Summary
Amplitude closed FY2022 Q2 with revenue of $58.1 million, up 48.1% from the prior-year quarter. Gross profit reached $41.1 million, up 51.4%, and gross margin climbed to 70.7%, up 1.6 percentage points from the prior-year quarter. First-half revenue was $111.2 million, up 53.7% from the prior-year period. Customer growth carried the top line. Paying customers totaled 1,836 at June 30, 2022, up 43% year over year. The dollar-based net retention rate was 126%, compared with 119% a year earlier. Management called it the biggest set of product launches in the company's history.
Profitability stayed under pressure. Net loss was $24.6 million for the quarter, and diluted EPS was -$0.22. Non-GAAP loss from operations was $9.0 million, compared with $4.1 million in the prior-year quarter. Non-GAAP net loss per share was $(0.08), compared with $(0.15). Operating cash flow was $10.6 million, up from the prior-year quarter. Free cash flow was $8.2 million. Capital expenditures were $1.8 million, up from the prior-year quarter. Deferred revenue, current portion only, stood at $98.4 million at June 30, 2022. Remaining performance obligations were $227.6 million. Current remaining performance obligations were $170.2 million, up 46% year over year.
Guidance covers the next quarter and the full fiscal year. For the third quarter, management guided non-GAAP operating margin to negative 16% to negative 17% and non-GAAP net loss per share to negative $0.08 to negative $0.07. For the full fiscal year 2022, it guided non-GAAP operating margin to negative 15% to negative 16% and non-GAAP net loss per share to negative $0.36 to negative $0.34. Weighted average shares outstanding are expected to be 112.1 million for the third quarter and 111.6 million for the full fiscal year. The company did not provide a reconciliation of expected non-GAAP loss from operations to GAAP loss from operations, citing items such as stock-based compensation and intangible amortization that it cannot forecast without unreasonable effort.
The quarter also showed cost pressure. Operating expenses rose faster than revenue, driven by higher headcount, stock-based compensation, and costs tied to the Amplify conference. Sales and marketing remained the largest operating expense. Management expects operating expenses as a percentage of revenue to increase in the short term. Risks include a limited operating history, a history of losses, customer retention and expansion challenges, longer sales cycles with larger organizations, and reduced information technology spending if the global economy weakens. The company also flagged global economic and political instability from the Russia-Ukraine conflict, COVID-19 disruptions, and evolving privacy and data-related laws. Management believes cash on hand will be sufficient for at least the next 12 months and plans to keep investing in research and development, sales, and international expansion.
Amplitude keeps investing in product innovation and international growth. International revenue was 39% of total revenue in the quarter and 38% in the first half. The company launched Amplitude CDP, described as the first insights-driven customer data platform. It named Thomas Hansen as its first President. It was named a Strong Performer in The Forrester Wave: Customer Analytics Technologies, Q2 2022 report. The G2 Summer 2022 Report ranked Amplitude as the #1 product analytics solution for the eighth quarter in a row, #1 in mobile analytics for the third quarter in a row, and #3 in digital analytics for the sixth quarter in a row. Those highlights support the growth story, but the net loss still widened while revenue grew, and the outlook points to continued non-GAAP losses.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2022 | Q1 FY2022 | QoQ | Q2 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $58.1M | $53.1M | +9.5% | — | — |
| Gross profit | $41.1M | $37.0M | +11.0% | — | — |
| Gross margin | 70.7% | 69.7% | +0.9 pp | — | — |
| Research & development | $20.3M | $16.5M | +23.1% | — | — |
| Sales & marketing | $34.1M | $28.1M | +21.3% | — | — |
| General & administrative | $11.2M | $14.4M | -21.9% | — | — |
| Total operating expenses | $65.7M | $59.0M | +11.3% | — | — |
| Net income (loss) | -$24.6M | -$22.2M | -10.6% | — | — |
| Net margin | -42.3% | -41.9% | -0.4 pp | — | — |
| Net retention rate | 126.0% | 126.0% | ±0.0 pp | — | — |
Risks
Inflation and rising interest rates could constrain customer budgets and reduce software spending. The filing states historically high inflation and rising interest rates have begun to affect businesses by increasing costs of labor, employee healthcare, components, and freight and shipping, and notes Russia's invasion of Ukraine led to terminated customer relationships and payment disruptions in impacted regions.
Increased focus on larger organizations may lengthen and make sales cycles less predictable. During the quarter ended June 30, 2022, the average sales cycle to enterprises was four to six months compared to one to two months to non-enterprise customers, and a delayed significant transaction could adversely affect results for that period and future periods.
Revenue growth depends on customers renewing and expanding subscriptions. Paying customers increased 43% year over year to 1,836 as of June 30, 2022, and dollar-based net retention rate was 126% as of June 30, 2022 versus 119% as of June 30, 2021; any decline in retention or expansion could materially adversely affect revenue.
Net loss widened to $46.8 million for the six months ended June 30, 2022 from $16.5 million for the six months ended June 30, 2021, and the company had an accumulated deficit of $226.6 million as of June 30, 2022. MD&A reports total operating expenses increased 89% for the six months ended June 30, 2022 and expects operating expenses as a percentage of revenue to increase in the short term.
For the three and six months ended June 30, 2022, 39% and 38% of revenue was generated outside the United States, respectively, and further expansion creates operational, regulatory, tax, and collection risks. MD&A notes the Russia-Ukraine conflict caused terminated relationships and payment disruptions for customers in affected regions.
The company will cease to be an emerging growth company and become a large accelerated filer commencing December 31, 2022 because non-affiliate market value exceeded $700 million as of June 30, 2022. This subjects it to auditor attestation of internal control over financial reporting and other disclosure requirements, raising compliance costs and the risk of material weaknesses.
The digital optimization market is fragmented, rapidly evolving, and highly competitive with low barriers to entry. Competitors include large companies with greater resources, in-house systems, and smaller SaaS providers, and pricing pressures could reduce sales and margins.
Competition for engineers and sales professionals in the San Francisco Bay Area is intense, and employees often consider the value of equity awards. If the perceived value of equity awards declines, the company may struggle to attract and retain highly skilled employees.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Paying Customers
Free Cash Flow
Remaining Performance Obligations
Dollar-Based Net Retention Rate
Current Remaining Performance Obligations
Summary, forecast, risks and KPIs are extracted from Amplitude, Inc.'s SEC filings for Q2 FY2022 (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.