AMPL - Earnings call 3 2023

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Yaoxian Chew

Hello, everyone. Welcome to Amplitude's 3rd 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 Criss 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 4th 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 Exchange with described risks beyond differ control in are that and which included in statements to is cause our subject results Securities actual on the Commission. are and that that these forward-looking statements. Further on from filings the assumptions current and expectations are differ information These materially actual risks those could cause our uncertainties, to some results

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

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

Spenser Skates

Welcome Xrd time earnings quarter everyone. our call, you to good us. join to the afternoon, for thank Thanks, taking Yao, and and

market category; customer For third, first, alongside macro second, platform a stories. XXXX on our observations update; today's I'm results some opportunity financial and and topics: our and QX QX in call, update main evolving cover to an development going execution X on

executing almost $XXX the with summary up revenue, non-GAAP flow more the I'll category number Xrd and a million, quarter. of on was quarter. We we're how how provide an broad-based on update the X,XXX million We Xrd quarter. compared lower see all We on was by quarter. $X quarter. Xnd expansion a Annual was profitable welcomed sizes free year-over-year. our Let's this start in have cash of we recurring macro another ARR previous now from our We million end the to high, revenue with the were quarter put of in of QX, the state these than still deals. this evolving. On which the was organizations new up of numbers of on to million generated churn, positive Amplitude execution, basis context, XX% $XX.X of couple closed while marked a customers. and To Total large the $X.X

an self-service a also about and plan. enterprise to incredible We options the more it Plus talk but prospects. launch small Plus drove shortly, first-time for I'll our plan start-ups, effort company-wide businesses gives

our motion, it leaders product-led redirect new board incrementally a into Given customer allows growth efforts it's us brought to we to elevating continue towards prospects the rigorous the relationships. also bar sales larger raise enterprise inspection across and disciplined from company to customers. The and the

deal and bigger. a on are remains able to this of as start to environment some quarter We The number across We've buyers. strategically fronts. we to challenging scope more deal significantly sizes beginning been think different also with macro grow customers sell

expectations their under environments. and to customers Our continue recalibrate growth rate own new interest demand

pressures of time We and to as remain take battle persistent. through. optimization macro-driven themes work ongoing same will churn continue budget This the stubbornly to customer

Google right analytics one. to and approach Adobe, down category, its points. Growing first-party than it fragmented and importance digital and is an the companies and This it currently regulation evidence have ever to what breaks continue Legacy multiple of journey. world. across complex increased realities. and Customer data data spent data. comes understand snapshot experience. try digital of touch by how point Billions marketing-centric early for being sources see heightened back a are the built of traffic more to the means understand approach global tells the great implementations entire On to others scientists Amplitude on on a now is focus many behave that do your and only customers in data businesses today's customer on customer. a trying our days, when the the remains web your software, solutions they across view legacy to provide we you and of customer dollars privacy and approaches

to continues awareness increasing Market alongside grow sophistication. customer

more. Our and departments, engineering, product, platform users data, resonates multiple across marketing breadth with

understand also spend of opportunities customers marketing, signs of increasing budgets. product see for We and us of we previously the wallet product grow addressable data, data coming together across pools increasing share to our see markets. expand As criticality siloed and

with were toolkits. One of solution been the XXXX. gaming choice quarter and historically own more That of sports their sprawling analytics. unsuccessful the customer a from to MarTech their expansion had of responsibilities view notable of these the the their VP for and brings dynamics Marketing teams took life. Recognizing customer product for agility recently need really came implementation. additional leading journey, costs choice digital the given of since Amplitude trade-offs products complete Product for over

their we've provider relationship, portfolio. product to Over one their the them course digital for with across on of vision worked entire our execute

recap can action with Amplitude their of wall This we marketing customers product With more singular quarter, fragmented and are Analytics, wall vision. helping with one experiences, insights think embrace Amplitude. drive testing rapid We're execute development. backdrop, platform. several that customer on they We our products. help many to personalize that Experiment let's and them displacing solutions CDP to point and went across

innovation. excellent was It quarter for an

analytics, low our more teams with companies It year. platform. is combined like journey. early Replay being Session entry issues will see digital clicks, to to video-like of to and identify having they're scrolling. having analytics I'm improvements. if can is and excited of point a recommend engagement them that Session through picture performance behind coming growing Amplitude used that issues across guesswork or provides are very user like great problem next widespread are. a replays and and their the user issues resulting movements a the able Session from products how give who the are board. on With specific accurate comparison improves how announce When experience why user, visual be understand actions after, cursor earlier behavior We Replay a Replay the quickly design are the before for and removes teams is

go end are can serve is Plus plans starting in. earlier, overpay or Plus be the events, per X-figure plan can the I launch, distribution be The platform month. first smaller Early the low we by the mentioned And if we few track, just efficiently. With is whole analytics launched the since either traction what in hearing that market Experiment for which is to they of launched analytics. we've As plans. to $XX It of pricing the been companies in solves and plan paid offers namely launch. issue for And encouraging and growing weeks challenging. it's years, digital a the mid-October. CDP Xst more at our Amplitude now from multiple of are where to those comes purpose priced sign-ups this Plus Analytics, That ration best free analytics undermines package. in self-service with expensive

a scores recent market. a to XX% it users in doing more eat hours. I'll Cleaner lift in of but seeing to be day their Amplitude's into get that a update with wants people on as to provide cleanup well, it in should the individualized we're governance our should launch, up Companies what data friendly for tackled and vegetables effort few X to in use outcomes. than in see a already it practice. than weeks down launch better assistant health. has that about is trainer is end data normally our can and months Amplitude a brief hit Data is would taxonomy. been and And anyone chunks data like be data and help. AI, their we governance can relates proactive assistant data take and As physical data uptick months and happier broken insights, average product since less personal exercise impactful shape. In every is where That better minutes who data AI bite-size huge customers business What of improve big assistant practices. more governance and using being and our leads hundreds Organizations engagement. AI

platform generative our AI, On to customers best competitors of helping to want ways Amplitude AI brightest choice the in cannot businesses out the of them is some for the generative guide and in We their that names customers. biggest, space. match. in stand

incredibly AI work. written with generation. and art same image in rapidly are multiservice. text transformed generation image story the the evolving technical Midjourney day engaged enable and from experiences. and user conversions, leverage Experiment resources changes entire X will efforts. and to from the service mobile productized They've are small has They're is our revolutionizing pioneer growing Midjourney right patterns free-to-pay time, a way in AI on success correlate demographics developed image Analytics, a and on understand the With their web sophisticated product imagination to to to to give ChatGPT Amplitude was area to team, in and generation, but the They solution CDP. test platform them with A/B across users' Amplitude

of empowers both given AI, a Experiment their to and neural partner the about with model Amplitude fastest-growing excited adopted conversations human-like They've create companies. users with service. variety viewed and for really needs to They're and I'm AI easily contextual Analytics a that best win of Amplitude Character responses. rapidly language and Another scale interact Character is as alive long-term the product. feel characters their one chatbot AI

capitalize ongoing technological and positioned has from company always of formation. to of on benefit remained well swell able the start. been just is the This to ways innovation. AI We Amplitude product

the digital Amplitude experiences, of With proliferation products and only the grows. for need

million welcomed stood across Playrix outdated Previously, by level other mobile We marketing, out too of their a with on they the and current of relied this of competitive our played Their deliver winner X shorten process, right wins their usage is view simplify had including flexibility. and analytics unmatched highly games both needed in on incredible games. quarter. one which needs teams, gaming was on as moving a Amplitude QX Through based We in platform people are product Playrix and of month. for internal users multiproduct a vendor, our time every the top a unified provide world. ability insights. use their as couldn't them to the XXX mobile to different to a Multiple companies to to ease the smaller some of strategy.

analytics, data, We this their desperately in across organization large provided had lost support integrations. marketing another quarter. more MarTech needed advertising the also open won time, and by Over large and stronger data sports organization provider. legacy trust global the Users

With user maximize Amplitude articles the and experience seamless a video CDP, be and improve blueprint able sponsor to engagement. the combination mobile can to retention. their of and base their Analytics and behavior, their of user customer With to recommend they revenues drive best app will this

of delivering period change, balancing growth investments. thoughtful this are Through we profitable on while

in up We are alongside our are a our we customers enduring in extending challenges company set us confident growing short in longer We're stronger the to term. the be the will platform. term

walk With now like that, Criss it you results. to I'd the in your over financial through for to Amplitude. interest thank to turn

Christopher Harms

range our joining us achieved thanks ahead commitment of proud quarters. the implied our cash the performance. well flow the energized beat our our of being was and Inclusive, for consecutive QX are guidance revenue guide, August guided of free as the and raising metrics lies I'm end everyone X in guide. I'm midpoint we recent what of from to of us. by what of Spenser, all top we beat as We Thanks, revenue positive today.

role We siloed customer evident portion across will wallet an in as continue importance positioned to This approaches come increasingly are the together. for increases of product become increasing pools break different of and buyers, down well share. of as as legacy spend

is improving. Our operational execution

risk. in the predictability year, it both has forecast earlier new to medium-term ARR and from ARR Our relates visibility churn as improved

allocation. capital improving We're

end plan on with focus increasingly sales Plus value. people-led of will the market, the efforts serve better will potential and while Our lower our long-term higher accounts

Now to our Xrd results. on quarter

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

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

increased and Third up to quarter sequentially. year-over-year $XX.X exiting million, $X increase of Total revenue QX an year-over-year. million million, XX% was ARR XX% $XXX

and Here's key our our ARR XXX,XXX-plus base. saw more detail plus of customer again on in sequential ARR elements count ARR. We across million growth X both and

between split more QX elevated and this dollar absolute evenly was Churn with expand. prior in broad-based. the and slightly and terms land New the was expansion-driven performance to In line large lower remains ARR fairly our direct quarter, contrast in in expectations. than

consistent. Themes here been have

resetting to be end theme, come of new The of companies renewals, for up substantive for multiyear legacy First growth. these levels are expected expected of and portion as reset they're XXXX. often QX by the contracts optimizing

cost Competitive not as second particularly smaller a The to theme, use provider to with these solution persist, customers. pressures choosing losses are rare remain from smaller customers preserve cash. any

NRR dropped In-period XX%. to

XX-month in-period retention the As basis stated, in from while dollar below remains the fairly dropping quarter and mid-XXs. X the prior the expand NRR NRR the quarter. XXX%. was sizable. evenly expand declined land Combination meaning than Churn, of QX, down on ARR was XXX%. Gross to in factors were this lower prior splitted trailing in sequentially from new resulted a quarter,

As customers and margin our and GDR percentage fully reductions hosting up expenses X% were partially was reminder, customers in second includes the reflecting made quarter, margin XX.X%, in both million, and covered reductions Amplitude ARR down from growing year-over-year, retained impact our lost operating costs improvements both the mainly churned we of which $XX services the and have metric. X ARR churned sequentially our a from previously. Total in Gross restructuring points team of and year-on-year. unit

to a measured basis. restructuring positive cash collections of of flow million shares pace cash XX% percentage this higher a a per Free of of timing the completed year-over-year income a fully compared year of on a share quarter hiring was quarter. a Net based revenue. and on $XXX.X Here, around was remain positive we improvement saw diluted with payments. loss shares million million point million following profit Operating $X.XX, $X.XX XXX.X or our X% from ago. Xnd benefit revenue, certain in flow or Free $X.X $X.X the was of XX

outlook. on Now our to

$XX.X revenue Xth applied of midpoint. a outlook at with are we and August of QX the representing annual $XX.X in an million, raising quarter, between XX% rate the guide, For that revenue growth guide our the million was

operating million. We $X.X between and expect positive non-GAAP million $X.X income

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

million, XX%. an revenue and For annual full be expect we the year, growth to rate of between million $XXX.X $XXX.X

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

guidance earnings As it detailed relates on to February. in provide XXXX, our Xth quarter call we will more

However, to modeling I context do your want provide purposes. additional for some

expressed ARR a of earnings XX%. net add add Coupled XX, in for below prior is $XX implies the X Xth this through year-to-date the ARR September of quarter ARR rate net a calls. expectation our have We million year-over-year of that XXXX growth year with a for

rate within There revenue growth the the and year a revenue ARR is our rate correlation high growth current between subsequent year model.

be Accordingly, balanced of NRR the expand that quarters. we commenting, given between land to XXX%. below expect ARR we new be have magnitude over in-period the expect and coming to been We churn relatively

become quickly are execution. And As XXXX. expected we're renewals, the We're in appropriately reset to into The cash long-term to delivering shows drive contracts easier opportunities ARR up committed summary, stated earlier, to mechanically free investing portion XXXX. In of come the account, QX back flow. optimizing will that our on on above substantive half of for environment. reacceleration often resetting expect We're QX improving all, we ability of should value. against levels adapt end of new as be Taking companies growth. these and the by legacy should this multiyear they new

for open I'll you, that, Over Q&A. to Yao. With

Yaoxian Chew

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

Koji Ikeda

Great.

other the called out and So of and you that's prepared in vendors there, so Midjourney remarks, couple a interesting. out AI

it analytics a Or created question just the about on this different out are from there positioned think AI structurally what is about better to that others apps category? digital right company makes perspective. the something how there? way as about an So question Amplitude is, category the versus Maybe AI maybe is app's

Spenser Skates

that's edge I AI key general. led companies it's all looking can. for every That's single to category And thing that, that as an And user competitive from technological think customer. experience application. a what they best is has to because companies of of becoming are innovation an the AI way with the seen Character who Amplitude for what Midjourney their that about AI in what we've customer. led becoming in That's Amplitude's AI

ways those technological mobile, us up as with AI starting compare the with out growing continue of crypto, day that from over new would customers growing SaaS, stuff I of created becoming, VR, us actually all -- We've like the with innovation. ended to Amplitude's us, seen X, previous time to them small, categories growing very, companies they scale.

digital in is similar AI way so you very that And in product the only advantage that have. competitive is the

now us plan, so most of someone reason of entry we platform, kind for Amplitude. easiest There's with the else an And point. Plus the a the as given sophisticated, besides have we're no choose launch to for the best, anyone also

choose legacy the going You're vendors. not to some MarTech of

in to the going Amplitude. smaller not go going You're space, to with you're the choose companies

Koji Ikeda

revenue work? customers that on sort of And upsell then process to? that a the is, that platform new for potentially perspective Plus of technology? Amplitude guess Plus doors Amplitude question open does some there broader Amplitude out on new does last customers that types from scale Plus, how the And Got to to it. I Plus Amplitude from try the And is grow can

Spenser Skates

Yes.

Plus the So plan the away sign-ups seen X-figure been multiple weeks has already straight out. we've from X just

Amplitude. about. of very channel team and that very So of are excited terms promising the I a the already It's for one very, for new in growth like rest

so part the customers can But think sign they paid obviously, could the I can an with they paid -- more over that plan key up, go to broadly it of with Amplitude. as people free, start exposing is plan, time. they just can I well aspect think to scale underrated

signing customers more at know, if get be is this is You whatever or it hey, certain they level. a going month for because I'm free up only a to $XX

the out may a they I to can is also and go to to figure that so sales enterprise to some the them through talk process And having someone. it And of introduce functionality way whole great want. without

And so enterprise ended that plans. to Plus started upgrading we've already Plus seen on then up and customers

see though And of been very we that so short instances for multiple a only already, time. even it's amount out of

in in start have of a it's new absolutely, be So we're if that at, matter want some no And credit all card to pay up you to you're want to and if channel. easy best or terms where free, sophisticated choice if just, want more you the use by just space. about be to the going okay, you features,

Yaoxian Chew

question from Altmann Next Morgan is Porter from Stanley, by Nick Scotia. Elizabeth followed

Fiona Hynes

on on is Porter. for eventually them wanted growth go-to-market look customers like like add migrate This a Fiona leaning plans has free changes. focus I to products value you been to into through It plans as you for the time. over Elizabeth sounds more a model then ask higher on to and no-touch

you're over progress address customers time? paid? channel this the new share if And logos curious from are free here. planning any then these any into bringing are I'm acquisition the key you seeing seeing And update there's So hurdles to you that how converting to funnel? to with this Are what

Spenser Skates

Yes.

sure, For Fiona.

some on and as plan. I gate, to those of the seeing to come right are on enterprise the out with come new said again, like upgrade free then Koji, customers paid, to customers So we

few though has there only out point. even at And for been it's so a it this weeks been launch, successful a

of that you're that for it's have think in scale I making over where the sure of, we offering. yes, us, and terms you're just most at, no that to with Amplitude able matter kind time compelling

there term, impact don't good expect a know going to to new the have out upgraded, one. as that plan a while now and just massive so it's we we acquire short And be the a Plus in way customers have to revenue

been we've that something to that's working prior obstacles, of since the terms Plus on plan. In

that we things get big started was what one -- the to was of gates able we the of to with saw one So being call Amplitude activation.

So data able us your product. to from send being

that part from code new of launch a as one of Plus we fashion. the did so the ways was low of things introduced that to no plan And we code do the or

being able bookmarklet a transfer over. to existing able or being put in Google to your implantation So Java

in so that's effort. through increased call what from actually points And the rate, which activation is multiple the, data we percentage to sign-up that

to out go. look still good Amplitude obviously single that and for can journey been a of and optimize, where there's to part we We're customer that's at So to see. figure using lot more us every

Yaoxian Chew

Clarke Jeffries Altmann Scotia, Piper. from by Nick from followed

Nicholas Altmann

Awesome.

I and seeing or pressure, The of you just saw of the is bit maybe terms sort the XQ? on to relative just as you of about has whether update. terms first macro. one XQ incremental how macro appreciate what Can in November things things in you're little are kind in the of talk guys trended hairier a stable October get

Spenser Skates

not continued quarters. through expect the to we're consistent gotten happy significantly earlier. gotten we've pressure, not obviously bit we're side, the also as similar look remain we articulated to next as consistent, remain But hasn't and That's It the macro hitting better. worse. churn address. few them we which about on us a to quite doing pressures I It's think Criss and see

get into we a say. as XXXX, again, the that it's of think But -- lot later we early see to half some I alleviating. of potentially

Nicholas Altmann

was second it's question the around just really then And Criss. -- for Awesome.

that. sort renewing guys of then lapped You X you of And of after, quarters. multiyear there's next sort customers talked the about sort over

XQ renewal the guys. big to for there? big the a guess of there You'll And enough little is a XQ bookings more sense period, in much will Or is, a will guys period kind of big better year, is, post know of as of visibility question you sort have my renewal guess next look XQ, any sort things when sort of have when versus can to XQ you of period I make kind question reaccelerate. essence a bit I kind that the firmly? at is of I call you of delta

we much of XQ? how really will wait year? next post to of will have kind visibility So Or until you XQ have sort

Christopher Harms

No, give insight. you no, Yes. I can

both and be value as that QX, up will for As QX fairly absolute it contracts was in sets. of as pertains in it QX are to it they're and QX, the commensurate in in renewal, all

As about things we've talked I'm operational one of our proud improvements made kind visibility about, of is to risk. in the churn the medium-term we've

the backdrop of of So and the the improvements math of the those, absolute multiyear risk value made against of the Clearly, contracts. on. the subjective ARR part assessment attributed those that's to significant easy

to progress What will QX, XXXX, and But what stay convey it's been going that we value that of their the did base optimization not renewal. elements. going multiyear while we amounts contracts next those other assessment not did we What QX based of much is to beginning progress still tried until QX of that as But us on churn in 'XX. a just this those into annual much this year then 'XX to to relatively we And multiyear, we've mechanically, there's large, for as year. renewal same contracts for in our again we're more the the in see on have of the up QX. in quarter, we're through that peak that large for and scoping in period. we are tried their is from should how down the hit be still that peak that XXXX We've levels really convey,

Xst think concrete on able again next those we'll And in the to our we'll view be revenue into detail I to, into a into think year, you of view we're February, that when clearly dynamics are. give the more I we'll both pretty what work in now good So year. a half XXXX the of of able QX for and speak pretty we as be guide conveying next

Yaoxian Chew

Tyler followed from Citi. Next Jeffries question, Clarke from Radke by Piper,

Clarke Jeffries

to digital and I of as the just think, then sort wanted cost It's digital of traditional between time. sort been, in as new sort rationalization behavior really wanted get to update receptivity as on customers gauge on for investments, digital at or maybe an prospect maybe a it's of split industries budget any for you on natives. the of native different the builder. of return and environment they this point get I see I current to the return a a digital in long cohorts what change

on terms of their or update bottoming maybe point. tone an purchasing Just kind at maybe there in appetite of this

Christopher Harms

Yes, I'm happy to to made us we've I'm of it's visibility. increased take back the that. lot to and a in going months, improvements harken X operational last given Look,

to levels kind those themes of one. additional hit of another couple then I'll with a So insight and business us, add reiterating on of of

of those what portion are with up native, digital coming talked renewal, the base, which experiencing the for are contracts contracts, resetting. we pandemic ARR significant from we're Those On dynamics about is still reflective our a the as of we right the churn. large multiyear organizations,

increasing seen digital our ARR net the side pressure tied business. we've to So native. the of on been It's

the that new The other digital net they're the our the ARR, contribution. -- really native survive. And side within ability the from barbell struggling Not right, small just drive steady to been to that's being, continue our that companies the ARR churn. of but of down VC-backed technology really a just just headwind to from

So the predominantly native really and there to of companies. which industry we've very digital is seen space, technology just validating the things specific that kind

along business As well. of exception of click the company, that to continued it churn, really with really a large pertains did to QX because we part the have like has the traditional

rate been growth growth XX% space year-over-year that the has for within north last XX quarters. Our of XX or quarters

well. done the business of part that So has

companies in some than digital for Traditional of business. dynamics our That's the more dynamic go forefront that between companies perhaps Amplitude is software and others. that some this little as facing should one resetting. buying up in our increased seeing I company picking maybe because the we're churn that native the that pressure of bit think reflected to saw scrutiny of That concentration, us. budget indication the closer other been that the news an a perhaps from have the of we're Good we're is X at be pressures segments are of of we Those forward. those we technology quarter.

Clarke Jeffries

I certainly. basically update the specifically or advantage of think Yes, do dynamic an Any not could whether you on changes the environment. think some And change there packaging the specific competitive dynamic in maybe in the just you then insight and terms update of in factor competitive getting to think offering of. you self-serve take maybe there whether a specifically mid-market that think that that in of is terms could you the opportunity the

Google will ex you Analytics, competitive standpoint? on what curious see a Just from

Spenser Skates

to continue very, very point lot do we against the of well, particularly Competitively, solutions. a

vendor, you're experience dealing can can we to test things total consolidate if onto can if those you going much less CDP things reason stand-alone Amplitude. to So make those a a use standalone a discounts. of a you're offer that because real kind be to with power Session vendor, two, a lower cost better not you're One, We're and standalone Analytics of Replay it's no we if And Analytics vendor, the A/B ownership. better. give vendors,

ago. Customer the I it at so just actually base. just Advisory not seeing was across month And we're at mid-market. enterprise. our It's that or Board X a effect seeing We're

products XX pipe. And in customers, top down so is we customers things with XX our Session that we And CDP, all of Amplitude. Experiment of XX were some for the were the road out their And the Replay, capabilities U.S. existing this coming in interested expanding the in -- other presented both like the map had our and

whether that whether be it whether on Session Replay, on Experiment, be be CDP So targeting. it at

the particular, point And we're think, very well very, so I doing against in solutions.

TAM of our outside of the and And much that's so increasing available view product bigger validation the of the of analytics. category convergence it's

Operator

question, from by followed Tyler Baird. from Radke Patrick Citi, Next Schulz

Tyler Radke

just I questions couple last ARR, I new quarters on Criss, of heard net I think have QX. the the upside. expecting so surprised heading a QX. X flattish So certainly your commentary X around into guess ARR

of like last higher us the quarter to because would QX, in expecting of bookings would a kind new be would bookings you seasonal into better puts with able flattish help X You've for understand to should you new in you, are you do QX added quarters. net expect on Just just And churn to than QX seem ARR and larger it QX. in the you it basis into the saw in reason takes guess, QX, in typically be a be being I the the QX? guidance terms why

Christopher Harms

Yes. more Xst basis. what's year, has enterprise-driven. been does quarters interesting the being X is in historically actually QX about concentrated -- here now which being historical We've not much and Amplitude is No, had that not renewal a just pop, QX, the half base QX the we -- on of talked

the both expect traditional things digital having enterprise, shift that's of concentrated more with the mean of the we across company. on focused I space year. One of QX time the relative rest could the and is But very the winning to the It what a not will native quarters have.

on as assess that continue churn that of got, we've pretty new of QX. in playing to it clearly So insight are prudent record good macro ARR. are level, in we was that pipeline a of And X like I it we're pertains as adequate pertains the to expectation on side I'm to how ARR a that's and kind dynamics trying some level, I the a performing the QX. But have confidence we're to theme that contribution at felt the as levels the feeling there the right? At it track said, detailed

Tyler Radke

Xst just on half Okay. year. next And follow-up a the of

the what I wouldn't So quarter? about in business. that I churn to to I headwinds that it in this as up their they this guess, QX pathway seeing be guess some contracts the customers of the to completely you their come the renew gives year of guess that reacceleration, and think of that kind ongoing why where normalized about think as spend? And talked QX issue confidence was an to continue you optimize the have to you're isn't you try going I and shrink

Christopher Harms

contracts No, year Xst there mechanically, that half are up renewal coming were for some Yes. X-year of in they XXXX. the

X we've about though those the for some as XXXX coming up starting year. even So through playing of the as been a with up X they theme role, contracts years a X-year coming were talking or played and they're while

the base being subject gives part confidence is of pertains on mechanics it kind just what we is it second the on easier to the that We're customer fairly rightsizing levels that and more with of of to the a know meaningful that now As software the that's It's of visibility. resetting. that, of get we're demands our having their customer commensurate that they're me to optimization. question usage of able

delineation into is that QX, play, just new it As its to got are areas gives same of same some force macro way across headwind as long I customers on we those bar and more to facets and for the that of it weigh of renewal sales. element many levels inherent as business. And me, at operational base one I likely. The continue QX new we where in have insight us the be don't the are raised And look said, better of ARR perform the mechanically as in. definitely we and this doesn't those our the easier should

Spenser Skates

just I color out it to has want Nate. to to and credit think give Thomas give of been a call more that I I'd other on both The huge a little amount

think were since Nate the I really the plus that to only current in coming But here we done that, last quarter that at up-leveled customers Amplitude, work X. for I Q view. renewal months think X over since being looking we've at were our really the has up or prior

at year. we we is next the QX as have on into look QX, visibility of our much and around what so renewal And so expectations base better QX,

previously. than of Now that, arms all we have but around in obviously, there's a we've better had obviously much still like in those fashion risk our

in execution. big been there's yes, So a operational change

Yaoxian Chew

[ followed Rachel from question, from Next Baird, ] Blair. Patrick by

Patrick Schulz

head there and maybe ownership particularly gains modifications you PLG general. plan, into the Plus are from as traction and earlier announced you're I sales a standpoint, going about operational make? your XXXX? teams the just and leadership some sales Can account year know you how made guys process changes you go-to-market talk this your in around as positioned with other any just Just are motion to recently count head

Spenser Skates

the is of ] motion smaller route. kind higher ones I biggest the think do accounts, of one potential on [ accounting PLG so refocusing more the a to our and allowing acts of number

just thousand them you that's a more. to If the not can or of can to be $XXX,XXX that going accounts time. self-serve how want you're about use and can dollars a high $XX,XXX, be after pay or $XX,XXX We go they thinking leverage few or salesperson's $XXX,XXX or

increased we look we're as looking driving so at And focus that. at through XXXX,

sales-based that way into allows crazy we've expect value Now go I addition to in a We the much we year. since been next the start PLG of don't driving as But to the think of company. the higher a change solution of focus accounts.

Patrick Schulz

Okay. Very helpful.

maybe. too a Just follow-up for Criss,

to XXXX. macro in a color have investing great profitability quarters. some margin improving the to on you of guys done relative And trade-off I trying the how the you for are those but, between guidance here, the anniversary job You some you renewals customer appreciate Not as past growth provided of thinking for as stabilizes, ongoing push about improvement.

to Just understanding those get want of trade-offs. a better

Christopher Harms

conviction in making have, market better look, to in No, you've that me say changes upon. we I a the heard that huge be position the Yes. huge even a in operational opportunity we're conviction we'll execute have

drive this, towards be with and that's growth well great we're player long helping and to. as really lead our the term. in and forward I ones. have way growth through a into to potential sizable positioned of organization. we our going we We If where emerging. It's legacy choice, look lot given the to Thomas to We reinvesting work team we're think converging the That's going to enable think opportunity the I market it's be existing really want a dominant to that.

Yaoxian Chew

from [ ]. you Rachel McGinnis from Taylor Blair? question, by Next Followed Are UBS.

Unknown Analyst

seeing CDP mostly interesting. the customers more of or example consolidate was if leveraging I'm wall-to-wall customers. deployment stack still you new The to resonating customer guys with existing it's the gave curious if you're

Spenser Skates

Sorry, part, what? Rachel. mostly if that What last was it's

Unknown Analyst

new with customers. Resonating

Spenser Skates

Oh, it's play on customers. big a existing

So Board, our XX beyond interested all XX I capabilities out mentioned folks were Analytics. that the in at of Customer Advisory some

For of Session that of was Experiment, CEP, some what we for had that replay. was some in that was of some for

allowing and players. existing consolidate see of And the software, growth we so, just existing potential within point to yes, base customer suite use them not by portion, our Analytics huge the full

great where they So example the a Midjourney bought deployment wall-to-wall was of another the out that. box. was example the of of suite that whole great

So with new seeing it with and customers both ones. existing our we're

Unknown Analyst

Awesome.

Is Is the more cross-sell? follow-up go-to-market make those you just there just to changes So changes it materializing? a need to on any that. motion waiting on other improve continue the for recent to

Spenser Skates

team we're of a there's -- I the think -- that working there's continuing of mean on. we're quite I bit education

We a CDP a ago. So Session new going We're on of like X on things we've to some Experiment. of offerings, do we're launch now. on done or we Experiment have to on that. the including field training training our quarter trained train Replay, When

to the comes And so have and when their customers then in and have point their we from adopt who these understand then right time them cycle. buying

Every out one who it's new was Thomas, offerings. interested customer X-week talked excited not very the But it. about a of underway the base a promising. to thing obviously for you trip back our just adopts came and we're of just a Asia it's whole entire it. And Almost, from So sudden I'm It's there. all I talking customer process. with then with single President, was click in a switch is he well just the

lot just on it's thesis again, So convergence, I of them. to category a ability think, validation our of a of upsell lot validation the our of

to we have there. Now do actually and but it, are the go ingredients all

Yaoxian Chew

Next by followed Vidovic Taylor KeyBanc. from question McGinnis, from Michael

Taylor McGinnis

sequentially. the RPO, just I The think And and like a the at first look revenue bit I at in it quarter. one if total and is ARR, annualized those it if also look both CRPO gap looks I narrowed were down then between

seen macro end that of the explained that any was on side the So a something in of might customer might like terms or at with have deterioration some you quarter? larger have maybe was there of there the that churn

Christopher Harms

our similar annualized we taking where on that for million relationship X $X adding the adding the for $X XX kind XX that rationalize by revenue. of our and it change, the X, between that's for pretty revenue on of explicitly finished pretty divided and a good really even we kind to mechanics though is going the probably it's the guided proxy pro June overages be, and proxy by revenue play the I of are QX good to -- dividing Taking and and ARR do, a validate right? in usually ARR services million Well, September what it. and And QX,

contracts of of of to a the pertains the weaving of the a their smaller half role it mechanics those just way RPO, the definitely renewal kind through. the half cyclical those year. It's It both like kind reflection of timing, first having multiyear a RPO As from to Xnd just has base. I of concentrated nature reflection are that's year read more those again wouldn't contracts a on the and of X-year as any HX. than more of the between the total RPO mechanics the RPO of RPO in current HX

Taylor McGinnis

little there. I'm And being Criss, color bit know hoping like of quarters, the renewals pretty next about can couple similar just you Perfect. then, over terms you of but level the them, in of composition the of -- give I talked more a in

be think in So the more of VC-backed any that that, companies of to looks on the customers about verticals, happen could level we've what give Anything as versus challenged that smaller versus some larger composition-wise that customers? for seen, can we could you levels you thoughts that how optimization what might share?

Christopher Harms

QX multiyear where been where and the we point be And QX. are with get and It's QX commensurate the would next considerably off those relatively and year. of for that those we is for and some natural we composition in we've fairly QX that inclination QX, optimization. levels we've in is ones when that will into QX relatively and the drop commensurate the that had have some the highest Well, been discussing were that resetting

Thomas of to. I'm more team other precise have proud kind they accounts, rigor more around is on expect the internal profiles, on very given closer quarters clarity pertains to tried haven't done you have to heavily about our allude next and other stack and or a which for than few precise one of couple forecasting, lean and I down that larger heavily of quarters. and slices, on trend can last outlooks really up for the the give more much the the risk it having of I things our to that flavor, those really those. more I much Nate been As and be the will to our to continue much work I much operational the Other how within

large visibility number number a that. forward, come that the composites than great least around large more it's But half shared into While might some haven't at and of we have it. I

Yaoxian Chew

question Our from Vidovic KeyBanc. comes final from Michael

Michael Vidovic

into CRPO, it, the following on ones quarter? next just an up see call where quick metric you of expect couple that this should you continue a to, the call a would of Or quarter decelerating stabilization Just anomaly, that on and more it, I the question. near guess is term?

Christopher Harms

number, I a would XX in you to up expect characterize will in then June numbers, back the what CRPO the that's to the reflective nature March expect XX refer as pertains trying would and would just general. in and pick it be it to that I that but cyclical to as those deteriorating continue to RPO -- I'm the it kind of the the getting contracts of February

Michael Vidovic

see tier risk customers starter maybe your you have on lower might then do the now of it, to on Amplitude point? a that, traditional, around with call it, any moving that I launch And down been guess Okay. just Plus, call enterprise I plan price

Christopher Harms

It target And were that really Q&A, elaborated potentially our company. support What account, We the remarks then to between that their all one that really potential portion sales team market prepared difference we $XX,XXX at for the points in the on those that it in to really that maybe a get the out. that a the closing our motion in $XXX,XXX made been its of Spenser laid reasons and that that for is a of the the work ARR. There's enable has the profile of frees potential $XX,XXX of we and up direct into does free that $X significant selling haven't going a to couple and move growth million. on over customer, doing for a last terms, on maximum, quarters. expect Thomas right was, we've And have absolute the high big to $XX,XXX the try and to down. I are the to account we has this analytics clear a do in that very to latter lot focus the ability been on So or some time identify serving $XXX,XXX plans do was or that. thing absolutely the to that's

focus have what by potential drive smaller, I'm think the so we're ones. working, incremental of doing, and because growth I not And our around very chased of and having ability just are conviction to what less energized

I criteria big part of a success it's our here. think

Yaoxian Chew

I'm so that, Thank no much. in questions queue. And you with seeing the further

in Global be earnings will Davidson Scotiabank Summit and December. the Details Thank website. our QX UBS you Conference and our Technology in on IR will D.A. conference be Global Technology the Conference posted for call. We Tech attending at November

You may now disconnect.

Spenser Skates

Thank you, everyone.

Amplitude (AMPL) 7 Nov 232023 Q3 Earnings call transcript