Did you hear about my buddy's project last week? He used a sharp bit but still tore up the plywood... said it was exactly what @rodriguez.felix described, a total mess. After that, he started using a backer board every time and saves so much hassle now.
Wait, are you actually saying a sharp bit alone fixes plywood tear-out? I've ruined enough projects to know that's fantasy. The bottom layer of plywood just shreds no matter how new the bit is. That backer board takes two seconds to clamp and saves you an hour of filling gaps.