Amplitude, Inc.

Amplitude, Inc. Q1 FY2024 earnings

AMPL

Quarter ended Mar 2024.

← Q4 FY2023Q2 FY2024 →
Revenue
$72.6M
+9.2% YoY
Gross margin
74.0%
+2.8 pp YoY
Net income
-$21.5M
+18.4% YoY

Summary

Amplitude started fiscal 2024 with steady top-line growth and a smaller loss. Revenue in the first quarter was $72.62 million, up 9.2% from $66.48 million in the prior-year quarter. Gross profit rose to $53.74 million from $47.29 million, up 13.6%. Gross margin was 74.0%, up from 71.1%. The net loss was $21.46 million, compared with $26.32 million in the prior-year quarter, an increase of $4.86 million in the result. Diluted loss per share was $0.18, compared with $0.23, an increase of $0.05. Annual recurring revenue reached $285 million, up 9% year over year and up $4 million compared with the fourth quarter of 2023. Paying customers grew 37% to 2,970, and customers with $100,000 or more of ARR rose to 521, up 6%. The customer count gains show the platform still attracts new accounts, but the retention picture softened. Dollar-based net retention rate for the trailing twelve months was 99%, compared with 114%. Ending dollar-based net retention rate was 97%, compared with 106%.

Operating cash flow was negative $0.05 million, compared with negative $5.06 million, an increase of $5.01 million. Free cash flow was negative $1.1 million, compared with negative $5.8 million, an increase of $4.7 million. Free cash flow margin was negative 1.6%, compared with negative 8.8%. Capital expenditures were $0.36 million, up 8.5% from $0.33 million. Non-GAAP loss from operations was $2.1 million, compared with $7.9 million. Deferred revenue, the current portion, was $102.77 million, up 15.0% from $89.35 million. Remaining performance obligations were $250.60 million, up 4.2% from $240.40 million. The deferred revenue and RPO balances show contracted work still growing.

Guidance for the second quarter of 2024 points to a non-GAAP operating loss of $4.4 million to $3.8 million and a non-GAAP net loss per share of $0.02 to $0.01. For the full year 2024, the company projects non-GAAP operating income (loss) of negative $1.0 million to positive $2.0 million and non-GAAP net income per share of $0.07 to $0.09. The full-year outlook assumes weighted average shares outstanding of 122.5 million basic and 133.5 million diluted. Amplitude does not issue a reconciliation of these non-GAAP figures to the closest GAAP measures, citing the difficulty of forecasting items such as stock-based compensation and intangible amortization. The company also declined to give an outlook for GAAP income (loss) from operations, GAAP net income (loss), or GAAP net income (loss) per share for the same reason.

The quarter also highlights several risks. The MD&A says partial and full churn among existing customers marginally outpaced expansion. Amplitude depends on larger organizations, and that focus can increase sales cycle variability. A history of losses and negative operating cash flow remains a concern. The company cites risks from global economic conditions, reductions in information technology spending, a slower or declining SaaS market, intellectual property protection, and evolving privacy and data laws. International operations add exposure; 40% of revenue came from outside the United States in the quarter. The MD&A also notes that the Russia-Ukraine war led to terminated relationships with customers in Russia and disrupted some customers' ability to pay. Cost savings from restructuring have helped expenses, but Amplitude still expects research and development and sales and marketing spending to rise in dollar terms over time. Stock-based compensation remains significant and is excluded from the non-GAAP measures.

Forecast

Management guidance
ReportedGuidance

Guided revenue, Q2 FY2024$71.7M – $72.3M
Midpoint$72.0M
Growth vs Q1 FY2024-0.9%
Growth vs Q2 FY2023+6.2%
Q2 2024
Non-GAAP Operating Income (Loss)$(4.4) - $(3.8) million
Non-GAAP Net Income (Loss) Per Share$(0.02) - $(0.01)
Weighted Average Shares Outstanding122.5 million, basic
Full Year 2024
Revenue$292.5 - $295.5 million
Non-GAAP Operating Income (Loss)$(1.0) - $2.0 million
Non-GAAP Net Income (Loss) Per Share$0.07 - $0.09
Weighted Average Shares Outstanding133.5 million, diluted

Reported figures

GAAP, from SEC filings
MetricQ1 FY2024Q4 FY2023QoQQ1 FY2023YoY
Revenue$72.6M$71.4M+1.7%$66.5M+9.2%
Gross profit$53.7M$53.1M+1.1%$47.3M+13.6%
Gross margin74.0%74.4%-0.4 pp71.1%+2.8 pp
Research & development$23.0M$22.2M+3.4%$23.7M-3.2%
Sales & marketing$40.8M$37.8M+8.0%$39.1M+4.3%
General & administrative$14.7M$14.7M-0.5%$13.6M+7.7%
Total operating expenses$78.4M$74.7M+5.0%$76.5M+2.6%
Net income (loss)-$21.5M-$18.5M-15.7%-$26.3M+18.4%
Net margin-29.6%-26.0%-3.6 pp-39.6%+10.0 pp
Diluted EPS-$0.18-$0.16-$0.02-$0.23+$0.05
Customers491480+2.3%——
Net retention rate99.0%101.0%-2.0 pp114.0%-15.0 pp

Risks

HIGHCustomer Retention

Dollar-based net retention rate (TTM) was 99% as of March 31, 2024 versus 114% as of March 31, 2023, and MD&A states partial and full churn among existing customers marginally outpaced expansion. Revenue grew 9% year over year while paying customers grew 37%, indicating expansion weakness.

HIGHConcentration Risk

The company derives and expects to continue to derive substantially all revenue from its Amplitude Analytics product, making growth dependent on that product's market acceptance and competitive position.

HIGHAI Competition

The filing expands AI risk around machine learning and generative AI, including LLMs used in products. Competitors may incorporate AI Technologies more quickly or successfully, third-party AI model availability and pricing are outside the company's control, and AI outputs may create IP, privacy, and liability exposure.

MEDIUMSales Cycle

Increasing focus on larger organizations may lengthen and make less predictable sales cycles. MD&A and risk factors state enterprise sales cycles were four to six months compared with one to three months for non-enterprise customers, and delayed significant transactions can hurt period results.

MEDIUMMacroeconomic

Inflation, rising interest rates, potential recession, and reduced software spending can pressure customer budgets and lead to extended billing terms. In April 2023 the company authorized a restructuring plan to reduce global workforce by approximately 13%, incurred $8.1 million in non-recurring charges in FY2023, and may not achieve anticipated savings.

MEDIUMCompetition

The digital analytics market is fragmented, rapidly evolving, and highly competitive with relatively low barriers to entry. Larger competitors have greater resources and may respond with price cuts, while in-house systems and new entrants intensify competition.

MEDIUMInternational

For the three months ended March 31, 2024, 40% of revenue was generated outside the United States. Further geographic expansion creates operational, regulatory, tax, currency, and geopolitical risks, including the war in Ukraine and conflict in the Middle East, which have at times affected customers' ability to pay.

MEDIUMCloud Dependency

The platform and internal tools rely on third-party hosted cloud services, particularly AWS. Extended outages, capacity constraints, or loss of commercially reasonable terms could increase expenses and interrupt delivery of the Digital Analytics Platform.

MEDIUMData Security

The platform collects, stores, and transmits large amounts of confidential and personal data. Breaches or unauthorized access could cause reputational harm, customer loss, regulatory investigations, litigation, and significant remediation costs, and expanding reporting obligations may require incident disclosure before impact is fully assessed.

MEDIUMTalent Retention

Competition for engineers and experienced sales professionals in the San Francisco Bay Area is intense. The April 2023 restructuring and declines in perceived equity award value could impair the company's ability to attract and retain highly skilled employees.

MEDIUMRevenue Visibility

Subscription revenue is recognized ratably over the contract term, so downturns or renewal declines may not be immediately reflected in results. RPO was $250.6 million, up 4.2% year over year, while current deferred revenue was $102.8 million, up 15.0%, and a significant majority of costs are expensed as incurred.

MEDIUMInnovation

The company must continuously enhance its Digital Analytics Platform, including data sharing, data exchange, public cloud support, and integrations. Failure to keep pace with changing customer needs or lower-cost competing technologies could make the platform less marketable or obsolete.

Annual Recurring Revenue (ARR, Q1 ending)
$285 million (+9% YoY)
Dollar-based Net Retention Rate (NRR)
97%
Dollar-based Net Retention Rate (NRR TTM)
99%
Paying Customers
2,970 (+37% YoY)
Customers > $100K ARR
521 (+6% YoY)
Free Cash Flow
$(1.1) million
Free Cash Flow Margin
(1.6%)
Non-GAAP Operating Margin
(2.9%)

Free Cash Flow Margin

20 quarters
(1.6%)
Q1 FY2024-3.7pp

Non-GAAP Operating Margin

20 quarters
(2.9%)
Q1 FY2024-6.1pp

Paying Customers

20 quarters
2,970
Q1 FY2024+9.1%

Free Cash Flow

19 quarters
-$1.1M
Q1 FY2024-173.3%

Annual Recurring Revenue

8 quarters
$285.0M
Q1 FY2024+4.4%

Dollar-Based Net Retention Rate (NRR)

8 quarters
97%
Q1 FY2024-1.0pp

Customers > $100K ARR

7 quarters
521
Q1 FY2024+2.0%

Summary, forecast, risks and KPIs are extracted from Amplitude, Inc.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.