- Annual recurring revenue was $285 million, up 9% year over
year
- First quarter revenue of $72.6 million, up 9% year over
year
- First quarter Cash Flow from Operations of $(0.05) million and
Free Cash Flow of $(1.1) million, representing a 7 percentage point
increase in Free Cash Flow margin year over year
Amplitude, Inc. (Nasdaq: AMPL), a leading digital analytics
platform, today announced financial results for its first quarter
ended March 31, 2024.
"We’re still at the beginning of a generational shift in how
businesses use customer and product data," said Spenser Skates, CEO
and co-founder of Amplitude. "Digital analytics is a
multibillion-dollar opportunity, and we believe Amplitude is
well-positioned to lead the market. Many of the largest and
fastest-growing companies already view Amplitude as their first
call."
First Quarter 2024 Financial
Highlights:
(in millions, except per share and
percentage amounts)
First Quarter 2024
First Quarter 2023
Y/Y Change
Annual Recurring Revenue
$285
$262
9%
Revenue
$72.6
$66.5
9%
GAAP Loss from Operations
$(24.7)
$(29.2)
$4.5
Non-GAAP Income (Loss) from Operations
$(2.1)
$(7.9)
$5.8
GAAP Net Loss Per Share, Basic and
Diluted
$(0.18)
$(0.23)
$0.05
Non-GAAP Net Income (Loss) Per Share,
Diluted
$0.01
$(0.04)
$0.05
Net Cash Provided by (Used in) Operating
Activities
$(0.05)
$(5.1)
$5.0
Free Cash Flow
$(1.1)
$(5.8)
$4.7
Non-GAAP income (loss) from operations and non-GAAP net income
(loss) per share exclude expenses related to stock-based
compensation expense and related employer payroll taxes and
amortization of acquired intangible assets. Stock-based
compensation expense and the related employer payroll taxes were
$22.3 million in the first quarter of 2024 compared to $20.9
million in the first quarter of 2023. Free Cash Flow is GAAP net
cash provided by (used in) operating activities, less cash used for
purchases of property and equipment and capitalized internal-use
software costs. The section titled "Non-GAAP Financial Measures"
below contains a description of the non-GAAP financial measures and
reconciliations between historical GAAP and non-GAAP information
are contained in the tables below.
First Quarter and Recent Business Highlights:
- Annual Recurring Revenue was $285 million, an increase of 9%
year over year and an increase of $4 million compared to the fourth
quarter of 2023.
- GAAP Net Loss per share was $0.18, based on 120.8 million
shares, in the first quarter of 2024, compared to a loss of $0.23
per share, based on 114.4 million shares, in the first quarter of
2023.
- Non-GAAP Net Income per share was $0.01, based on 130.9 million
diluted shares, in the first quarter of 2024, compared to a loss of
$0.04 per share, based on 114.4 million diluted shares, in the
first quarter of 2023.
- Cash Flow from Operations was $(0.05) million, a $5.0 million
increase year over year.
- Free Cash Flow was $(1.1) million, a $4.7 million increase year
over year.
- Number of paying customers grew 37% year over year to
2,970.
- The number of customers representing $100,000 or more of ARR in
Q1 grew to 521, an increase of 6% year over year.
Financial Outlook:
The second quarter and full year 2024 outlook information
provided below is based on Amplitude’s current estimates and is not
a guarantee of future performance. These statements are
forward-looking and actual results may differ materially. Refer to
the “Forward-Looking Statements” section below for information on
the factors that could cause Amplitude’s actual results to differ
materially from these forward-looking statements.
For the second quarter and full year 2024, the Company
expects:
Second Quarter 2024
Full Year 2024
Revenue
$71.7 - $72.3 million
$292.5 - $295.5 million
Non-GAAP Operating Income (Loss)
$(4.4) - $(3.8) million
$(1.0) - $2.0 million
Non-GAAP Net Income (Loss) Per Share
$(0.02) - $(0.01)
$0.07 - $0.09
Weighted Average Shares Outstanding
122.5 million, basic
133.5 million, diluted
An outlook for GAAP income (loss) from operations, GAAP net
income (loss), GAAP net income (loss) per share and a
reconciliation of expected non-GAAP income (loss) from operations
to GAAP income (loss) from operations, expected non-GAAP net income
(loss) to GAAP net income (loss), and expected non-GAAP net income
(loss) per share to GAAP net income (loss) per share have not been
provided as the quantification of certain items included in the
calculation of GAAP income (loss) from operations, GAAP net income
(loss) and GAAP net income (loss) per share cannot be reasonably
calculated or predicted at this time without unreasonable efforts.
For example, the non-GAAP adjustment for stock-based compensation
expense requires additional inputs such as the number and value of
awards granted that are not currently ascertainable, and the
non-GAAP adjustment for amortization of acquired intangible assets
depends on the timing and value of intangible assets acquired that
cannot be accurately forecasted.
Conference Call Information:
Amplitude will host a live video webcast to discuss its
financial results for its first quarter ended March 31, 2024, as
well as the financial outlook for its second quarter and full year
2024 today at 2:00 PM Pacific Time / 5:00 PM Eastern Time.
Interested parties may access the webcast, earnings press release,
and investor presentation on the events section of Amplitude’s
investor relations website at investors.amplitude.com. A replay
will be available in the same location a few hours after the
conclusion of the live webcast.
Forward-Looking Statements:
This press release contains express and implied "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements regarding the Company’s
financial outlook for the second quarter and full year 2024, the
Company’s growth strategy and business aspirations and its market
position and market opportunity. These statements are often, but
not always, made through the use of words or phrases such as “may,”
“should,” “could,” “predict,” “potential,” “believe,” “expect,”
“continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,”
“plan,” “projection,” “would,” and “outlook,” or the negative
version of those words or phrases or other comparable words or
phrases of a future or forward-looking nature. These
forward-looking statements are not statements of historical fact,
and are based on current expectations, estimates, and projections
about the Company’s industry as well as certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond the Company’s control. These statements are
subject to numerous uncertainties and risks that could cause actual
results, performance, or achievement to differ materially and
adversely from those anticipated or implied in the statements,
including risks related to: the Company’s limited operating history
and rapid growth over the last several years, which makes it
difficult to forecast the Company’s future results of operations;
the Company’s history of losses; any decline in the Company’s
customer retention or expansion of its commercial relationships
with existing customers or an inability to attract new customers;
expected fluctuations in the Company’s financial results, making it
difficult to project future results; the Company’s focus on sales
to larger organizations and potentially increased dependency on
those relationships, which may increase the variability of the
Company’s sales cycles and results of operations; downturns or
upturns in new sales, which may not be immediately reflected in the
Company’s results of operations and may be difficult to discern;
unfavorable conditions in the Company’s industry or the global
economy, or reductions in information technology spending, which
could limit the Company’s ability to grow its business; the market
for SaaS applications, which may develop more slowly than the
Company expects or decline; the Company’s intellectual property
rights, which may not protect its business or provide the Company
with a competitive advantage; and evolving privacy and other
data-related laws. Additional risks and uncertainties that could
cause actual outcomes and results to differ materially from those
contemplated by the forward-looking statements are or will be
included under the caption "Risk Factors" and elsewhere in the
reports and other documents that the Company files with the
Securities and Exchange Commission from time to time, including the
Company’s Quarterly Report on Form 10-Q being filed at or around
the date hereof. The forward-looking statements made in this press
release relate only to events as of the date on which the
statements are made. The Company undertakes no obligation to update
any forward-looking statements made in this press release to
reflect events or circumstances after the date of this press
release or to reflect new information or the occurrence of
unanticipated events, except as required by law.
Non-GAAP Financial Measures:
This press release includes financial information that has not
been prepared in accordance with GAAP. The Company uses non-GAAP
financial measures internally in analyzing its financial results
and believes they are useful to investors, as a supplement to GAAP
measures, in evaluating the Company’s ongoing operational
performance. The Company believes that the use of these non-GAAP
financial measures provides an additional tool for investors to use
in evaluating ongoing operating results and trends and in comparing
the Company’s financial results with other companies in the
industry, many of which present similar non-GAAP financial measures
to investors. There are a number of limitations related to the use
of non-GAAP financial measures versus comparable financial measures
determined under GAAP. For example, other companies in the
Company’s industry may calculate these non-GAAP financial measures
differently or may use other measures to evaluate their
performance. In addition, free cash flow does not reflect the
Company’s future contractual commitments and the total increase or
decrease of its cash balance for a given period.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. A reconciliation of the Company’s
non-GAAP financial measures to their most directly comparable GAAP
measures has been provided in the financial statement tables
included below in this press release. Investors are encouraged to
review the reconciliation of these non-GAAP financial measures to
their most directly comparable GAAP financial measures below.
Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP
Operating Expenses, Non-GAAP Income (Loss) from Operations,
Non-GAAP Operating Margin, Non-GAAP Net Income (Loss), and Non-GAAP
Net Income (Loss) per Share.
The Company defines these non-GAAP financial measures as their
respective GAAP measures, excluding expenses related to stock-based
compensation expense and related employer payroll taxes,
amortization of acquired intangible assets, and non-recurring costs
such as restructuring and other related charges. The Company
excludes stock-based compensation expense and related employer
payroll taxes, which is a non-cash expense, from certain of its
non-GAAP financial measures because it believes that excluding this
item provides meaningful supplemental information regarding
operational performance. The Company excludes amortization of
intangible assets, which is a non-cash expense, related to business
combinations from certain of its non-GAAP financial measures
because such expenses are related to business combinations and have
no direct correlation to the operation of the Company’s business.
Although the Company excludes these expenses from certain non-GAAP
financial measures, the revenue from acquired companies subsequent
to the date of acquisition is reflected in these measures and the
acquired intangible assets contribute to the Company’s revenue
generation. The Company excludes non-recurring costs from certain
of its non-GAAP financial measures because such expenses do not
repeat period over period and are not reflective of the ongoing
operation of the Company’s business.
The Company uses non-GAAP gross profit, non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP income (loss) from
operations, non-GAAP operating margin, non-GAAP net income (loss),
and non-GAAP net income (loss) per share in conjunction with its
traditional GAAP measures to evaluate the Company’s financial
performance. The Company believes that these measures provide its
management, board of directors, and investors consistency and
comparability with its past financial performance and facilitates
period-to-period comparisons of operations.
Free Cash Flow and Free Cash Flow Margin. The Company
defines Free Cash Flow as net cash provided by (used in) operating
activities, less cash used for purchases of property and equipment
and capitalized internal-use software costs. Free Cash Flow margin
is calculated as free cash flow divided by total revenue. The
Company believes that Free Cash Flow and Free Cash Flow margin are
useful indicators of liquidity that provides its management, board
of directors, and investors with information about its future
ability to generate or use cash to enhance the strength of its
balance sheet and further invest in its business and pursue
potential strategic initiatives.
Definitions of Business Metrics:
Annual Recurring Revenue
The Company defines Annual Recurring Revenue (“ARR”) as the
annual recurring revenue of subscription agreements, including
certain premium professional services that are subject to
contractual subscription terms, at a point in time based on the
terms of customers’ contracts. ARR should be viewed independently
of revenue, and does not represent the Company’s GAAP revenue on an
annualized basis, as it is an operating metric that can be impacted
by contract start and end dates and renewal rates. ARR is also not
intended to be a forecast of revenue.
Dollar-Based Net Retention Rate
The Company calculates dollar-based net retention rate as of a
period end by starting with the ARR from the cohort of all
customers as of 12 months prior to such period-end (the “Prior
Period ARR”). The Company then calculates the ARR from these same
customers as of the current period-end (the “Current Period ARR”).
Current Period ARR includes any expansion and is net of contraction
or attrition over the last 12 months, but excludes ARR from new
customers as well as any overage charges in the current period. The
Company then divides the total Current Period ARR by the total
Prior Period ARR to arrive at the dollar-based net retention rate
("NRR"). The Company then calculates the weighted average of the
trailing 12-month dollar-based net retention rates, to arrive at
the trailing 12-month dollar-based net retention rate (“NRR
(TTM)”).
About Amplitude
Amplitude is a leading digital analytics platform that helps
companies unlock the power of their products. Almost 3,000
customers, including Atlassian, NBCUniversal, Under Armour,
Shopify, and Jersey Mike’s, rely on Amplitude to gain self-service
visibility into the entire customer journey. Amplitude guides
companies every step of the way as they capture data they can
trust, uncover clear insights about customer behavior, and take
faster action. When teams understand how people are using their
products, they can deliver better product experiences that drive
growth. Amplitude is the best-in-class analytics solution for
product, data, and marketing teams, ranked #1 in multiple
categories in G2’s Spring 2024 Report. Learn how to optimize your
digital products and business at amplitude.com.
AMPLITUDE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) March 31, 2024 December 31,
2023 (unaudited) Assets Current assets: Cash and cash
equivalents
$
265,705
$
248,491
Marketable securities, current
50,442
73,909
Accounts receivable, net
36,066
29,496
Prepaid expenses and other current assets
18,671
16,624
Deferred commissions, current
13,190
11,444
Total current assets
384,074
379,964
Property and equipment, net
10,871
10,068
Intangible assets, net
295
609
Goodwill
4,073
4,073
Restricted cash, noncurrent
872
869
Deferred commissions, noncurrent
25,071
26,942
Operating lease right-of-use assets
5,939
6,856
Other noncurrent assets
6,716
4,303
Total assets
$
437,911
$
433,684
Liabilities and Stockholders' Equity Current liabilities: Accounts
payable
$
14,573
$
3,063
Accrued expenses
26,228
26,657
Deferred revenue
102,774
102,573
Total current liabilities
143,575
132,293
Operating lease liabilities, noncurrent
2,536
3,604
Noncurrent liabilities
2,590
3,034
Total liabilities
148,701
138,931
Stockholders’ equity: Common stock
1
1
Additional paid-in capital
674,313
658,463
Accumulated other comprehensive loss
(114
)
(181
)
Accumulated deficit
(384,990
)
(363,530
)
Total stockholders’ equity
289,210
294,753
Total liabilities and stockholders’ equity
$
437,911
$
433,684
AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts)
Three Months Ended March
31,
2024
2023
(unaudited) (unaudited) Revenue
$
72,624
$
66,477
Cost of revenue (1)
18,889
19,187
Gross profit
53,735
47,290
Operating expenses: Research and development (1)
$
22,953
$
23,708
Sales and marketing (1)
40,817
39,133
General and administrative (1)
14,670
13,622
Total operating expenses
78,440
76,463
Loss from operations
(24,705
)
(29,173
)
Other income (expense), net
3,671
3,138
Loss before provision for (benefit from) income taxes
(21,034
)
(26,035
)
Provision for (benefit from) income taxes
426
280
Net loss
$
(21,460
)
$
(26,315
)
Net loss per share Basic and diluted
$
(0.18
)
$
(0.23
)
Weighted-average shares used in calculating net loss per share:
Basic and diluted
120,826
114,369
(1) Amounts include stock-based compensation expense as
follows:
Three Months Ended March
31,
2024
2023
Cost of revenue
$
1,474
$
1,792
Research and development
8,914
8,579
Sales and marketing
6,871
6,368
General and administrative
3,805
3,218
Total stock-based compensation expense
$
21,064
$
19,957
AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands)
Three Months Ended March
31,
2024
2023
(unaudited)
(unaudited)
Cash flows from operating activities: Net loss
$
(21,460
)
$
(26,315
)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities Depreciation and amortization
1,450
1,349
Stock-based compensation expense
21,064
19,957
Other
(239
)
(245
)
Non-cash operating lease costs
985
985
Changes in operating assets and liabilities: Accounts receivable
(6,784
)
(8,145
)
Prepaid expenses and other current assets
(2,208
)
2,753
Deferred commissions
126
312
Other noncurrent assets
(2,909
)
1,472
Accounts payable
11,347
3,122
Accrued expenses
(507
)
1,043
Deferred revenue
201
(645
)
Operating lease liabilities
(1,114
)
(704
)
Net cash provided by (used in) operating activities
(48
)
(5,061
)
Cash flows from investing activities: Cash received from maturities
of marketable securities
42,500
—
Purchase of marketable securities
(18,352
)
—
Purchase of property and equipment
(357
)
(329
)
Capitalization of internal-use software costs
(733
)
(448
)
Net cash provided by (used in) investing activities
23,058
(777
)
Cash flows from financing activities: Proceeds from the exercise of
stock options
1,794
1,687
Cash received for tax withholding obligations on equity award
settlements
1,546
6,325
Cash paid for tax withholding obligations on equity award
settlements
(9,133
)
(5,955
)
Repurchase of unvested stock options
—
(648
)
Net cash provided by (used in) financing activities
(5,793
)
1,409
Net increase (decrease) in cash, cash equivalents, and restricted
cash
17,217
(4,429
)
Cash, cash equivalents, and restricted cash at beginning of the
period
249,360
219,349
Cash, cash equivalents, and restricted cash at end of the period
$
266,577
$
214,920
AMPLITUDE, INC. Reconciliation of GAAP to Non-GAAP
Data (In thousands, except percentages and per share
amounts) (unaudited)
Three Months Ended March
31,
2024
2023
Reconciliation of gross profit and gross margin GAAP gross
profit
$
53,735
$
47,290
Plus: stock-based compensation expense and related employer payroll
taxes
1,474
1,792
Plus: amortization of acquired intangible assets
270
422
Non-GAAP gross profit
$
55,479
$
49,504
GAAP gross margin
74.0
%
71.1
%
Non-GAAP adjustments
2.4
%
3.3
%
Non-GAAP gross margin
76.4
%
74.5
%
Reconciliation of operating expenses GAAP research and
development
$
22,953
$
23,708
Less: stock-based compensation expense and related employer payroll
taxes
(9,532
)
(9,033
)
Non-GAAP research and development
$
13,421
$
14,675
GAAP research and development as percentage of revenue
31.6
%
35.7
%
Non-GAAP research and development as percentage of revenue
18.5
%
22.1
%
GAAP sales and marketing
$
40,817
$
39,133
Less: stock-based compensation expense and related employer payroll
taxes
(7,253
)
(6,681
)
Less: amortization of acquired intangible assets
(43
)
(43
)
Non-GAAP sales and marketing
$
33,521
$
32,409
GAAP sales and marketing as percentage of revenue
56.2
%
58.9
%
Non-GAAP sales and marketing as percentage of revenue
46.2
%
48.8
%
GAAP general and administrative
$
14,670
$
13,622
Less: stock-based compensation expense and related employer payroll
taxes
(4,054
)
(3,348
)
Non-GAAP general and administrative
$
10,616
$
10,274
GAAP general and administrative as percentage of revenue
20.2
%
20.5
%
Non-GAAP general and administrative as percentage of revenue
14.6
%
15.5
%
Reconciliation of operating loss and operating margin GAAP
loss from operations
$
(24,705
)
$
(29,173
)
Plus: stock-based compensation expense and related employer payroll
taxes
22,313
20,854
Plus: amortization of acquired intangible assets
313
465
Non-GAAP income (loss) from operations
$
(2,079
)
$
(7,854
)
GAAP operating margin
(34.0
%)
(43.9
%)
Non-GAAP adjustments
31.2
%
32.1
%
Non-GAAP operating margin
(2.9
%)
(11.8
%)
Reconciliation of net income (loss) GAAP net income (loss)
$
(21,460
)
$
(26,315
)
Plus: stock-based compensation expense and related employer payroll
taxes
22,313
20,854
Plus: amortization of acquired intangible assets
313
465
Less: income tax effect of non-GAAP adjustments
(142
)
—
Non-GAAP net income (loss)
$
1,024
$
(4,996
)
Reconciliation of net income (loss) per share GAAP net
income (loss) per share, basic
$
(0.18
)
$
(0.23
)
Non-GAAP adjustments to net income (loss)
0.19
0.19
Non-GAAP net income (loss) per share, basic
$
0.01
$
(0.04
)
Non-GAAP net income (loss) per share, diluted
$
0.01
$
(0.04
)
Weighted-average shares used in GAAP and non-GAAP per share
calculation, basic
120,826
114,369
Weighted-average shares used in GAAP and non-GAAP per share
calculation, diluted(1)
130,886
114,369
Note: Certain figures may not sum due to rounding (1) For the three
months ended March 31, 2024, the weighted average shares used in
the GAAP per share calculation excludes 10.0 million shares as the
effect is anti-dilutive in the period.
AMPLITUDE, INC.
Reconciliation of GAAP Cash Flows from Operations to Free Cash
Flow (In thousands, except percentages)
(unaudited)
Three Months Ended March
31,
2024
2023
Net cash provided by (used in) operating activities
$
(48
)
$
(5,061
)
Less: Purchases of property and equipment
(357
)
(329
)
Capitalization of internal-use software costs
(733
)
(448
)
Free cash flow
$
(1,138
)
$
(5,838
)
Net cash provided by (used in) operating activities margin
(0.1
%)
(7.6
%)
Non-GAAP adjustments
(1.5
%)
(1.2
%)
Free cash flow margin
(1.6
%)
(8.8
%)
Note: Certain figures may not sum due to rounding
AMPLITUDE,
INC. Historicals - Key Business Metrics (In millions,
except percentages) (unaudited)
December 31,2022 March 31,2023 June 30,2023
September 30,2023 December 31,2023 March
31,2024 Annual Recurring Revenue (ARR)
$
255
$
262
$
268
$
273
$
281
$
285
Dollar-based Net Retention Rate (NRR)
110
%
106
%
101
%
99
%
98
%
97
%
Dollar-based Net Retention Rate (NRR TTM)
119
%
114
%
108
%
105
%
101
%
99
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508643668/en/
Investor Relations Yaoxian Chew ir@amplitude.com
Communications Darah Easton press@amplitude.com
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