William Blair Weary of AvePoint (AVPT) Pricing Model and Microsoft Alignment

AvePoint, Inc. (NASDAQ:AVPT) is one of the single-digit stocks with double-digit growth potential. On March 23, William Blair downgraded AvePoint, Inc. (NASDAQ:AVPT) to a Market Perform from Outperform. The downgrade comes amid concerns about the company’s seat-based pricing model.

The research is also wary of the company’s fundamental ties to Microsoft workloads, licensing, and product evolution. According to the research firm, the company’s close alignment with the Microsoft 365 ecosystem presents challenges. For starters, there are fears of low organic top-line acceleration despite Avepoint enjoying consistent growth above 25%.

William Blair has warned that there is a risk that Avepoint’s growth will correlate with Microsoft 365’s growth rate, which would be muted.

The muted growth would come as the Microsoft 365 backup market moderates due to heightened competition in the crowded field of third-party backup providers. On the other hand, the company’s expansion beyond Microsoft is unlikely to happen and won’t be a material growth driver.

AvePoint, Inc. (NASDAQ:AVPT) provides a cloud-native software platform designed for data management, governance, and protection, primarily for Microsoft 365, Google Workspace, and Salesforce. It helps organizations secure collaboration, manage data lifecycles, back up and migrate data, and ensure regulatory compliance.

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