Summary
Amplitude reported second quarter fiscal 2023 revenue of $67.77 million, up 16.6% from the prior-year quarter. Gross profit was $50.59 million, up 23.2%, and gross margin was 74.6%, up 4.0 percentage points from the prior-year quarter. The top line and gross margin expanded, but the company remained unprofitable. Net loss was $27.76 million, and the loss widened 13.0% from the prior-year quarter. Diluted EPS was -$0.24, and the loss per share widened $0.02, or 9.1%, from the prior-year quarter.
For the first six months of fiscal 2023, revenue was $134.24 million, up 20.7% from the prior-year period. Gross profit for the six months was $97.88 million, up 25.4%, while gross margin was 72.9%, up 2.7 percentage points. Net loss for the six months was $54.07 million, and the loss widened 15.6% from the prior-year period. Diluted EPS for the six months was -$0.47, and the loss per share widened $0.05, or 11.9%, from the prior-year period.
Cash generation improved. Operating cash flow was $20.41 million for the quarter, up 91.7% from the prior-year quarter, and $15.34 million for the six months, up 552.1% from the prior-year period. Capital expenditures were $0.67 million for the quarter, down 63.2%, and $1.00 million for the six months, down 60.6%. Free cash flow was $19.3 million for the quarter, up 137% year over year, and it included $3.8 million of restructuring costs paid. Deferred revenue was $113.49 million at quarter end, up 15.4% from a year earlier. Remaining performance obligations were $246.30 million, up 8.2%. On a non-GAAP basis, loss from operations was $0.8 million, compared with $9.0 million a year earlier, and non-GAAP net income per diluted share was $0.02, compared with a loss of $0.08 a year earlier.
Customer and retention metrics were mixed. Paying customers grew 28% year over year to 2,344. Annual recurring revenue was $268 million, up 18% year over year and up $6 million from the first quarter of 2023. Dollar-based net retention rate for the trailing twelve months was 108%, down from 126% a year earlier. The ending dollar-based net retention rate was 101%, down from 118%. The retention decline is a key watch item because it affects how much revenue Amplitude can generate from its existing customer base.
Guidance points to continued growth but still cautious profitability. For the third quarter of 2023, the company guided revenue of $69.7 million to $70.3 million and non-GAAP operating income of $0.6 million to $1.0 million. It also guided third quarter non-GAAP net income per diluted share of $0.02 to $0.03, with 128.3 million diluted shares. For the full year 2023, revenue guidance is $273.6 million to $275.6 million. Full year non-GAAP operating loss is expected to be between $7.6 million and $5.2 million, and full year non-GAAP net income per diluted share is guided to $0.02 to $0.04, with 127.6 million diluted shares.
Risks remain significant. In April 2023, Amplitude authorized a restructuring plan to reduce its global workforce by approximately 13%. The plan may not produce the expected savings or operational efficiencies. Other risks include the company's limited operating history, its history of losses, the need to retain and expand customer relationships, variability in larger enterprise sales cycles, reduced information technology spending, a slower developing SaaS market, intellectual property protection, and evolving privacy and data laws. The company also faces international operational challenges and the effects of the Russia-Ukraine war, including terminated customer relationships in Russia and disruptions for customers in affected regions. Amplitude states that its current cash and cash equivalents on hand will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2023 | Q1 FY2023 | QoQ | Q2 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $67.8M | $66.5M | +1.9% | $58.1M | +16.6% |
| Gross profit | $50.6M | $47.3M | +7.0% | $41.1M | +23.2% |
| Gross margin | 74.7% | 71.1% | +3.5 pp | 70.7% | +4.0 pp |
| Research & development | $22.4M | $23.7M | -5.4% | $20.3M | +10.5% |
| Sales & marketing | $38.3M | $39.1M | -2.1% | $34.1M | +12.3% |
| General & administrative | $12.5M | $13.6M | -8.1% | $11.2M | +11.7% |
| Total operating expenses | $81.5M | $76.5M | +6.6% | $65.7M | +24.1% |
| Net income (loss) | -$27.8M | -$26.3M | -5.5% | -$24.6M | -13.0% |
| Net margin | -41.0% | -39.6% | -1.4 pp | -42.3% | +1.3 pp |
| Diluted EPS | -$0.24 | -$0.23 | -$0.01 | — | — |
| Net retention rate | 108.0% | 114.0% | -6.0 pp | 126.0% | -18.0 pp |
Risks
Inflation, rising interest rates, potential recession, and reduced software spending may constrain customer budgets and delay purchasing decisions. MD&A also cites global economic and political instability, including the Russia-Ukraine war, which led Amplitude to terminate certain customer relationships in Russia.
In April 2023 Amplitude authorized a restructuring plan to reduce its global workforce by approximately 13%. Risks include failure to realize anticipated savings, loss of institutional knowledge, decreased morale, and difficulty pursuing new initiatives with fewer personnel.
Dollar-based net retention rate (TTM) was 108% as of June 30, 2023 compared with 126% a year earlier, and ending dollar-based net retention rate was 101% compared with 118%. Customers have no obligation to renew, and failure to expand existing relationships could slow revenue growth.
Amplitude expects its sales cycle to lengthen and become less predictable as it focuses on larger organizations; enterprise sales cycles averaged four to six months versus one to two months for non-enterprise customers. Delays or missed large transactions could increase variability in results.
The digital analytics market is fragmented, rapidly evolving, and highly competitive with low barriers to entry. Larger competitors have greater resources, and pricing pressures or consolidation could reduce sales and margins.
For the six months ended June 30, 2023, 39% of revenue was generated outside the United States. Risks include limited local sales capacity, reliance on channel partners, privacy and tax compliance, currency fluctuations, and geopolitical disruptions such as the war in Ukraine.
Amplitude relies on third-party public cloud infrastructure, particularly AWS, to operate critical functions. Extended outages, capacity constraints, or changes in cloud terms could increase expenses and impair delivery of the Digital Analytics Platform.
The platform stores, transmits, and processes customer proprietary and personal data. A breach or unauthorized disclosure could lead to reputational harm, regulatory investigations, litigation, significant remediation costs, and loss of customers.
Amplitude faces intense competition for engineers and sales professionals in the San Francisco Bay Area. The restructuring and the February 2023 CFO transition may affect morale and retention, and a decline in perceived equity value could impair recruiting.
Substantially all revenue is derived from the Amplitude Analytics product. Failure to maintain market acceptance or growth of this product could materially adversely affect the business and results of operations.
Evolving privacy and data protection laws, including the GDPR, and export control, sanctions, anti-corruption, and anti-money laundering laws increase compliance costs. Government agency policies on personal information could reduce demand for the Digital Analytics Platform.
Amplitude no longer qualifies as an emerging growth company, requiring auditor attestation of internal control over financial reporting and additional disclosure. This increases legal and financial compliance costs and diverts management attention.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Paying Customers
Free Cash Flow
Remaining Performance Obligations
Current Remaining Performance Obligations
Annual Recurring Revenue
Dollar-Based Net Retention Rate (NRR)
Non-GAAP Gross Margin
Non-GAAP Loss from Operations
Summary, forecast, risks and KPIs are extracted from Amplitude, Inc.'s SEC filings for Q2 FY2023 (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.