In the recent trading days, Lu Zhijian, a significant shareholder of AvePoint, Inc. (NASDAQ:AVPT), a leader in prepackaged software services, executed a series of stock sales. The transactions, which occurred on September 16, 17, and 18, involved the sale of 30,000 shares of common stock, resulting in a total of over $355,000 in proceeds for Zhijian.
The sales were executed at prices ranging from $11.73 to $11.91 per share. On the first day, 10,000 shares were sold at $11.91 each, followed by another 10,000 shares at $11.87 the next day, and the final batch of 10,000 shares was sold at $11.73 on the last day.
According to the footnotes in the report, these sales were made in accordance with a Rule 10b5-1 trading plan adopted by Lu Zhijian on May 19, 2024. This trading plan allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
The report also details that following these transactions, Zhijian indirectly owns 18,410,673 shares of AvePoint, Inc. through various trusts and LLCs. The footnotes clarify that Zhijian disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest.
The attorney-in-fact for the transactions, Brian Michael Brown, signed the document on September 18, 2024, indicating the formal completion of these reported sales.
In other recent news, AvePoint has reported a strong performance for the second quarter of 2024, exceeding its financial guidance. The company's total revenues reached $78 million, marking a 20% increase from the previous year, and SaaS revenue showed an impressive growth of 40%. The company's Confidence Platform continues to attract customers, contributing to a record 87% recurring revenue mix. AvePoint's total ARR reached $290.1 million, showing a 23% year-over-year growth, and the net retention rate stood at 110%.
AvePoint's operating income also improved significantly, with an operating margin of 11.2%. The company has raised its full-year guidance for total ARR, total revenues, and non-GAAP operating income. For the third quarter, AvePoint expects total revenues of $82 million to $84 million and non-GAAP operating income between $11 million and $12 million.
In terms of customer wins, AvePoint secured deals with a Fortune 20 global financial services organization and a Fortune 500 US-based institution. Despite these gains, some revenue lines such as term license and support and maintenance revenue declined year-over-year. These are the recent developments that have been affecting the company.
InvestingPro Insights
Amidst the stock sales by significant shareholder Lu Zhijian, AvePoint, Inc. (NASDAQ:AVPT) has demonstrated a series of financial metrics and expert analyses that could be of interest to current and potential investors. An InvestingPro Tip highlights that AvePoint holds more cash than debt on its balance sheet, a positive sign for the company's financial health and risk profile. Additionally, analysts have revised their earnings upwards for the upcoming period, reflecting optimism about the company's future performance.
From the real-time data provided by InvestingPro, AvePoint's market capitalization stands at $2.19 billion, underscoring its substantial size in the prepackaged software services sector. The company's revenue has grown by 19.57% over the last twelve months as of Q2 2024, indicating healthy top-line growth. Moreover, AvePoint has achieved a gross profit margin of 73.6%, a strong indicator of its profitability at the core operational level.
Investors may also be intrigued by the company's price dynamics. AvePoint has experienced a large price uptick over the last six months, with a 54.23% total return, and is currently trading near its 52-week high, at 96.44% of this peak value. It's worth noting that AvePoint does not pay a dividend, which may influence the investment strategy of income-focused shareholders.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available, providing a comprehensive view of AvePoint's financial performance and market position. Visit InvestingPro for further insights and to explore the full range of expert tips.
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