Amplitude, Inc. (NASDAQ:AMPL) Q4 2023 Earnings Conference Call February 20, 2024 5:00 PM ET Corporate Participants Yaoxian Chew - Vice President, Investor Relations Spenser Skates - Chief Executive Officer and Founder Criss Harms - Chief Financial Officer Conference Call Participants Koji Ikeda - Bank of America Taylor McGinnis - UBS Rob Oliver - Baird Tyler Radke - Citi Elizabeth Porter - Morgan Stanley Arjun Bhatia - Blair Nick Altmann - Scotia Yaoxian Chew Yaoxian Chew, Vice President of Investor Relatio ...

Amplitude, Inc. (AMPL) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this company would post earnings of $0.02 per share when it actually produced earnings of $0.05, delivering a surprise of 150%.Over the last four quarters, the company has su ...

Financial Performance - Revenue for the fiscal year ended December 31, 2023, was $276.3 million, up from $238.1 million in 2022, representing a growth of approximately 16.5%[67] - The company reported net losses of $90.4 million for the fiscal year ended December 31, 2023, compared to a net loss of $93.4 million in 2022, indicating a slight improvement[70] - As of December 31, 2023, the accumulated deficit stood at $363.5 million[70] - The company expects fluctuations in financial results and key metrics, making future projections challenging[75] Investment and Growth Strategy - The company plans to invest significantly in the development of its Digital Analytics Platform, technology infrastructure, sales and marketing, and international expansion[70] - The company has experienced rapid growth in its customer base, with a significant opportunity to penetrate larger global organizations, defined as those with more than 1,500 employees[118] - The company anticipates increased expenditures on brand promotion as the market becomes more competitive and as it expands into new markets[121] - The company may require additional capital for growth, which might not be available on favorable terms, potentially impacting future investments[133] Workforce and Restructuring - A restructuring plan was authorized in April 2023 to reduce the global workforce by approximately 13%, incurring non-recurring charges of $8.1 million[82] - The company has implemented a workforce reduction plan to improve operational efficiencies and reduce operating costs, which may lead to unplanned additional expenses if remaining employees seek alternative employment[83] - The company has implemented a restructuring plan in April 2023 to reduce its global workforce, indicating a response to unfavorable macroeconomic conditions[93] - The company experienced a change in its executive management team with the appointment of Christopher Harms as Chief Financial Officer effective February 22, 2023, following the departure of Hoang Vuong[204] Market and Competitive Landscape - The company faces risks related to customer retention and the ability to attract new customers, which are critical for maintaining revenue growth[73] - Future revenue growth may be impacted by increased competition, changes in technology, and overall market conditions[68] - The company faces intense competition in the digital analytics market from larger companies with greater resources, in-house systems, and emerging entrants, which could impact its market position[86] - The market for SaaS applications is expected to develop slowly, which could materially adversely affect the company's business[84] Cybersecurity and Data Protection - The company incurs significant expenses to prevent cybersecurity breaches, which could lead to reputational damage and financial liabilities if customer data is compromised[95] - The company must enhance its platform to keep pace with evolving industry standards and regulations, particularly as it expands into highly regulated sectors[91] - The company may face increased cybersecurity risks due to a hybrid work environment, which could expose vulnerabilities to cybercriminals[96] - The company emphasizes data security as a critical competitive factor, and any failure to uphold security assurances could lead to regulatory scrutiny and legal claims[97] Regulatory and Compliance Risks - The company is subject to various government regulations, including export controls and economic sanctions, which may limit its ability to conduct business internationally and could result in penalties[146] - Compliance with evolving privacy and data protection laws, such as the GDPR, may incur significant expenses, with potential fines of up to €20 million or 4% of global annual turnover for non-compliance[155] - The ongoing geopolitical situation, particularly sanctions related to Russia's invasion of Ukraine, may impact the company's ability to perform contracts and pursue new business opportunities[149] - The company may face increased scrutiny and liability as it expands its international presence, particularly concerning anti-corruption laws and regulations[147] Financial Reporting and Accounting - The company has significant estimates and judgments related to revenue recognition, deferred commissions, and the valuation of stock-based compensation awards, which could materially affect its results of operations[178] - Changes in U.S. GAAP could significantly affect reported results of operations[175] - Any material weaknesses in internal control over financial reporting could lead to loss of investor confidence and a decline in stock price[216] - The company is required to maintain effective internal controls over financial reporting, and any failure in this area could adversely affect investor confidence and the trading price of its Class A common stock[215] Stock and Shareholder Considerations - The company does not intend to pay dividends in the foreseeable future, relying on stock price appreciation for returns on investment[193] - The company expects to issue additional capital stock in the future, which may dilute existing stockholders' ownership interests[192] - Anti-takeover provisions in the company's charter documents could make acquisitions more difficult and limit stockholder influence over management[194] - The concentrated voting power of principal stockholders may delay or prevent significant corporate transactions, impacting other stockholders' interests[184] Operational Risks - The company relies on third-party cloud services, and any unavailability could increase expenses and impair business operations[101] - Errors or bugs in the platform may adversely affect business growth prospects and customer satisfaction[103] - The company relies on its network and third-party infrastructure for operations, and any failure in these systems could impair its ability to deliver products to customers[212] - Disruptions or outages in the platform could result in financial credits or refunds to customers, adversely affecting the company's financial condition[99]

Core Viewpoint - Amplitude, Inc. is facing a federal securities class action lawsuit due to allegations of misleading statements regarding its revenue growth and business strategy, particularly related to its land-and-expand strategy and the impact of the COVID-19 pandemic on its financial performance [2][3]. Group 1: Allegations and Legal Proceedings - The complaint against Amplitude claims that the company and its executives violated federal securities laws by making false or misleading statements and failing to disclose critical information about the company's revenue growth strategy [2]. - Specifically, it is alleged that Amplitude's land-and-expand strategy was not expected to significantly accelerate revenues among newer clients for several years [2]. - The lawsuit also points out that the rapid revenue growth in the second quarter of 2021 was largely due to temporary effects from the COVID-19 pandemic, which did not persist into the class period [2]. Group 2: Financial Impact and Stock Performance - On February 16, 2022, Amplitude revised its 2022 revenue guidance downward from over 40% growth to a range of $226 million to $234 million, equating to a growth rate of 35% to 40% [3]. - Following this announcement, Amplitude's stock price experienced a significant decline, falling nearly 59% [3]. Group 3: Class Action Details - The deadline for investors to seek the role of lead plaintiff in the class action is April 15, 2024 [1]. - The lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [4].

Core Insights - Amplitude, Inc. has expanded its Digital Analytics Platform to include new features such as Session Replay, enhanced experimentation capabilities, and a visual tag editor, aimed at improving customer understanding and product development [1][2][3] Product Features - **Session Replay**: This feature allows companies to visualize user journeys, providing insights into customer preferences and obstacles, thus enhancing conversion rates and overall customer experience. It is available now [2][3] - **Experiment for Web**: New web experimentation capabilities enable teams to test multiple landing pages for optimized performance, set to be available in the first half of 2024 [2][3] - **Visual Tag Editor**: This tool simplifies the data collection process, making it easier for teams to track user activity on websites or apps, also expected to launch in the first half of 2024 [2][3] Market Relevance - The customer experience with digital products significantly influences business success, necessitating a comprehensive understanding of customer behavior to create personalized experiences that enhance engagement and retention [2] Customer Testimonials - A Product Manager from Homebot highlighted the importance of a centralized platform for data visibility, stating that Amplitude has integrated data into their decision-making process, allowing for effective analysis and iterative changes [3] Pricing Plans - Amplitude offers various plans tailored for organizations of different sizes, including: - **Free Plan**: Basic insights for product decisions - **Plus Plan**: Enhanced experimentation and personalization tools - **Growth Plan**: Advanced analytics and dedicated support - **Enterprise Plan**: Scalable solutions with enterprise-grade security [3]

SAN FRANCISCO--(BUSINESS WIRE)--Amplitude, Inc. (Nasdaq: AMPL), a leading digital analytics platform, today announced that it will release its financial results for the fourth quarter and full year 2023 after market close on Tuesday, February 20, 2024. Amplitude will host a video webcast that day at 2:00 PM PT to discuss its financial results and provide its financial outlook for the first quarter and full year 2024. The webcast will be available on the Investor Relations section of Amplitude’s website at ...

SAN FRANCISCO--(BUSINESS WIRE)--Amplitude, Inc. (Nasdaq: AMPL), a leading digital analytics platform, today announced the hiring of two key executives in Europe and Asia who will lead Amplitude’s growth in their respective regions. Matt Bennett joins the company as vice president for Asia Pacific Japan (APJ), and Tansu Yegen joins as vice president for Central Europe, East Europe, the Commonwealth of Independent States, Middle East and Africa. “There is an increasingly diverse set of companies across EME ...

Amplitude, Inc. (NASDAQ:AMPL) Q3 2023 Earnings Conference Call November 7, 2023 5:00 PM ET Company Participants Yaoxian Chew - VP, IR Spenser Skates - Co-Founder, CEO & Chairperson Christopher Harms - CFO, Principal Financial Officer, Principal Accounting Officer & Treasurer Conference Call Participants Koji Ikeda - Bank of America Merrill Nick Altman - Scotia Clark Jeffries - Piper Tyler Radke - Citi Patrick Schultz - Baird Taylor McGinnis - UBS Michael Vidovic - KeyBanc Yaoxian Chew Hello, everyone. Welco ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40817 AMPLITUDE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 45-3937349 (State or other jurisdiction ...

Financial Data and Key Metrics Changes - The company reported Q2 2023 revenue of $67.8 million, representing a 17% year-over-year increase, exceeding previous guidance [5][22] - Annual recurring revenue (ARR) reached $268 million, an 18% year-over-year increase [22] - Non-GAAP gross margin improved to 77.5%, up 3 percentage points year-over-year [5][24] - Operating cash flow was a record $20.4 million, with positive free cash flow of $19.3 million, indicating a strong cash position moving forward [5][25] - Net income per share was $0.02, compared to a loss of $0.08 in the previous year [25] Business Line Data and Key Metrics Changes - The company experienced a rebound in new ARR, driven by significant expansions from long-term customers [22][23] - The mix of new ARR was over 2:1 between expansions and new customer acquisitions [23] - New products, specifically Experiment and CDP, exceeded $20 million in ARR [23] Market Data and Key Metrics Changes - The company noted increased churn rates, particularly among startups and larger companies optimizing their spending [6][22] - Net revenue retention (NRR) declined to 108% on a trailing 12-month basis, with period NRR at 101%, down from 118% in Q2 2022 [24] Company Strategy and Development Direction - The company is focused on three strategic pillars: win simple, win the enterprise, and win the category, aiming to enhance customer experience and drive growth [7][10][11] - The introduction of AI features aims to improve user engagement and streamline data management processes [15][16] - The company is positioning itself to capitalize on the convergence of marketing, product, and experience analytics [10][37] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism despite macroeconomic challenges, emphasizing the importance of adapting to customer needs [6][20] - The company anticipates continued churn but believes it is a temporary phase in the macro cycle [6][27] - For Q3 2023, revenue guidance is set between $69.7 million and $70.3 million, reflecting a 14% growth rate at the midpoint [26] Other Important Information - The company is implementing a new tax withholding approach for RSU vesting, estimating a cash impact of $5 million to $6 million [28] - Cash, cash equivalents, and marketable securities totaled $319 million at the end of Q2 [25] Q&A Session Summary Question: How to reconcile the growth metrics with the revenue guidance implying flat Q4 growth? - Management acknowledged the impact of a large expansion on ARR and noted that the revenue guidance reflects a neutral performance outlook for new ARR in Q3 and Q4 [30][31] Question: Can you elaborate on the large expansion deal mentioned? - The expansion involved a long-term customer increasing their scope and volume, indicating a positive trend for future expansions [32][33] Question: How has the competitive environment changed with the sunset of Google Analytics? - The company has seen increased win rates and customer migrations from Google Analytics, contributing to growth [36][37] Question: What are the opportunities for leveraging the expense base for profitability? - Management highlighted the focus on restructuring and optimizing go-to-market functions to improve profitability while continuing to invest in growth [39][41] Question: How has the user mix changed since the IPO? - There has been an increase in marketing team users, allowing the company to access larger budgets and expand its market presence [47][50] Question: What is the status of the Amplitude CDP in relation to competitors? - The company is close to parity with leading CDPs in terms of connections and is focused on offering flexible data solutions [54][56] Question: How does the company view customer concentration and its impact on forecasts? - Management acknowledged the volatility from a small number of high-dollar customers but remains optimistic about long-term growth despite short-term adjustments [60][62]