Summary
Amplitude closed fiscal 2022 with fourth quarter revenue of $65.3 million, up 32.0% from $49.4 million in the prior-year quarter. Full-year revenue reached $238.1 million, up 42.3% from $167.3 million. Gross profit was $46.0 million in the quarter, up 35.2%, and $167.6 million for the full year, up 45.1%. Gross margin improved to 70.5% in the quarter, up 1.7 percentage points, and to 70.4% for the full year, up 1.4 percentage points. The top line and gross profit expanded quickly, but the company remained unprofitable on a GAAP basis. Fourth quarter net loss was $24.0 million, wider than the $21.9 million loss in the prior-year quarter. Full-year net loss was $93.4 million, wider than the $75.0 million loss in fiscal 2021. Full-year diluted net loss per share was $0.84, narrower than $1.46.
Cash generation improved. Fourth quarter net cash used in operating activities was $4.6 million, up from $11.1 million used in the prior-year quarter. Full-year net cash used in operating activities was $5.4 million, up from $31.7 million used in fiscal 2021. Capital expenditures were $0.6 million in the quarter, up 8.4%, and $3.6 million for the full year, up 137.5%. Deferred revenue stood at $90.0 million at December 31, 2022, up 29.9% from $69.3 million a year earlier. Remaining performance obligations were $248.2 million, up 45.9% from $170.1 million. Current remaining performance obligations were $190.6 million, up 39%. Free cash flow was negative $5.9 million in the quarter and negative $11.2 million for the full year, compared with negative $12.2 million and negative $34.9 million in the prior-year periods. Free cash flow is a non-GAAP measure and is separate from operating cash flow.
Operational metrics showed healthy expansion, though net retention slipped. Paying customers grew 25% to 1,994 from 1,597. Customers paying more than $100,000 in annual recurring revenue grew 25% to 480 from 385. Customers paying more than $1 million in ARR grew 3% to 30 from 29. The dollar-based net retention rate was 119% as of December 31, 2022, compared with 123% as of December 31, 2021. The company counted 28 Fortune 100 customers, up from 26. Non-GAAP loss from operations was $4.7 million in the fourth quarter, better than the $5.0 million loss in the prior-year quarter, while the full-year non-GAAP loss from operations was $26.2 million, worse than the $14.6 million loss in fiscal 2021. Non-GAAP net loss per share was $0.03 in the quarter, better than $0.05, and $0.21 for the full year, better than $0.30. Management also announced a CFO transition, with Hoang Vuong leaving and Christopher Harms appointed as the next CFO.
Guidance points to slower growth and continued non-GAAP losses. For the first quarter of 2023, Amplitude expects revenue of $64 million to $66 million. For the full year 2023, revenue guidance is $283 million to $291 million. The first quarter non-GAAP operating margin outlook is negative 13% to negative 14%, and the full-year non-GAAP operating margin outlook is negative 6% to negative 8%. Non-GAAP net loss per share guidance is $0.06 to $0.08 for the first quarter and $0.11 to $0.16 for the full year. Weighted average shares outstanding are expected to be 114.9 million in the first quarter and 117.5 million for the full year. The company says the outlook is based on current estimates and is not a guarantee of future performance. Risks include a limited operating history and rapid growth, a history of losses, reliance on customer retention and expansion, variability in larger enterprise sales cycles, unfavorable economic conditions and reductions in information technology spending, slower development of the SaaS market, intellectual property protection, evolving privacy and data laws, international expansion challenges, and disruptions related to the Russia-Ukraine war. The company also has significant contractual commitments, including a multiyear AWS hosting arrangement, which adds fixed cost pressure as it works toward durable growth.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2022 | Q3 FY2022 | QoQ | Q4 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $65.3M | $61.6M | +5.9% | $49.4M | +32.0% |
| Gross profit | $46.0M | $43.5M | +5.7% | $34.0M | +35.2% |
| Gross margin | 70.5% | 70.7% | -0.1 pp | 68.9% | +1.7 pp |
| Research & development | $22.2M | $21.6M | +2.8% | $14.2M | +56.0% |
| Sales & marketing | $35.2M | $32.5M | +8.1% | $27.0M | +30.2% |
| General & administrative | $14.5M | $13.6M | +6.2% | $14.3M | +1.3% |
| Total operating expenses | $71.8M | $67.7M | +6.0% | $55.5M | +29.4% |
| Net income (loss) | -$24.0M | -$22.5M | -6.7% | -$21.9M | -9.8% |
| Net margin | -36.9% | -36.6% | -0.3 pp | -44.3% | +7.5 pp |
| Diluted EPS | -$0.22 | -$0.20 | -$0.02 | — | — |
| Customers | 385 | — | — | 262 | +46.9% |
| Net retention rate | 119.0% | 123.0% | -4.0 pp | 123.0% | -4.0 pp |
Risks
The company has a history of losses, with net loss widening to $93.4 million for fiscal 2022 from $75.0 million for fiscal 2021, and an accumulated deficit of $273.2 million as of December 31, 2022. It expects costs and expenses to increase in future periods as it invests in its platform, sales and marketing, international expansion, and general administration.
Growth depends on customers renewing and expanding subscriptions. Dollar-based net retention rate decreased to 119% as of December 31, 2022 from 123% as of December 31, 2021, and customers have no obligation to renew or may renew on less favorable terms.
Inflation, rising interest rates, and a potential recession could reduce customer software spending, extend billing terms, and cause customers to go out of business or decrease budgets. The company also notes customers and prospects may reduce demand for its Digital Analytics Platform and face difficulties in collections.
Increasing focus on larger organizations is expected to lengthen and make the sales cycle less predictable. During fiscal 2022, the average sales cycle to enterprises was four to six months versus one to two months to non-enterprise customers, and delayed large transactions could adversely affect period results.
The digital analytics market is fragmented, rapidly evolving, and highly competitive with relatively low barriers to entry. Larger competitors have greater name recognition, resources, sales forces, distribution, and mature intellectual property portfolios, and may lower prices in challenging market conditions.
The platform and internal tools rely on third-party hosted cloud services, particularly AWS. Extended outages or interruptions, or AWS services no longer being available on commercially reasonable terms, could increase expenses and impair delivery of the Digital Analytics Platform.
International operations create operational challenges, and 38% of fiscal 2022 revenue was generated outside the United States. As a result of the Russia-Ukraine war, the company terminated certain customer relationships in Russia and some impacted customers had disruptions affecting their ability to pay.
The company must attract and retain highly qualified personnel, especially engineers and sales professionals, amid intense competition in the San Francisco Bay Area. If the perceived value of equity awards declines, recruiting and retention could be adversely affected.
Changes in privacy, data protection, internet, export control, economic sanctions, anti-corruption, and anti-money laundering laws may increase compliance costs or reduce demand. The company also may need to modify its Digital Analytics Platform to comply with new regulations.
The company no longer qualifies as an emerging growth company and must comply with increased reporting and disclosure requirements, including auditor attestation of internal control over financial reporting under Section 404(b). Compliance may increase legal and financial costs and require management attention.
Rapid growth in business, personnel, and operations has placed significant demands on management and resources. The company expects to continue investing, which may cause margins to decline, and any investments occur in advance of benefits.
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
Customers > $100K ARR
Non-GAAP Gross Margin
Customers > $1M ARR
Summary, forecast, risks and KPIs are extracted from Amplitude, Inc.'s SEC filings for Q4 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.