Earnings call transcript Q1 2023

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Yaoxian Chew

Hello everyone. Welcome to Amplitude's First Quarter 2023 Earnings Conference Call. I'm Yaoxian Chew, Vice President of Investor Relations.

Joining me are Spenser Skates, CEO and Co-Founder of Amplitude; and Chris Harms, the company's Chief Financial Officer.

During today's call, management will make forward-looking statements, including statements regarding our financial outlook for the second quarter and full-year 2023, the expected performance of our products, our expected quarterly and long-term growth, investments, and our overall future prospects. could based to information, of described risks beyond control are and and which in statements to our subject results are and that these forward-looking statements. on from assumptions, current expectations are differ These materially actual those cause uncertainties some

in and assume update Further law. the call financial call to these we to Commission, Exchange accordance included in and information is you between could non-GAAP in cautioned except of not risks cause limitations internally as differ as on results to and information included the measures non-GAAP in measures statements, from Securities be which today's press financial financial release, business today's obligation at statements after these and Relations and analysis earnings These forecasting used found investors.amplitude.com. measures with undue for a no have on a place these on and for We can forward-looking GAAP facilitate reliance our website on is required be Certain are internal reconciliation prepared isolation purposes. our not our that trends financial use measures actual our Investor planning to non-GAAP basis. financial by expressed filings with non-GAAP substitute GAAP. used are A or on and should financial these

Spenser. I'll to that, call over With hand the

Spenser Skates

welcome everyone, Good Yao. you, QX and afternoon our call. XXXX Thank to earnings

remarks today, I'm We areas. on have going my three to a key lot focus so to cover

an environment compelling opportunity outlook why update and as we're the as some customer long-term the for First, ever. adapting and and how product highlights; financials our second, and AI QX XXXX; remains third, on

causes digital them that, and I what needs view to their product to business back. Before to a with on get the coming I customers what my more love, know keeps market. them what stuck Almost every about get reiterate to want

and existing channel important different a become means to led an footprint. a This surface have new sizes. dramatically Product for analytics to the and more we customers just The only the digital our scratching with digital those multiple any we're will opportunity. to remains growth customers help our within of of companies expand strong business reach to departments opportunity demand all extend for to

first our results, Turning attention growth. was million, to year-over-year QX reflecting revenue our XX% $XX.X quarter

Our XXX% with dollar trailing month rate based net was XXX%. of NRR XX retention

Our operating X,XXX. revenue, loss increased was total to and $X.X customer of XX% or count million, negative our

PGA America, saw and brands Chess.com The IMG RudderStack, of first new and companies with Viator, win quarter Networks. Endeavor, AMC Group, Panda We from home Restaurant us and Chick-fil-A, including industries to including multiple customers as expanded UFC. such

the brought in substantial largest some music companies. on-demand with world's also deals entertainment streaming and We services of

Panda Panda those two that previously which X,XXX over locations, Let deals. Restaurant to operates unavailable details selected of existing me their Express more stack dashboards. on and real-time Amplitude were tech with related insights Analytics share Group, gain

Amplitude the make rewards, Panda understanding guests keep to self-service new capabilities, more promotions back. decisions program. platform become insights, leverage Panda of their behavior, informed directly team Panda customer coupons that can sophisticated data-driven enable team making. power and By will Our quality their scalable the will in and impact how will decision to their rewards coming

A/B purchasing is was inception. RudderStack, both tests great a meant solutions, using of at a running that powering point time of RudderStack XX,XXX was Amplitude and a very data platform experiment websites, which basic Analytics even consuming. customer previously apps and over hodgepodge example company a

sales product makes the and for identify customer can one to Now better data, deliver pain to its experiments teams in run Amplitude results success This and easier points, it product, a team and customer use access RudderStack the all analyze much experience. platform.

retention. QX, positive chart your In signs We been redesigned to whether tremendously trying sellers, creation between and loyalty reducing are has patterns chart. time and hidden deliveries and moment first relentless layouts flow design craft quicker We promotions for you're create feedback our we about to their offline signals point with the takes buyers reach Early of Amplitude increased much experience. to or first of want improving product it reservations. aha a and between sale program conversion systems, the feature find online everyone

generative advances AI the complex with language greatly accelerate interfaces. to of navigate category. Developments potential in have to the artificial workflows simple enable intelligence Recent natural growth our users in

to platform users as a the of value to. Amplitude, speak For as base powerful transform time we and the both can this

surface interfaces models questions the these to reducing user such let manner. intelligently dramatically self-service a think information We insights answer clean We’ve every reach summarize barrier and ability for classify instrumentation. a to for and can in seen and customers service the also

on behavior, We customer and world’s have also impact have comprehensive develop the allows on how powerful digital develop most would companies which product products. significant foundational to models that dataset us

all work powerful new experimenting to hard data leverage at sharing you forward We set I this future. the more with and customers, in our with for are to ways look

business became in challenging QX made more plan was after The lot all to tech operating SMB than far our we for It through needed sectors that pricing also environment to in way QX with Volume-based hard and off XXXX the As change. comparison employees our is right-sizing especially more of in means of is period year a laid a acceleration. of a severe in QX. clear as first quarter, more been it customers. cautious The more tech reset our us result. for a a buyer overall have hit behavior

impact to we relatively exposure spending fared year, challenged were than was When more customers cuts Amplitude greater end surgical more markets last a having expected. well. our addition, In

reducing as offerings softens. it’s However, that budgets demand now companies are their apparent for own the indiscriminately more

growth XX% a previously of our now XX% at and from dynamics, accelerating deliberate Against we our we being XX% our details to. business current free the scale we full and profitability guidance. you As down take are updating will very flow. are Chris XX% this, to these for to shortly. revenue operate year result cash XXXX expect We its full we guided growth year the about how through

as environment an the we go-to-market Amplitude the operate this, took and early the by but development decision difficult The fluid move organization, to focusing size we in In of XX%. what can primarily also the team reduce control. We April by G&A. product on covered on focused as

transforming I us, I’m the leaders To Thomas, to to opportunity revenue and the strategy deliberately successfully their a lead very past the execution we’ve and future of evolving the the continue improving over KJ, including need capture ahead why operational been executive That’s today Chris, to for maturity $X beyond. company. and in business. driving the of billion brought about year, Amplitude as and teams They others. are excited have we in

deliver about here I value-based blocks to are and starting better has selling, bright enablement results. talked previously been execution of around building cadence, a spot. improvements pipeline Pipeline operating scalable sales tangible generation,

Our win rates are up competition. against the

of Amplitude keeping product disciplined we innovation remain approach that We’re We known in Board. the execution and investment pace for. the across continue our is bar raise the aggressive for to

adapt. is change, crucial continue markets we to the it that As

that. is we Here are how doing

lowered while profitable against much free April responsibly short-term operate restructure leaning towards outlook as that into a business. cash path generating a have we clearer a the growth opportunities First, still ahead. operating means We’ll flow the

responsibility organization. approach the depending in approach our and accountability and drive of enable account differently changes We wanted us to industries. customers engagement defined ownership more a have to our their reduce needs to diffusion we go-to-market more and the Second, on and

maturity. space. the intensify enterprise Third, started on the Many huge companies opportunity will our product driving in focus help digital getting in then its development need more team and

ease efforts use specifically of to this win targeted verticalization Our on group. are and

we’re down doubling our Last, efforts. like product on growth

Analytics an Phase unhappy natural will and path easy We phase sure first have to X the customers are making targeted users for be in larger smaller accounts. smaller Amplitude. delivering at migration teams that Google

as number has XX strategic and led leadership and our startups. Crook We held engineering years CRO team. software experience. and other of eight goals welcomed Microsoft spent also new at veteran a industry worldwide years April. in Nate at sales partnerships and Symantec, of their Cisco, Nate over sales to He’s sales enterprise He Amplitude

Together, a I Against speak early scalable market The much remains in more Amplitude in these today incredibly us message? enable and a for a want developments to its to back. take days. is fashion. opportunity effective many compelling. analytics The we to do is step prospects category what challenging that will more digital

We are most apparent our underpenetrated is especially This customers sophisticated the our average. customer within versus at look base. when how Amplitude use we

weaker We displacement consolidating point solution from Google are and end numerous in fragmented markets. take continuing to share Analytics

a combination of greatest by and value Amplitude’s at market. We this data positioned what expensive lengthy best we using scientists, the solution out and digital implementations. are offer we to value, powerful win unique box trying to involves replicate analytics tooling offer legacy in the the most add-ons, proposition of is

short-term product other digital businesses At we been us Amplitude’s to right self-service persona customers The No the for and deep we will analytics can have that in means has long-term. these over to tandem of message growth face the This recent in health the our is ambitions you like leave many provide actions apart the our understanding what with the and insights pain and and by we’ve with. slowing Here experienced more platform can. succeeded in continue growth? cyclically workflows focus has is Amplitude, years the pack. doing of from I’d data on the set customers.

macro The of are reset day. It and for validation headwinds more approach we of customers. temporary immense our our is year in see TAM every a many

maturity we and growth. There for us fixable. operational our lot long-term, all are of and accelerate to these Over controllable I expect of improve execution, and the opportunity our a will remains

Our team occasion. is rising to the

to well are We this set navigate up environment.

flow, accelerated against free growth cash outlook. even reduced our to path have again profitability, We the yet

the to welcome I’d Chris, walk Chris it financial to turn like to through now results. to Amplitude. over

Chris Harms

organizations this and Spencer, analytics over in can have, years. must opportunity joining we today. because us class outcomes world the next the provides more platform of asymmetrical the and few Amplitude huge. thanks joined Amplitude, as front I opportunity, the deliver More making I digital see that everyone think and of to a Thanks, Amplitude

or more arms even I’ve thoughtful become for previously my than a strategic operating challenging clear This business more environment assessed. be XX need the so that capital more As than requires and last and ever the wrapped has a and around more will allocation. was discipline XXXX over rigor days

to more position We growth. for are at and ourselves reaccelerating scale, leverage leverage to Amplitude drive intentionally shaping – operating

Spenser characterized As headwind subside. the

Our team the rising is to occasion.

generating I’m quarters. towards clearer We I to And coming meet truly excited of be profitable much to the opportunity have to cash here. a hope as you have free many a the operating path over flow business. with

our outlook for detail, a I results quarter of more share bit first last our in XXXX Before and context. updated

XX-month we our compliment intention measurement of press or rate the revenue our recurring and our annual disclosed and insight disclosures our in note to trailing you’ll field to of As historical into additional ARR disclosure performance is these release retention have My provide our including NRR. in quarter. in real-time you a in XX-Q, net more

first our to quarter on Now results.

will reminder, all exception RPO sheet a discussing and financial results that I be of figures with revenue, As are non-GAAP. balance the

be Our can along release earnings between IR GAAP GAAP results on found reconciliation with supplemental results in and financials our our financial website. non-GAAP a and press

quarter an balanced up million, fairly expansions. $XXX First between XX% of sequentially. new $X.X year-over-year revenue ARR an evenly to and and million and logos XX% Total was from $XX.X mix million, ARR million of sequentially. year-over-year was increase approximately up The $X of increase new ARR new increased

growth and hundred plus dollars both plus dollar seeing across in base. our ACV customers thousand million We’re

in even this The environment remains Amplitude importance clear. and of ROI

value economic organizations. in churn to sizing platform, new about half with our or right demand reflected Partial ambitions opportunities We’re reduced tangible allowing a environment delivering resulting throughout weaker QX. from against churns growth our explore us

want Other important work on As customer while Spenser is in sometimes choosing said of term these survival This their churn. a becoming more customers fly and are deep us longer mode. of on blind see of customers to has stack. driving to some cutting with amplitude lost before, many our spin, product part

of expansions. declined trailing down ago. March decrease new a from was to on ARR the basis was NRR to year XXX%. primary XXX% a sequentially slowdown of driver from significant XXXX XXX% the XX-month The NRR as the

in this the low XXXX. has remained of shrinking retention retention, was and expansion and over Tougher consistent fairly right-sizing the has the retention half have quarter few XXs, in Gross second which gross Note that slightly which last the was been from has late the in between and dynamics XXs delta been declined quarters. the high gross in net high, XXXX. since evident

up RPO. RPO cost. of and million, a the total year-over-year core our RPO and down XX% $XXX has almost $X up unit points that basis, engineering up $X efficiencies lowered Total than on driven XX% approximately $XXX year-over-year. was team Current was was million and represented XX%, Gross more margin million million, up sequentially percentage sequentially XX% two as year-over-year

Sales cyclical percentage revenue like to of marketing sequentially, XXXX increased and represented increase sales XX% or marketing four point and expenses $XX.X sales kickoff. expenses and a million our partially reflecting

two R&D point decreased to million or percentage decrease expenses a XX% of increase or to $XX.X a represented percentage $XX.X million expenses represented and point increased revenue sequentially. and G&A sequentially. one XX% of revenue

to Operating on three a or $X.X point loss on basis, a percentage basis. negative a sequential a negative of a point percentage but million year-over-year increased improvement five XX% a decrease revenue,

share $X.XX shares shares, million ago. a year with $XXX.X million a compared XXX.X was on loss per of loss based Net to $X.XX

on and X% Free of nine a a cash percentage sequential million revenue, basis. or flat flow basis point a was negative on negative improvement year-over-year a a $X.X

marketable QX. and million securities $XXX cash equivalents end Finally, were at of the cash,

outlook. some Now renewals onto ahead on renewables the are on are year the of Indications us. of of – our dynamics that toughest

leading revenue to strives into prudently outlook Our incorporate indicators those our guidance.

our revenue in recalibrated for to term more the the have near top changes predict. challenging are sales line drivers in but productivity derivative on We impacts levels the headcount,

these incorporate prudently into guidance. to our considerations strives outlook Our

this means savings. The we We into weakness in will strong revenue our half from of the that which path year have in reacceleration first restructuring is the improbable gradual. that and April cost acceleration more towards resulting completed the the visibility ultimately be XXXX

profitability and demonstrating shareholder strong having are of path our improved capital stewards We by responsibility fiscal ourselves proving to targets.

annual an of rate at XX% and quarter, we’re second midpoint. the $XX.X representing the revenue $XX.X million, growth between million For expecting

income a basis $X.XX, . Non-GAAP loss on $X.XX between million. share and million to of per be fully $X.X outstanding and net operating approximately $XXX.X Non-GAAP shares between as $X.X assuming diluted measured million

to year, For growth million An guidance full XX% revenue million. XX%. rate and our of $XXX the updated annual is XXXX between $XXX

XXX.X million share expect We assuming outstanding operating and basis. income shares net loss between fully on a $X.X million between non-GAAP we $X.X expect measured be and of non-GAAP $X.XX, diluted million, to as per and $X.XX

our improvements As margin the accelerated you adjust margin in to profiles reflected models, the in operating mind in keep QX XXXX updated is margin have the and gross operating QX profitability guide. continued operating your We Contributing as following: for margins.

restructuring three XXXX. FY million $X points free the should charges, operating of excluding five per be income percentage between We’re quarter expecting about interest margin, and flow cash between and margin spread to both measured, for the

intact. our In summary, the environment our but near-term dictates a necessary growth targets, reset remain ambition for

will We what net profitability, controlling delivering on productivity, we the working environment of can many and revenue focusing the are When changes control, retention better into execution. on stabilizes, we and growth. believe translate we’re

With that, Q&A. open up will I for

Operator

first by of from Instructions] Elizabeth, Ikeda Bank Morgan comes Stanley, followed Elizabeth Our America. Porter from question [Operator Koji please. of

Elizabeth Porter

you Great. hear Can me? Thank you much. so

Spenser Skates

can I you great, hear Elizabeth.

Elizabeth Porter

Great. Awesome.

moving environment. wanted won’t Sorry, just to Google is my introduced Adobe direction. video on. ago months analytics ask competitive often product Analytics the go a solution few towards I and Amplitude’s

And opportunity the from scale about thinking from So risk balance large a how or first, greenfield between in in versus second, rates competition change increased a term? these the near have you some any of win conversions seen vendors? you are

Spenser Skates

up I versus in a those positive. very Google Analytics, Yes, thing customer Adobe, it’s is other a and in the have have gone bunch look the QX win both changes think been prior in to space actually actually at of The I track so rates I response The been a very if demand. closely real that players quarters. on

I that And entering excited space. I’m think so they’re the very

a regards successful I’d against particular, about the opportunity here. point Adobe how to to of two very we’ve been that’s I great things. them. think it’s massive With I’m validation excited in

own marketing world. think built for principles Amplitude is a I Adobe whereas that first product for on product persona We we’ve focused digital very one. is first the the been The

like So our there’s standpoint, from legacy it’s not a architecture.

We’re not don’t in disrupting priorities. ourselves We existing afraid business. the of have competing

combined, XX we data something is customers, is the hear XX analytics right that implementation to actually product. thing Adobe is other comparison engineers, to Amplitude scientists that analysts. It’s products The of services, consistently and not data from tons product plus the

While in offer we way. box much out a tooling with right the self-service Amplitude, – better it’s of

expanding customers many of interested largest Amplitude Adobe. see continuing Adobe’s usage We’re of very to versus in their

we’re And our build about really how so, continuing this feel and space. positioned I good in to leads

companies greenfield our and there’s one, and to that’s and and we’re these the there’s seeing happen no, expand the to large business appetite terms motion of of standardized change true Adobe and for In start consistent no expand then And larger continue team that. to across land the remains of and customers. and with the many really board. central that in get a main We’ll opportunities kind for in remains very land unit

as In players space analytics. Amplitude entering fact, actually there’s product talking other the about more of and in result interest a

Elizabeth Porter

were follow-up, than there ask these the And that you’re in seeing for volume ads. to little based expecting end then We what’s then came path opportunity Great. term, I saw low And you on wanted of have net just just the customers as bit longer as Are a Is a and pricing. benefit better just a addressing larger more impact? to an MTU the customers? them upgrade customers? what revenue for of overall we that

Spenser Skates

switch a – you It’s the the yes. positive. lower to for MTU end basically count the The barrier a particularly to customer has pricing based market. lowered entry, been as Totally, mentioned, of huge

of customers based of pricing to us of We use driving and grow adoption. time both we’re because expect things other ease a lot those a lot the of with over MTU on

that sure start they making can grow we’re simple wants use about getting more they ways can, we if of standpoint us, a about to for started on. And giving kind with us, with part get then later small that that customers and and of thinking that’s of to someone a from the product the cases? huge – is One this do priorities win biggest year how is

that And more customer so we’re to up continue already which accounts, and is improvements seeing there. show fantastic in drive we’ll

Operator

Great.

America, Turits Koji, KeyBanc. Next question Bank from go by of ahead. from Koji Ikeda, Michael followed

Koji Ikeda

mean, Yes. de-risk, the you. thinking mean, when guide? the guide about for question you No. just questions. on it a revenue is the Chris. next be Thank assuming is for look how of guidance and rest of of decline that how in year kind I linearity for this essentially and should that not thinking revs quarters. the the Hey, that the three we any Thanks I the the rest taking right? Spenser. quarter guidelines conservatism is How embedded into the Wanted we sequentially to about going really year? growth Hey implies don’t revenue for of flat ask and much is much at the

Chris Harms

the of so is the the customers having of a level prior. we’re this are that of let with the going major sizing the some in done right math Our just of year that the somewhat Yes, through umbrella customers under are the that that of that them. talk math their in we’ve on there and with guidance? maybe a And through through conveyed So end volume just end theme, correct you’ve reset me right? reflection ambitions they’re going pieces their

very of increased look from how churn out right the our are indicators to on blind and reasonably sizing I tried of place churn product to just As the churn some year, leading continuing prudent going continuing and both plays for it guide. the the for kind I’ve plays be side. of through customers go who that full as rest into

that, it did How the go of we How a we driven that it the recognizing do was after effectiveness. was enterprise of headwinds. end go we restructuring April market? restructuring in of the lower those a piece after of reflective the by go-to-market that And is The second theme really market? around and

plays a very kind at look of of and holistically, rest pulled of be of reasonably So as new our and the I’ve both land to as from ARR the we that. two just out again, for those, The year. ads seen play down have function expansions how I it that tried prudent

reflected case my conveyed as in We for guide. is renewals in revenue to remarks. are wanted and I that have worsening I in a definitely terms of I year, a worsening – this condition the prepared it The

Koji Ikeda

now, But dialing And focus about down this take I it a Got up dialing responsible investments environment. appreciate positioning it in business, on bad to than follow thanks can to the back a longer profitability, back it growth thinking just of the in long-term in sometimes better here. the up Chris. for the do environment environment. path

not from operating how table on we leaving you’re because in potential attractive guys. opportunity future? are here, long-term lack So, think what growth managing an Thanks of such the is in capacity a any you the

Spenser Skates

Yes.

bit great with lot has high Hansen’s We background enterprise. with and my like. how a to So in that us contextual where very Crook, with different on high as motions look Microsoft level, at joined think SMB high-end the efficiency, the little I’m those with of experience motions a end. just insight we’re We top is and of comes space. a very very end the going complement CRR at specifically two enterprises. we start a end effectiveness Nate been serve Thomas like as who’s in bring unlock clear what Like, to

with and Like as in collaboration Thomas run along with look significant I that or us This those we motions and or In reflecting up XXXX about position to it. is a we focus into said, conditions, XXXX, to be how we a of driving view been with at is down humility, are Nate stack. which where opportunity place as effectiveness. in That’s all for the of temporary. a just short heading in of as broader XX out and we a I This very muscle days, the opportunity say we’ve a us kind for potential on those get really here as tail as to great and to shaping much headwinds. that it influencing off we’re forward I’ve but very well how resumption an least hopefully ends of unlock memories macro start from great drop in thinking

Koji Ikeda

it. Got

ChrisHarms

and innovation going is add the development standpoint. and make all Amplitude, be a to to that and growth able driver product said remains value your that we’re to true. from long-term investments I’ve product question I’d for biggest long-term very Koji of is consistently shareholder innovation Something the

distribution the previous on the in things accelerating all earnings all monetization, I still So we’re called call doing those. out of the

we a just week built that had start go a where on come excited AI we to about get I'm actually hackathon that out – into – last this we bunch front later the will that year. done We've as quite

the so efficient we're we required to of and that's make able in cash And us business our to investments all need. rate. We've growth terms get always relatively to been a the amount size of

restructuring the to as so, And have we go some I wasn't companies what as did other through. dramatic, had think,

Koji Ikeda

you so Got Thank it. Thanks guys. much.

Operator

you. Thank

from question followed Michael? Turits from UBS. Gerdes Claire Next by [KeyBanc], Michael

Michael Turits

guys. open Thank very Chris good to you the view very, and with see presenting environment. frank again, be Thanks. Hi, and Spenser for you of working to And glad you.

and I'd now love I growing right XXX% are have guidance customers. question. off the went expansion just where taking rate – again, to Koji So on you from you net think,

So I that less? doesn't new exactly that you heads expansion you're revenue will XXX get that no sequential guess, those four that therefore Chris, what living about net in think – that seeing imply around essentially or that renewals your makes no you net indicators and really to is rate it

Chris Harms

Michael. question, Great

here. me Let start

drop into said, plays, higher aggregate upcoming down the that mid-XXs. than XXs. high role the the coming the kind is in I have better in role a been of do I as And that perspective, year, the expansions rest you've level the I shaping quarters but and our that it out has land plays an the an that and the I to forward. possible. land detail view ARR play of at to my vice defined new growth of new in the With perspective. versa. dropping I do it been plays a I've below a we're for there as arms look it from that last level. quarters. specifically It's delineated expect versus few number pertains logo at lot degree the as The with out, looking time forward this a could I in of getting the to more is around the we year, see to the NRR at go how what role spent look as expand obviously Thomas XXX contributions level Our

Michael Turits

digital focused. And shift we've – the marketing say, probably, platform to the expansion let's and analytics then more Yes. Spenser, of be the about talked

people but of about always product And for the more for thing analytics of one think You that and exciting for who before can budget are there's we've is, the and established using talked marketing fact it have about marketing. be I analytics say. things is exciting product an I analytics, new, should

environment. what the I in Has hoping? you budget that idea in the this – some or out it's to would whether way that of with the that were think CDP has been So more, tougher worked other some this appeal this of in that you be areas that that would existing help

Spenser Skates

early I plus solutions off see RudderStack, we're of Yes. to a which It a signs analytics point starting and experimentation. but moved already called consolidation. is out of of lot bunch onto

still the in low our is early days. base with its think of experiment penetration – customer in I

lot is grow there so to of cost. of a kind And opportunity a

I think our over of be use the customers to than much as the you expect half imagine. long consolidation seeing term, more less fantastic. We're it. I'd probably than today It's play that

of I churn helping offset think us the bunch picture. a it is

CDP think all don't we as good on or thing a other away anyone consolidation Amplitude. analytics from see other as well experiment way consolidating and to stuff what have the around, the on other I GA almost is It's whether always we never happens.

and part it's continuing to big drive but so be a it early, of we're think, I over we're think time. yes, I and up it'll NRR And driving – think the I expansion

Michael Turits

Thank great. the transparency. Okay, thanks it. And again, appreciate for Really you.

Spenser Skates

For sure.

Operator

Great.

UBS, from Claire please. followed Rob from Claire, Oliver question go Next by Baird. ahead

Claire Gerdes

more touch a looking bit backward but on our again, wanted I on to little thank Great, you. metrics. reported NRR

further can you You – quantify and just in touched expansion? to be provide has that, right remarks, like you there. of that any on you would could that obviously, detail churn with do prepared So sizing slower to able how much but

Chris Harms

than weave prepared for some I my So get more in as could head remarks. me you. off let's to to QX, can tried this. do for I Give speak transparently I better which top of the just as I opportunity can't if see in some to insight callback the your

Claire Gerdes

Okay, know from giving below maybe could differ But year, to philosophy that guide you for just you or – that? if to we metric – sure. and touching newer where about your that's might the the then like dip guidance – could more your previously I as maybe look talk And at anything on conservative how and were this and XXX%. role,

Chris Harms

Yes, Those to look, try have how with prudent contrast. a think to be who want try roll what person. be see and conservative things to playing to I whether how worked I prudent I public to, do how know any things try in done subjective I've I or assessments, – fashion. just I to And how signaling about out the I'm transparent conservative markets I that to enough. of going I a I out. the thoughtful be in me that's here. view I'm apply not too try don't a to not is my try realistic business give

out the I've doing from happened of the think convey insight really team. line diving me As in in things. conveyed to lot I've of the what and tried to to my and Spenser tried convey and this as be in us what perspective hit half ARR developed rest guidance. that that indicators lot I leading new with a a are the that net try of I back QX upon coincide to a the with telling we'll top arrival – of telling

Claire Gerdes

Thank right. All you. Okay.

Operator

Great.

Oliver Baird go Rob Jefferies followed ahead by from Piper. Next Rob, from question Clarke please.

Rob Oliver

guys you hear me Can okay? Great.

Spenser Skates

Yes.

Rob Oliver

so Thanks you Great. go-to-market? for little involve about impacts to approach Spenser, Spenser, a that you I what dates be expected of that sort a Maybe are what and you And a implemented that changes of have on exactly that just get Nate? Chris, preceded then one will arrival defined these means? for had up the bit how great. a talk I wanted much. for follow account to better you ownership. a Okay, and you. sense more to mentioned

Spenser Skates

Yes.

April, of that So the wasn't and this of all the responsibility. that I as – was of we we and one clarity go-to-market role things teams the looked before of – did saw is that it we early the as think restructure Thomas was Nate I across there in part

accounts had different And of the and five lot across roles, people that on teams handled you so looked different or six – a all that how with board. different

One had so was that that the that, the do clear of to accountability across wanted we drive roles of and team. we very standardization things

did that the was As executive one the responsible part entire the the end-to-end, made the further we things sponsorship so we relationship role across expansion that renewal, account executive for of of board. any the

lot of we accounts wasn't before that And the in that have. a consistent

was that So one change.

role lot The is customer side big success defining responsibility. more on other change that expertise to the have was a product

So on their training focused delivering responsibility helping Amplitude on knowledge onboard a scale standpoint. was and relationship customer the focused less from the and with more and

the how kind our business and with restructure is about of we – things cut we board, tried biggest to into we to do fall a across forward the do was to think need to that. going doing of evolve deliberate just is a of where instead be the One

a how been is the companies of hearing traditional and mainstream that from And of using they so Amplitude. enterprises things want to the we've one other customers lot know are

when us America, of the are QX, in to mentioned the it landing they're lot that's owns of which what So I practices the expertise Panda, Endeavor, space. as PGA for logo UFC, all looking on comes best a to

And other it, kind drive so well as that on accountability around way that teams a customer the to role success clear to more, it. more it of giving clarity and explicit ownership of was as

we in of of some bits kind of high go-to-market. terms on the restructuring did the things that's the So

Rob Oliver

color. great Chris, all to it, Really that's then new disclosures forward appreciate We Yes, the appreciate Spenser, working the with you. and as clarity. And thanks. well, disclosures Look welcome.

mean guys days XX Thanks. despite better you cost growth. been the profitability obviously potential even, Can guys for little just has in were a about for a year. from to that having already only you talk the that some better obviously the environment revenue quarter getting view leverage admittedly and can into get now, of and bit where aside you internal additional be guiding ramped flow I for the didn't for, positive So year, tremendously – cash sorry, you and

Chris Harms

Yes, be took going to well, you talking. away what's my first

Rob Oliver

Yes.

Chris Harms

go-to-market. terms focus look re-acceleration. see I on that Look, itself in to the effectiveness going in manifest of we’re definitely to revenue

Rob Oliver

Yes.

Chris Harms

re-architecting we profit when in are as remarks operating to it we the for doing upside in trade-offs forward on margins operating the the back that overall seeing second and look hosting year. additional product the our today is, team’s I amazing improving, make our between we’ve the to prepared see And that margins to definitely are we’re guide an reinvesting margin piece to job they’re The how we getting in that to cash fruition. business? flow in continue alluded the and of free we much margins how it, come built are to engineering into

Rob Oliver

Great. Thanks guys. again,

Spenser Skates

Rob. Thanks,

Operator

ahead, Clarke from Bhatia Clarke, Piper Arjun Jefferies by please. question Blair. Next go from followed

Clarke Jefferies

Hello. for taking Spenser Chris, good Yes, you question. you. the to thank see

disclosure. to helpful ARR have very think I an

a growth optics the you it trajectory even the is churn ARR growth could a by of kind out of parse I was if size I of a are and new ARR. ARR, be maybe versus maybe kind Do depressed still parsing new trying the that new give if and companies building maybe net of the higher. multiple that year-over-year? from churn ideas will environment. growing path of in out think expect heard two ARR to think sense one customer it’s And still of challenging the crucial that new is one I you’re so that wondering, on understand, to be we’ve Chris, you And history of investors twofold customer in things operating of still and

Chris Harms

hitting valuing you doing the appreciate terms that just in now. ARR I at the disclosure we’re In one time I of that? terms a more So step Can the on say fact of specific getting to do earlier in churn. the of with had – definitely theme the to reset that tried terms a I’ve of to of I you’re bit biggest kind lever little upon, that speak look,

do And those at kind in and expected as in And we of and effort is partial it perceiving that of the with the to spoke into definitely both eating guide loss prudent least our was already how we productivity to saw neutral. that at ARR to somewhat new churn. from that had this the a be levels churn stage I fact that

trend at As greater on it pertains as to that it the to detail time. get this – I into prefer not

Clarke Jefferies

Yes, more – size there plus of than XXX,XXX part about the this say ARR. Is XX% us plus at downdraft bifurcates makes how to customers to six the sense. is more time customers think six anything bifurcate second sub And and really being way versus around I the than below any a think invest. figure I above were of IPO sizing. then trend back help maybe significant figure and sales the It more the figure pull six of dollar is other invest something companies number to in ARR heard we’ve to marketing the is you translate when maybe in because or incremental kind lower maybe how to that’s or going to

Chris Harms

take. to happy I’m Yeas,

to value of in the it I Spenser of or believe those know, count both right? I spoke million to as it us, customers, well. the no, The I terms as $XXX,XXX and both plus. spoke well Both grew plus for dollar So categories as

continue grow We expect at to an that have and strive to accelerating rate.

lower a historically, that’s in serving much the of direct spending big in and than contribution big more terms effective motion. has predominantly we’re that’s a of focus a of why on where PLG profit that bit. the been which market we’ve On And in done selling a a way little market part end there’s doing

question, As forgotten, right? we very see part that which ACV know basis, now second pertains those kind out shape three. different it I’ve to but… right, of a taking across are there was years, Those over I the how of your

Clarke Jefferies

were is characterization like figure healthy maybe that’s was and that a sounds sub that think be figure. trends very continuing reevaluation that in the – I six to the six in it fair plus,

a And I sounds like so so answer to adequate that, my it. really that appreciate full question,

Chris Harms

you. Thank

Operator

Tyler Arjun, go ahead, Blair, question Arjun please. Radke by from Next Citi. Bhatia followed from

Arjun Bhatia

are for a bit on just I’m they drop? are their fully Can analytics? see just sense churning. that guys, Hey What just a they the trying factor volumes of the questions. partial or then the Are we kind actually are customers, a product Thanks into not good a more? churn we to similar doing? that dig to that for event little is overbought, using taking customers churn get And of customers digital an – seeing question you.

Spenser Skates

sure. Yes, for

I cases doing, the big think in two churn So terms there’s of customers full on front. what are

they’re of the or going out business business business is, units or killed. they’re the getting significantly first The reducing

of out for that’s them control make anything. where event just sense it using continue business material some So to doesn’t our

you journey, The other training they’re or on big data and engineering the have go don’t and early and that’s bucket is too without. to maturity have the customers the the of whether the making successful are whether capabilities, resources, people who whether that’s dedicated that’s choosing so to just implementation sure be team

success is decision the making kind for short-term. using expectation product to get just of of to back they’re not they to at their some in for order point, that will so – the And the data need and their they business, they

see competitors, the that never of smaller that churn like be be legacy of or players. stuff almost some to GA we whether think I Adobe some the whether or

we is we’re QX in because something rates that actually prior track that sure And there have and doing carefully those very so we not, believe that make well, improved, it versus quarters. to win want or

that again? your so remains sorry, second a of what Arjun, us. And strong was the for point part question

Arjun Bhatia

On the partial term?

Spenser Skates

Yes.

what I XXXX, year the saw this we right sizing seeing the a and is because severe seeing we’re So – think us. more in model. outsized that there We be had, volume-based of kind with we’re we’re pricing growth

with they from events in track. Amplitude customers getting having value pressure to those I actually more selective and think a of on previous they’re than that have us, more are just they’re years. what It’s they lot maybe put so

I they great than So as – X,XXX talking through two about on ever with maybe Amplitude was down monthly. with past. they’re just [indiscernible] people forcing They have CPMs Atlassian a actually went They today and more using ago, Amplitude us months their have over users they have in example. an

into and our thing, the entire a the size, getting whole out us so we’re in very that actually to they the right it’s of base. still and there’s that’s where customer long-term, platform Amplitude just pressures grow expect having And out and budget theme of play they’re but comes value and across so consistent with us more

if okay, still Amplitude, you So budget it to may more by how say, you this and XX% I you’re growing this is. got terms getting in cut hey, even just that’s value what and use of year,

Arjun Bhatia

activity I that Okay. Understood. bit, on the of tougher helpful. you a there That’s more seasonality year. here? think entering are the going Perfect. the year think we you’re mentioned should particular through Chris, but rest this How renewal you you some other higher? the being this part you then terms of any see And think turn about in how risk the where concentrated touched or that Are quarters progress little of renewals might

Chris Harms

churn of detail I’m I for precision. the full versus think of And full expecting the and/or on based the reflect greatest that QX one that is, what that obviously the what in work how churn the through QX about rest I’m when it visibility is you’ll have you QX, is next giving greater where across year find terms the mix visibility more I thinking the today. the of exposure for to seeing year, year QX, layer largest I’m you it say yes, precisely, QX, does

Arjun Bhatia

you, Thank Helpful. guys. Perfect. Okay.

Operator

by followed Tyler, Nick go Citi, from Radke Tyler question ahead, from Altmann please. Next Scotia.

Tyler Radke

to and working with you nice virtually, you. forward meet to Thank Look you, and good Yes. afternoon Chris.

you obviously not and with that of execution, you expecting new leadership, kind kind environment stuff customers And is of things seeing how back budgets out justify how go-to-market much that self as sales of expecting it’s of that, you’re out you I company just what’s a value. and challenging maybe kind there. to are of much to and bringing to is of diagnose to the really issues of selling with of guess level kind how Spenser, these respond this those So the senior of in you’re step the and how are control, your those? at having mix expecting this specific the

Spenser Skates

Yes.

it answer Tyler. differently, me Let a little

So base growth they’re is year it’s of bit their the in high reset customer businesses. that lot because the encountering expected for a I think a than slower

the for QX as on And And further so the view the our way have make sure pricing the and us. more look sizing operate we to got into volume-based means the we right was. through to wanted what to rest year, update of business severe we right

In visibility terms from being sales think about into the guidance we I forecasting how of – that’s that’s standpoint, have execution an able out improve maturity, I’ve been very – a whether whether operational I ask as think on do standpoint. there or and periods focused execution to you from further

think through driving funnel terms maturity consistent on that the pipeline. in kind seen of already I of work so partway Thomas journey operational the we’re in improving barking we’ve now. the is in doing very of I bringing top And I’m excited and Nate. more mean, side terms work the about in of

last earnings absolutely on is I we said I with think churn at. frankly, think I’m will where not call, I improve, happy

Nate over so of us that. think I the improve help And will addition

how And can out so how them we to guide operate business. then to get of trends much further Chris those that we that we working make the and visibility run are I’m earlier we front sure and and into with adjustments get better make in where

have And of control think market because our it’s to so volume and say, in we’re out we I the based the pricing hybrid, of – I’d early that fundamentally. is

maturity the macro. forecast on operational manage dramatic swings, how we more And standpoint. And improving an can that’s swings. means really that is those then that control what and so from the I’m through part And we because of focused

Tyler Radke

Great. with you those tend logos what new land like given are incorporating some as you you the area the new customer was characterize were in could the on they quarter if coming quarters the strong – but the to Wondering logos. how not call, to Did the and I just earnings logos referenced of kind did environment? maybe sizes just in that strong quite new was relative are the seeing additions. they were that composition you – know of One

Spenser Skates

Yes.

the change the end of So the that a to was by of driven lot MTU market. low pricing at

easier an that gives segment so customers on-ramp a much And of broader Amplitude. to

just dividends it’s and like we beyond. term any XXXX Now don’t because expect coming will short as grow them to – – those like but and they’re I pay into in – on, go

And land more sizes very onto more I coming are so see challenging. customers to excited very, think do Amplitude.

so those thing on paid way. standpoint of of can And I expand in and land okay, of like, we from we is – what think the the that a can much go – QX think, to exciting seen are segment customers the we But I through can cut lot down – this fashion these we’ve my to for Amplitude come year. as customers. the expect in still easier able rest a We grow a we

the we so part And that’s control. can

up So acceleration for let’s the focus that in set driving us that great on long-term. and will

Operator

Great.

from Nick Altmann Luria question followed ahead Scotia, by Gil please. Next go Nick, from D.A. from Davidson.

Nick Altmann

how awesome. guys. don’t guide, And include that you’ve growth – appreciate sort does year-over-year? to new to of for new maybe if Thanks Yes, get imply there at And ARR forward overages. done just not any net a the does year with commentary way then clarify basis. specific, ARR Really NRR just on when had what you the metric kind that of go want to disclosure. full some Is that sort of directional ARR you revenue look the

Chris Harms

relatively we’ve on math quarters. the of had and from effectiveness. recalibrated net part one it the the of on done think and headwinds I And macro ARR as a flat new ARR, and of us ARR the kind the of the kind So said on churn of reflecting colleagues the I kind your confirmed drag as the first focusing us implied increased already for I’ve increased that math really upcoming

your of pause, our team. with I really part I I’m the would second XX% love go the question, overages, that but verify include opportunity confident to to my As doesn’t it because

Nick Altmann

broader then leadership, the and within the any go-to-market what macro tweaks of know significant And are guys have in right. tweaks changes challenge you factoring obviously, to own turbulent little very changes making, there’s but enough. about sales bit, sort a comps of and Fair go-to-market guys talked the is sales just to on that of – that’s some But you been structure. I are it sort the its a

be of sort provide Thanks. will around Just think helpful. any very that color I you can

Spenser Skates

sure. Yes. Yes, for

I consistency and opportunity a sponsorship to and spoke earlier restructure and drive relationship a how giving the end as account accounts, executives where executive deliberate little Thomas we to responsibility. use So to end approach and bit more so I

huge best And – practices and that’s on been of that’s big so quite how we And and them customer change. redefining do the with onboarding roles lot a to a it. on been particular organization product a making focusing training sure success, that then share customer on expertise and

for we – used so yes, these and I’ve so kind we’ve drive Thomas to and the over set used success in the challenging to quarters and with – few of adapt. of everyone a continue been goals, up I one think think we want at we’ve a the Amplitude working will obviously did, of sure changes to make environment. to things is I Thomas do this With respect – And other last we bunch here

is folks the did they’re opportunity feel goals to where success at set across can sure them go about good at Amplitude. that find achieving place and organization, look So and we the make take to quotas a at team the for including here

Nick Altmann

Gil, Great. your turn Thank can mic? you. you

Gil Luria

software just you. restaurants, natives those layoffs cutting are expanding the fast In talked the What doing How non-digital natives? maybe and about as non-digital natives their digital in that a prepared trends that into technology of companies. food not many and about cetera. right are now verticals as budgets of the their other footprint, are digital right et are the in have those You customers doing now? you thank as Yes, selling remarks, difficulties lot much

Spenser Skates

a having to lot is this I market. found success. the of we’re Yes, of trying out to restaurants rest your have point, media in one, to there few large companies we’re get think base to a And verticals, been I another where mean quick have moment that’s technology where we is service a going from – of this the

early continuing to wins that from standpoint. clear, want for for the Now we’re that market, I Amplitude in but and transition both for be get us to it’s

out. is particular, two I’d think deliberate in customers I a to get in category. One particular a call drive things Lighthouse

of over whole we other success companies So that of Broadcasting the Fox media then and a we saw that’s HBO, NBC to within lot years. last media bunch few bear a where led got Discovery,

been has restaurants service another. Quick

to still year. this and I we’re earlier, that think some we’re services where but areas we of as retail looking financial drive more

I A think there’s we’re doing. big of opportunities both. lot in what

in the front. that’s So go-to-market

of is front, one lot same we of product company. like On the about the winning the simple these don’t think level a because have expertise technology as the that use concepts companies the cases, lot a

So how value can out of ton a right possible. with you box them as provide easy as the and implementation of

have the On a call, out called I last lot earnings front. on that the initiatives we of

on out get single of in up native if chart, so Amplitude, there control warehouse, the warehouse box set already you’ve – being redesign. So with instrumentation, able put line code of data of your to data a top reporting

companies it that lot traditional to get So these doing make onto for we’re easier Amplitude. a there’s to

of good some QX some the companies mentioned. have we with So in wins already

a is you’re don’t traditional they going bigger Because because that’s driving much because on you to headwinds macro the which as And the opportunity to these get strategic think I so market to want ultimately. continued we’re and it. right, both much in standpoint, exactly be focused have current from companies

Gil Luria

How digital discreet being Valley. Silicon on change demand short-term drying native. do is secular much of VC because at those seeing follow-up in just it what just you’re right funds a the of I’ll shock a And of from versus capital shock is much risk very now a How quick from customers? a

Spenser Skates

that ask to seeing we’re and need true customers. shock. pointing, lot – they’re question of they a and we’re that pointing more ask we us even I we point mentioned budgets lot Atlassian a that this shrink And of Everything everything to with our though is short-term seeing that’s ourselves is value, is year. as it that – I’m a driving

their is with And I to Great so to us talked expectation grow going like example. them, long-term. they’re

of largest the our out because they’re and in to importance talked of Amplitude Japanese one the users. believe XX,XXX to I customers become just Amplitude they roll data of their organization. employees end They to self-service across users, looking XX,XXX to want

whole so improved of funnel. bunch. as having seeing really short-term budget just we is it, XXXX. top a And we’re conversations through go actually still we’re pressures That’s It

Gil Luria

Thank you.

Operator

questions you call. website. much our We’ll our Conference I’m attending at Bank you. With posted be Thank be America IR that, for conference on in very seeing queue. Thank the further Details earnings Great. Global will QX no June. of in Technology

all. You may Thank now you disconnect.

Amplitude (AMPL) 9 May 232023 Q1 Earnings call transcript