Amplitude, Inc. Q3 FY2024 earnings call

Key Points

• Beat all guided metrics in Q3. Revenue up 6% Y/Y, ARR at $298M, non-GAAP operating income $1.6M.
• Integrated platform approach is well-suited, 23% of annual contracted customers use multiple products. Competitive vs point solutions/legacy players, with Google Analytics issues creating opportunities.
• Hired Wade Chambers as Chief Engineering Officer. He brings extensive engineering experience from roles at Twitter, Yahoo, etc.
• Product updates: Amplitude Made Easy launched, improving onboarding with single line of code, auto-capture, etc. Self-service sign-ups up 40%, Session Replay activation doubled. Extended partnership with HubSpot, launched Web Experimentation for easier A/B testing.
• Customer stories: Landed customers like Realtor.com, DigitalOcean, showing platform breadth and consolidation of fragmented tooling.

Third quarter revenue was $75.2 million, up 6% year over year. Annual recurring revenue was $298 million, up $8 million from the end of the second quarter. Non-GAAP operating income was $1.6 million or 2.1% of revenue. There are almost 3,500 paying customers. In Q3, customers representing $100,000 or more of ARR grew to 567, an increase of 13% year-over-year.

Q4 2024

• Revenue expected between $76 million and $77 million, annual growth rate 7% midpoint.
• Non-GAAP operating loss between negative $2.1 million and negative $0.1 million.
• Non-GAAP net income per share between $0.00 and $0.01.

Full Year 2024

• Revenue outlook raised to $297.1 million to $298.1 million, annual growth rate 8% midpoint.
• Non-GAAP operating loss reduced to between negative $6.3 million and negative $4.3 million.
• Non-GAAP net income per share between $0.04 and $0.06.

Macro environment is still choppy, buyer scrutiny remains high, especially for larger deals. Digital natives are on the defense, and M&A and layoffs are unpredictable variables impacting end-user demand. Churn is still too high.

Q: How does Amplitude play in to capture interactions of AI apps or agents?

A: Even with agents, humans will still interface with digital world, and Amplitude captures touch points. Also, with large customer behavior data repository, can train on AI agents to maximize digital experience.

Q: Where are incremental investments going?

A: Primarily in product innovation, driving new products and innovation to market, refocusing go-to-market upmarket to enterprise with self-service automation.

Q: Overlap and revenue opportunity with Command AI?

A: Little revenue overlap, Command AI brings guides, surveys, user assistant products. Long term, majority accounts could use with analytics, potential 20%-50% uplift.

Q: Why big expansions now?

A: Investments in sales coverage to enterprise, new product capabilities, earning trust and right to expand with clients.

Q: Monetization and reception of Web Experimentation?

A: Monetized directly, early customer reception positive, friendly for marketers/growth teams with point-and-click A/B testing.

Q: Competitive environment?

A: Drive towards consolidation, dissatisfaction with Google Analytics 4 leading customers to Amplitude.

Q: RPO and enterprise go-to-market?

A: RPO growth due to strong enterprise relationships, aligning contracts to long-term value, leading to better revenue predictability.