted layer beneath their entire agent environment, AvePoint is now critical to how they scale AI safely, deepening a relationship that now spans governance, security, and resilience across their organization, and elevating this customer into our million-dollar ARR cohort. Similarly, one of the largest dental insurance providers in the United States, with more than 12,000 employees, faced a lack of visibility and potential sprawl as AI Copilots and agents began proliferating across their environment. After evaluating alternative solutions like Agent 365, they selected AgentPulse based on our more actionable governance capabilities and lower overall costs.

This expansion successfully transitioned this existing customer from a à la carte licensing to our Control Plus bundle, validating a land and expand motion that extends our trusted governance relationship directly into the management of their emerging AI ecosystem. Two Canadian corporations became new AvePoint customers in Q2. One, a consumer lender, knew that the native backup and archiving capabilities from Salesforce could not meet their long-term requirements. After successful proof of concept, the organization trusted AvePoint to protect their critical Salesforce data, and since that deployment, we have created new opportunities to expand into Microsoft 365 protection, along with broader governance capabilities from the control suite. Second, a financial services company came to us at a crossroads. Their new CISO paused a planned Copilot deployment until concerns around sensitive information could be addressed.

We quickly acted on a proof concept, which provided the visibility and oversight their CISO required, removing a key barrier to AI deployment for this organization. With the confidence to move forward with Copilot across approximately 3,000 employees, the customer is now evaluating additional capabilities within our resilience suite. Lastly, one of the world's largest banks signed a seven-figure upsell deal in the quarter. A long-standing customer of all three of our suites. They needed to address strict legal requirements for record management and data protection ahead of a multi-petabyte modernization effort. As part of this expansion, the customer extended their governance and records management capabilities within our control suite to include both on-prem and cloud data. By doing so, the organization has further strengthened its governance framework and laid the foundation for secure and compliant AI adoption.

AvePoint's mission has always been to give organizations the confidence to innovate faster while maintaining control of their data, security, and compliance obligations. That mission was relevant when we founded the company 25 years ago and is equally critical today as customers rely on us to safely deploy enterprise AI at scale. We believe the winners of the AI era will not simply be the companies building the most agents. The winners will be the companies enabling enterprises to trust those agents. As investors evaluate the long-term opportunity in artificial intelligence, we believe one theme will become increasingly clear. The future belongs to trusted AI, and AvePoint is building the unifying trust layer for AI that makes that future possible. Thank you again for joining us today. I will now turn it over to Jim.