Amplitude(US:AMPL)2025-11-05 23:00Financial Data and Key Metrics Changes - The third quarter revenue was $88.6 million, up 18% year over year, exceeding the high end of guidance [3][22] - Annual recurring revenue (ARR) reached $347 million, up 16% year over year, and increased by $12 million from the previous quarter [3][22] - Non-GAAP operating income was $0.6 million, with a gross margin of 76%, down one percentage point from the third quarter of 2024 but up one percentage point from the previous quarter [23][24] - Free cash flow for the quarter was $3.4 million, or 4% of revenue, compared to $4.5 million, or 6% of revenue during the same period last year [24] Business Line Data and Key Metrics Changes - Customers with more than $100K in ARR grew to 653, an increase of 15% year over year [3][23] - 39% of customers now have multiple products, with 71% of ARR coming from that cohort [22][23] - Net revenue retention (NRR) progressed to 104%, driven by cross-sell expansions [23] Market Data and Key Metrics Changes - The average contract duration grew to nearly 22 months, up from 19 months a year ago [20] - Remaining performance obligations (RPO) growth accelerated to 22% year-over-year, up from 20% in the previous quarter [21] - Long-term RPO growth accelerated to 78% year-over-year, up from 64% last quarter [21] Company Strategy and Development Direction - The company is focusing on expanding its enterprise customer base and driving cross-platform sales with existing customers [25] - The strategy includes leveraging AI capabilities to enhance product offerings and improve customer engagement [25][26] - The company aims to redefine analytics as an AI-native system that learns, reasons, and acts [18] Management's Comments on Operating Environment and Future Outlook - Management believes that the importance of analytics and data usage for enterprises is increasing, especially with the rapid changes in development and deployment processes [19][25] - For Q4 2025, the company expects revenue to be between $89 million and $91 million, representing an annual growth rate of 15% at the midpoint [26] - The full-year revenue expectation has been raised to between $340.8 million and $342.8 million, reflecting a 14% annual growth rate at the midpoint [26] Other Important Information - The company has launched several AI-native products, including the MCP Server and AI agents, which are designed to enhance user experience and accessibility for non-technical users [8][12][14] - The company is seeing strong interest from customers in AI capabilities, which is expected to drive future growth [18][40] Q&A Session Summary Question: Can you break down the RPO growth by enterprise, mid-market, and contract duration? - Management noted that the RPO growth is driven by strategic conversations with enterprise clients, leading to multi-year contracts and increased contract duration [29][30] Question: Where are enterprises investing in the product circle of life? - Management indicated that enterprises are still early in the "use and learn" phase, with significant opportunities for improvement in analytics [32][33] Question: Can you provide insight into the Q4 revenue guidance and the balance between growth and profitability? - Management emphasized that the guidance is based on execution visibility and the strong performance of the sales team, balancing growth investments with operational leverage [35][36] Question: How is the adoption of AI products progressing? - Management reported strong customer interest in AI products, with a focus on delivering value and enhancing user experience [54] Question: What are the expectations for multi-product adoption? - Management anticipates a significant increase in multi-product adoption as more users engage with analytics and AI capabilities [40] Question: How does the company view the selling environment currently? - Management noted that there is continued cost consciousness among customers, but excitement around the effectiveness of AI solutions [49]