Summary
Amplitude reported second-quarter fiscal 2024 revenue of $73.3 million, up 8.2% year over year. Gross profit rose 6.4% to $53.8 million, while gross margin slipped to 73.4%, down 1.2 percentage points. The company remained unprofitable on a GAAP basis, with a net loss of $23.4 million, or $0.19 per diluted share, though the loss narrowed from the prior-year quarter. For the first six months of fiscal 2024, revenue was $145.9 million, up 8.7%, and net loss narrowed to $44.9 million.
Annual recurring revenue reached $290 million, up 8% year over year and up $5 million from the first quarter. ARR was $285 million at March 31, 2024. Paying customers grew 38% to 3,224, and customers with $100,000 or more in ARR rose 10% to 547. Retention is the weak spot. The ending dollar-based net retention rate was 96%, down from 101% a year earlier, and the trailing-twelve-month NRR was 98%, down from 108%. Management said partial and full churn among existing customers marginally outpaced expansion, so revenue growth leaned more on new customer additions.
Non-GAAP loss from operations was $(3.7) million, worse than $(0.8) million a year earlier, and non-GAAP net income per share was $(0.00), compared with $0.02. Non-GAAP operating margin was (5.1%), down from (1.2%). Cash generation weakened. Operating cash flow was $9.2 million, down 54.8% year over year. Capital expenditures were $0.6 million, down 9.0%. Free cash flow, a non-GAAP measure, was $6.8 million, a decrease of $12.5 million from $19.3 million a year earlier. Free cash flow margin was 9.3%, down from 28.5%, a 19 percentage point decline.
Deferred revenue was $124.4 million, up 9.6% year over year, and remaining performance obligations were $274.2 million, up 11.3%. Those backlog measures suggest billed and contracted future revenue continued to build even as cash conversion slowed.
For the third quarter of fiscal 2024, Amplitude guided revenue to $73.5 million to $74.5 million. For the full fiscal year 2024, revenue guidance is $294.5 million to $296.5 million. The outlook calls for non-GAAP operating loss of $2.2 million to $1.2 million in the third quarter and $5.0 million to $2.0 million for the full year. Non-GAAP net income per share is projected at $0.00 to $0.01 for the third quarter and $0.05 to $0.08 for the full year. The company expects 131.6 million diluted weighted average shares in the third quarter and 131.4 million diluted weighted average shares for the full year.
The main risk flagged in the release is the new Russia sanctions issued on June 12, 2024, effective September 12, 2024, which are expected to hurt Amplitude's ability to collect receivables from previously unaffected customers. The company also faces a declining net retention rate, churn that has outpaced expansion, and a history of GAAP losses. International exposure adds another layer: 40% of revenue in the first half came from outside the United States, and management noted it has terminated or will terminate certain customer relationships in Russia. The quarter showed solid top-line growth and a narrower GAAP loss, but weaker operating cash flow and free cash flow point to a business still working through retention and cash conversion challenges.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $73.3M | $72.6M | +0.9% | $67.8M | +8.2% |
| Gross profit | $53.8M | $53.7M | +0.1% | $50.6M | +6.4% |
| Gross margin | 73.4% | 74.0% | -0.6 pp | 74.7% | -1.2 pp |
| Research & development | $21.1M | $23.0M | -7.9% | $22.4M | -5.7% |
| Sales & marketing | $44.1M | $40.8M | +8.2% | $38.3M | +15.2% |
| General & administrative | $15.7M | $14.7M | +6.9% | $12.5M | +25.3% |
| Total operating expenses | $81.0M | $78.4M | +3.2% | $81.5M | -0.6% |
| Net income (loss) | -$23.4M | -$21.5M | -9.1% | -$27.8M | +15.6% |
| Net margin | -31.9% | -29.6% | -2.4 pp | -41.0% | +9.0 pp |
| Diluted EPS | -$0.19 | -$0.18 | -$0.01 | -$0.24 | +$0.05 |
| Customers | 499 | 491 | +1.6% | — | — |
| Net retention rate | 98.0% | 99.0% | -1.0 pp | 108.0% | -10.0 pp |
Risks
The filing expands AI risk: Amplitude has incorporated and expects to continue incorporating machine learning and generative AI, including LLMs, into its products, while competitors may incorporate AI more quickly or successfully. It also depends on third-party AI technologies and faces risks from inaccurate AI output, copyright and privacy exposure, and unfavorable changes to third-party AI terms.
The company expects sales to larger organizations to lengthen and make its sales cycle less predictable, with enterprise sales cycles of four to six months versus one to three months for non-enterprise customers. Failure to close or delay of one or more expected significant transactions could adversely affect a period's results.
Dollar-based net retention rate for the trailing twelve months was 98% as of June 30, 2024 compared with 108% as of June 30, 2023, and ending dollar-based net retention was 96% versus 101%. Revenue rose 8.2% in the quarter and 8.7% year to date, but churn among existing customers marginally outpaced expansion.
Gross margin declined to 73.4% in the quarter from 74.6% in the prior-year quarter, although year-to-date gross margin rose to 73.7% from 72.9%. Cost of revenue increased 13% in the quarter, driven by higher third-party hosting costs, outpacing revenue growth of 8.2%.
The filing highlights inflationary pressures, rising interest rates, and potential recession that could reduce software spending, extend billing terms, and constrain customer budgets. MD&A also points to global economic and political instability, including the Russia-Ukraine war, as a factor affecting international customers and payments.
Amplitude authorized a restructuring plan in April 2023 to reduce its global workforce by approximately 13% and incurred $8.1 million of non-recurring charges in the year ended December 31, 2023. The plan may not achieve anticipated savings and could cause loss of institutional knowledge, lower morale, and additional unplanned costs.
The company is defending a securities class action and a shareholder derivative action in the U.S. District Court for the Northern District of California related to alleged false or misleading statements between September 21, 2021 and February 16, 2022. Both seek unspecified damages, and the company expects significant legal costs and management distraction.
For the six months ended June 30, 2024, 40% of revenue was generated outside the United States. The company terminated or will terminate certain customer relationships in Russia due to the Russia-Ukraine war, and some customers in impacted regions have experienced disruptions affecting their ability to pay.
Operating cash flow decreased 54.8% in the quarter and 40.2% year to date, even though the company remains cash generative. MD&A notes that future capital requirements depend on revenue growth and costs, and additional financing may be required on acceptable terms.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Paying Customers
Free Cash Flow
Dollar-Based Net Retention Rate (NRR)
Customers > $100K ARR
Annual Recurring Revenue (ARR)
Summary, forecast, risks and KPIs are extracted from Amplitude, Inc.'s SEC filings for Q2 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.