Dive Brief:
- AvePoint tapped a network of roughly 2,000 managed service providers to fuel midmarket expansion of its data management platform in the second quarter of its 2026 fiscal year, the software company said during a Thursday earnings call. MSPs helped AvePoint add a record number of small and midsize businesses to its customer base as total revenue grew 22% year over year to $124.5 million for the three months ended June 30.
- “Much of this success is attributable to the continued rapid growth of our MSP business and strategy of driving more business through the channel,” CFO Jim Caci said. “Our MSP segment continues to be one of AvePoint's fastest-growing areas, and we intend to continue investing here to ensure we efficiently capture the enormous market opportunity that it serves.”
- The company increased annual recurring revenue 27% to $465.1 million in Q2, growing net new ARR to 35% to a record $29.2 million. Nearly 60% of total ARR and two-thirds of net new ARR was delivered by channel partners. The SMB segment accounted for roughly 20% of the total, CEO Tianyi Jiang said, adding, “Right now, MSP is almost analogous to SMB to us.”
Dive Insight:
AvePoint’s MSP buildout was grounded in providing partners with a platform to govern and secure customer data. The company spent $15.4 million in January 2025 to acquire an 80% stake in Microsoft managed service platform provider Ydentic and delivered the next generation of the Elements multi-tenant data security platform last year.
The company has continued updating Elements and the underlying Confidence platform as generative and agentic AI adoption complicates data management controls. AvePoint added licensing support for Microsoft’s Copilot-infused E7 office productivity suite and stronger Microsoft 365 backup and recovery capabilities in June.
Agent management is also on the AvePoint agenda, as partners grapple with AI sprawl.
“Across Microsoft 365, Google Workspace, Salesforce, Copilot Studio and countless custom environments, AI agents are being created faster than organizations can manage them,” Jiang said. “We're seeing the emergence of shadow AI, agents operating outside traditional governance frameworks often with access to sensitive information and little organizational oversight.”
Earlier this month, AvePoint introduced a tool to reclassify data as its status changes over time. The kinetic classification capability is designed to continuously evaluate data as it is accessed and changed by agents. The tool works across Microsoft 365, Google Workspace, GitHub, ServiceNow and several other common business applications, according to AvePoint.
In addition to investing in platform improvements, AvePoint is steering resources into its channel ecosystem. The company revamped its partner program a year ago, adding points-based rewards to incentivize outcomes.
“The second area of focus will be our go-to-market motion, where additional support for sales capacity, partner enablement and enhanced brand awareness will allow us to better capture the market demand, support pipeline growth and improve campaign conversions,” Caci said Thursday.
The company expects ARR to grow 26% for the full year compared with 2025. Caci added $1 million to AvePoint’s previous guidance for annual ARR, which is now projected to be in the $522.1 million to $528.1 million range.
