Core Insights - AI stocks have rebounded in May after a decline in April, with companies like Nvidia nearing all-time highs and Palantir setting a new record [1][2] Group 1: AI Market Overview - Investors are shifting focus back to the AI boom, with major tech firms investing tens of billions into new data centers for AI programs [2] - Despite the recovery, some AI stocks remain undervalued, presenting potential buying opportunities [2] Group 2: Amplitude - Amplitude, a software-as-a-service company specializing in product analytics, has seen a slowdown after its pandemic-driven growth [4] - The company has enhanced its platform to include tools for customer insights, such as guides, surveys, and session replay features [5] - On June 10, Amplitude will launch AI agents to provide insights and suggest improvements for customers, potentially increasing its market share against competitors like Google Analytics and Adobe Analytics [6][7] - Amplitude's market cap is currently $1.6 billion, and the stock is down 85% from its all-time high [7] Group 3: Upstart - Upstart, which experienced a surge in 2021, faced challenges due to rising interest rates and recession fears, impacting its credit platform [8] - The company's latest AI model, Model 18, enhances credit risk assessment, resulting in fewer defaults and higher approval rates [9] - Financial results show a 67% revenue increase to $213 million in Q1, with adjusted EBITDA of $42.6 million, a significant improvement from a loss a year ago [10] - Upstart is expanding into the auto and home loan markets, with auto loan origination growing fivefold and home loan originations increasing sixfold year-over-year [11] - The stock is down 44% from its 52-week high and 87% from its all-time peak, but AI-driven improvements suggest it may be a smart investment [12]

Core Insights - Amplitude's stock price increased by 35% in May, driven by a strong first-quarter earnings report and positive macroeconomic conditions [2][4] - The company reported a 10% revenue growth to $80 million, surpassing estimates, and achieved break-even adjusted earnings per share [5] - Amplitude's upcoming AI agent launch on June 10 is anticipated to enhance its competitive position [9] Financial Performance - Revenue for the quarter rose to $80 million, slightly above the estimated $79.76 million [5] - Remaining performance obligations (RPO) increased by 30% to $325.9 million, indicating longer customer contracts and increased confidence [5] - The company is targeting full-year revenue between $329 million and $333 million, reflecting a 10.6% increase at the midpoint [9] Market Dynamics - Amplitude's stock surged 19% on May 8 following the earnings report, indicating strong market reaction [4] - The stock gained an additional 13% on May 12 after the U.S. and China agreed to lower tariff rates, which positively impacts the overall economic outlook [7] - The broader recovery in the stock market, alongside fading recession fears, has contributed to Amplitude's stock performance [1][2] Product Development - Amplitude has introduced new features such as Session Replay and Guides & Surveys, enhancing its product analytics platform [6] - The upcoming AI agent is expected to be a significant development for the company, potentially differentiating it from competitors [9] - The company is experiencing traction with its customer base and product suite post-pandemic, with a large addressable market still available [10]

Group 1 - Amplitude, Inc. (AMPL) is a notable stock within the Business Services sector, which consists of 270 companies and currently ranks 3 in the Zacks Sector Rank [2] - The Zacks Rank system, which focuses on earnings estimates and revisions, currently rates Amplitude, Inc. as 2 (Buy) [3] - Amplitude, Inc. has seen a 14.7% increase in the Zacks Consensus Estimate for its full-year earnings over the past quarter, indicating improved analyst sentiment [4] Group 2 - Year-to-date, Amplitude, Inc. has returned approximately 17.4%, significantly outperforming the Business Services sector average return of 3.5% [4] - Amplitude, Inc. is part of the Technology Services industry, which includes 129 stocks and currently ranks 48 in the Zacks Industry Rank, with an average gain of 5.2% this year [6] - Another stock in the Business Services sector, LiveRamp (RAMP), has also outperformed the sector with a year-to-date return of 7.4% and a Zacks Rank of 2 (Buy) [5][6]

Group 1 - Amplitude, Inc. (AMPL) is outperforming its peers in the Business Services sector with a year-to-date performance of approximately 11.9%, compared to the sector average gain of 3.7% [4] - The Zacks Rank for Amplitude, Inc. is currently 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The consensus estimate for Amplitude's full-year earnings has increased by 2% over the past quarter, reflecting stronger analyst sentiment [3] Group 2 - Amplitude, Inc. is part of the Technology Services industry, which consists of 129 companies and currently ranks 52 in the Zacks Industry Rank [5] - The Technology Services industry has seen an average gain of 6.2% year-to-date, indicating that Amplitude is performing better than the industry average [5] - Another stock in the Business Services sector, Mogo Inc (MOGO), has also shown strong performance with a year-to-date increase of 12.5% and a Zacks Rank of 2 (Buy) [4][5]

1Q25 Investor Presentation © 2025 Amplitude Inc. All Rights Reserved. Disclaimer This presentation and the accompanying oral presentation have been prepared by Amplitude, Inc. (the "Company"). Certain statements in this presentation and the accompanying oral commentary are forward-looking statements. These statements relate to the Company's financial outlook for the second quarter of 2025 and full year 2025, the expected performance of the Company's products, the Company's expected quarterly and long-term g ...

Core Viewpoint - Amplitude, Inc. reported a revenue of $79.95 million for the quarter ended March 2025, marking a year-over-year increase of 10.1% and exceeding the Zacks Consensus Estimate by 0.66% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.00, compared to $0.01 a year ago, with a surprise of +100.00% against the consensus estimate of -$0.01 [1] - The stock has returned +10.5% over the past month, slightly underperforming the Zacks S&P 500 composite's +10.6% change [3] Key Metrics - Dollar-based Net Retention Rate was reported at 101%, surpassing the three-analyst average estimate of 99.5% [4] - The number of Paying Customers was 4,000, which is below the average estimate of 4,110 from three analysts [4] - Annual Recurring Revenue (ARR) reached $320 million, exceeding the two-analyst average estimate of $315.11 million [4] - Remaining Performance Obligations (RPO) for less than or equal to 12 months stood at $233,801, above the two-analyst average estimate of $218,257.40 [4]

Company Performance - Amplitude, Inc. reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.01, and compared to earnings of $0.01 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $79.95 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 0.66%, and this is an increase from year-ago revenues of $72.62 million [2] - Over the last four quarters, Amplitude has surpassed consensus EPS estimates four times and has topped consensus revenue estimates four times as well [2] Stock Outlook - Amplitude shares have declined approximately 11.2% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $79.69 million, and for the current fiscal year, it is $0.06 on revenues of $324.45 million [7] Industry Context - The Technology Services industry, to which Amplitude belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]

Financial Data and Key Metrics Changes - The first quarter revenue was $80 million, up 10% year over year and 2% quarter over quarter [5][32] - Annual recurring revenue (ARR) increased to $320 million, up 12% year over year and $8 million sequentially [5][32] - Non-GAAP operating loss was $2.1 million, approximately $2.4 million better than the midpoint of guidance [6][35] - Dollar-based net retention (NRR) reached 101% in Q1, up five points from its lowest level in Q2 of the previous year [9][33] - Gross margin was 77%, consistent with the previous quarter [34] Business Line Data and Key Metrics Changes - Customers with more than $100,000 in ARR grew to 617, an increase of 18% year over year [6][33] - Multiproduct customers now make up 30% of the installed base and 64% of total ARR [7][9] - The company is focusing on enterprise customers, with almost two-thirds of ARR coming from this segment [8][19] Market Data and Key Metrics Changes - The company is seeing strong enterprise momentum, landing new customers like Hertz and The Economist Group [8][19] - Total remaining performance obligations (RPO) accelerated to 30% growth year over year, while long-term RPO accelerated to 72% growth year over year [26] Company Strategy and Development Direction - The company is positioning itself as a complete end-to-end digital analytics platform for enterprises, aiming to replace point solutions [24] - A new strategic enterprise accounts team has been created to focus on the top 30 customers and prospects [9][19] - The company is emphasizing product innovation, with recent launches including Guides and Surveys, which have seen strong adoption [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the macroeconomic challenges but remains focused on helping customers derive value from the platform [10][37] - The company expects revenues for Q2 2025 to be between $80.3 million and $82.3 million, representing an annual growth rate of 11% at the midpoint [38] - For the full year 2025, revenue expectations have been raised to between $329 million and $333 million, reflecting a 10.5% annual growth rate at the midpoint [39] Other Important Information - The board of directors has approved a $50 million share repurchase program to manage future dilution and take advantage of stock price dislocations [39] - The company is focused on operational excellence and building a durable enterprise SaaS business [37][39] Q&A Session Summary Question: Insights on net new ARR metric - Management noted that the increase in net new ARR was driven by improved retention and successful enterprise wins, with a focus on platform capabilities [42][43] Question: Improving market awareness of new products - Management acknowledged the need to educate existing customers about new offerings, emphasizing the transition from an analytics-focused company to a comprehensive platform [46][48] Question: Comparison of new marketing products to previous CDP-related products - Management highlighted that the current marketing analytics capabilities are more robust, allowing for a full switch from competitors like Google Analytics [52][56] Question: Operating leverage in the second half of the year - Management indicated that improvements in gross margins, sales productivity, and operational efficiencies would drive operating leverage [58][60] Question: Budget scrutiny from customers - Management noted that CFOs are increasingly focused on ROI from investments in Amplitude, which is driving the need for greater efficiency and value [96][97]

Financial Data and Key Metrics Changes - The company's Q1 2025 revenue was $80 million, representing a 10% year-over-year increase [4][29] - Annual recurring revenue (ARR) reached $320 million, up 12% year-over-year and $8 million sequentially [4][29] - Non-GAAP operating loss was $2.1 million, which was approximately $2.4 million better than the midpoint of guidance [32] - Dollar-based net retention (NRR) improved to 101%, up five points from its lowest level in Q2 of the previous year [7][30] - Gross margin for Q1 was 77%, consistent with the previous quarter [31] Business Line Data and Key Metrics Changes - Customers with more than $100,000 in ARR grew to 617, an increase of 18% year-over-year [5][30] - Multiproduct customers now account for 30% of the installed base and 64% of total ARR [6] - The company is focusing on enterprise customers, with almost two-thirds of ARR coming from this segment [6][17] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) accelerated to 30% growth year-over-year, while long-term RPO grew by 72% year-over-year [24] - The company is seeing strong enterprise momentum, landing new customers like Hertz and The Economist Group [6][17] Company Strategy and Development Direction - The company is positioning itself as a complete end-to-end digital analytics platform for enterprises, aiming to replace point solutions [22] - A new strategic enterprise accounts team has been created to focus on the top 30 customers and prospects [7] - The company is emphasizing product innovation, with new offerings like Guides and Surveys gaining traction [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the macroeconomic challenges but remains focused on helping customers derive value from the platform [8] - The company expects continued revenue growth, projecting Q2 2025 revenues between $80.3 million and $82.3 million, representing an annual growth rate of 11% at the midpoint [35] - For the full year 2025, revenue expectations have been raised to between $329 million and $333 million, reflecting a 10.5% annual growth rate at the midpoint [37] Other Important Information - The board of directors approved a $50 million share repurchase program to manage future dilution and take advantage of stock price dislocations [37] - The company is focused on operational excellence and aims for positive free cash flow and non-GAAP profitability [34] Q&A Session Summary Question: What drove the net new ARR metric in the quarter? - Management indicated that the improvement in retention and new customer acquisition, along with a focus on enterprise wins, contributed to the outperformance [40][41] Question: How does the company plan to improve market awareness of new products? - Management acknowledged the need for education among existing customers about the expanded product offerings and emphasized ongoing efforts to communicate these changes [44][45] Question: What are the main drivers of operating leverage in the back half of the year? - Management highlighted optimizations across gross margins, sales productivity, and G&A expenses as key drivers for improved operating leverage [56][58] Question: How does the partnership with Twilio enhance the company's strategy? - The partnership is seen as beneficial due to the overlap in customer bases and the goal of positioning the company as an application layer on top of existing CDPs [72][74] Question: What is the company's outlook regarding macroeconomic pressures? - Management expressed confidence in the company's ability to drive growth and deliver value to customers, even in a challenging macro environment [86][90]

Financial Performance - Revenue for the three months ended March 31, 2025, was $79,953 thousand, representing a 10.2% increase from $72,624 thousand in the same period of 2024[24]. - Gross profit for the same period was $59,749 thousand, up from $53,735 thousand, indicating a gross margin improvement[24]. - Net loss for the three months ended March 31, 2025, was $22,231 thousand, compared to a net loss of $21,460 thousand in the prior year[24]. - The company reported a comprehensive loss of $21,911 thousand for the three months ended March 31, 2025, compared to $21,393 thousand in the same period of 2024[24]. - Consolidated net loss for Q1 2025 was $(22,231,000), compared to $(21,460,000) in Q1 2024, indicating a 3.6% increase in losses[39]. - The company reported a net loss attributable to Class A and Class B common stockholders of $22.231 million for the three months ended March 31, 2025, compared to a net loss of $21.460 million in 2024[95]. - The company reported a loss from operations of $24,198 thousand for the three months ended March 31, 2025, slightly better than the loss of $24,705 thousand in the same period last year[132]. - The net loss for the three months ended March 31, 2025, was $22.231 million, compared to a net loss of $21.460 million in the same period of 2024[146]. Cash Flow and Assets - Cash and cash equivalents decreased to $131,173 thousand as of March 31, 2025, down from $171,678 thousand as of December 31, 2024[22]. - Total current assets decreased to $285,976 thousand from $303,631 thousand, reflecting a decline in cash and accounts receivable[22]. - Cash flows used in operating activities were $(8,022) thousand for the three months ended March 31, 2025, compared to $(48) thousand in the prior year[32]. - Cash and cash equivalents decreased to $131,173,000 as of March 31, 2025, from $265,705,000 as of March 31, 2024, a decline of 50.7%[55]. - As of March 31, 2025, the company had cash and cash equivalents of $131.2 million and marketable securities of $151.9 million[157]. - The net cash used in investing activities for the three months ended March 31, 2025, was $26.4 million, primarily due to $33.7 million in purchases of marketable securities[164]. - The company experienced a net cash used in financing activities of $6.1 million for the three months ended March 31, 2025, mainly due to $7.6 million in net tax remittance on equity awards[166]. Revenue Breakdown - Revenue from the United States for Q1 2025 was $48,634,000, up from $43,243,000 in Q1 2024, a growth of 12.5%[52]. - International revenue for Q1 2025 was $31,319,000, compared to $29,381,000 in Q1 2024, reflecting a 6.6% increase[52]. - Annual Recurring Revenue (ARR) increased to $320 million, representing a 12% year-over-year growth from $285 million[113]. - The company had 617 customers representing over $100,000 in annual recurring revenue (ARR), an 18% increase year-over-year from 521 customers in 2024[106]. - The dollar-based net retention rate for paying customers was 98% for the trailing 12 months as of March 31, 2025, compared to 99% in 2024[106]. - The ending dollar-based net retention rate for paying customers was 101% as of March 31, 2025, up from 97% in 2024[106]. Operating Expenses - Total operating expenses increased to $83,947 thousand from $78,440 thousand, primarily driven by higher research and development and sales and marketing expenses[24]. - Total remaining performance obligations as of March 31, 2025, were $325,869,000, up from $308,635,000 as of December 31, 2024, marking a 5.6% increase[51]. - Total stockholders' equity decreased to $289,460 thousand as of March 31, 2025, from $296,556 thousand as of December 31, 2024[22]. - The total stock-based compensation expense for the three months ended March 31, 2025, was $20.597 million, slightly down from $21.064 million in the same period of 2024[82]. - Sales and marketing expenses grew by 8% to $44.146 million, primarily due to increased personnel and related expenses[152]. - General and administrative expenses increased by 11% to $16.268 million, driven by higher consulting fees and subscription software costs[153]. Investments and Future Plans - The company plans to invest significantly in the development of its Digital Analytics Platform, technology infrastructure, and international expansion[187]. - The company is focusing on long-term growth, which may result in lower near-term profitability due to significant expenditures on sales, marketing, and R&D[188]. - The company plans to continue investing in research and development, expecting R&D expenses to increase in dollar amount over time[109]. - The company aims to expand its international presence, which may be affected by global economic and political instability[111]. Risks and Challenges - The company faces risks related to customer retention and expansion, as any decline could materially affect its financial condition and results of operations[190]. - Economic downturns and reduced software spending could limit the company's growth and adversely affect its financial condition[198]. - The company is experiencing increased competition in the digital analytics market, which may lead to pricing pressures and reduced sales[202]. - The market for SaaS applications is highly competitive, with low barriers to entry, making it challenging for the company to maintain market share[203]. - The company is currently defending against multiple legal actions, which may incur significant legal costs and affect management resources[193]. AI Technologies - The company is incorporating AI Technologies into its products, which are expected to help customers achieve data insights faster, but there are risks associated with the development and deployment of these technologies[209]. - The company anticipates increased investment in AI Technologies, with no assurance that such investments will always be beneficial to its products or services[210]. - The development and maintenance of AI Technologies are complex and may involve unforeseen difficulties, including performance problems and undetected defects[211]. - There are risks that AI-generated data may be inaccurate or misleading, which could harm the company's reputation and customer relationships[213]. - The company relies on third-party AI Technologies, and any changes in availability or pricing could negatively impact its solutions and business[216]. - The company faces reputational and financial risks related to the responsible use of AI Technologies, which could affect adoption and lead to legal liabilities[217].