- First quarter revenue of $66.5 million, up 25%
year-over-year
- Number of paying customers grew 28% year-over-year to
2,175
- Dollar-based Net Retention Rate (NRR) was 106%, with trailing
twelve-month NRR of 114%
Amplitude, Inc. (Nasdaq: AMPL), a leading digital analytics
platform, today announced financial results for its first quarter
ended March 31, 2023.
"Every business with a digital product needs digital analytics,"
said Spenser Skates, CEO and co-founder of Amplitude. “Amplitude is
just scratching the surface of that opportunity, and we're
systematically upleveling every part of our business to set us up
for success long term. We're now better positioned to navigate the
current environment while fully leaning into the opportunities
ahead.”
First Quarter 2023 Financial
Highlights:
(in millions, except per share and
percentage amounts)
First Quarter 2023
First Quarter 2022
Y/Y Change
Revenue
$66.5
$53.1
25%
Annual Recurring Revenue
$262
$209
25%
GAAP Loss from Operations
$(29.2)
$(22.0)
$(7.2)
Non-GAAP Loss from Operations
$(7.9)
$(7.7)
$(0.2)
GAAP Net Loss Per Share
$(0.23)
$(0.20)
$(0.03)
Non-GAAP Net Loss Per Share
$(0.04)
$(0.07)
$0.03
Net Cash Used in Operating Activities
$(5.1)
$(8.3)
$3.2
Free Cash Flow
$(5.8)
$(9.6)
$3.8
Remaining Performance Obligations
$240.4
$194.4
24%
Current Remaining Performance
Obligations
$191.5
$149.6
28%
Non-GAAP loss from operations and non-GAAP net loss per share
exclude expenses related to stock-based compensation expense and
related employer payroll taxes, amortization of acquired intangible
assets, and non-recurring costs. Stock-based compensation expense
and related employer payroll taxes were $20.9 million in the first
quarter of 2023 compared to $13.8 million in the first quarter of
2022. This increase was primarily driven by increases in employee
headcount. Free cash flow is GAAP net cash 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:
- Number of paying customers grew 28% year-over-year to
2,175.
- Annual Recurring Revenue was $262 million, an increase of 25%
year-over-year and an increase of $7 million compared to the fourth
quarter of 2022.
- Dollar-based Net Retention Rate for the trailing twelve months
was 114% as of March 31, 2023, compared to 126% as of March 31,
2022.
- Dollar-based Net Retention Rate was 106% as of March 31, 2023,
compared to 127%, as of March 31, 2022.
- Amplitude hired Nathaniel Crook as the Company’s Chief Revenue
Officer.
Financial Outlook:
The second quarter and full year 2023 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 2023, the Company
expects:
Second Quarter 2023
Full Year 2023
Revenue
$66.5 - $67.2 million
$266.0 - $269.0 million
Non-GAAP Operating Loss
$(1.1) - $(0.6) million
$(8.4) - $(6.0) million
Non-GAAP Net Income Per Share
$0.01 - $0.02
$0.02 - $0.04
Weighted Average Shares Outstanding
116.5 million
117.5 million
The impact of restructuring charges, which include employee
severance and termination benefits, are excluded from our non-GAAP
operating income and non-GAAP net income per common share business
outlook.
An outlook for GAAP loss from operations, GAAP operating margin,
GAAP net income, GAAP income per share and a reconciliation of
expected non-GAAP loss from operations to GAAP loss from
operations, expected non-GAAP operating margin to GAAP operating
margin, expected non-GAAP net income to GAAP net income, and
expected non-GAAP net income per share to GAAP net income per share
have not been provided as the quantification of certain items
included in the calculation of GAAP loss from operations, GAAP
operating margin, GAAP net income and GAAP net income 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, 2023, as
well as the financial outlook for its second quarter and full year
2023 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 2023, 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
Company’s recent restructuring plan, which may not result in
anticipated savings or operational efficiencies and could result in
total costs and expenses that are greater than expected; 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 (the “SEC”) from time to time,
including the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2022, which was filed with the SEC on
February 16, 2023, and the Company’s Quarterly Report on Form 10-Q,
which is being filed with the SEC 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 Loss from Operations, Non-GAAP
Operating Margin, Non-GAAP Net Loss, and Non-GAAP Net 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. 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 loss from operations,
non-GAAP operating margin, non-GAAP net loss, and non-GAAP net 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 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 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 2,200
customers, including Atlassian, Jersey Mike’s, NBCUniversal,
Shopify, and Under Armour, 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 2023 Spring Report. Learn how to optimize your
digital products and business at amplitude.com.
AMPLITUDE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) March 31, 2023 December 31,
2022 (unaudited) Assets Current assets: Cash and cash
equivalents
$
214,062
$
218,494
Marketable securities, current
53,232
11,971
Accounts receivable, net
30,581
22,716
Prepaid expenses and other current assets
17,476
20,335
Deferred commissions, current
11,275
10,918
Total current assets
326,626
284,434
Marketable securities, noncurrent
30,878
71,217
Property and equipment, net
9,838
9,408
Intangible assets, net
1,557
2,022
Goodwill
4,073
4,073
Deferred commissions, noncurrent
25,129
25,799
Restricted cash, noncurrent
858
855
Operating lease right-of-use assets
8,690
9,593
Other noncurrent assets
4,882
6,354
Total assets
$
412,531
$
413,755
Liabilities and Stockholders' Equity Current liabilities: Accounts
payable
$
3,699
$
490
Accrued expenses
19,634
18,699
Deferred revenue
89,348
89,993
Total current liabilities
112,681
109,182
Operating lease liabilities, noncurrent
6,109
7,093
Noncurrent liabilities
2,521
2,511
Total liabilities
121,311
118,786
Stockholders’ equity: Common stock
1
1
Additional paid-in capital
591,183
568,889
Accumulated other comprehensive loss
(482
)
(754
)
Accumulated deficit
(299,482
)
(273,167
)
Total stockholders’ equity
291,220
294,969
Total liabilities and stockholders’ equity
$
412,531
$
413,755
AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts)
Three Months Ended March
31,
2023
2022
(unaudited)
(unaudited)
Revenue
$
66,477
$
53,065
Cost of revenue (1)
19,187
16,063
Gross profit
47,290
37,002
Operating expenses: Research and development (1)
23,708
16,501
Sales and marketing (1)
39,133
28,130
General and administrative (1)
13,622
14,362
Total operating expenses
76,463
58,993
Loss from operations
(29,173
)
(21,991
)
Other income (expense), net
3,138
86
Loss before provision for (benefit from) income taxes
(26,035
)
(21,905
)
Provision for (benefit from) income taxes
280
315
Net loss
$
(26,315
)
$
(22,220
)
Net loss per share Basic and diluted
$
(0.23
)
$
(0.20
)
Weighted-average shares used in calculating net loss per share:
Basic and diluted
114,369
109,553
(1)
Amounts include stock-based compensation expense as follows:
Three Months Ended March
31,
2023
2022
Cost of revenue
$
1,792
$
922
Research and development
8,579
4,284
Sales and marketing
6,368
3,240
General and administrative
3,218
5,057
Total stock-based compensation expense
$
19,957
$
13,503
AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands)
Three Months Ended March
31,
2023
2022
(unaudited) (unaudited) Cash flows from operating
activities: Net loss
$
(26,315
)
$
(22,220
)
Adjustments to reconcile net loss to net cash used in operating
activities Depreciation and amortization
1,349
901
Stock-based compensation expense
19,957
13,503
Other
(245
)
118
Non-cash operating lease costs
985
809
Changes in operating assets and liabilities: Accounts receivable
(8,145
)
(2,905
)
Prepaid expenses and other current assets
2,753
(2,460
)
Deferred commissions
312
(2,391
)
Other noncurrent assets
1,472
(836
)
Accounts payable
3,122
(1,328
)
Accrued expenses
1,043
2,946
Deferred revenue
(645
)
5,843
Operating lease liabilities
(704
)
(269
)
Net cash used in operating activities
(5,061
)
(8,289
)
Cash flows from investing activities: Purchase of property and
equipment
(329
)
(713
)
Capitalization of internal-use software costs
(448
)
(594
)
Net cash used in investing activities
(777
)
(1,307
)
Cash flows from financing activities: Proceeds from the exercise of
stock options
1,687
3,989
Cash received for tax withholding obligations on equity award
settlements
6,325
7,342
Cash paid for tax withholding obligations on equity award
settlements
(5,955
)
(8,758
)
Repurchase of unvested stock options
(648
)
—
Net cash provided by financing activities
1,409
2,573
Net increase (decrease) in cash, cash equivalents, and restricted
cash
(4,429
)
(7,023
)
Cash, cash equivalents, and restricted cash at beginning of the
period
219,349
308,295
Cash, cash equivalents, and restricted cash at end of the period
$
214,920
$
301,272
AMPLITUDE, INC. Reconciliation of GAAP to Non-GAAP
Data (In thousands, except percentages and per share
amounts) (unaudited)
Three Months Ended March
31,
2023
2022
Reconciliation of gross profit and gross margin GAAP gross
profit
$
47,290
$
37,002
Plus: stock-based compensation expense and related employer payroll
taxes
1,792
922
Plus: amortization of acquired intangible assets
422
489
Non-GAAP gross profit
$
49,504
$
38,413
GAAP gross margin
71.1
%
69.7
%
Non-GAAP adjustments
3.3
%
2.7
%
Non-GAAP gross margin
74.5
%
72.4
%
Reconciliation of operating expenses GAAP research and
development
23,708
$
16,501
Less: stock-based compensation expense and related employer payroll
taxes
(9,033
)
(4,482
)
Non-GAAP research and development
$
14,675
$
12,019
GAAP research and development as percentage of revenue
35.7
%
31.1
%
Non-GAAP research and development as percentage of revenue
22.1
%
22.6
%
GAAP sales and marketing
$
39,133
$
28,130
Less: stock-based compensation expense and related employer payroll
taxes
(6,681
)
(3,233
)
Non-GAAP sales and marketing
$
32,452
$
24,897
GAAP sales and marketing as percentage of revenue
58.9
%
53.0
%
Non-GAAP sales and marketing as percentage of revenue
48.8
%
46.9
%
GAAP general and administrative
$
13,622
$
14,362
Less: stock-based compensation expense and related employer payroll
taxes
(3,348
)
(5,140
)
Non-GAAP general and administrative
$
10,274
$
9,222
GAAP general and administrative as percentage of revenue
20.5
%
27.1
%
Non-GAAP general and administrative as percentage of revenue
15.5
%
17.4
%
Reconciliation of operating loss and operating margin GAAP
loss from operations
$
(29,173
)
$
(21,991
)
Plus: stock-based compensation expense and related employer payroll
taxes
20,854
13,776
Plus: amortization of acquired intangible assets
422
489
Non-GAAP loss from operations
$
(7,897
)
$
(7,726
)
GAAP operating margin
(43.9
%)
(41.4
%)
Non-GAAP adjustments
32.0
%
26.9
%
Non-GAAP operating margin
(11.9
%)
(14.6
%)
Reconciliation of net loss GAAP net loss
$
(26,315
)
$
(22,220
)
Plus: stock-based compensation expense and related employer payroll
taxes
20,854
13,776
Plus: amortization of acquired intangible assets
422
489
Non-GAAP net loss
$
(5,039
)
$
(7,955
)
Reconciliation of net loss per share GAAP net loss per
share, basic and diluted
$
(0.23
)
$
(0.20
)
Non-GAAP adjustments to net loss
0.19
0.13
Non-GAAP net loss per share, basic and diluted
$
(0.04
)
$
(0.07
)
Weighted-average shares used in GAAP and non-GAAP per share
calculation, basic and diluted
114,369
109,553
Note: Certain figures may not sum due to rounding
AMPLITUDE,
INC. Reconciliation of GAAP Cash Flows from Operations to
Free Cash Flow (In thousands, except for percentages)
(unaudited)
Three Months Ended March
31,
2023
2022
Net cash used in operating activities
$
(5,061
)
$
(8,289
)
Less: Purchases of property and equipment
(329
)
(713
)
Capitalization of internal-use software costs
(448
)
(594
)
Free cash flow
$
(5,838
)
$
(9,596
)
Net cash used in operating activities margin
(7.6
%)
(15.6
%)
Non-GAAP adjustments
(1.2
%)
(2.5
%)
Free cash flow margin
(8.8
%)
(18.1
%)
Note: Certain figures may not sum due to rounding
AMPLITUDE,
INC. Historicals - Key Business Metrics (In millions,
except for percentages) (unaudited) Three
Months Ended March 31,2021 June 30,2021
September 30,2021 December 31,2021 March
31,2022 June 30,2022 September 30,2022
December 31,2022 March 31,2023 Annual Recurring
Revenue (ARR)
$
137
$
161
$
179
$
197
$
209
$
227
$
243
$
255
$
262
Dollar-based Net Retention Rate (NRR)
118
%
128
%
128
%
130
%
127
%
118
%
113
%
110
%
106
%
Dollar-based Net Retention Rate (NRR TTM)
118
%
119
%
121
%
123
%
126
%
126
%
123
%
119
%
114
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230508005735/en/
Investor Relations Yaoxian Chew ir@amplitude.com
Communications Darah Easton press@amplitude.com
Amplitude (NASDAQ:AMPL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Amplitude (NASDAQ:AMPL)
Historical Stock Chart
From Jul 2023 to Jul 2024