Avepoint CEO TJ Jiang breaks down his company's Q2 earnings.
- AvePoint the largest data management solutions provider for Microsoft 365 out with earnings. So take a look at some of those results revenue coming in at $45 million that should be that's up 38% from a year ago. The SAS revenue coming in at $21 million revenue from SAS that's up 76% from a year ago. TJ Jiang, he's the CEO of AvePoint joining us now for a little bit more about these numbers. And TJ, when you post pretty dramatic growth like that especially in SAS revenue up 76% from the number that we saw last year. What's behind that type of acceleration?
TJ JIANG: Well the digital transformation is a major tailwind here, of course with COVID folks are working remotely in hybrid scenarios that are acceleration started when after we did the subscription conversion three years ago. So this is actually our 10th straight record quarter. AvePoint business is to help enterprises collaborate more compliant, secure and more productive. And we do this across the Microsoft 365 platform.
So just as you mentioned, today where the largest data management SAS provider for Microsoft 365.
- If I'm using it, am I aware that you're providing me the protection? Do I purchase it via you via Microsoft? How can the people watching use you?
TJ JIANG: That's great question, Adam. So typically, the end users doesn't really realize they're using our solution. It's really the IT professionals. So our buyers are CIO, CIO - 1, in the enterprise space, in SMP spaces manage service providers because small businesses don't have IT. So it's really the IT professional behind the scenes use our solution to help customers manage their Microsoft 365 data in a secure and compliant way to retire data properly, to actually provision data out of the box automatically. So we're really behind the scenes.
- TJ, a couple of things they point out in your earnings call you so that you aim to increase your market share of Microsoft 365 user base. You also wanna boost your customer retention rate, how do you plan to do that?
TJ JIANG: Yeah. Today we have well over a million enterprise users leveraging our SAS solution globally to manage your data. So we have increased our net dollar retention rate to 111% by investing in to customer success, focusing our existing customers through cross-sell, upsell we continue to roll out new products. And the market is front of us is massive. There's 280 million Microsoft 365 users projected going towards 500 million.
And we have a million and we're growing fast, no one has the market so it's really a market race game to grab market share. For us, we have a first mover advantage being SAS for nine years now in the enterprise space. But because we're SAS we're now more accessible to SMB as well, where else has we have a platform advantage where we do the end to end data management lifecycle from migration, to governance, to compliance. So we don't have any singular competitor.
In that way, we actually have a tremendous technology and first mover advantage. And the market tailwind is so strong, so we're very, very excited by going public. We have the ability to accelerate our momentum here.
- Where are the threats you know, the future threats because you've got to stay a step ahead of the hackers and the potential people who could cause chaos. Where are they coming next? Because most of us we just want to know it's safe, it's secure, I can do what I need to do.
TJ JIANG: Yeah. Unfortunately, there is no silver bullet when it comes to cyber security. Every other day we're here different type of novel attack vectors. So we are part of the collaboration security governance, it's part of a multilayered approach enterprise deployed to protect themselves. Unfortunately, many times we are only as strong as your weakest link, all it takes is that one social engineered phishing email to get malware into accounts.
So for us, even the-- you know when we talk about data backup as a service, even the White House recommending you must have no matter which platform provider you use, you must have this segregate this intermediary segregated backup and restore solution. So we actually offer our clients bring on storage, bring on keeper authentication we can store their data anywhere. And allow their end users via chat bot to restore their content if they were compromised by ransomware attack or corruption attacks.
So this part of a multi-layer approach. Our governance solution also have the proper way to shut down access when the team walks us over. Oftentimes what people don't realize is over 90% enterprise content leakage happen intentionally by internal actors. Because a lot of these today's digital platforms are designed to be viral easy to use very quickly we have dataspro, oversharing. And that's the real big issue there.
- TJ Jiang, great to speak with you. CEO of AvePoint.