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Amplitude(AMPL) - 2023 Q2 - Quarterly Report
AMPLAmplitude(AMPL)2023-08-07 16:00
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Revenue and Profitability - Revenue for Q2 2023 increased to 67.767million,upfrom67.767 million, up from 58.130 million in Q2 2022, representing a 16.6% year-over-year growth[20] - Gross profit for Q2 2023 was 50.587million,upfrom50.587 million, up from 41.070 million in Q2 2022, indicating a 23.2% year-over-year growth[20] - Total revenue for the six months ended June 30, 2023 was 134.2million,with134.2 million, with 82.2 million from the United States and 52.1millionfrominternationalmarkets[42]−RevenuerecognizedinthesixmonthsendedJune30,2023fromdeferredrevenueasofDecember31,2022was52.1 million from international markets[42] - Revenue recognized in the six months ended June 30, 2023 from deferred revenue as of December 31, 2022 was 75.6 million[39] Net Loss and Accumulated Deficit - Net loss for Q2 2023 was 27.758million,comparedtoanetlossof27.758 million, compared to a net loss of 24.568 million in Q2 2022, reflecting a 13% increase in losses[20] - Accumulated deficit as of June 30, 2023, was 327.240million,comparedto327.240 million, compared to 273.167 million as of December 31, 2022, indicating a 19.8% increase in losses[17] - Net loss for the six months ended June 30, 2023 was 54,073thousandcomparedto54,073 thousand compared to 46,788 thousand for the same period in 2022[28] - Accumulated deficit increased from 226,579thousandatJune30,2022to226,579 thousand at June 30, 2022 to 327,240 thousand at June 30, 2023[26][23] - Net loss attributable to common stockholders was 27.758millionand27.758 million and 54.073 million for the three and six months ended June 30, 2023, respectively[89] - Basic and diluted net loss per share was (0.24)and(0.24) and (0.47) for the three and six months ended June 30, 2023, respectively[89] Operating Expenses - Total operating expenses for Q2 2023 were 81.474million,comparedto81.474 million, compared to 65.653 million in Q2 2022, a 24.1% increase[20] - Research and development expenses for Q2 2023 were 22.435million,upfrom22.435 million, up from 20.306 million in Q2 2022, a 10.5% increase[20] - Sales and marketing expenses for Q2 2023 were 38.326million,comparedto38.326 million, compared to 34.135 million in Q2 2022, a 12.3% increase[20] - The company incurred 8.2millioninrestructuringchargesrelatedtoworkforcereductioninQ22023[92]CashandCashEquivalents−CashandcashequivalentsasofJune30,2023,were8.2 million in restructuring charges related to workforce reduction in Q2 2023[92] Cash and Cash Equivalents - Cash and cash equivalents as of June 30, 2023, were 234.363 million, up from 218.494millionasofDecember31,2022[16]−Totalcash,cashequivalents,andrestrictedcashdecreasedto218.494 million as of December 31, 2022[16] - Total cash, cash equivalents, and restricted cash decreased to 235.2 million as of June 30, 2023 from 310.9millionasofDecember31,2022[48]−Cash,cashequivalents,andrestrictedcashdecreasedfrom310.9 million as of December 31, 2022[48] - Cash, cash equivalents, and restricted cash decreased from 310,875 thousand at June 30, 2022 to 235,225thousandatJune30,2023[28]−AsofJune30,2023,thecompanyhad235,225 thousand at June 30, 2023[28] - As of June 30, 2023, the company had 234.4 million in cash and cash equivalents and 84.4millioninmarketablesecurities[187]AccountsReceivableandDeferredRevenue−AccountsreceivableasofJune30,2023,were84.4 million in marketable securities[187] Accounts Receivable and Deferred Revenue - Accounts receivable as of June 30, 2023, were 34.148 million, compared to 22.716millionasofDecember31,2022,a50.322.716 million as of December 31, 2022, a 50.3% increase[16] - Deferred revenue as of June 30, 2023, was 113.491 million, up from 89.993millionasofDecember31,2022,reflectinga26.189.993 million as of December 31, 2022, reflecting a 26.1% increase[16] - Deferred revenue increased by 23,498 thousand in 2023 compared to 29,073thousandin2022[28]−Accountsreceivableincreasedby29,073 thousand in 2022[28] - Accounts receivable increased by 12,006 thousand in 2023 compared to 7,543thousandin2022[28]−Unrecognizedtransactionpricerelatedtoremainingperformanceobligationswas7,543 thousand in 2022[28] - Unrecognized transaction price related to remaining performance obligations was 246.3 million as of June 30, 2023, with 191.8millionexpectedtoberecognizedwithin12months[39][40]Stockholders′EquityandStock−BasedCompensation−Totalstockholders′equitydecreasedfrom191.8 million expected to be recognized within 12 months[39][40] Stockholders' Equity and Stock-Based Compensation - Total stockholders' equity decreased from 294,969 thousand at December 31, 2022 to 288,850thousandatJune30,2023[23]−Stock−basedcompensationexpenseincreasedfrom288,850 thousand at June 30, 2023[23] - Stock-based compensation expense increased from 28,339 thousand in 2022 to 41,920thousandin2023[28]−Additionalpaid−incapitalincreasedfrom41,920 thousand in 2023[28] - Additional paid-in capital increased from 524,632 thousand at June 30, 2022 to 616,953thousandatJune30,2023[26][23]−Totalstock−basedcompensationexpenseforthesixmonthsendedJune30,2023was616,953 thousand at June 30, 2023[26][23] - Total stock-based compensation expense for the six months ended June 30, 2023 was 41.92 million, compared to 28.34millionforthesameperiodin2022[79]−Thecompanyrecorded28.34 million for the same period in 2022[79] - The company recorded 35.2 million in stock-based compensation expense related to RSUs for the six months ended June 30, 2023, up from 16.3millionforthesameperiodin2022[73]−AsofJune30,2023,thecompanyhad16.3 million for the same period in 2022[73] - As of June 30, 2023, the company had 166.8 million in unrecognized stock-based compensation expense related to RSUs, expected to be recognized over 2.41 years[74] Stock Options and Equity Plans - The company has authorized the issuance of 600 million shares of Class A common stock and 600 million shares of Class B common stock, with Class B shares having five votes per share compared to one vote per Class A share[63] - As of June 30, 2023, the company had 15,327,959 equity plan stock options outstanding, a decrease from 16,767,752 as of December 31, 2022[65] - The company's 2021 Incentive Award Plan has reserved 19,592,880 shares of Class A common stock for future issuance as of June 30, 2023[67] - Stock options granted during the six months ended June 30, 2023 had a weighted average grant date fair value of 6.84pershare,comparedto6.84 per share, compared to 15.63 per share for the same period in 2022[71] - The company's 2021 Employee Stock Purchase Plan has reserved 4,251,616 shares of Class A common stock for future issuance as of June 30, 2023[77] - 0.7 million shares have been purchased under the ESPP as of June 30, 2023, with 1.3millioninstock−basedcompensationexpenserecognizedforthesixmonthsendedJune30,2023[78]OperatingActivitiesandCashFlow−Cashprovidedbyoperatingactivitiesimprovedsignificantlyfrom1.3 million in stock-based compensation expense recognized for the six months ended June 30, 2023[78] Operating Activities and Cash Flow - Cash provided by operating activities improved significantly from 2,353 thousand in 2022 to 15,345thousandin2023[28]AssetsandLiabilities−Prepaidexpensesandothercurrentassetsdecreasedto15,345 thousand in 2023[28] Assets and Liabilities - Prepaid expenses and other current assets decreased to 16.3 million as of June 30, 2023 from 20.3millionasofDecember31,2022[50]−Accruedexpensesincreasedto20.3 million as of December 31, 2022[50] - Accrued expenses increased to 23.7 million as of June 30, 2023 from 18.7millionasofDecember31,2022,primarilyduetohigheraccruedcommissionsandrestructuringcharges[52]−Fairvalueofavailable−for−salesecuritieswas18.7 million as of December 31, 2022, primarily due to higher accrued commissions and restructuring charges[52] - Fair value of available-for-sale securities was 84.4 million as of June 30, 2023, with 56.0millionduewithinoneyear[54][56]−Netcarryingamountofintangibleassetsdecreasedto56.0 million due within one year[54][56] - Net carrying amount of intangible assets decreased to 1.2 million as of June 30, 2023 from 2.0millionasofDecember31,2022[59]BusinessModelandCustomerConcentration−ThecompanyoperatesasasinglesegmentbusinesswithitsDigitalAnalyticsPlatformdeliveredthroughaSaaSmodel[31]−Nocustomeraccountedfor102.0 million as of December 31, 2022[59] Business Model and Customer Concentration - The company operates as a single segment business with its Digital Analytics Platform delivered through a SaaS model[31] - No customer accounted for 10% or more of total revenue for the three and six months ended June 30, 2023 and 2022, but one customer represented 13% of accounts receivable as of June 30, 2023[37] Tax and Lease Obligations - The company had an effective tax rate of (0.6)% and (0.9)% for the three and six months ended June 30, 2023, respectively[81] - Future minimum lease payments under non-cancellable operating leases as of June 30, 2023 totaled 9.332 million, with a present value of $9.011 million after imputed interest[84] Risk Factors - A hypothetical 10% change in interest rates would not materially affect the fair value of the company's investment portfolio[187] - The company has minimal foreign currency risk as most subscription agreements are denominated in U.S. dollars[188] - Inflation has not had a material effect on the company's business, results of operations, or financial condition[189]