AMPL Amplitude Inc

• Annual recurring revenue was $285 million, up 9% year over year
• First quarter revenue of $72.6 million, up 9% year over year
• First quarter Cash Flow from Operations of $(0.05) million and Free Cash Flow of $(1.1) million, representing a 7 percentage point increase in Free Cash Flow margin year over year

Amplitude, Inc. (Nasdaq: AMPL), a leading digital analytics platform, today announced financial results for its first quarter ended March 31, 2024.

"We’re still at the beginning of a generational shift in how businesses use customer and product data," said Spenser Skates, CEO and co-founder of Amplitude. "Digital analytics is a multibillion-dollar opportunity, and we believe Amplitude is well-positioned to lead the market. Many of the largest and fastest-growing companies already view Amplitude as their first call."

First Quarter 2024 Financial Highlights:

(in millions, except per share and percentage amounts)

 

 

First Quarter 2024

First Quarter 2023

Y/Y Change

Annual Recurring Revenue

$285

$262

9%

Revenue

$72.6

$66.5

9%

GAAP Loss from Operations

$(24.7)

$(29.2)

$4.5

Non-GAAP Income (Loss) from Operations

$(2.1)

$(7.9)

$5.8

GAAP Net Loss Per Share, Basic and Diluted

$(0.18)

$(0.23)

$0.05

Non-GAAP Net Income (Loss) Per Share, Diluted

$0.01

$(0.04)

$0.05

Net Cash Provided by (Used in) Operating Activities

$(0.05)

$(5.1)

$5.0

Free Cash Flow

$(1.1)

$(5.8)

$4.7

Non-GAAP income (loss) from operations and non-GAAP net income (loss) per share exclude expenses related to stock-based compensation expense and related employer payroll taxes and amortization of acquired intangible assets. Stock-based compensation expense and the related employer payroll taxes were $22.3 million in the first quarter of 2024 compared to $20.9 million in the first quarter of 2023. Free Cash Flow is GAAP net cash provided by (used in) operating activities, less cash used for purchases of property and equipment and capitalized internal-use software costs. The section titled "Non-GAAP Financial Measures" below contains a description of the non-GAAP financial measures and reconciliations between historical GAAP and non-GAAP information are contained in the tables below.

First Quarter and Recent Business Highlights:

• Annual Recurring Revenue was $285 million, an increase of 9% year over year and an increase of $4 million compared to the fourth quarter of 2023.
• GAAP Net Loss per share was $0.18, based on 120.8 million shares, in the first quarter of 2024, compared to a loss of $0.23 per share, based on 114.4 million shares, in the first quarter of 2023.
• Non-GAAP Net Income per share was $0.01, based on 130.9 million diluted shares, in the first quarter of 2024, compared to a loss of $0.04 per share, based on 114.4 million diluted shares, in the first quarter of 2023.
• Cash Flow from Operations was $(0.05) million, a $5.0 million increase year over year.
• Free Cash Flow was $(1.1) million, a $4.7 million increase year over year.
• Number of paying customers grew 37% year over year to 2,970.
• The number of customers representing $100,000 or more of ARR in Q1 grew to 521, an increase of 6% year over year.

Financial Outlook:

The second quarter and full year 2024 outlook information provided below is based on Amplitude’s current estimates and is not a guarantee of future performance. These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause Amplitude’s actual results to differ materially from these forward-looking statements.

For the second quarter and full year 2024, the Company expects:

 

Second Quarter 2024

Full Year 2024

Revenue

$71.7 - $72.3 million

$292.5 - $295.5 million

Non-GAAP Operating Income (Loss)

$(4.4) - $(3.8) million

$(1.0) - $2.0 million

Non-GAAP Net Income (Loss) Per Share

$(0.02) - $(0.01)

$0.07 - $0.09

Weighted Average Shares Outstanding

122.5 million, basic

133.5 million, diluted

An outlook for GAAP income (loss) from operations, GAAP net income (loss), GAAP net income (loss) per share and a reconciliation of expected non-GAAP income (loss) from operations to GAAP income (loss) from operations, expected non-GAAP net income (loss) to GAAP net income (loss), and expected non-GAAP net income (loss) per share to GAAP net income (loss) per share have not been provided as the quantification of certain items included in the calculation of GAAP income (loss) from operations, GAAP net income (loss) and GAAP net income (loss) per share cannot be reasonably calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as the number and value of awards granted that are not currently ascertainable, and the non-GAAP adjustment for amortization of acquired intangible assets depends on the timing and value of intangible assets acquired that cannot be accurately forecasted.

Conference Call Information:

Amplitude will host a live video webcast to discuss its financial results for its first quarter ended March 31, 2024, as well as the financial outlook for its second quarter and full year 2024 today at 2:00 PM Pacific Time / 5:00 PM Eastern Time. Interested parties may access the webcast, earnings press release, and investor presentation on the events section of Amplitude’s investor relations website at investors.amplitude.com. A replay will be available in the same location a few hours after the conclusion of the live webcast.

Forward-Looking Statements:

This press release contains express and implied "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s financial outlook for the second quarter and full year 2024, the Company’s growth strategy and business aspirations and its market position and market opportunity. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words or phrases or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not statements of historical fact, and are based on current expectations, estimates, and projections about the Company’s industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. These statements are subject to numerous uncertainties and risks that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including risks related to: the Company’s limited operating history and rapid growth over the last several years, which makes it difficult to forecast the Company’s future results of operations; the Company’s history of losses; any decline in the Company’s customer retention or expansion of its commercial relationships with existing customers or an inability to attract new customers; expected fluctuations in the Company’s financial results, making it difficult to project future results; the Company’s focus on sales to larger organizations and potentially increased dependency on those relationships, which may increase the variability of the Company’s sales cycles and results of operations; downturns or upturns in new sales, which may not be immediately reflected in the Company’s results of operations and may be difficult to discern; unfavorable conditions in the Company’s industry or the global economy, or reductions in information technology spending, which could limit the Company’s ability to grow its business; the market for SaaS applications, which may develop more slowly than the Company expects or decline; the Company’s intellectual property rights, which may not protect its business or provide the Company with a competitive advantage; and evolving privacy and other data-related laws. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are or will be included under the caption "Risk Factors" and elsewhere in the reports and other documents that the Company files with the Securities and Exchange Commission from time to time, including the Company’s Quarterly Report on Form 10-Q being filed at or around the date hereof. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Non-GAAP Financial Measures:

This press release includes financial information that has not been prepared in accordance with GAAP. The Company uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company’s ongoing operational performance. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial results with other companies in the industry, many of which present similar non-GAAP financial measures to investors. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in the Company’s industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. In addition, free cash flow does not reflect the Company’s future contractual commitments and the total increase or decrease of its cash balance for a given period.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures below.

Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income (Loss) from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income (Loss), and Non-GAAP Net Income (Loss) per Share.

The Company defines these non-GAAP financial measures as their respective GAAP measures, excluding expenses related to stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, and non-recurring costs such as restructuring and other related charges. The Company excludes stock-based compensation expense and related employer payroll taxes, which is a non-cash expense, from certain of its non-GAAP financial measures because it believes that excluding this item provides meaningful supplemental information regarding operational performance. The Company excludes amortization of intangible assets, which is a non-cash expense, related to business combinations from certain of its non-GAAP financial measures because such expenses are related to business combinations and have no direct correlation to the operation of the Company’s business. Although the Company excludes these expenses from certain non-GAAP financial measures, the revenue from acquired companies subsequent to the date of acquisition is reflected in these measures and the acquired intangible assets contribute to the Company’s revenue generation. The Company excludes non-recurring costs from certain of its non-GAAP financial measures because such expenses do not repeat period over period and are not reflective of the ongoing operation of the Company’s business.

The Company uses non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), and non-GAAP net income (loss) per share in conjunction with its traditional GAAP measures to evaluate the Company’s financial performance. The Company believes that these measures provide its management, board of directors, and investors consistency and comparability with its past financial performance and facilitates period-to-period comparisons of operations.

Free Cash Flow and Free Cash Flow Margin. The Company defines Free Cash Flow as net cash provided by (used in) operating activities, less cash used for purchases of property and equipment and capitalized internal-use software costs. Free Cash Flow margin is calculated as free cash flow divided by total revenue. The Company believes that Free Cash Flow and Free Cash Flow margin are useful indicators of liquidity that provides its management, board of directors, and investors with information about its future ability to generate or use cash to enhance the strength of its balance sheet and further invest in its business and pursue potential strategic initiatives.

Definitions of Business Metrics:

Annual Recurring Revenue

The Company defines Annual Recurring Revenue (“ARR”) as the annual recurring revenue of subscription agreements, including certain premium professional services that are subject to contractual subscription terms, at a point in time based on the terms of customers’ contracts. ARR should be viewed independently of revenue, and does not represent the Company’s GAAP revenue on an annualized basis, as it is an operating metric that can be impacted by contract start and end dates and renewal rates. ARR is also not intended to be a forecast of revenue.

Dollar-Based Net Retention Rate

The Company calculates dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period-end (the “Prior Period ARR”). The Company then calculates the ARR from these same customers as of the current period-end (the “Current Period ARR”). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but excludes ARR from new customers as well as any overage charges in the current period. The Company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate ("NRR"). The Company then calculates the weighted average of the trailing 12-month dollar-based net retention rates, to arrive at the trailing 12-month dollar-based net retention rate (“NRR (TTM)”).

About Amplitude

Amplitude is a leading digital analytics platform that helps companies unlock the power of their products. Almost 3,000 customers, including Atlassian, NBCUniversal, Under Armour, Shopify, and Jersey Mike’s, rely on Amplitude to gain self-service visibility into the entire customer journey. Amplitude guides companies every step of the way as they capture data they can trust, uncover clear insights about customer behavior, and take faster action. When teams understand how people are using their products, they can deliver better product experiences that drive growth. Amplitude is the best-in-class analytics solution for product, data, and marketing teams, ranked #1 in multiple categories in G2’s Spring 2024 Report. Learn how to optimize your digital products and business at amplitude.com.

AMPLITUDE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)   March 31, 2024 December 31, 2023 (unaudited) Assets Current assets: Cash and cash equivalents

$

265,705

 

$

248,491

 

Marketable securities, current

 

50,442

 

 

73,909

 

Accounts receivable, net

 

36,066

 

 

29,496

 

Prepaid expenses and other current assets

 

18,671

 

 

16,624

 

Deferred commissions, current

 

13,190

 

 

11,444

 

Total current assets

 

384,074

 

 

379,964

 

Property and equipment, net

 

10,871

 

 

10,068

 

Intangible assets, net

 

295

 

 

609

 

Goodwill

 

4,073

 

 

4,073

 

Restricted cash, noncurrent

 

872

 

 

869

 

Deferred commissions, noncurrent

 

25,071

 

 

26,942

 

Operating lease right-of-use assets

 

5,939

 

 

6,856

 

Other noncurrent assets

 

6,716

 

 

4,303

 

Total assets

$

437,911

 

$

433,684

 

Liabilities and Stockholders' Equity Current liabilities: Accounts payable

$

14,573

 

$

3,063

 

Accrued expenses

 

26,228

 

 

26,657

 

Deferred revenue

 

102,774

 

 

102,573

 

Total current liabilities

 

143,575

 

 

132,293

 

Operating lease liabilities, noncurrent

 

2,536

 

 

3,604

 

Noncurrent liabilities

 

2,590

 

 

3,034

 

Total liabilities

 

148,701

 

 

138,931

 

Stockholders’ equity: Common stock

 

1

 

 

1

 

Additional paid-in capital

 

674,313

 

 

658,463

 

Accumulated other comprehensive loss

 

(114

)

 

(181

)

Accumulated deficit

 

(384,990

)

 

(363,530

)

Total stockholders’ equity

 

289,210

 

 

294,753

 

Total liabilities and stockholders’ equity

$

437,911

 

$

433,684

 

AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)

Three Months Ended March 31,

 

2024

 

 

 

2023

 

(unaudited) (unaudited) Revenue

$

72,624

 

$

66,477

 

Cost of revenue (1)

 

18,889

 

 

19,187

 

Gross profit

 

53,735

 

 

47,290

 

Operating expenses: Research and development (1)

$

22,953

 

$

23,708

 

Sales and marketing (1)

 

40,817

 

 

39,133

 

General and administrative (1)

 

14,670

 

 

13,622

 

Total operating expenses

 

78,440

 

 

76,463

 

Loss from operations

 

(24,705

)

 

(29,173

)

Other income (expense), net

 

3,671

 

 

3,138

 

Loss before provision for (benefit from) income taxes

 

(21,034

)

 

(26,035

)

Provision for (benefit from) income taxes

 

426

 

 

280

 

Net loss

$

(21,460

)

$

(26,315

)

Net loss per share Basic and diluted

$

(0.18

)

$

(0.23

)

Weighted-average shares used in calculating net loss per share: Basic and diluted

 

120,826

 

 

114,369

 

  (1) Amounts include stock-based compensation expense as follows:

Three Months Ended March 31,

 

2024

 

 

 

2023

 

  Cost of revenue

$

1,474

 

$

1,792

 

Research and development

 

8,914

 

 

8,579

 

Sales and marketing

 

6,871

 

 

6,368

 

General and administrative

 

3,805

 

 

3,218

 

Total stock-based compensation expense

$

21,064

 

$

19,957

 

AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

Three Months Ended March 31,

 

2024

 

 

 

2023

 

(unaudited)

 

(unaudited)

Cash flows from operating activities: Net loss

$

(21,460

)

$

(26,315

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities Depreciation and amortization

 

1,450

 

 

1,349

 

Stock-based compensation expense

 

21,064

 

 

19,957

 

Other

 

(239

)

 

(245

)

Non-cash operating lease costs

 

985

 

 

985

 

Changes in operating assets and liabilities: Accounts receivable

 

(6,784

)

 

(8,145

)

Prepaid expenses and other current assets

 

(2,208

)

 

2,753

 

Deferred commissions

 

126

 

 

312

 

Other noncurrent assets

 

(2,909

)

 

1,472

 

Accounts payable

 

11,347

 

 

3,122

 

Accrued expenses

 

(507

)

 

1,043

 

Deferred revenue

 

201

 

 

(645

)

Operating lease liabilities

 

(1,114

)

 

(704

)

Net cash provided by (used in) operating activities

 

(48

)

 

(5,061

)

Cash flows from investing activities: Cash received from maturities of marketable securities

 

42,500

 

 

—

 

Purchase of marketable securities

 

(18,352

)

 

—

 

Purchase of property and equipment

 

(357

)

 

(329

)

Capitalization of internal-use software costs

 

(733

)

 

(448

)

Net cash provided by (used in) investing activities

 

23,058

 

 

(777

)

Cash flows from financing activities: Proceeds from the exercise of stock options

 

1,794

 

 

1,687

 

Cash received for tax withholding obligations on equity award settlements

 

1,546

 

 

6,325

 

Cash paid for tax withholding obligations on equity award settlements

 

(9,133

)

 

(5,955

)

Repurchase of unvested stock options

 

—

 

 

(648

)

Net cash provided by (used in) financing activities

 

(5,793

)

 

1,409

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

17,217

 

 

(4,429

)

Cash, cash equivalents, and restricted cash at beginning of the period

 

249,360

 

 

219,349

 

Cash, cash equivalents, and restricted cash at end of the period

$

266,577

 

$

214,920

 

AMPLITUDE, INC. Reconciliation of GAAP to Non-GAAP Data (In thousands, except percentages and per share amounts) (unaudited)  

Three Months Ended March 31,

 

2024

 

 

 

2023

 

Reconciliation of gross profit and gross margin GAAP gross profit

$

53,735

 

$

47,290

 

Plus: stock-based compensation expense and related employer payroll taxes

 

1,474

 

 

1,792

 

Plus: amortization of acquired intangible assets

 

270

 

 

422

 

Non-GAAP gross profit

$

55,479

 

$

49,504

 

GAAP gross margin

 

74.0

%

 

71.1

%

Non-GAAP adjustments

 

2.4

%

 

3.3

%

Non-GAAP gross margin

 

76.4

%

 

74.5

%

Reconciliation of operating expenses GAAP research and development

$

22,953

 

$

23,708

 

Less: stock-based compensation expense and related employer payroll taxes

 

(9,532

)

 

(9,033

)

Non-GAAP research and development

$

13,421

 

$

14,675

 

GAAP research and development as percentage of revenue

 

31.6

%

 

35.7

%

Non-GAAP research and development as percentage of revenue

 

18.5

%

 

22.1

%

GAAP sales and marketing

$

40,817

 

$

39,133

 

Less: stock-based compensation expense and related employer payroll taxes

 

(7,253

)

 

(6,681

)

Less: amortization of acquired intangible assets

 

(43

)

 

(43

)

Non-GAAP sales and marketing

$

33,521

 

$

32,409

 

GAAP sales and marketing as percentage of revenue

 

56.2

%

 

58.9

%

Non-GAAP sales and marketing as percentage of revenue

 

46.2

%

 

48.8

%

GAAP general and administrative

$

14,670

 

$

13,622

 

Less: stock-based compensation expense and related employer payroll taxes

 

(4,054

)

 

(3,348

)

Non-GAAP general and administrative

$

10,616

 

$

10,274

 

GAAP general and administrative as percentage of revenue

 

20.2

%

 

20.5

%

Non-GAAP general and administrative as percentage of revenue

 

14.6

%

 

15.5

%

Reconciliation of operating loss and operating margin GAAP loss from operations

$

(24,705

)

$

(29,173

)

Plus: stock-based compensation expense and related employer payroll taxes

 

22,313

 

 

20,854

 

Plus: amortization of acquired intangible assets

 

313

 

 

465

 

Non-GAAP income (loss) from operations

$

(2,079

)

$

(7,854

)

GAAP operating margin

 

(34.0

%)

 

(43.9

%)

Non-GAAP adjustments

 

31.2

%

 

32.1

%

Non-GAAP operating margin

 

(2.9

%)

 

(11.8

%)

Reconciliation of net income (loss) GAAP net income (loss)

$

(21,460

)

$

(26,315

)

Plus: stock-based compensation expense and related employer payroll taxes

 

22,313

 

 

20,854

 

Plus: amortization of acquired intangible assets

 

313

 

 

465

 

Less: income tax effect of non-GAAP adjustments

 

(142

)

 

—

 

Non-GAAP net income (loss)

$

1,024

 

$

(4,996

)

Reconciliation of net income (loss) per share GAAP net income (loss) per share, basic

$

(0.18

)

$

(0.23

)

Non-GAAP adjustments to net income (loss)

 

0.19

 

 

0.19

 

Non-GAAP net income (loss) per share, basic

$

0.01

 

$

(0.04

)

Non-GAAP net income (loss) per share, diluted

$

0.01

 

$

(0.04

)

Weighted-average shares used in GAAP and non-GAAP per share calculation, basic

 

120,826

 

 

114,369

 

Weighted-average shares used in GAAP and non-GAAP per share calculation, diluted(1)

 

130,886

 

 

114,369

 

Note: Certain figures may not sum due to rounding (1) For the three months ended March 31, 2024, the weighted average shares used in the GAAP per share calculation excludes 10.0 million shares as the effect is anti-dilutive in the period. AMPLITUDE, INC. Reconciliation of GAAP Cash Flows from Operations to Free Cash Flow (In thousands, except percentages) (unaudited)  

Three Months Ended March 31,

 

2024

 

 

 

2023

 

Net cash provided by (used in) operating activities

$

(48

)

$

(5,061

)

Less: Purchases of property and equipment

 

(357

)

 

(329

)

Capitalization of internal-use software costs

 

(733

)

 

(448

)

Free cash flow

$

(1,138

)

$

(5,838

)

Net cash provided by (used in) operating activities margin

 

(0.1

%)

 

(7.6

%)

Non-GAAP adjustments

 

(1.5

%)

 

(1.2

%)

Free cash flow margin

 

(1.6

%)

 

(8.8

%)

Note: Certain figures may not sum due to rounding AMPLITUDE, INC. Historicals - Key Business Metrics (In millions, except percentages) (unaudited)     December 31,2022 March 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 Annual Recurring Revenue (ARR)

$

255

 

$

262

 

$

268

 

$

273

 

$

281

 

$

285

 

Dollar-based Net Retention Rate (NRR)

 

110

%

 

106

%

 

101

%

 

99

%

 

98

%

 

97

%

Dollar-based Net Retention Rate (NRR TTM)

 

119

%

 

114

%

 

108

%

 

105

%

 

101

%

 

99

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508643668/en/

Investor Relations Yaoxian Chew ir@amplitude.com

Communications Darah Easton press@amplitude.com