AMPL - Earnings call 2 2021

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Jason Starr

Hello, everyone. Welcome to Amplitude's Second Quarter 2021 Earnings Conference Call. I'm Jason Starr, Vice President of Investor Relations.

Joining me are Spenser Skates, CEO and Co-founder of Amplitude; and Hoang Vuong, the company's Chief Financial Officer.

During today's call, management will be making forward-looking statements, including statements regarding our financial outlook for the third quarter and full year 2021 and 2022, the expected performance of our products, our expected quarterly and long-term growth, accelerated investments and our overall future prospects. These forward-looking statements are based on current information, assumptions and expectations; and are subject to risks and uncertainties, some of which may -- beyond our control, that could cause actual results to differ materially from those described in these statements. risks in cause Securities our Commission. the differ results and on included is filings information that actual could to Exchange Further with the

facilitate are financial these a use for statements on of today's and call, expressed and undue analysis we non-GAAP over You these on required that, non-GAAP no or on and Spenser. after found to should as these by hand GAAP website today's measures is business and as These forecasting measures GAAP. statements. are our prepared law. Certain not from assume for update measures We relations forward-looking at substitute internally used investors.amplitude.com. With with financial isolation non-GAAP information non-GAAP press And be financial financial in reliance and to purposes. obligation except to not cautioned measures basis. can have to in these release our financial trends which a place planning in call on call included financial between be earnings investor reconciliation internal limitations our I'll accordance used A the

Spenser Skates

excited. conference to I you, public And first us am earning Thank on Jason. just our joining everyone afternoon good so call.

and of it customers overview Hoang, financial today's business optimization like saw Amplitude's proud quarter. the will model, opportunity XX to guidance system. quarter, digital the today. to XXXX statement. detail We're the So registration outstanding through discussion have XXXX. Amplitude helped start over and year an overview additional rapid walk our I'd I'll also build I'm of we the provide recently to full provide I'll pleased customers recently we as trade in were strong shares market second our our begin host announce this our traction for second who had reflecting outlook performance. and provide detail milestones. result, QX And AMPL today with for quarter Class which financials with a acceleration to S-X and turn ticker And of investors then have publicly and call September dollar-based our with to who showcasing color grew Customer rate team. on this by the world year-on-year digital really great our demand We net in to decided the to NASDAQ. adoption of this with retention results, an our Revenue we demonstrated optimization. X,XXX was our I'll second execution further XX% our an customer investors under up thank of effective and in $XX A became Then customers, on of our over employees, a included success. I'll filed expect that in these year-over-year. exceptional, the XXX%. the for by digital quarter million, strength ended quarter to XX% Amplitude on

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to opportunity failure movement Amplitude, that significant products is is in success digital there for second strategic data is product recognized There to the between from data we've are for a difference The This the that from should market And we $XX the data-driven we estimate today. the derived XXXX. At products optimization organizations. often is how teams decisions. make use billion to drive digital a and operate outcomes. start best believe business that be approximately

the is command innovation. system product and measure center of manage, optimize value digital Our digital business the to optimization

leverage to of data, impactful The Digital with and Optimization customers. product, depth helps engineering, behavior user analytics, based for brings experiences. system design, products marketing product System and to customer experiment together new on Amplitude action optimize customer understanding Our self-service speed adapt experiences create a teams of to

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Graph Amplitude proprietary a applications. Graph real-time to support we journey. queries and By are databases is are from up user-oriented data user novel user's or way new Existing as approaches our product the to end the ground data. behavioral the to and complex partitioning Behavioral a that required allows database complex a interactive Behavioral answer classifying It partitioning of sense about normalizing, that built the fundamentally of their questions basis, data provides per-user struggle journey. questions First, and power a customers about suite user on the unable answer making of joining to the to

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about or can be answer questions construct queries a interface. SQL complex user You complex through behavioral technical know need don't to journey. point-and-click to the Users

to solution is cross-functional Our develop teams data-driven aligned help products.

Our the and customers insights benefit management, allow also from visibility science, value customer success. drive all has added and bridge at from same teams product to Teams insights customers design, collaboration sales and rapid to It share across to engineering, for marketing, productivity. built data can across time action time. data in to

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customer including Fortune why have XXX and Our least XX in X,XXX of ARR. size the and we XXX on more focus customer innovation than vertical, product of success with is base a and every of customers organizations at now $XXX,XXX paying

strong base success second expanding sizes, digital ClassPass; Miro; from a wins across products in continued include Shift; maturity. organizations notable of Our from local station, Smartsheet; with a Lydia; our Arts; SurveyMonkey; broadcasting in KQED. variety and our new demands and verticals the Electronic public customer Several quarter

Recommend commitments to from existing quarter ARR what some This and these context drove provide had and a of of We some few increase usage traction second customers. platform further on with customers. our Experiment. expand stories also wins demonstrates from of shows additional and encouraging in expansion significant our to a the customer customer in I'll value

time creation is with serve from forms, One that of work physical Amplitude's that, part After team transformation online Anheuser-Busch interacting low- platform digital the its team the like registration Amplitude. largest Recently sales QX tools registration world's BEES asking data favorite initiative. BEES their brewer customers in model having Amplitude of our sales could the a the partnered stories a are transformed e-commerce my fill of hard XXXX, digital BEES to customer to customers cutting-edge the simple its insight with they new no-technology detailed model who mechanism. needed out as better and originally of team InBev, using digital AB with showed instead InBev of XXXX in BEES process. discovered the beer.

over As increased Recommend time, recently volume BEES with QX. product BEES our has partnership has and event added grown new their in Amplitude's

popping the helping and and share increased to customers digital this compete to into families science including this in and usage consumer help company goods we originally to digital is product consumer up around become their by brand, QX. help Fortune Amplitude become A example Amplitude frame, customer its substantially upsell brand with in one-on-one second event Marketing, chosen The their time our that, making new their transform teams volume-based organizations, communications in partnership Amplitude as companies a create customers a direct-to-consumer over XXXX XX grows. product is loved data-centric value selected want product-led and and I with products packaged product, volume improve our market. their by vendor data customer- globe. a

company way of of games. partnership unique win case Arts, Amplitude selected efforts a example optimize what leading use could be guide transformation and is what They their our their and is want and uses services not. use QX their Electronic a for technology a to publisher employee with to and to Another clouds working measure The the tools as video employees many a experience of apps new and hundreds is internally. able

can Amplitude using System a market Amplitude product to their base. Optimization Smartsheet the drive Smartsheet, Hoang work team customers company. walk interest management is and our Amplitude critical business Amplitude we're how the results. and using drive existing and to conversion for focused ] across questions. drive purchase for They and new you Finally, collaboration our on that results to demonstrate of [ I'd onboarding help just Amplitude virality examples The very flows at to replacing was with the beginning upsells These Smartsheet These the few are forward in it growth, for answer that to story. And their ways Amplitude's Analytics optimize are are verticals Amplitude and customers reporting opportunity efforts and believe rates this customer Digital over activation with strategy. of a optimization across company on the strategic strategy potential platform sizes. We're enterprise and product Amplitude and pleased and also in-house future. look experimentation the turn quarter chose your like and success QX and digital Thank drive financial growth now significant in a engagement, to through digital an win to great in purchased Experiment.

Hoang Vuong

customer quarter everyone Spenser. with second again thanks and to us thanks, dollar-based expansion right, today. We net And growth, retention. exceptional had joining strong revenue All an

would organization into to helpful help digital customers provide business get access sell their our we results charge I based We our some optimizing our We product in customer products. on thought become to insights. and an it committed event designed the be everyone needs of and ] on data-driven have the subscription believe Before users quarter, actionable business I We background on volume. a to the based the [ building don't model in because model. should

training. Most over multiyear recognized As are of remainder of contract term. QX some XXXX, ratably implementation consists to professional is contracts. The of services have and do and our related recurring overages contracts our the although we and annual, over revenue XX% of

for to our Now continued to XX% execute robust accelerated on moving existing team financial Expansion year-over-year, as on land-and-expand results. well $XX.X our million, strong from demand to customers QX strategy. driven were our the growth products. revenue up by particularly

XX%, international which was U.S. year-over-year. rate notable wins. is respectively, retention Spenser ended QX quarter we dollar-based consistent paying mentioned, XX% several of or a in customer of we XX% and the an geographic had with revenue a XXXX. X,XXX our And XX% what NRR standpoint, to reported year From As strong with and customers, maintained we XX% compared from XXX%, was QX increase the We ago. net

current next contracted revenue and as to that amount amount and and recognized, noncancelable metric be visibility will represents into revenue the been in has million, customer obligations XX $XXX.X increased driven will XX% the increase This CRPO. or renewal contract This not revenue revenue quarters customer ahead. and in invoiced both by providing be revenue that up -- early some the strong CRPO of to Turning In deferred QX, quarter. performance months. including in strong future part that year-over-year, took in was recognized place the upsells

to profitability, will please note forward. results and going be discussing turning gross margins, I Before expenses non-GAAP that

near-term was financials. Gross results, financial results, be basis reminder: and from a the our XXXX. still in an or press with increase between targeting and maintaining margin longer is XX of QX earnings points supplemental our XXs, GAAP we the non-GAAP in found of week. while GAAP consistent more can we're last in with XX% Day As term, gross discussed Our along our goal low Investor margins This XX%, as in reconciliations release the

operational areas capture functional we're all to to expenses. market. investments seeing accelerated momentum the significant in in Moving our We the

Xx of we half people hired first the of all than In in more fact, XXXX XXXX.

percentage time, expenses $X.X significant QX $XX.X R&D of expense we decrease and our these in position. tailwinds percentage in these on $XX.X XX% will and to expect This development revenue compared and to marketing invest revenue was and short period. million a year. investments for research we as expect or sales our believe last And establish will increase XX% leadership absolute the although in of QX as the marketing revenue As increase in build represents and both QX of in $X.X to million market in making capitalize was term. Sales to amount. to we continue compared expense of expenses and dollar expenses to a of over year. platform, we XX% million or QX revenue We're last approximately revenue in million growth a

ahead. to and quarters features compared We the capabilities product in our and the low innovation G&A line new ahead we expect release for was second this into accelerate quarter to in in investments $X.X expense increase as the XXs million quarters the XX% a as revenue infrastructure of public $X.X to year. of million in versus the XX% G&A as in of life second We're revenue year. quarter company for investing of was prepare the our further last and business business. we last our scale

million or to operations was accelerate last As the million a quarter in $X.X loss of revenue to compared quarter a million to of shares second XX% $X.X in negative of or second in million result, XXXX. period margins compared quarter XXXX Net the $X.X $X.X growth. Net loss negative second shares. Free million last X% loss as of from XX% in was cash of negative share flow investment same $X.XX million the to Operating loss the $X.X on based XX% $X.X second on compare year per the we million quarter XXXX. negative $X.XX based XX.X million year. XX.X of compared in to was was of compared for revenue

Turning balance sheet. to our

Our cash $XXX as were June and equivalents of XX, cash million XXXX.

for Company. Based fiscal funds our quarter affiliated and and the that leading the we a funding, closed by million we strong provide we GIC, with monitor, Subsequently, rest Battery Capital, second including IVP. F pleased Series $XX.X results of As Fidelity to led we in participation an $XXX XXXX. on Sequoia with indicators are closed Ventures third Series June, and reminder: funding a quarter Management million the from additional F [indiscernible] & In Research these expectations round

assuming $X.XX per the net year-over-year; these non-GAAP million and of count and million third growth between growth net outstanding approximately that today's outstanding. $X.XX, of and between XXXX, between to direct $XX calculations $X.XX million. Note full included press assuming $X to representing we loss loss And of the basis, and to and non-GAAP million, million, upon rate share expect million; our outstanding share XX% quarter $XX $XXX $X.XX, XX% per to be listing. of for to non-GAAP shares RSUs rate $X in million $XX weighted loss we have operating and a XXXX, preferred expect million. and diluted conversion be XX% common to revenue be be release, XX.X million and a XXX certain XX% average between stock million; between be The a to to to vesting approximately share $XXX between we includes approximately a on XX.X included loss in revenue shares of year of be year-over-year; and we representing operating million For non-GAAP fully shares $XX

today, given we forward trends looking XX% analysts will the Amplitude market over system. With back in excited continued Q&A share, to to that strong I ahead vesting optimization in are with the leadership calculated count and grow granted all Jason financial that, the yet expectations: that positioned Series issuable of to revenue moderate about stock momentum our with shares it respect we discussions to common to $XX.XX, quarters term, per satisfied our investors of are vested and session. and -- that Excluding have turn are million. that condition stock digital offering. And a treasury XXX XXXX assuming are share well with price been preferred hypothetical price the options and opportunity their is share restricted believe year the As method look continuing per year-over-year. We're units but basis as fiscal than sorry, on Both and have have value or the respect price preferred comment share F not measures diluted final I'm we to a more strong to fully outstanding discussed service-based on the stock our per we a

Jason Starr

Thanks, Great. Hoang.

unable Now expected today's Q&A given traditional to questions session ask as sell-side analysts. many listing investors many anticipate we have to may you remarks. hold know, with direct Spenser week, we're Hoang following prepared a our some of that going and next I'm Alternatively,

Jason Starr

how Spenser, next of improve Amplitude your arsenal organizations? your And I'm for of for to else expect what So with need to over going system ambition on Can odds that record you start the the you. And years? the to product become to several in you accomplish expand you success? do product do

Spenser Skates

Yes.

So us really time, long important a a particularly is for for question. looking period folks of this holding at

it think some lessons who successful. draw other to I been very helps from vendors SaaS have

if So either you job or the system in marketing look of becoming a of done at sales respective functions. space in a the records for their Salesforce phenomenal space: Adobe They've

other system I we get think takeaway key functions teams, data as the get and that you will analytics and the consolidate. the plugging record, to that applications get those really why that, SIs spend functional if around buyer biggest what store into where if you is those those is do ecosystem analytics where of consolidation. up is that's start you After More other seen you happens have that and piece, you your end operationalize be under falls very companies to And successful. partners that you've well. as

thing to at exact Amplitude we're the And product so for replicate same organization. hoping the

lot be what's what's to I distribution going them them, foundation. either sales in is if you shifting specifically, analytics earlier ask and talk mentioned what's your the piece Or we're organization the always in product product and they're your the as stack?" the channel, as stack? I a as marketing. to call, first in to in about -- away talking from the important the you that of piece with power the is most "Hey, leaders companies, think So seeing what And

the of I also in category, for so term. we're set And GX, become generally, enterprise and market record long leader that system the we're per product think enterprise given well up to very more in that buyers

recommendation started we just QX. launched We both -- Experiment obviously we've So with analytics. in and

comprehensive that, excited traction both we're of product that the offering already so those new more about the -- of that -- along While the those a to think that's far suite and it's products early, path buyers. offers have

complete a they from care what what I think the majority to space for have vendors early early and we're about buyer to those in the and have And together product buyers, you majority an offering don't have because multiple most buyer. adopter really go and want suite is you. buyers early to to stitch transitioning do things

be decided here to X new with us so very would out. X products. at new to years, great be next And over aggressive at going from X We're that continue aggressively example. house. through we'll to case I a do products expect to was new Experiment basically ones we've a launch few year to in more both and and today many developing the of that we're on

acquisitions ecosystem through well As Amplitude. as and around consolidating the

came And acquisition. so initially Recommend actually through an

going really to product be for the to And over the X goal so the space next comprehensive turn the buyers suite lead the in both muscles into to we offering complete of so enterprise. important us, into are the current and years, most with our market that, domination X

Jason Starr

Good. Thanks, Spenser.

modeling over questions a few for Let's to shift here. Hoang

First will off, you on versus of metrics what operating the annually? some quarterly that key report are

Hoang Vuong

Thanks, Jason.

So U.S. we'll of international year update our over updates number million. then we'll total and annual over quarterly on our revenue like customers. an also of and give customers we'll geography of a down an basis, And once $XXX,XXX provide between on $X number on rate, kind by retention basis, break a net on And our paying total customers of kind

Jason Starr

what metrics Great. investors be should And drivers then the what are key and billings? of on will on following? provide CRPO. these guidance calculated you you model, of report metrics? the reported Will And You some

Hoang Vuong

Yes.

that estimates behind forward, on obviously provide guidance, we revenue, guidance and goes non-GAAP as on operating underlying non-GAAP share we'll income/loss So income/loss net and that. look count

at the us, we to better versus advise actually current obligations CRPO track really performance remaining so that and at look calculated follow so to look we billings, and that you would metric believe when And between is one.

Jason Starr

Great.

is QX? assumptions that that you guidance some Next you've the built question in acceleration What And sustainable? your here: saw given are the of into

Hoang Vuong

mindful call so first we're and this Tuesday, Yes. listing earnings next is take a to And very guidance. that very direct providing we're doing we're we to approach how our public prudent being our want obviously

providing And kind fact XXXX. year with of guidance then look want so the when And for out for XX% QX, the we're year-over-year the fiscal year-over-year at we're XX% of we obviously that growth we midpoint very full growth further, pleased at want we're to measured momentum of for that -- then current XX% outlook why giving to all an that's having and still our of look we or the kind balancing growth be And XXXX. kind out. year more we're and of

Jason Starr

Okay, great.

Moving along, we have here. a few more

XXX% reported how for about a investors drivers rate retention primary quarters? You And the customer net of What in next over are expansions the NRR for think in QX? should the QX. several trends

Hoang Vuong

Yes.

share, folks want we I of measurement First, is every each basically weighted -- remind and metric XX-month NRR, of it's NRR. the we average then each point those, for month, can a a our point that And a take month. to the calculation

had impact of look And are out -- kind of I COVID, -- kind we should think that obviously as some couple a we'll quarters so see see we improve. we carrying from obviously that obviously we at that, of where and

really driver multiple just saw volume. from angle. of As are coming fact look saw driving because expanding expanding expansion folks at expansion, the as their some we're far when that, QX, we We by the for of we from purely primary that excited

added customers few a saw also we highlighted, and Experiment. Spenser Recommend As

other customers sign it adding Now be to expanding we see. new small, And and also I still an still relatively into those and encouraging product but lines saw careful are other really really to then want and units. business that it's relatively

wasn't just thing into additional of another. there one actually or healthy the kind lines. pretty from people of product so ] or expanding volume And It terms coming larger in [ massive expansion either came

Jason Starr

Net X if new lose level in first half? in the were Okay, customer in let's Do customer, in sustainable what back particularly customers factors -- adds is a this are you involved think new the that? you shift typical strong. half And to here. over customer of activity

Hoang Vuong

Yes.

large, on and think that about that kind in -- we're now the $XX as get the we're the focus us that's of I you're hopeful tell And early we'll see in the think quite moving the of the and make from to is end adopter signals it's market to we're the We're the what we of to been the sure is bigger, billion way win investment that. the I beginning at make market of and is solutions that stage just the some market, beginning mentioned, that right we but making that we of obviously, the let kind want early starting market, think majority. and how customers. right for building all happens. the going sure But day, to the to

additions we'll so And attention look or changes. much customer think to so of And or don't quarter -- terms I pay and see. adds we'll of, every kind -- in

SMB, and to obviously winning customer ], both about think and more then like it's I terms of getting them really more the longer of enterprise expand. term we gaining in momentum [

lose That's #X in for reason. the the As the second what change out obviously going reached the COVID business. their Obviously adopted far with when change fully and lost in adoption to out -- we there's is last us of reason enough hasn't if business, when a and customers. yet reason inside as happened material we've a face customer to why And that hasn't account. a to similar or is champion material like #X business year, a company is typical

it's in And -- working constantly make reason that why a wide a X both product success how when least and customer or really our do is And we learning sure what reaching from goes at ] terms past side trying to usage figure activating weekly an so as more as out goal another that's always we side possible and users. are [ get to we of to get account. typically think like of to we're

Jason Starr

and fiscal on Time count in think average opposed in touched Really QX for weighted too. year in the more should market there your this the guidance Good also included share X release, you and total purposes to here. but investors how helpful. as count And script the color cap your for questions about share XXXX? for

Hoang Vuong

Yes.

is obviously, that. So you average is the preferred weight share converted available. common earnings, stock and basically to take hasn't and of that's calculate options other are of then which the the And that to And there's for haven't count converted amount the the common. weighted mean, always to over -- used things that common, -- I

So of only the when expect X you list, to preferred at to happen have we while of do conversion common basically end month direct of the that. we obviously QX,

provided That's vested, XXX when the shares. what it still in [ have ]. look when options that's And RSUs so exclude been million. along with at XXX fully, you does And it's we also not have which obviously earned, again million diluted count, that why the that the then calculation fully not essence, you share it's

Jason Starr

we'll those this. up mentioned This on significantly in growth you've you're come Great. And opportunity. but investing Where your often, being investments are has up quite wrap primarily made?

Hoang Vuong

Yes.

know investing. we is all of I somewhat a really scenario, kind investing ] We are aggressively And still [ but build this are areas. in the

our a time suite script, and of does marketing. we that when and solution the all our not the We leader one Let's to out same investing building but Amplitude mentioned you've out sales first product out, making are record development. you be start you're getting all earlier go do the it biggest in building product that with the success to the the people early stories got that the understand the We but is critical. lot solution a We awareness adopter have of believe with but that of in in -- thing system to in organization having the customers. the sales the capacity, only obviously and what right after their is sure product at on

be weight kind company of development scale becoming happens. that investing own in public a And we'll sure so has And innovation make to that with comes product its along obviously, additional and G&A.

So that of to of we're similarly all that think scale the we'll expenses. operating X X our growing functional on big in out revenue -- of we kind revenue. And side, it then cost buckets

G&A sales make of and just thing gains, that win to that the investing near So for the that won't other be outsized sure product marketing, in in make the we term, -- to want but and right all we're X to terms market. sure X the we're doing development of

Jason Starr

as will A stock we begin September discussion. on trading that, AMPL. NASDAQ with expect We on a Well, to XX symbol conclude the Class our today's under reminder: great. Okay, And ticker common

look on with today. quarters reporting you success forward our ahead. And call us So in thank the we being to for our

Amplitude (AMPL) 21 Sep 212021 Q2 Earnings call transcript