Amplitude(AMPL) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company's Q1 2025 revenue was $80 million, representing a 10$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$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]