Microsoft 365-Focused AvePoint Lays Off 65
The layoffs at AvePoint, a major Microsoft cloud and Microsoft 365 ISV, come as macroeconomic conditions push the company to rethink how to operate more efficiently, said AvePoint CEO and Co-founder Tianyi “TJ” Jiang.
Tianyi “TJ” Jiang
AvePoint, an independent software vendor focusing on the Microsoft ecosystem, Monday revealed plans to lay off about 5 percent of the company’s workforce.
Tianyi “TJ” Jiang, CEO and co-founder of the Jersey City, N.J.-based ISV, Monday wrote in a blog post on the company’s website that macroeconomic environment issues are forcing AvePoint to take steps to improve efficiency, which includes letting grow of about 5 percent of its employees.
The move comes as AvePoint is evaluating how to remain focused on sustainable growth, Jiang wrote.
“This is especially important given the current macroeconomic environment, the shifting market expectation for companies in our market segment to focus on efficiency and the need to responsibly plan for a wider range of outcomes in the near-term. It is important that we control the controllable, and take the steps necessary to become a leaner, more efficient organization,” he wrote.
The layoffs, which will happen in multiple countries worldwide, is expected to cost the company about $3 million in restructuring expenses related to severance and compensation benefits during its fourth fiscal quarter, but shouldn’t impact the quarter’s revenue expectations, Jiang wrote.
“We assessed how each team fit into our strategy and determined the optimal size and shape of those groups going forward. We then did a comprehensive review of every team member and made decisions based on how well those skills matched our future business needs. The result is we are parting with colleagues who have made valuable contributions to AvePoint,” he wrote.
The five percent workforce cut amounts to about 65 employees, according to layoffstracker.com.
AvePoint is a 21-year-old provider of data governance, protection, and migration technology for Microsoft 365 environments.
The company is a five-year winner of the Microsoft Partner of the Year award, and provides its SaaS solutions directly or via MSPs to over 9 million cloud users worldwide. The company’s full suite of data management solutions for Microsoft 365 is hosted across 13 global data centers to provide scalability and to support data sovereignty requirements.
AvePoint in early November reported third fiscal quarter SaaS revenue of $30 million, up 34 percent year-over year, and total revenue of $62.7 million, up 16 percent. Total annual recurring revenue for the quarter was up 30 percent to $191.7 million.
AvePoint also reported a GAAP operating loss during the quarter of $7.4 million, down from $28.7 million a year ago. Non-GAAP operating income for the quarter was $2.2 million, down from last year’s $4.0 million.
The company has been expanding. AvePoint during its third fiscal quarter acquire tyGraph, which provides a platform that allows organizations to organize, measure, and analyze human interactions to accelerate success in the digital workplace, as well as Essential, a South Korea-based solution provider. AvePoint also set up a new research and development hub in Singapore.