Why Amplitude Stock Dropped Today

Core Insights - Amplitude's shares fell 16.3% following mixed quarterly results and disappointing forward guidance [1] Financial Performance - Q4 2023 revenue increased by 9% year over year to $71.4 million, with adjusted net income of $0.04 per share, surpassing analyst expectations of $0.03 per share [2] - The number of paying customers grew by 37% year over year to 2,723, while annual recurring revenue (ARR) increased by 10% to $281 million [2] - The company achieved positive free cash flow of $1.5 million in Q4, a turnaround from negative free cash flow of $5.9 million in the same period last year [2] Future Guidance - For full-year 2024, Amplitude projected revenue between $291.5 million and $294.5 million, with adjusted net income expected to be between $0.06 and $0.08 per share, both below Wall Street's consensus estimates of $0.12 per share on revenue of $297.4 million [3] - Despite decent top-line growth and improvements in profitability and cash flow, market expectations were higher, leading to a negative stock response [3]