$AvePoint(AVP.SG)

AvePoint: Growth story worth watching, but don’t chase

AvePoint’s SGX secondary listing gives Singapore investors access to a U.S.-listed SaaS business riding the growth of cloud, AI governance and data protection. The opportunity is compelling, but the stock deserves some caution after its recent rally.

Fundamentally, FY2026 is shaping up well. Q2 revenue rose 22% YoY to US$124.5 million, while SaaS revenue grew 27%. ARR reached US$465.1 million, up 27%, with net retention at 111%. Management guides for FY2026 revenue of US$508.5–512.5 million and ARR of US$522.1–528.1 million. Cash stood at US$417 million, against only US$27 million of debt, providing a strong balance sheet.

The valuation is less comfortable. At roughly US$14.07 on Nasdaq, market capitalisation is about US$3.0 billion. That equates to approximately 5.8x FY2026 sales and about 30x guided non-GAAP operating income. Investors are therefore paying for continued double-digit growth and margin expansion.

Technically, momentum has improved. The share price sits above its 50-day and 200-day moving averages, while RSI around 65 indicates positive momentum without being clearly overbought. However, the stock is close to its 52-week high, increasing the risk of profit-taking.

The investment case is therefore cautiously optimistic rather than outright bullish. AvePoint has real recurring revenue, improving profitability, strong cash generation and exposure to AI governance. But at current levels, expectations are already elevated.

For Singapore investors, the SGX listing improves accessibility—but it does not make the underlying U.S. SaaS valuation any cheaper. Waiting for a pullback or stronger earnings confirmation may offer a better margin of safety.

Not financial advice.