Shares of Microsoft (NASDAQ: MSFT) enjoyed a robust rally in 2023, mirroring the tech sector’s resurgence, buoyed by the ongoing artificial intelligence (AI) boom.
However, amidst the tech giants, a lesser-known firm linked to Microsoft has managed to outshine the software giant, offering investors an even more remarkable performance that has turned heads in the world of tech investments.
AvePoint joins the $1 billion club
The company in question is AvePoint (NASDAQ: AVPT) – the biggest independent provider of Software-as-a-Service (SaaS) solutions designed for migrating, managing, and protecting data in Microsoft 365.
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This New Jersey-based company specializes in providing cloud data management solutions for Microsoft 365, with a focus on data protection, governance, and compliance within the Microsoft ecosystem.
In terms of its stock market performance, AVPT soared more than 80% since the beginning of 2023, propelling its market cap from $775 million to $1.38 billion during this period, according to TradingView data.
At the time of writing, the company’s share price was standing at $7.49, up 0.4% on the day, 11.1% over the past week, and around 10.5% on a monthly basis.
Why is AvePoint stock up in 2023?
AvePoint’s impressive rally this year is primarily attributable to its strong Q1 and Q2 earnings reports.
Although it missed earnings estimates, the company generated $59.6 million in the second quarter, up 18% from the previous three-month period and up 23% year-over-year.
Its SaaS revenue grew 34% quarter-over-quarter, and more than 39% on a constant currency basis.
Additionally, just like many of its tech peers, AVPT is also benefiting from the current AI boom. As AI gains importance, companies are in greater need of well-organized, secure, and governed data for new AI applications.
AvePoint specializes in data management, governance, and security, making it a crucial partner in helping businesses navigate this phase and harness the power of AI for growth and competitiveness.
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