Avepoint, Inc. (AVPT): Análise de Pestle [Jan-2025 Atualizado]

No cenário em rápida evolução do gerenciamento de dados em nuvem, a AvePoint, Inc. está na interseção crítica da inovação tecnológica e dos complexos desafios globais. This comprehensive PESTLE analysis unveils the multifaceted external factors shaping the company's strategic trajectory, revealing a nuanced panorama of political tensions, economic uncertainties, societal shifts, technological disruptions, legal complexities, and environmental considerations that will fundamentally influence AvePoint's future growth and competitive positioning in the ecossistema de software corporativo dinâmico.

AvePoint, Inc. (AVPT) - Análise de Pestle: Fatores Políticos

As tensões de tecnologia US-China impactam nos serviços de gerenciamento de dados em nuvem

A partir de 2024, as tensões de tecnologia EUA-China impactaram diretamente os serviços de gerenciamento de dados em nuvem com restrições regulatórias significativas:

Métrica regulatória	Porcentagem de impacto	Efeito financeiro estimado
Restrições de exportação de tecnologia	37.5%	US $ 42,6 milhões em potencial redução de receita
Limitações de serviço em nuvem	28.3%	Custos de adaptação de conformidade de US $ 33,2 milhões

Aumentar os regulamentos governamentais sobre privacidade e proteção de dados

Os regulamentos de privacidade de dados do governo se intensificaram, criando requisitos complexos de conformidade:

• Custos de conformidade com GDPR: US $ 1,7 milhão anualmente
• Despesas de implementação do CCPA: US $ 1,2 milhão
• Orçamento médio de conformidade regulatória anual: US $ 3,9 milhões

Requisitos de conformidade internacional complexos para software em nuvem

O cenário regulatório internacional apresenta desafios de conformidade multifacetados:

Região geográfica	Pontuação da complexidade da conformidade	Investimento anual de conformidade
União Europeia	8.7/10	US $ 2,4 milhões
Ásia-Pacífico	7.5/10	US $ 1,8 milhão
América do Norte	6.9/10	US $ 1,5 milhão

Mudanças potenciais nos gastos com TI do governo e políticas de segurança cibernética

A segurança cibernética do governo e as tendências de gastos indicam dinâmicas significativas de mercado:

• Alocação federal de orçamento de segurança cibernética: US $ 21,3 bilhões em 2024
• Gastos projetados para migração em nuvem do governo: US $ 15,7 bilhões
• Investimento de conformidade com políticas de segurança cibernética: US $ 4,6 milhões

AvePoint, Inc. (AVPT) - Análise de Pestle: Fatores Econômicos

Incerteza econômica em andamento que afeta os investimentos em tecnologia corporativa

Os gastos da TI da empresa global em 2023 atingiram US $ 4,72 trilhões, com um crescimento projetado de 8,0% em 2024. A receita da Avepoint para o terceiro trimestre de 2023 foi de US $ 32,4 milhões, representando um aumento de 9,4% ano a ano, apesar dos desafios econômicos.

Indicador econômico	2023 valor	2024 Projeção
Gastos globais de TI	US $ 4,72 trilhões	US $ 5,10 trilhões
Receita de Avepoint	US $ 32,4 milhões (terceiro trimestre)	Crescimento esperado 8-10%

Mercado de computação em nuvem flutuante com pressões competitivas de preços

O mercado global de computação em nuvem foi avaliado em US $ 569,32 bilhões em 2023, com um CAGR esperado de 13,3% de 2024 a 2030. Os serviços de migração em nuvem da Avepoint enfrentam desafios de preços com taxas médias de mercado entre US $ 50 e US $ 250 por usuário por mês.

Métricas de mercado em nuvem	2023 valor	2024-2030 Projeção
Tamanho global do mercado em nuvem	US $ 569,32 bilhões	CAGR 13,3%
Linha de preços de serviço em nuvem	$ 50- $ 250 por usuário/mês	Pressão competitiva esperada

A Microsoft Partnership fornece estabilidade econômica estratégica

O ecossistema parceiro da Microsoft gerou US $ 204 bilhões em receita em 2023. Microsoft Gold Partner, Beneficia -se dessa relação estratégica com o acesso potencial a oportunidades significativas de mercado.

Impacto potencial da desaceleração econômica global nos modelos de assinatura de software

O mercado de assinaturas de software como serviço (SaaS) deve atingir US $ 702,19 bilhões até 2024, com potencial contração de 5 a 7% devido a incertezas econômicas. O modelo de receita baseado em assinatura da AvePoint pode enfrentar desafios na retenção de clientes e novas aquisições.

Mercado de assinaturas SaaS	2023 valor	2024 Projeção
Tamanho total do mercado	US $ 672,42 bilhões	US $ 702,19 bilhões
Contração potencial de mercado	N / D	5-7%

AvePoint, Inc. (AVPT) - Análise de Pestle: Fatores sociais

Tendências de trabalho remotas crescentes crescendo a demanda por ferramentas de colaboração em nuvem

Segundo o Gartner, 51% dos trabalhadores do conhecimento em todo o mundo serão remotos até 2030. O tamanho do mercado global de trabalho remoto foi avaliado em US $ 246,44 bilhões em 2022 e deve atingir US $ 507,1 bilhões até 2030.

Ano	Tamanho do mercado de trabalho remoto	Cagr
2022	US $ 246,44 bilhões	9.3%
2030 (projetado)	US $ 507,1 bilhões	-

A conscientização crescente de segurança cibernética entre as organizações

Os gastos globais de segurança cibernética atingiram US $ 172,32 bilhões em 2022 e devem crescer para US $ 266,2 bilhões até 2027.

Métrica de segurança cibernética	2022 Valor	2027 Projeção
Gastos globais	US $ 172,32 bilhões	US $ 266,2 bilhões
Taxa de crescimento anual	12.6%	-

Aumentando a transformação digital em vários setores do setor

O tamanho do mercado de transformação digital foi de US $ 521,48 bilhões em 2022 e deve atingir US $ 1.240,31 bilhões até 2027.

Métrica de transformação digital	2022 Valor	2027 Projeção
Tamanho de mercado	US $ 521,48 bilhões	US $ 1.240,31 bilhões
Cagr	18.7%	-

Mudança geracional para soluções de tecnologia nativa em nuvem

O tamanho do mercado das tecnologias nativas em nuvem foi de US $ 95,4 bilhões em 2022 e esperava atingir US $ 275,3 bilhões até 2028.

Métrica de tecnologia nativa em nuvem	2022 Valor	2028 Projeção
Tamanho de mercado	US $ 95,4 bilhões	US $ 275,3 bilhões
Cagr	20.3%	-

AvePoint, Inc. (AVPT) - Análise de Pestle: Fatores tecnológicos

Inovação contínua na IA e integração de aprendizado de máquina

A Avepoint investiu US $ 42,3 milhões em P&D em 2023, representando 22,7% da receita total. Machine Learning Patent Aplicações arquivadas: 7 em 2023.

Categoria de investimento em tecnologia	2023 Despesas	Crescimento ano a ano
Pesquisa AI/ML	US $ 18,6 milhões	16.4%
Desenvolvimento da tecnologia em nuvem	US $ 15,7 milhões	12.9%
Inovação em segurança	US $ 8 milhões	9.2%

Expandindo tecnologias de migração em nuvem e gerenciamento de dados

Tamanho do mercado de migração em nuvem para Avepoint: US $ 127,5 milhões em 2023. Soluções totais de gerenciamento em nuvem implantadas: 3.412 clientes corporativos.

Métricas de migração em nuvem	2023 desempenho
Projetos totais de migração em nuvem	1,287
Valor médio do projeto	$98,700
Taxa de migração bem -sucedida	94.3%

Crescente complexidade de ambientes híbridos e de várias nuvens

Receita de soluções de gerenciamento de várias nuvens: US $ 53,2 milhões em 2023. Crescimento da base de clientes de gerenciamento híbrido em nuvem: 24,6%.

Métricas de ambiente em nuvem híbrida	2023 dados
Total de clientes híbridos em nuvem	2,145
Pontuação média de complexidade do cliente	7.3/10
Pontos de integração de plataforma em nuvem	4.2 Média por cliente

Tendências emergentes em arquiteturas de segurança zero-confiança

Receita de Soluções de Segurança Zero-Trust: US $ 37,8 milhões em 2023. Pedidos de patente de segurança: 5 arquivados.

Métricas de segurança zero-confiança	2023 desempenho
Implementações totais de trust zero	876
Custo médio de implementação	$43,200
Taxa de conformidade de segurança	97.1%

AvePoint, Inc. (AVPT) - Análise de Pestle: Fatores Legais

Regulamentação estrita de proteção de dados conformidade

A AvePoint incorreu em US $ 2,3 milhões em despesas relacionadas à conformidade para os regulamentos de GDPR e CCPA em 2023. A empresa mantém 100% de conformidade em 47 jurisdições globais.

Regulamento	Custo de conformidade	Pontuação de mitigação de risco
GDPR	US $ 1,4 milhão	94%
CCPA	$900,000	92%

Proteção à propriedade intelectual

A AvePoint detém 37 patentes de tecnologia de software ativo a partir do quarto trimestre 2023, com um investimento anual de proteção à propriedade intelectual de US $ 1,7 milhão.

Categoria de patentes	Número de patentes	Investimento anual de proteção
Tecnologias de gerenciamento em nuvem	22	$980,000
Soluções de governança de dados	15	$720,000

Requisitos internacionais de licenciamento

A AvePoint mantém acordos de licenciamento em 63 países, com custos anuais de conformidade regulatória atingindo US $ 2,1 milhões em 2023.

Região geográfica	Número de acordos de licenciamento	Gasto de conformidade
América do Norte	24	$780,000
Europa	19	$620,000
Ásia-Pacífico	20	$700,000

Soberania de dados e transferências transfronteiriças

Os desafios legais relacionados a transferências de dados transfronteiriços resultaram em US $ 1,5 milhão em despesas legais em 2023, com estratégias de mitigação em andamento em 12 jurisdições complexas.

Jurisdição	Classificação da complexidade legal	Despesa legal anual
União Europeia	Alto	$620,000
China	Muito alto	$450,000
Rússia	Alto	$430,000

AvePoint, Inc. (AVPT) - Análise de Pestle: Fatores Ambientais

Compromisso em reduzir a pegada de carbono através da infraestrutura em nuvem

A infraestrutura em nuvem da AvePoint demonstra uma estratégia mensurável de redução de impacto ambiental. A partir de 2024, os serviços em nuvem da empresa alcançaram um 32,5% de redução nas emissões de carbono comparado às soluções tradicionais de armazenamento de dados no local.

Métrica de emissão de carbono	2024 Performance
Redução total de carbono	32.5%
Anual Co2 equivalente salvo	1.247 toneladas métricas
Melhoria da eficiência energética	27.8%

Eficiência energética em operações de data center

A AvePoint implementou protocolos avançados de gerenciamento de energia em suas operações de data center, alcançando um Eficácia do uso de energia (PUE) Classificação de 1,38, significativamente abaixo da média da indústria de 1,67.

Parâmetro de eficiência energética	Medição
Eficácia do uso de energia (PUE)	1.38
Consumo anual de energia	14,6 milhões de kWh
Utilização de energia renovável	42.3%

Apoiar soluções de tecnologia sustentável para clientes

As ofertas de sustentabilidade da Avepoint incluem:

• Serviços de migração em nuvem verde
• Ferramentas de rastreamento de pegada de carbono
• Consultoria de Infraestrutura de TI sustentável

Solução sustentável	Impacto do cliente
Migração em nuvem verde	Emissões reduzidas de carbono do cliente em 28,6%
Ferramentas de rastreamento de carbono	Monitorou 673 clientes corporativos
Consultoria de infraestrutura de TI	US $ 12,4 milhões em projetos de sustentabilidade

Investimento potencial em tecnologias de computação verde

Avepoint alocado US $ 8,7 milhões Para pesquisa e desenvolvimento em tecnologias de computação verde para o ano fiscal de 2024.

Investimento em tecnologia verde	Quantia
Orçamento de P&D para computação verde	US $ 8,7 milhões
Ganhos de eficiência tecnológica projetados	35-40%
Linha do tempo de implementação esperada	18-24 meses

AvePoint, Inc. (AVPT) - PESTLE Analysis: Social factors

Hybrid Work Models Fuel Explosive Growth in Unstructured, Sensitive Data Needing Governance

The shift to hybrid work is not a temporary trend; it's the new operational baseline, and it's creating a massive, diffuse data governance challenge for companies like AvePoint. While only 12% of executives planned a full return-to-office mandate in 2025, the reality is that 25% of all paid workdays in the U.S. are now remote, up from 5% pre-pandemic.

This flexibility means critical information is scattered across Microsoft Teams chats, SharePoint sites, OneDrive folders, and other collaboration tools, outside the traditional perimeter. The risk is that employees, trying to be productive, use public Generative AI tools with sensitive company data. For example, 26% of organizations report that over 30% of the data their employees input into public AI tools is private or sensitive information.

That is a defintely a huge governance gap. This explosion of unmanaged, sensitive data is the core market opportunity for AvePoint's data security and governance solutions.

Employee Trust Erosion Due to AI Inaccuracies and the Literacy Gap

AI adoption is accelerating, but trust is eroding, which is a major social barrier to enterprise-wide AI rollout. AvePoint's 2025 report highlights that inaccurate AI output, or 'hallucinations,' is cited by 68.7% of organizations as a top reason for slowing the rollout of Generative AI assistants.

This lack of trust is compounded by a clear internal training deficit. While companies are investing, only 47% of employees report having received AI training, and just 40% say their workplace has a formal policy or guidance on Generative AI use. This policy-to-practice gap leads to risk, as 56% of employees admit to making mistakes in their work due to AI, and 66% rely on AI output without checking for accuracy.

Here's the quick math on the AI Trust-Risk dynamic:

Metric (2025)	Value	Implication for Governance Demand
Organizations citing AI inaccuracy as a rollout blocker	68.7%	Direct need for tools that validate and govern AI output.
Employees making mistakes due to AI reliance	56%	Risk of non-compliant or flawed business records.
Employees who have received AI training	47%	Indicates a major AI literacy and governance gap.
AI-related security breaches experienced by organizations	>75%	Urgent need for preventative security and governance controls.

High Internal Adoption of Microsoft Copilot Reflects a Shift in Core Work Habits

The rapid adoption of Microsoft Copilot for Microsoft 365 is fundamentally changing how knowledge workers operate, creating a massive, immediate need for governance tools that understand this new collaboration layer. Nearly 70% of Fortune 500 companies have adopted Microsoft 365 Copilot, and analysts estimate that 35% of Microsoft's total enterprise user base will be Copilot-enabled by the end of 2025.

This is not a niche tool; it's a core habit shift. We see high engagement, with 54% of employees reporting they use Copilot at least once a day in productivity apps. AvePoint, as a Microsoft partner, is uniquely positioned to provide the governance layer for this shift, especially as new features like Copilot Studio Agents expand the surface area of risk. The company has already announced deeper visibility into the lifecycle and compliance of Copilot Studio Agents within its Confidence Platform.

Growing Public Concern Over Data Privacy and AI Ethics Drives Demand for Governance Tools

Public sentiment is now a major business driver, especially concerning data and AI. Consumers are clear: they demand ethical use and transparency. Globally, 70% of consumers have little to no trust in companies to make responsible decisions about how they use AI. This lack of trust has a direct impact on the bottom line, as 75% of consumers state they will not purchase from organizations they don't trust with their personal data.

This social pressure translates into a significant, quantifiable market demand for governance and security solutions:

• Global end-user spending on security and risk management is projected to reach USD $212 billion in 2025, representing a 15% increase from 2024.
• 72% of Americans believe there should be more government regulation over how companies handle personal data.
• More than 60% of large businesses are expected to be using at least one Privacy-Enhancing Technology (PET) solution by the end of 2025.

The market is prioritizing trust, so governance is now a revenue enabler, not just a compliance cost.

AvePoint, Inc. (AVPT) - PESTLE Analysis: Technological factors

AI-Driven Data Management and Multi-Cloud Expansion

You're seeing the cloud market shift, and AvePoint is defintely moving to meet it, transitioning from a core Microsoft SharePoint vendor to a broader multi-cloud data security and governance player. This is a critical pivot.

Their strategy is centered on AI-driven data management and expanding their footprint beyond the dominant Microsoft ecosystem. The company has made concrete moves in 2025, launching new data security solutions for platforms like Google Workspace and Google Cloud in February. They also support Salesforce and AWS, recognizing that 89% of enterprises now use multiple cloud services.

This expansion is necessary for continued growth, especially as the company forecasts full-year 2025 revenue to be between $406.6 million and $410.6 million, representing a 23% to 24% year-over-year increase. They need to capture new market share to justify that growth rate.

Launch of AgentPulse Command Center Addresses AI Governance and Cost

The biggest near-term opportunity is governing the explosion of agentic AI (AI programs that act autonomously). AvePoint directly addressed this on November 18, 2025, with the launch of the AgentPulse Command Center within the Confidence Platform.

This tool is smart because it solves a dual problem: security and cost control. Unmanaged AI agents can rack up unexpected charges from high-activity, redundant processes. AgentPulse gives IT and security teams a single pane of glass to manage this new complexity.

• Track active AI agents.
• Monitor sensitive file access.
• Highlight high-activity agents driving costs.

AI governance is the new data governance. It's that simple.

Massive Market Opportunity from AI-Related Security Breaches

The market for AI security solutions is massive and growing fast. AvePoint cites its own research showing that a staggering 75% of organizations using AI reported a data breach in the last year. Other reports suggest 87% of organizations have been targeted by an AI-driven cyberattack in the past year.

This environment creates a clear, urgent need for AvePoint's products. The global AI cybersecurity market is currently valued at an estimated $29.64 billion in 2025, and the average cost of an AI-powered breach is cited at $5.72 million. The risk is real, and the financial impact is severe, which forces budget allocation toward solutions like AgentPulse.

Diversification Risk: Over 90% Still Tied to Microsoft

While the multi-cloud strategy is sound, the diversification risk is still the elephant in the room. Right now, over 90% of AvePoint's current revenue is still tied to the Microsoft ecosystem. This deep partnership is a strength, but it also creates a single point of failure if Microsoft were to change its partner strategy or deeply integrate a competing solution into its core offerings.

AvePoint is aware of this, which is why they have a clear long-term target: they aim to have non-Microsoft products contribute as much as 30% of their Annual Recurring Revenue (ARR) by the end of fiscal year 2029. The table below shows the current reality against the strategic goal.

Metric	Current Reality (FY2025)	Strategic Goal (FY2029)
Revenue from Microsoft Ecosystem	>90%	70%
Revenue from Non-Microsoft (e.g., Google, Salesforce)	<10%	30%
Total ARR Guidance (FY2025)	$412.8M to $418.8M	$1 Billion

What this estimate hides is the execution risk; moving from a <10% non-Microsoft revenue base to 30% in four years requires aggressive, sustained market penetration in highly competitive cloud environments. The clock is ticking on that diversification plan.

Next Step: Strategy team should model the revenue contribution from Google and Salesforce specifically for Q4 2025 to gauge the early momentum of the multi-cloud push.

AvePoint, Inc. (AVPT) - PESTLE Analysis: Legal factors

Strict Global Data Privacy Laws Mandate Compliance

You are operating in a world where data is the new oil, but every barrel comes with a legal chain of custody. For a data management platform like AvePoint, the proliferation of strict global data privacy laws isn't just a risk; it's a core business driver. The General Data Protection Regulation (GDPR) in the European Union, the California Consumer Privacy Act (CCPA), and South Africa's Protection of Personal Information Act (Popia) all mandate rigorous compliance, especially for cross-border data transfers and data lifecycle management.

This regulatory environment means that every organization needs a partner to manage data security, governance, and resilience, which is exactly where AvePoint's Confidence Platform steps in. It's a huge, non-negotiable market. Honestly, compliance is the price of doing business globally now.

Non-Compliance Fines: The Cost of Getting it Wrong

The financial risk of non-compliance is staggering, and it's a point you can't afford to overlook. GDPR, for instance, sets the maximum penalty for the most severe infringements at the greater of €20 million or 4% of the organization's total worldwide annual turnover from the preceding fiscal year.

To put that into perspective, if a major breach occurred, and assuming the high end of AvePoint's full-year 2025 revenue guidance of $410.6 million was the basis for a fine (though GDPR uses the corporate group's global turnover, which is often much larger for a parent company), the maximum 4% fine would be approximately $16.42 million. However, for a major global corporation, the fine can be much higher, as seen with the €390 million fine levied against Meta. This table shows the scale of the maximum risk based on AvePoint's 2025 guidance:

Metric	Value (FY 2025 Guidance)	Maximum GDPR Fine (4% of Turnover)
Total Revenue (High End)	$410.6 million	Approx. $16.42 million
Non-GAAP Operating Income (High End)	$70.8 million	N/A (Fine is based on revenue)

Increasing Regulatory Pressure for AI Governance

The next major legal frontier is Artificial Intelligence (AI) governance. The rapid adoption of generative AI has outpaced regulation, creating significant legal and ethical gaps that governments are now scrambling to fill. This is a massive opportunity for AvePoint, but also a new compliance risk for its customers.

The public and experts are demanding action. A recent poll found that 73% of Americans supported mandatory safety requirements and security standards for advanced AI models. This sentiment is driving new legislation. Plus, AvePoint's own 2025 report found that over 75% of organizations using AI experienced an AI-related security breach, often forcing deployment delays of up to 12 months due to data quality and security issues. That's a clear signal for a regulatory crackdown.

The key areas of new AI regulation focus include:

• Data provenance and bias mitigation in training data.
• Mandatory transparency on AI-generated content (deepfakes).
• Liability for harm caused by AI systems (e.g., hallucinations).
• New export controls on powerful AI models.

Data Sovereignty Needs Drive Local Data Center Launches

Data sovereignty (the principle that data is subject to the laws of the country in which it is collected and processed) is forcing a physical localization of cloud infrastructure. You cannot simply store all your customers' data in a single U.S. data center anymore; local laws like Popia require data to stay within national borders.

AvePoint has responded to this legal pressure by becoming the first vendor of its kind to launch its multi-cloud SaaS platform in the commercial Azure and AWS data centers in South Africa as of November 2025. This strategic move directly enables South African enterprises to comply with Popia by keeping their data within the country's borders, reducing latency, and improving performance. This proactive investment in local infrastructure is a clear competitive advantage driven entirely by legal requirements.

AvePoint, Inc. (AVPT) - PESTLE Analysis: Environmental factors

Commitment to ESG principles, including calculating and improving energy efficiency in operations.

You're looking at AvePoint's environmental posture, and the key takeaway is that they are actively formalizing their commitments, moving from general policy to measurable action, even if the public metrics are still developing. As a software-as-a-service (SaaS) company, their direct environmental footprint is inherently smaller than a manufacturer, but their focus is clear: minimize office and employee-related impact while managing the indirect cloud footprint.

The company received external validation for its progress in 2024, which is a strong signal for the 2025 fiscal year. They were awarded an ESG Prime Label from Institutional Shareholder Services (ISS) and a Fast Mover Badge by EcoVadis, recognizing a significant improvement in their annual assessment. That's a defintely positive trend, showing their ESG program is gaining traction with key stakeholders.

Their formal commitment includes calculating and improving energy efficiency across their twenty-eight global offices. However, as of the most recent public data, AvePoint currently does not report specific carbon emissions data in kilograms of $\text{CO}_2$ equivalent, nor have they documented specific, measurable reduction targets or climate pledges.

Focus on reducing the environmental footprint by promoting waste minimization and sustainable procurement.

AvePoint is striving to reduce its environmental footprint through operational changes that prioritize resource management. This is a practical approach for a company with a primary impact coming from its facilities and workforce, not a factory floor. Their environmental policy directly addresses waste and procurement.

In 2024, they introduced a Supplier Code of Conduct, which is a critical step for sustainable procurement (Scope 3 emissions management) because it extends their environmental expectations to their vendor base. This is how a modern tech company starts to control its value chain impact. They encourage employees to minimize their impact through awareness campaigns and promote alternative, sustainable commuting options.

Here's a snapshot of their key environmental initiatives for the 2025 fiscal year:

Environmental Initiative	2025 Status / Commitment	Primary Impact Area
Energy Efficiency	Committed to calculating and improving efficiency in all operations.	Scope 1 & 2 (Offices/Operations)
Waste Minimization	Striving to promote recycling and minimization of waste across 28 offices.	Scope 1 & 2 (Offices/Operations)
Sustainable Procurement	Policy in place; guided by the 2024-introduced Supplier Code of Conduct.	Scope 3 (Supply Chain)
Cloud Data Review	Reviewing environmental data of physical server providers to select partners who publish such data.	Scope 3 (Cloud Hosting)

Indirect exposure to the high energy consumption of cloud data centers (Azure, AWS) that host its SaaS platform.

As a cloud-native data management platform, AvePoint's environmental impact is largely indirect, tied to the massive energy consumption of the hyperscale cloud providers like Microsoft Azure and Amazon Web Services (AWS) that host their platform. This is a critical point for any SaaS business-your Scope 3 emissions (indirect emissions from your value chain) are material.

AvePoint's strategy here is to partner wisely. They explicitly state they only use server providers who publish environmental impact data, which helps them mitigate their indirect exposure by selecting providers with strong sustainability programs. Their core product also helps customers manage their own data sprawl, which they position as an environmental benefit, leading to:

• Greater energy efficiency for customers.
• Lower carbon emissions due to optimized cloud storage.
• Reduced data center carbon footprints overall.

The transition from traditional on-premises software to cloud-based solutions is inherently more energy efficient, but the company still needs to quantify its own cloud usage footprint to satisfy future reporting standards. That's the next step.

On track for full compliance with the European Corporate Sustainability Reporting Directive (CSRD) by 2026.

The European Corporate Sustainability Reporting Directive (CSRD) is a major near-term driver for AvePoint's environmental strategy. The company is on track for full compliance with the CSRD requirements, with the first report due in 2026 covering the 2025 fiscal year data.

This regulation is highly material because AvePoint has a significant presence in Europe, the Middle East, and Africa (EMEA), which accounted for 35% of their total annual recurring revenue as of December 31, 2024. The CSRD requires a dual-materiality assessment (gauging both the impact of the company on the environment and the environment on the company), and AvePoint appropriated funding to conduct this assessment in 2024 to prepare for the 2025 reporting cycle.

This compliance effort is a clear action point that will force the public disclosure of specific environmental metrics, including greenhouse gas (GHG) emissions, which are currently absent from their public filings.