Jun. 14 at 10:57 PM
$AVPT Oh & ASP compression has a tell. NRR sliding toward 100 & ARR per account falling. The 1Q however went the other way. NRR at 111, customers over
$100K ARR up 25% to 863 with the larger sectors growing faster than that. Finally op margin up to 17.5 from 14.4.
Discount driven commoditization compresses margins, it isn't yet. Watch those two lines into H2 is fair but the early tell isn't there at all. On cash, that's the part of your bear case that underscores.
$444M net cash, 0 debt,
$150M buyback refreshed. In a fragmenting market the net cash platform is usually the consolidator not the casualty & POS rolled up hard too. AVPT is perfectly positioned to roll up the point solutions currently nibbling at the edges, using that cash flow to fund its ascent into agentic governance. This aligns precisely with where the control pipeline is shifting, poised to expand from a 1/4 of the business to nearly 1/2. The test is whether NRR & ARR per account hold through H2 and i believe it will
