Group 1 - The recent rebound in the stock market indicates that investors are becoming weary of high valuations in the context of an uncertain macroeconomic environment [1] - The market has been primarily influenced by expensive large-cap technology stocks, yet there are still opportunities in other sectors [1] - The analyst has extensive experience in both Wall Street and Silicon Valley, providing insights into current industry trends and themes [1]

Group 1 - Coherent (COHR) has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Amplitude, Inc. (AMPL), which has a Zacks Rank of 4 (Sell) [3] - Value investors utilize various valuation metrics to identify undervalued stocks, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - COHR has a forward P/E ratio of 19.84, significantly lower than AMPL's forward P/E of 171.38, suggesting COHR is more attractively priced [5] Group 2 - COHR's PEG ratio is 0.79, indicating a favorable valuation relative to its expected earnings growth, while AMPL's PEG ratio is 4.43, suggesting it may be overvalued [5] - COHR has a P/B ratio of 2.35, compared to AMPL's P/B of 3.94, further supporting COHR's stronger valuation metrics [6] - COHR's overall Value grade is B, while AMPL's Value grade is F, highlighting COHR as the better option for value investors [6]

Group 1 - The article discusses Amplitude (NASDAQ: AMPL) and previously assigned a buy rating based on expectations of mid-teens revenue growth, indicating a potential 20% upside if these expectations are met [1] - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1] - The purpose of writing on Seeking Alpha is to track investment ideas' performance and connect with like-minded investors [1] Group 2 - There are no disclosed stock, option, or derivative positions in any mentioned companies, nor plans to initiate such positions within the next 72 hours [2] - The article expresses the author's personal opinions and is not compensated for it, aside from Seeking Alpha [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [3]

Amplitude (AMPL) Conference Summary Company Overview - **Company**: Amplitude - **Industry**: Digital Analytics - **CFO**: Andrew Casey - **IPO**: 2021 Key Points and Arguments Company Evolution and Product Development - Amplitude started by providing digital analytics for startups and SMBs, focusing on B2C engagements like DoorDash and PayPal [3][4] - The company has expanded its product offerings beyond product analytics to include experimentation, session replay, web analytics, and marketing analytics [4][5] - Recent acquisitions include Command AI for guides and surveys, and Craftful for voice of the customer, enhancing the platform's capabilities [5] Growth Strategy - Amplitude is shifting its focus towards enterprise clients, moving from a transactional sales model to a value-oriented approach [6][7] - The company has seen acceleration in top-line growth due to improved execution and a focus on cross-selling its platform [8][9][55] - The integration of AI into its offerings is expected to further enhance customer engagement and operational efficiency [31][32] Market Position and Competition - Amplitude is increasingly competing with Adobe and Google Analytics, with improving win rates against these competitors [27][28] - The company is positioning itself as a comprehensive solution for marketing and product analytics, appealing to CMOs and Chief Data Analysts [24][25] AI Integration and Future Outlook - The introduction of agents to assist with digital engagement is expected to lower barriers for enterprises lacking resources for data science [31][36] - The agents will facilitate real-time experimentation and personalization, enhancing customer experiences [35][36] Financial Performance and Margins - Amplitude's pricing model is based on the number of events ingested into the platform, which is expected to increase as more channels are utilized [45][46] - The company aims to improve gross and operating margins by optimizing cloud hosting costs and increasing the adoption of multiple products by customers [60][62] - Sales and marketing expenses are targeted to decrease from 43% to the low 30s, while G&A is aimed to drop below 10% [64][65] Additional Important Insights - The company is building a services business to create a partner ecosystem, which may initially act as a headwind but is expected to generate billable utilization over time [63] - Amplitude's focus on a growth with leverage framework aims to grow revenues while controlling expense growth [64] This summary encapsulates the key insights from the Amplitude conference, highlighting the company's strategic direction, market positioning, and financial outlook.

Core Insights - Amplitude is experiencing accelerating revenue growth, reporting its third consecutive quarter of growth driven by its platform strategy and new product features [2][3] - The company achieved a 16% increase in annual recurring revenue (ARR) to $335 million and a net-new ARR of $15 million, indicating strong business momentum [3][5] - Amplitude's dollar-based net retention rate reached 104%, the highest in six quarters, suggesting recovery from previous churn issues [3] Financial Performance - Revenue for the quarter rose 14% year over year to $83.3 million, exceeding the consensus estimate of $81.3 million [5] - The number of customers with an ARR of $100,000 or more increased by 16% to 634 [5] - Adjusted profit was reported at $0.01 per share, up from breakeven a year ago, and free cash flow nearly tripled from $6.8 million to $18.2 million [5] AI Strategy - Amplitude has made several acquisitions to enhance its platform and launch a suite of AI agents, including Command AI, June, Kraftful, and Inari [6][7] - The AI agents, currently in beta testing, are expected to be commercially available later this year, with promising features like Experiment and Insight Generation [8][9] - Customer feedback on the AI agents has been positive, indicating potential for significant value addition [9] Market Position - Amplitude received validation from Forester, being rated highest in the strength of offering in its first digital analytics solutions report [10] - The company’s third-quarter guidance projects revenue of $85 million to $87 million, reflecting a 17.3% increase [11] - With a market cap of $1.6 billion, Amplitude is positioned to compete against legacy providers like Google Analytics and Adobe Analytics, with its growth trajectory potentially enhanced by the new AI agents [12]

Core Insights - Amplitude, Inc. reported revenue of $83.27 million for the quarter ended June 2025, reflecting a year-over-year increase of 13.6% and a surprise of +2.58% over the Zacks Consensus Estimate of $81.17 million [1] - The company's EPS was $0.01, compared to $0 in the same quarter last year, indicating no EPS surprise against the consensus estimate of $0 [1] Financial Performance Metrics - Dollar-based Net Retention Rate was 104%, exceeding the average estimate of 100.4% from three analysts [4] - The number of Paying Customers stood at 4,300, slightly below the average estimate of 4,379 from three analysts [4] - Annual Recurring Revenue (ARR) reached $335 million, surpassing the two-analyst average estimate of $326.08 million [4] - Remaining Performance Obligations (RPO) for less than or equal to 12 months were reported at $248,520, exceeding the two-analyst average estimate of $239,427.50 [4] Stock Performance - Over the past month, Amplitude's shares have returned -8.1%, contrasting with the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Amplitude, Inc.'s unaudited financial statements detail asset and liability changes, revenue growth, and net loss for the period ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show total assets and liabilities increased by June 30, 2025, while total stockholders' equity decreased, reflecting the period's net loss Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$456,610** | **$445,911** | | Cash and cash equivalents | $119,656 | $171,678 | | Total current assets | $286,792 | $303,631 | | **Total Liabilities** | **$177,106** | **$149,355** | | Deferred revenue | $136,659 | $109,671 | | Total current liabilities | $171,476 | $144,513 | | **Total Stockholders' Equity** | **$279,504** | **$296,556** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three and six months ended June 30, 2025, revenue increased, but net loss widened for both periods Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $83,270 | $73,300 | $163,223 | $145,924 | | Gross Profit | $60,458 | $53,815 | $120,207 | $107,550 | | Total Operating Expenses | $87,552 | $80,975 | $171,499 | $159,415 | | Net Loss | $(24,668) | $(23,415) | $(46,899) | $(44,875) | | Net Loss Per Share | $(0.19) | $(0.19) | $(0.36) | $(0.37) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased for the six months ended June 30, 2025, while investing and financing activities used more cash Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $12,032 | $9,180 | | Net cash provided by (used in) investing activities | $(44,995) | $35,671 | | Net cash provided by (used in) financing activities | $(19,052) | $(10,997) | | **Net decrease in cash, cash equivalents, and restricted cash** | **$(52,015)** | **$33,854** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, a significant increase in remaining performance obligations, a share repurchase program, and a subsequent acquisition - The company's business model is providing a Digital Analytics Platform as a subscription service (SaaS)[33](index=33&type=chunk) Remaining Performance Obligations (in thousands) | Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Less than or equal to 12 months | $248,520 | $223,320 | | Greater than 12 months | $109,574 | $85,315 | | **Total** | **$358,094** | **$308,635** | - On May 6, 2025, the Board approved a share repurchase program authorizing up to **$50.0 million** of the company's Class A common stock[83](index=83&type=chunk) - Subsequent to the quarter end, on July 3, 2025, the company acquired Kraftful, Inc. for an aggregate purchase price of **$3.7 million**[101](index=101&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 revenue increase, ARR growth, stable gross margin, increased operating expenses, and the company's solid liquidity position Key Business Metrics as of June 30, | Metric | 2025 | 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $335 million | $290 million | 16% | | Dollar-Based Net Retention Rate (TTM) | 99% | 98% | 1 ppt | | Paying Customers with ARR > $100k | 634 | 547 | 16% | - The company focuses on customer acquisition, AI-led platform investments, and international growth, with recent innovations including Amplitude AI Agents and new marketing capabilities[110](index=110&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk) Q2 2025 vs Q2 2024 Results (in thousands) | Metric | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $83,270 | $73,300 | $9,970 | 14% | | Cost of Revenue | $22,812 | $19,485 | $3,327 | 17% | | Total Operating Expenses | $87,552 | $80,975 | $6,577 | 8% | - As of June 30, 2025, principal liquidity sources were **$119.7 million** in cash and equivalents and **$167.9 million** in marketable securities, deemed sufficient for the next 12 months[171](index=171&type=chunk)[172](index=172&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company assesses market risks from interest rates and foreign currency, concluding that a hypothetical **10%** change would not materially affect financial results - The company's investments are exposed to interest rate fluctuations, but an immediate **10%** change in rates is not expected to have a material effect on portfolio fair value[188](index=188&type=chunk) - Operating expenses include foreign currency denominations, but exchange rate fluctuations have not been material, with a hypothetical **10%** change in the U.S. dollar not expected to have a material effect[189](index=189&type=chunk) - Management believes inflation has not had a material effect on the business, financial condition, or results of operations[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of the period end[191](index=191&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[192](index=192&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 for details on legal proceedings, including dismissed securities class actions and ongoing privacy-related class actions - For details on legal proceedings, the report directs readers to Note 9 of the financial statements[195](index=195&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks including a history of net losses, intense competition, reliance on third-party infrastructure, evolving privacy regulations, and concentrated voting power - The company has a history of net losses, reporting **$46.9 million** for the six months ended June 30, 2025, and an accumulated deficit of **$504.7 million**, with profitability not guaranteed[201](index=201&type=chunk) - The digital analytics market is highly competitive, posing risks of reduced sales, lower margins, or financial losses from large companies, in-house systems, and new entrants[216](index=216&type=chunk)[217](index=217&type=chunk) - A dual-class stock structure concentrates voting control with existing stockholders, executive officers, and directors, limiting Class A stockholders' influence on corporate matters[326](index=326&type=chunk) - The business is subject to evolving privacy laws like GDPR and CCPA, with non-compliance potentially leading to significant fines, reputational damage, and other liabilities[297](index=297&type=chunk)[298](index=298&type=chunk)[301](index=301&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=104&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In May 2025, the company repurchased Class A common shares and authorized a new share repurchase program Company Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 203,921 | $12.44 | | June 2025 | — | $— | | **Total** | **203,921** | **$12.44** | - A new repurchase program for up to **$50 million** was authorized on May 7, 2025, with no shares repurchased under it as of June 30, 2025[363](index=363&type=chunk) [Item 3. Defaults Upon Senior Securities](index=104&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None [Item 4. Mine Safety Disclosures](index=104&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not Applicable [Item 5. Other Information](index=104&type=section&id=Item%205.%20Other%20Information) On May 15, 2025, President Thomas Hansen adopted a Rule 10b5-1 trading plan for the potential sale of Class A common shares - Thomas Hansen, President of the Company, adopted a Rule 10b5-1 trading plan on May 15, 2025, for the sale of up to **210,000** shares of Class A common stock[366](index=366&type=chunk) [Item 6. Exhibits](index=105&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications

Financial Data and Key Metrics Changes - The second quarter revenue was $83.3 million, up 14% year over year, exceeding guidance [4][40] - Annual recurring revenue (ARR) reached $335 million, up 16% year over year, with the highest net new ARR addition in eleven quarters [4][40] - Non-GAAP operating loss was $1.5 million, with a gross margin of 75%, down one point from the previous year [5][41] - Free cash flow margin increased to 22%, generating $8.9 million in free cash flow for the first half of 2025, compared to $5.7 million in the same period last year [34][44] Business Line Data and Key Metrics Changes - Customers with more than $100,000 in ARR grew to 634, a 16% increase year over year [5][41] - 67% of ARR now comes from multiproduct customers, up from 64% last quarter [5][36] - The growth of data being ingested into the platform increased by 20% year over year [36] Market Data and Key Metrics Changes - The company was recognized as a leader in the 2025 Forrester Wave for digital analytics solutions, receiving the highest current offering score [26] - Amplitude ranked number one in eight categories in the G2 Summer 2025 report, including product analytics for the twentieth consecutive quarter [28] Company Strategy and Development Direction - The company is focusing on becoming AI native and expanding its platform through acquisitions, such as Command AI, Craftful, and Inari [8][10][11] - The strategy emphasizes consolidating analytics, experimentation, and activation within a single ecosystem to drive greater personalization [30] - The company aims to build a more durable business by increasing visibility into future revenue streams and focusing on operational excellence [36][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy to accelerate growth, particularly through enterprise customer focus and platform expansion [34][46] - The company expects revenue for Q3 2025 to be between $85 million and $87 million, representing an annual growth rate of 14% at the midpoint [46] - Long-term aspirations for net revenue retention (NRR) are above 115%, driven by continued progress in selling the platform [96] Other Important Information - The company is actively working to improve sales efficiency and has shifted to a value-oriented sales model [60][68] - Management highlighted the importance of educating existing customers about the full suite of capabilities available on the platform [90][92] Q&A Session Summary Question: How do recent acquisitions help accelerate Amplitude's efforts in AI? - Management indicated that while the AI agents are in closed beta, they provide significant leverage for customers to derive value from Amplitude [55] Question: What is the outlook for sales efficiency? - Management noted improvements in sales efficiency through better territory assignments and a shift to a value-oriented sales model [60][68] Question: How much of the NRR improvement is due to churn dynamics versus upselling? - Management stated that both factors contribute, with strong platform sales driving NRR improvements [64][66] Question: What is the progress on sales enablement since the new leadership? - Management emphasized a change in mentality towards enterprise sales and refining funnel dynamics to improve sales outputs [68] Question: How is the company addressing the competition for talent in AI? - Management highlighted the alignment of new talent with the company's long-term mission and the importance of integrating AI across the product [80][84]

Financial Highlights - Revenue reached $83.3 million, a 14% year-over-year increase[12, 44] - Annual Recurring Revenue (ARR) grew to $335 million, up 16% year-over-year[12, 44] - The company's Net Retention Rate was 104%, compared to 96% in Q2 2024[12, 44] - Free Cash Flow was $18.2 million, compared to $6.8 million in Q2 2024[12, 44] - Non-GAAP Operating Loss was reduced to $(1.5) million, compared to $(3.7) million in Q2 2024[12, 44] - Cash and investments totaled $288 million[12, 44] Customer Base - The company has 634 customers with ARR greater than or equal to $100,000, a 16% year-over-year increase[13, 44] - Enterprise customers contribute 65% of the company's ARR[13] - 34% of customers are using more than one product[13] Guidance - The company projects Q3 2025 revenue to be between $85 million and $87 million, representing a 13% to 16% year-over-year growth[61] - The company projects full year 2025 revenue to be between $335.2 million and $338.2 million, representing a 12% to 13% year-over-year growth[61]

Amplitude Second Quarter 2025 Financial Results [Q2 2025 Financial and Business Highlights](index=1&type=section&id=Q2%202025%20Financial%20and%20Business%20Highlights) Amplitude achieved its highest net-new ARR in nearly three years, with double-digit revenue and ARR growth, alongside significant improvements in cash flow and operational recognition Q2 2025 Financial Highlights | Financial Metric | Q2 2025 | Q2 2024 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue ($M) | $335M | $290M | 16% | | Revenue ($M) | $83.3M | $73.3M | 14% | | GAAP Loss from Operations ($M) | $(27.1)M | $(27.2)M | +$0.1M | | Non-GAAP Income (Loss) from Operations ($M) | $(1.5)M | $(3.7)M | +$2.2M | | GAAP Net Loss Per Share ($) | $(0.19) | $(0.19) | $0.00 | | Non-GAAP Net Income Per Share ($) | $0.01 | $(0.00) | +$0.01 | | Net Cash Provided by Operating Activities ($M) | $20.1M | $9.2M | +$10.9M | | Free Cash Flow ($M) | $18.2M | $6.8M | +$11.4M | - The company delivered its **highest net-new ARR** in nearly three years, reflecting a deliberate focus on enterprise and platform expansion[3](index=3&type=chunk) - Remaining performance obligations (RPO) grew to **$358.1 million**, up **31% year-over-year**, indicating strong future revenue visibility[5](index=5&type=chunk) - Amplitude was recognized as a Leader in The Forrester Wave™ for Digital Analytics Solutions and ranked **1 in Product Analytics by G2** for the 20th consecutive quarter[6](index=6&type=chunk) - The company announced the beta launch of Amplitude AI Agents, designed to automate product management tasks, and welcomed teams from Kraftful, Inari, and June to accelerate AI innovation[6](index=6&type=chunk)[9](index=9&type=chunk) - The number of customers with **$100,000 or greater in ARR** increased by **16% year-over-year** to **634**[9](index=9&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Amplitude projects continued revenue growth and anticipates achieving non-GAAP profitability for Q3 and full year 2025 Financial Guidance | Metric | Third Quarter 2025 Guidance | Full Year 2025 Guidance | | :--- | :--- | :--- | | Revenue ($M) | $85.0M - $87.0M | $335.2M - $338.2M | | Non-GAAP Operating Income (Loss) ($M) | $(2.0)M - $1.0M | $(2.0)M - $3.0M | | Non-GAAP Net Income (Loss) Per Share ($) | $(0.00) - $0.02 | $0.04 - $0.08 | - An outlook for GAAP measures was not provided because certain items, such as stock-based compensation expense and amortization of acquired intangible assets, cannot be reasonably predicted without unreasonable efforts[7](index=7&type=chunk) [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) This section provides a comprehensive view of Amplitude's financial position, performance, and cash flows, highlighting asset growth and improved operating cash [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$456.6 million** by June 30, 2025, driven by marketable securities, while liabilities rose due to deferred revenue Balance Sheet Summary | Balance Sheet Item | June 30, 2025 (in thousands $) | December 31, 2024 (in thousands $) | | :--- | :--- | :--- | | Total current assets | $286,792 | $303,631 | | Total assets | $456,610 | $445,911 | | Total current liabilities | $171,476 | $144,513 | | Total liabilities | $177,106 | $149,355 | | Total stockholders' equity | $279,504 | $296,556 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue grew **14%** to **$83.3 million**, but increased operating expenses resulted in a GAAP operating loss of **$(27.1) million** Income Statement Summary (Q2) | Income Statement Item (Q2) | 2025 (in thousands $) | 2024 (in thousands $) | | :--- | :--- | :--- | | Revenue | $83,270 | $73,300 | | Gross Profit | $60,458 | $53,815 | | Total Operating Expenses | $87,552 | $80,975 | | Loss from Operations | $(27,094) | $(27,160) | | Net Loss | $(24,668) | $(23,415) | | Net Loss Per Share (Basic & Diluted) | $(0.19) | $(0.19) | - Stock-based compensation expense for Q2 2025 was **$24.5 million**, a significant non-cash expense contributing to the GAAP net loss[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$20.1 million** in Q2 2025, driven by non-cash adjustments and working capital changes Cash Flow Summary (Q2) | Cash Flow Item (Q2) | 2025 (in thousands $) | 2024 (in thousands $) | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,054 | $9,228 | | Net cash provided by (used in) investing activities | $(18,606) | $12,613 | | Net cash provided by (used in) financing activities | $(12,962) | $(5,204) | | Net (decrease) increase in cash | $(11,514) | $16,637 | [Supplementary Information](index=9&type=section&id=Supplementary%20Information) This section provides GAAP to non-GAAP reconciliations and historical key business metrics, showing positive momentum in ARR and NRR [Reconciliation of GAAP to Non-GAAP Data](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Data) Reconciliations detail adjustments, primarily **$25.3 million** for stock-based compensation, converting GAAP losses to non-GAAP operating loss of **$(1.5) million** and net income of **$1.0 million** Reconciliation of Operating Loss (Q2 2025) | Reconciliation of Operating Loss (Q2 2025, in thousands $) | Amount (in thousands $) | | :--- | :--- | | GAAP loss from operations | $(27,094) | | Plus: Stock-based compensation expense | $25,307 | | Plus: Amortization of acquired intangible assets | $312 | | **Non-GAAP income (loss) from operations** | **$(1,475)** | Reconciliation of Free Cash Flow (Q2 2025) | Reconciliation of Free Cash Flow (Q2 2025, in thousands $) | Amount (in thousands $) | | :--- | :--- | | Net cash provided by operating activities | $20,054 | | Less: Purchases of property and equipment | $(538) | | Less: Capitalization of internal-use software costs | $(1,348) | | **Free cash flow** | **$18,168** | [Historical Key Business Metrics](index=11&type=section&id=Historical%20Key%20Business%20Metrics) Key business metrics show consistent growth, with ARR reaching **$335 million** and NRR recovering to **104%** in Q2 2025 Annual Recurring Revenue (ARR) | Quarter Ended | Annual Recurring Revenue (ARR) ($M) | | :--- | :--- | | Mar 31, 2024 | $285 | | Jun 30, 2024 | $290 | | Sep 30, 2024 | $298 | | Dec 31, 2024 | $312 | | Mar 31, 2025 | $320 | | Jun 30, 2025 | $335 | Dollar-based Net Retention Rate (NRR) | Quarter Ended | Dollar-based Net Retention Rate (NRR) (%) | | :--- | :--- | | Mar 31, 2024 | 97% | | Jun 30, 2024 | 96% | | Sep 30, 2024 | 98% | | Dec 31, 2024 | 100% | | Mar 31, 2025 | 101% | | Jun 30, 2025 | 104% |