Summary
Amplitude closed fiscal 2023 with fourth quarter revenue of $71.4 million, up 9.4% year over year. Fiscal 2023 revenue was $276.3 million, up 16.1%. Gross profit rose 15.5% to $53.1 million in the quarter and 21.9% to $204.4 million for the year. Gross margin was 74.4% in the fourth quarter, up 3.9 percentage points, and 74.0% for fiscal 2023, up 3.6 percentage points. The GAAP net loss was $18.5 million in the fourth quarter, an improvement of 22.9% year over year, and $90.4 million for fiscal 2023, an improvement of 3.2%. Fiscal 2023 diluted EPS was -$0.77, an improvement of $0.07 year over year.
Non-GAAP results showed a swing to profitability. Non-GAAP income from operations was $2.3 million in the fourth quarter, compared with a non-GAAP loss from operations of $4.7 million in the prior-year quarter. For fiscal 2023, the non-GAAP loss from operations was $3.5 million, compared with $26.2 million in fiscal 2022. Free cash flow was $1.5 million in the fourth quarter and $22.4 million for the year. Operating cash flow was $2.3 million in the quarter, up 150.5% year over year, and $25.6 million for fiscal 2023, up 576.0%. Capital expenditures were $0.28 million in the fourth quarter, down 54.2%, and $1.28 million for the year, down 64.8%.
Operating metrics presented a mixed picture. ARR reached $281 million, up 10% year over year and up $8 million from the third quarter of 2023. Paying customers grew 37% to 2,723. Customers with more than $100,000 in ARR rose 6% to 511, and customers with more than $1 million in ARR rose 30% to 39. Amplitude ended the year with 26 of the Fortune 100 as paying customers. However, ending dollar-based net retention rate fell to 98% from 110% a year earlier. The trailing 12-month net retention rate was 101%, down from 119%. Deferred revenue was $102.6 million, up 14.0% year over year, while RPO was $239.4 million, down 3.5%. The RPO decline and lower net retention suggest customers are expanding less, even as new customer additions remain strong.
Guidance points to slower growth in the near term. For the first quarter of 2024, Amplitude expects revenue of $72.1 million to $72.7 million, non-GAAP operating loss of $2.8 million to $2.2 million, and non-GAAP diluted EPS of -$0.01 to $0.00. For full year 2024, the company expects revenue of $291.5 million to $294.5 million, non-GAAP operating income (loss) of -$1.0 million to $2.0 million, and non-GAAP diluted EPS of $0.06 to $0.08. The company did not provide a reconciliation of expected non-GAAP operating income to GAAP operating income because certain items cannot be reasonably predicted. The full-year revenue outlook implies growth at a slower pace than fiscal 2023, though the non-GAAP operating range suggests the company could be near breakeven.
Risks remain substantial. Amplitude has a history of losses, and its net retention rate has declined. A slowdown in information technology spending or unfavorable global economic conditions could limit growth. The company's restructuring plan, announced in April 2023 to cut about 13% of the global workforce, may not deliver expected savings. Competition in the SaaS analytics market is intense. The company also faces risks from international expansion, privacy and data laws, and its hosting commitment with AWS, which requires minimum spending of $267 million over five years, with $174 million remaining as of December 31, 2023. Management highlighted new product launches, including Session Replay, and the hiring of Francois Ajenstat as Chief Product Officer. Those investments are meant to support long-term growth, but the near-term mix of slower expansion and cautious guidance leaves execution risk.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2023 | Q3 FY2023 | QoQ | Q4 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $71.4M | $70.6M | +1.1% | $65.3M | +9.4% |
| Gross profit | $53.1M | $53.3M | -0.4% | $46.0M | +15.5% |
| Gross margin | 74.4% | 75.5% | -1.1 pp | 70.5% | +3.9 pp |
| Research & development | $22.2M | $21.8M | +1.8% | $22.2M | +0.0% |
| Sales & marketing | $37.8M | $38.5M | -1.8% | $35.2M | +7.4% |
| General & administrative | $14.7M | $14.0M | +5.4% | $14.5M | +2.1% |
| Total operating expenses | $74.7M | $74.3M | +0.5% | $71.8M | +4.0% |
| Net income (loss) | -$18.5M | -$17.7M | -4.5% | -$24.0M | +22.9% |
| Net margin | -26.0% | -25.1% | -0.8 pp | -36.9% | +10.9 pp |
| Diluted EPS | -$0.16 | -$0.15 | -$0.01 | -$0.22 | +$0.06 |
| Customers | 480 | — | — | 385 | +24.7% |
| Net retention rate | 101.0% | 105.0% | -4.0 pp | 119.0% | -18.0 pp |
Risks
Dollar-based net retention rate (TTM) for paying customers declined to 101% as of December 31, 2023 from 119% as of December 31, 2022, and the ending dollar-based net retention rate was 98% versus 110%. The risk factors state that failure to renew or expand customer subscriptions would materially adversely affect revenue and results of operations.
Unfavorable global economic conditions, including inflation, rising interest rates, and a potential recession, could reduce customer software spending and budgets, and the company authorized a restructuring plan in April 2023 to reduce its global workforce by approximately 13% in response to macroeconomic conditions. The risk factors also note potential consolidation among customers may reduce overall spending on its services.
Remaining performance obligations declined to $239.4 million as of December 31, 2023 from $248.2 million as of December 31, 2022, a decrease of 3.5%, with the greater-than-12-months portion down 11%. This contraction in contracted future revenue may signal slower bookings or renewals and pressure future revenue recognition.
The company expects its sales cycle to lengthen and become less predictable as it focuses on larger organizations; enterprise sales cycles averaged four to six months compared with one to three months for non-enterprise customers. Delays or failure to close expected significant transactions could adversely affect results of operations for a period and future periods.
The April 2023 restructuring plan reduced global workforce by approximately 13% and incurred $8.1 million in non-recurring charges in fiscal 2023. The plan may not achieve anticipated savings or operational efficiencies and could result in loss of institutional knowledge, decreased morale, or unplanned additional expenses.
For fiscal 2023, 39% of revenue was generated outside the United States, and further geographic expansion creates operational challenges, including geopolitical instability and the Russia-Ukraine war, which has disrupted some customers' ability to pay. The risk factors state that these factors could materially adversely affect financial condition and results of operations.
The company has a history of losses, with net loss of $90.4 million for fiscal 2023 and an accumulated deficit of $363.5 million as of December 31, 2023. It expects costs and expenses to increase as it continues to invest in its Digital Analytics Platform, sales and marketing, and international expansion, and may not achieve or sustain profitability.
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
Non-GAAP Gross Margin
Annual Recurring Revenue (ARR)
Customers > $1M ARR
Summary, forecast, risks and KPIs are extracted from Amplitude, Inc.'s SEC filings for Q4 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.