Summary
Amplitude closed its third quarter with revenue of $75.2 million, up 6.5% from $70.6 million a year earlier. Annual recurring revenue reached $298 million, up 9% year over year and $8 million above the second quarter of 2024. Customer additions are the strongest part of the story. Paying customers grew 41% year over year to 3,486, and accounts spending more than $100,000 in ARR rose 13% to 567. Retention runs the other way. The trailing twelve-month dollar-based net retention rate was 97%, down from 105%, and management said partial and full churn among existing customers marginally outpaced expansion within the installed base.
Gross profit was $56.5 million in the quarter, up 5.9%, while gross margin slipped 0.4 percentage points to 75.1%. Through nine months, revenue was $221.1 million, up 7.9%, gross profit was $164.0 million, up 8.5%, and gross margin improved 0.4 percentage points to 74.2%. GAAP losses remain. The third quarter net loss was $16.9 million, narrowed from $17.7 million, and diluted loss per share was $0.14 against $0.15. For the nine months, the net loss was $61.7 million, narrowed 14.1% from $71.8 million, with diluted loss per share of $0.50 against $0.62.
On a non-GAAP basis, income from operations was $1.6 million, down from $2.8 million, and non-GAAP net income per diluted share was $0.03 versus $0.05. Stock-based compensation expense and related employer payroll taxes were $21.5 million in the quarter, and the company strips those costs out of its adjusted measures. Cash generation cooled. Cash flow from operations was $6.2 million, down 22.5% year over year, and free cash flow was $4.5 million, a $3.0 million decrease from $7.5 million. Free cash flow margin was 6.0% against 10.6%. Over nine months, operating cash flow was $15.3 million, down 34.1%, and free cash flow was $10.2 million against $21.0 million. Capital expenditures were $0.02 million in the quarter and $0.98 million year to date, down 1.6%.
Backlog looks sturdier than the income statement. Deferred revenue was $114.9 million as of September 30, 2024, up 5.4% from a year earlier, and remaining performance obligations totaled $286.6 million, up 20.6%.
Guidance covers the fourth quarter of 2024 and the full year 2024. Both periods are framed around non-GAAP operating and earnings results rather than GAAP, and the company did not provide a reconciliation of expected non-GAAP figures to comparable GAAP measures, citing uncertainty about the number and value of future equity awards and the timing and value of acquired intangible assets. Management also expects research and development, sales and marketing, and general and administrative spending to rise in dollar terms as it keeps investing in product and go-to-market capacity, with those costs declining as a share of revenue only over the longer term. About 40% of revenue came from outside the United States in both the quarter and the nine months, so international expansion remains part of the plan.
The product and partnership cadence stayed busy. Amplitude launched Made Easy to simplify the platform experience, shipped Web Experimentation for A/B testing and personalization, announced a global strategic partnership with HubSpot, and acquired Command AI, which builds AI-powered user assistance. The company also hired Wade Chambers as its first Chief Engineering Officer. Roughly 3,500 customers now sit on the platform, including names such as Atlassian, NBCUniversal, Under Armour, Shopify, and Jersey Mike's.
The disclosed risks are familiar for a company at this stage. They include a limited operating history, a history of losses, reliance on larger enterprise customers that stretches out sales cycles, and the chance that customers trim information technology spending. Russia-related sanctions remain an active item, with terminated customer relationships in the region and payment disruptions among some affected customers. The near-term question is retention. Amplitude is adding customers quickly, yet the installed base contracted modestly on a trailing twelve-month basis, so the growth reacceleration the CEO pointed to depends on expansion turning back up.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $75.2M | $73.3M | +2.6% | $70.6M | +6.5% |
| Gross profit | $56.5M | $53.8M | +4.9% | $53.3M | +5.9% |
| Gross margin | 75.1% | 73.4% | +1.7 pp | 75.5% | -0.4 pp |
| Research & development | $19.0M | $21.1M | -10.0% | $21.8M | -12.7% |
| Sales & marketing | $40.9M | $44.1M | -7.4% | $38.5M | +6.2% |
| General & administrative | $16.6M | $15.7M | +5.7% | $14.0M | +18.5% |
| Total operating expenses | $76.5M | $81.0M | -5.5% | $74.3M | +3.0% |
| Net income (loss) | -$16.9M | -$23.4M | +28.0% | -$17.7M | +5.0% |
| Net margin | -22.4% | -31.9% | +9.5 pp | -25.1% | +2.7 pp |
| Diluted EPS | -$0.14 | -$0.19 | +$0.05 | -$0.15 | +$0.01 |
| Customers | 502 | 499 | +0.6% | — | — |
| Net retention rate | 97.0% | 98.0% | -1.0 pp | 105.0% | -8.0 pp |
Risks
Dollar-based net retention rate for the trailing twelve months was 97% as of September 30, 2024, compared with 105% as of September 30, 2023. The filing states that partial and full churn among existing customers marginally outpaced expansion, which could cause revenue growth to slow or decline.
The company uses machine learning and generative AI, including third-party LLMs, in its products and expects increased investment. Risks include competitors incorporating AI more quickly, potential inaccurate or misleading AI outputs, intellectual property and liability exposure from AI-generated data, and dependence on third-party AI terms and availability.
Increasing dependence on sales to larger organizations may lengthen and make less predictable the sales cycle. Average sales cycle to enterprises was four to six months compared with one to three months to non-enterprise customers, and delayed expected transactions can adversely affect results for a period.
Unfavorable global economic conditions, including inflation, rising interest rates, potential recession, and reduced software spending, could limit growth. In April 2023 the company authorized a restructuring plan that reduced its global workforce by approximately 13%.
The digital analytics market is fragmented, rapidly evolving, and highly competitive with relatively low barriers to entry. Larger competitors with greater resources may lower prices, and new AI entrants could intensify competition and pricing pressure.
40% of revenue for the three and nine months ended September 30, 2024 was generated outside the United States, and the non-U.S. sales organization is substantially smaller. Geopolitical instability, including the Russia-Ukraine war, has led the company to terminate certain customer relationships in Russia.
The company is defending a securities class action and a shareholder derivative action alleging false or misleading statements from September 21, 2021 to February 16, 2022, as well as privacy class actions. It has incurred and will continue to incur significant legal costs and management distraction.
Competition for highly skilled engineers and sales professionals in the San Francisco Bay Area is intense, and the perceived value of equity awards affects recruiting and retention. As the company grows, it may need more complex organizational structures that could adversely impact culture and retention.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Paying Customers
Free Cash Flow
Annual Recurring Revenue
Dollar-Based Net Retention Rate (NRR)
Customers > $100K ARR
Non-GAAP Gross Margin
Summary, forecast, risks and KPIs are extracted from Amplitude, Inc.'s SEC filings for Q3 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.