AMPL - Earnings call transcript Q2 2024

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Yaoxian Chew

Second quarter 2024 earnings conference call. I'm Yaoxian Chew, Vice President of Investor Relations.

Joining me are Spenser Skates, CEO and Co-Founder of Amplitude; Andrew Casey, Chief Financial Officer; and Mike Dean, VP, Corporate Controller.

During today's call, management will make forward-looking statements, including statements regarding our financial outlook for the third quarter and full year 2024, the expected performance of our products, our expected quarterly and long-term growth, investments, and our overall future prospects. These forward-looking statements are based on current information, assumptions, and expectations, and are subject to risks and uncertainties, some of which are beyond our control, that could cause actual results to differ materially from those described in these statements. risks in cause Securities our Commission. the differ results and on included is filings information that actual could to Exchange Further with the

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

Spenser Skates

all today, going Welcome focus Yao, call. pleased report opportunity, market good innovation earnings metrics customer XXXX on product what quarter. and guided I'm across seeing, results this financial that Thanks, stories. I'm second to going and X quarter our to after our and everyone. afternoon, we topics we're QX we're to how and beat continued

paying customers or now ARR have to up increase X% first We of million than XXX, end recurring year-over-year. of Our X,XXX from the XX% revenue second revenue was million, quarter $X more customers. $XXX representing million, $XX.X of year-over-year. Annual grew was QX, up quarter. an $XXX,XXX In more the

have and responsibly flow of year-to-date. $X.X cash generated operating million free are We

guidance due would been more a raising quarter's the Russian want change This I is sanctions go announced operating on revising we that unchanged. were Without the call to this, our detail revenue. get for have year guidance We'll we to while profit out in lower June. into annual shortly. non-GAAP Before details, profit in operating into

Amplitude growth. Our top reaccelerating priority at is

great We progress. are making

remained In rates tight quarter. companies digital value of resonate Amplitude's IT the strong. stable are win characterize are and as to experiences. healthy business our spite investing the New budgets, proposition would in quarter-to-quarter. I macro environment second in continues

competitive We our position, solutions particularly point legacy continue players. and to great feel against about

We have helping find approach, platform a differentiated demand. are quickly, customers drive and regulations incremental value privacy to

resets, our in also churn legacy severe second quarter. contract have been the highlighting several for most by This expected, which remained some As high we of was driven quarters.

We are in this rear-view are significant the that now of to our majority overbought contracts nature optimistic mirror. of optimization

in customers momentum was sizes We are performance improvements Amplitude all to Plus, in strong gain our continues of we've go-to-market. offering, from Plus self-serve momentum the many with types. and QX. building made

New process activation. uplifts to driving onboarding informing continues our loop, approach Amplitude. and improvements a serve and are a Plus simplified feedback as data core win-simple valuable on setup also

QX deals approach quarters. in prior to account named Our quality in led higher than

in enterprise improvement ASPs. Improved customer letting land better with engagements better We us land customer align steady start. also and the management attach platform larger saw from account and rates is initiatives

we budget ability higher our are marketing, and data growing are mindshare customer buyers. The are across product, gain quality. and We to of expansions also unlocking

platform using expansions. a data more is in platform encouraged of green very with pandemic, the right future-proof by their viewed During Today, many Amplitude attaching digital because continued in the post-renewal, are that are services. healthier called increases experience. I'm also where we and shoots the quarters. Customer companies as on volume out our prior largest based lose of relationships customers start the drove expanding win customers of world our and enterprise-ready

last the current growth customers' been is trends in We XXX underlying continue improving. our to customers, more aligned health quarter-to-quarter. top are visibly improve than have Cohort year. In with our ambitions utilization we

majority us that who time, customers of with X associated grows renews optimized have a the of ARR either or base. For flat off

half retention dynamics in than later, patterns to are For the across gross XXXX the show of XXXX, partnerships. signals XXXX into better net sales, encouraging the to and second second continue and those XXXX. Pipeline efforts and and marketing, for year coordinated half customers and of acquired also from thanks

demonstrating behind strength in particular latent opportunities. Average level of markets, seeing deal a United XX% seeing enterprise year-on-year, of in while are large and maturity, up We pipeline U.S. in second our the size International increase demand. significant by our we're deal are business. the terms States half is in same

sales Now, change let's the Belarus. profit XXXX, non-GAAP stopped operating In address the activity for new we in all and item in that Russia outlook. April accounts

all that be with terminated or to outlets. by sanctions, targeted oligarchs Russian customers U.S. owned, also we We government Russian news contracts knew owned, government-controlled Russian

Russia increased to scope the did serve unable that insolent, us on unchanged. leaving on this these who of would outlook in We any Department not have customers operating highly be U.S. customers able June isolated to our sanctions customers. for unlikely for to continued profit and from of If been not XX, unaffected meet collect criteria. On serve to Treasury year Russia, the previously the the

rate, the a QX While much would on bigger this draw to picture. to focus weighs would like and growth what I stronger been have exit

despite year improvements and well ARR QX. both We business reach. the revenue reacceleration headwind put The have We for are raising we revenue facing in believe within our deliver to are starting guidance in results. material are place

expect positive year. the We be for flow cash to free

We continue the of Amplitude driver invest long-term innovation. to behind biggest growth for product

please. slide, Next

progress for the center product the stack is Without Session of touches fragmented and rest rapid thesis the second any its useful. is There a pain workflow much Replay experienced tooling. is in less Our quarter. customer making is of lot analytics, data. that customer from of gravity live analytics that is

aid discussions, and is value platform point platform. offer solutions, displace time to a to renewal Our continuing in our for shorter

Replay breadth, and of ] XX largest of interface June. our scores We this Session retain launch quarter when Wave last achieved offerings. in. Today, annual this customer by XX% than as time who more expect are general lean leadership. leader from criteria, expansions year. Experiment user Amplitude's and callouts same are use Customers management in named our maturity, mobile our and offering depth, product, non-analytics across feature and were our the [ for letting key with vision. We in pricing better. Industry also only platform announced we year. contracted landed the at was highest Forrester later We the analysts some a availability the products particular budgets, customers, catalyzed native tight more CDP experimentation. us recognizing unlock and with more of the confluence customers our enhanced X use latest of up XX% improving Amplitude Snowflake A enablement for product field larger possible

We're customer our sees approach enterprise. and digital privacy, ways is of what excited their has what. control from and grade enterprise and customers about requests XX. mission visual navigation find sync a out Warehouse-native data and insights scalability of single grade line with grade search. Analytics, help users successful, version be bundling We've Large, capture convert strides Session to is open to ambitious encouraging. We've We've ensure up Early and other of the and data Our announce is into for made data can our warehouse interest I'm of projects being and assistant chief Amplitude of different trusted the hard. quarter of sophisticated platform, here taggling, improved advancements and and SDKs mutability. reduce we've most September have why data enterprises on been user want compliance radical access all on a enterprise launching the controls now curve we and of our analytics self-serve Amplitude today privacy. With a top That's made eliminate to keep with their to get is drift, one to dashboards most This platform, and taken and simplicity. eliminate out altogether. as one who Champions. Last Amplitude win extending analytics can talked running, of conservative but brand With conversational enterprise code data always new bottom experiment These box, confidently confident a box, access auto the we're around new data controls. security, to to friction agnostic data. data about we from most officers one needs interface, product in the top AI huge default we managing Replay our new experience the reimagined company. is learning and a the offering I in will

value. We platform it to easier daily wait started, It to get priceless We Amplitude All community will habit, be will get share to make be and easy. help there. our embodied radically Amplitude new are and knowledge more. product get will insights can't get behavior, I customer us and to the approachable everyone. to in be a want going

Turning Trimble. landed are Health tools data With of Fanatics product to with monthly highlight they tens applications. customers. millions the Farmers quarter this this data modeling one is character.ai, Cloudflare, Cook and System, and users. from In renewal, QX, amount grew web of of of in their teams Network. A a Globally, with Children's SketchUp, unit we SketchUp, Care Business Writer, notable Icelandair, Volvo, Live, and business HubSpot, of the mobile the drastically and largest increasing are XD and construction industry, industrial

We're empowering centric after forward transformation SketchUp CDP, product democratize and best to free paid to as their data upgrades, with going success. everything it self-service Amplitude, continued happens. contributing to will ongoing encouraging support insights. from to and the live keeping their users addition initial curve, aims practices, SketchUp in identifying SketchUp learning look managers data to In the to be across business, engaged churn excited Amplitude With to enact PLG able with

user data with win Children's the HIPAA from of focus the marketing and an a patient Google nonprofit They increase medical has performance a mobile new largest had power in use on new the chats. concerns. customer as for create their AI they users a efforts they releases. alive. U.S. digital expanding especially patient appointment Amplitude that of the and conversion speaking been They're adoption Amplitude characters renewal. interact This already various one-to-one Care also and to Amplitude our adding will with allows to Health important roll in to tracking web AI patient users across identify and feature are due analytics characters to We cases in Cook and optimizing They web of privacy growing feel empowering than success users companies, fastest critical centers journeys System, consolidating experience, to to onboarding their has With their and transformation connect of and experience. pediatric Amplitude are channel compliance with less them one their newly insights migrating let and chose campaigns. character.ai launched out year suite the this is flow Amplitude. its voice feature, by proven them which whole is hear to one

with the great global to Another platform a search become consolidate to is of Amplitude potential multiple and job which source quarter for saw point win single solutions truth. their this

driven They experiments with than teams scale. and eliminating approach solves connect data scale With product X to able the the finally value. scientists, team is their Optimizely of trust growth experimentation painful moving how they tests. By blockers, platform, big streamline at example they and the data actions from Amplitude, Amplitude unbeatable results engineers, couldn't would a great and trust, digital our data pipelines. This integrations to together with Amplitude, data overhead away analytics Before lack insights by could make leaders, time a running workflows, bring more our and associated the Amplitude arguing run. onto to is decisions, of of spent program pain

Dean as has More He amazing battle Oracle to Casey. one in while CFO took occasion a he an and of strategic Lacework. I've get HP. recently, of to rising public company enterprise transition across to interim call IPO XX genuine for the want into closely Mike the done and in combination He able we it also He gotten roles thank know to Amplitude passion important experience. finance space senior time leader. I'm has years at period Chief him fantastic as in. He to introduce an thinking Financial I had for has chapter has a We're and this of has software for growth tested Officer, I'm ServiceNow, being of our of over, the the his we're new the for forward recently. stars turn Andrew next Amplitude. Amplitude. operationally. the and was excited WalkMe finance of well long-term, at contributions working looking both write with details I Andrew this is for Andrew than rock more to during Before his to this job,

We our and building have business every leveling been momentum. area of up

see to strength We weakness. and continue of more pockets

a for We will the now before green in generational to something over through as defining shoots Andrew your company. into you more turn Amplitude. I'd brief interest introduction turn software Mike a we build to results. our like financial it Thank you for walks

Andrew Casey

I'm don't joined an solves you, to really universal solution. my Thank company Spenser. said products. elegant a with be a I've customer excited I digital very need Amplitude about their or less business it care because to never that I want here. that they understand critical that ever met

by the class and impressed wait can't next the I and year. I the across passionate great it last world many so share look team on materials Spenser that to turn meeting the together to and few the provides, I have weeks. put in have outlook I'll for place And the to last getting that been over coming Over that, that many of toward Amplitude a over page our forward that platform of quarter. with many results people chapter to been already the organization Amplitude Mike have found details are days, is building. more most leading growth. I the there I've customers, you in spent in pass to part know and the

Mike Dean

this today. Thanks, across that everyone guided joining Spenser, report Andrew and happy quarter. to beat board and to on thanks all us metrics the we I'm

that a I Turning non-GAAP. be discussing, second results reminder, financial as results, our revenue, the quarter are with will all of exception to

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

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

details elements of are on key Here more the quarter.

Linearity was X/X better X/X about which was their resulted XX-month expand contracts was down land expected, the revenue of second than behind was ARR was driven. basis XX%, total excesses in and on caused and slightly percentage multi-year ARR growth. The optimized of as a a for New renewals. embedded on Churn year-over-year, XX%. Gross surge quarter-to-quarter down customers points sequential the in now worst more percentage ARR continue in our the X quarter-over-quarter. Investments points that grew of pandemic also and year-over-year. downtick. Sales quarter-to-quarter, number in to which and utilization of or was of period us. End services, representing margin our margin NRR largest are XX% margins. impacting professional increase across We along $XXX,XXX X year-over-year. Underlying customers an QX NRR gross on quarter, to is believe marketing customers XX% improve utilization, trends with percentage were improving sequential point XXX, enterprise-related trailing expenses XX% X churn revenue, up

of of up and named Here we in $XX our million related key account around also up increase. G&A executive and legal to million, are expenses fees. Total were investment were search, year-on-year. approach. investment severance, of drivers percentage approximately operating international There in focusing efforts year-over-year. our Increased the was points revenue, $X.X expenses percentage non-recurring X quarter XX% expenses travel XX was point year-on-year the

or per and be was lower hiring a to payments. on fully cents timing cash cash $XX.X share revenue across the a operating the was XX.X% impacted million share point or $X.X was with and loss year early profit of profit to XXX.X compared X.X% a or which continued represents year-over-year ago. of $X.X year revenue $X.XX income about of Free compared shares shares million Board. Operating basic a of flow X% was We by net some negative ago. Free $X.XX on per of of million, positive X revenue, diluted in negative to quarter flow decline XXX.X million percentage based basis. Net judicious diluted million

let's our outlook. to Now turn

believe our be that are pipeline. We conservatism greater in of to mentioned challenging high. the deals additional assuming buyer warrants We this the remains rest we continues scrutiny seeing that macroeconomic Spenser number larger the throughout year. of as are environment a

impact sanctions unpack We financials. million let full-year estimate our Russian Now me of ARR. a how to affect $X negative

of to collect sanctions. without full-year expectations full-year operating receivables. It our is guidance is our estimate to profit these We negative that open operating important to note have changes million. impact $X revenue of a our of due to would This remained to income also and lost combination a ability unchanged

of result factors, on a expressing these As we heightened are caution QX ARR.

For we rate growth the expect million X% be third million, midpoint. an representing at and of XXXX, QX the to $XX.X annual quarter revenue between $XX.X of

to loss income to of million. between diluted negative be $X.X outstanding assuming $X.XX, approximately expect million million. between operating and non-GAAP we expect net shares share We negative $X.XX be $X.X per non-GAAP XXX.X and And

the For X% annual growth and the of to outlook we $XXX.X be are million, our full-year revenue between million full $XXX.X raising year, midpoint. rate an at

between are for $X be to negative million. our $X million and income operating non-GAAP We outlook reducing negative

net be $X.XX, non-GAAP shares here's assuming to outstanding of XXX.X million diluted for purposes. between modeling basis. And expect color We more your a on approximately income fully measured per as share $X.XX and

NRR in end-period to expect to trough mid-XXs continue XXX% NRR remain year. below to We and this the

to continue to of in year this the mid-single trough growth digits. in expect We ARR year-over-year QX

We full continue cash be the positive year. to expect for to flow free

Our long-term opportunity remains unchanged.

what control. controlling we are We can

appropriately I'll are on you, opportunities ARR revenue free long-term flow We and open will we believe our Yao. against value. are both to We it reacceleration and within to well expect drive that up reach. With that, Q&A. delivering investing cash Over

Yaoxian Chew

the be of microphone to one Please in on Spenser interest answering camera and your yourself limit and turn one question, will Mike time. follow-up questions. and

Radke from Citi. followed comes Tyler first America, Our Koji from question of by Ikeda, Bank

Koji Ikeda

run wanted just in dig about wanted confused I properly. a be to I impact. little here, this these numbers might I to bit Russia make more I bit through a sure but little

Okay.

trying it's why I'm additional operating business, understand goes what but puts down Russia quite just have for essentially bit. those revenue bit to like to just income of raised it ARR, trying I'm happens, Russia, to and and more, would but considerations takes there a because understand was goes So a affecting was happened ex there trying that guidance why seems little that been please. the understand up.

Mike Dean

for question. the certainly. Yes, Thanks

impacts big is bad the of One debt.

So receivables there's aged there.

that, an revenue. impact as And so OpEx as have with you're going to well

talking that's place we're reminder, the fundamentally our the business. believe in for a half year, as as a And year. because full revenue beat we've first we expectations about though, different a raising As of for the that

through that, with that's flow year. so to And going naturally the to full

lost And a so debt ] is impact time. receivables mix is a [ large but bad component to Russia revenue, of there the that large at aged both

Koji Ikeda

And just maybe the are follow-up to back going Is be you call holding for too, there. And one? may. I more, them if maybe the next one or on Andrew the

Spenser Skates

No, I him we no, do here. have want... just

Andrew Casey

I'm here.

Spenser Skates

it for, since he's make clear week. been only here this of To Monday

in so business. [Indiscernible] And the

And CEO as come the as as Mike of me Head from Finance, as so well representations so. Interim

Andrew Casey

[Indiscernible]

Koji Ikeda

on there from one So guess into bleed just impact. Is half up any quick I should we Or effect? -- Russia this the through just expect a follow of second XXXX? sort

Mike Dean

is So a to lost QX, in there as be impact but revenue well. most the impact felt going of is

XXXX will into that, some well. with there so as be And impact

Koji Ikeda

the thinking what then for the And I team. Monday. just Welcome to first months? be at with maybe you'll the maybe excited just on you. one of that But next quick some X that to big priorities realize picture one working or looking over things perspective, started are do be Andrew. Super you

Andrew Casey

understand are leader the important how objectives, built strategic then with I perspectives understand, that how has really around think want really Spenser really as organization can and in. And to those an business I vibrant joining growth it's our objectives, run. great long-term customer how our time base. been lean and see team to new we aligning have I a spend a a business really you

of good know, a the or As teams possible. processes of what some my And growth. I've had I'll experience figure work teams place and with can amount meeting with understand that's I I to the have past, that I lot of is where spend may respect you time businesses and how may helping to a our drive help with drive the in to scaling and customers probably really my not customers sales value we time, best spend initial greatest

Yaoxian Chew

] Next Blair. Bhatia question, Pryde from [ Matt followed from Citi, by Arjun

Unknown Analyst

one question on Just quick AI.

in for event cases see you of GenAI what character.ai? if intensity terms like volume curious Just use

Spenser Skates

Yes.

software I think first, -- first -- are and these it's applications so foremost.

chat little and track of or might obviously amount in behavior, a clicking interface interface using the Now, is a of has But being you'll day, touch you're or the one thing conversational interface. different where character.ai underlying. customer a ends use, the we so a that up you end versus have same the and expect. pointing huge what as it is at

getting expect, to We has to whether who like, also does and use stuck, work upsell amount of with retention. where as onboarding tracking things things. similar funnel they're or What and engagement huge are Midjourney, you'd long-term a the that look correlate users

underlying you're even is so a tracking that that how you're And Generative is idea out AI with trying interface to the improve all the though the different, figure to same. journey and user

Yaoxian Chew

Arjun, go ahead.

after Arjun, Scotia. Nick question from Next Altmann

Arjun Bhatia

and It's off. One you're that now? part your seeing the enterprise the we I'll was X, interesting there question are of What's what that those Amplitude several from enterprise. customer start large pipeline. there the Maybe to macro how that X hear, U.S. and in business deals curious is, and of what's new evaluating was years enterprise ago. I'm why the in challenges not constitution strength encouraging customers hear to that perhaps ago? And is in for do maybe then Because different of base hear years you.

these are right So Amplitude perspective on your businesses what's now? why at looking

Spenser Skates

let hit about I'll has few challenges me changed then piece last talk composition the so how the years. Yes, over the and macro

quarters, new been few always generally amplitude demand worst digital think the macro, I business during has even strong. and of in the analytics parts for last

largely quarter, -- as significant the growth contracts. were any our the for be now the seen that a to been is that change how quite we've I a structural you numbers, going the to up if rear-view new be has they'd at think look particular that the optimization of set Even to result in of deceleration And purely growth. majority of good. we're has internally those been mirror,

quick so a that helped show the SDRs. And sales company. the over data are we're think I great some are go-to-market, structure customer has companies like rolled go just really product from and base, last years if with of like impacts System. access the in were serve named and enterprises, some we really as with to the really enterprise care market the of Health really win restaurants in or starting technology it more those lot companies. If we're didn't deal the okay, board big tech motion, a drove to for our talking that not from on announced largest mutability player. see example, digital those Cook traditional X a that traditional And A world an more that, for health native think like terms we applies has been to partnerships you're clock then with And the also conversations focus Thomas anyone and I Care X ago, That that. QX. we In but which see was Children's data just we're driving companies the big in traditional controls, to across go rewind with X focus the side, changes the a including with years out, and viable is experience, digital account companies, a everything I marketing with we doing strategic both this

significant tech chasm and we're great great lot expect of crossing that for with the of to us to a traction But be making the see of still our enterprise. companies part on Now, to progress the rest seeing that it's moment customer base time. a some obviously

Arjun Bhatia

actually... then And

Spenser Skates

Andrew.

something? have you do Sorry,

Andrew Casey

additional I one was going to say thing. just

of digital lot their through And is out macro digitize du think event a on. I to and ultimately, methods we every a on times think customers. to has multi-decade things most that and process process, will, a opportunity player which going that through reaching be to great industry they're is in transformative soup customers going Amplitude a and the going transformation of little focused go are their and a company processes. really if But lead a I you get of jour, steps those for of business to

background, though we're of now. think it's years starting to investments I have many, great focuses, to types make take that they great, macro many, investments, that these So it's those evolve, which and we isn't of these even great a types many

Spenser Skates

regardless Yes. going to macro. you're do the And them of

like, is mentioned, talk through tighter even we priority they're more though this and questions, thinking many I top As so a ROI. for more with, scrutiny, that companies budgets,

Arjun Bhatia

from ROI secular Is a that? the analytics customers? Spenser. side, that how follow-up Is then product should that will implementation? on there's that the actually, the the trend that think there. about ease customers Warehouse-native Yes, And your of and The is where that doing the better work cost see we you're Is with Snowflake, savings? impacts that outcomes? What

Spenser Skates

and base customers warehouse, particularly cloud to Amplitude that existing become customer easily. more Snowflake, from of to access Ease implementation data

if it of the turn you So that having product with queries on of cloud big is and journey, SQL just data can from top your off customer just warehouse data that on a the lot be of collected Amplitude, analytics top you're deal running already you on then Amplitude on pipeline directly so to instead Ans data Warehouse-native create less with an and data. running a implementation have to like cost. Amplitude

big that market differentiator it we the and larger ago so early. data more were had company versus easier the one their already into up where of in because made teams particularly biggest up out looking I it they on have some much a that else traditional it the everything come it in conversation make just as seen We launched called get was seen would few come And it up to a smaller in weeks cloud warehouse. we've consideration, they quickly. it June. already We've investments they companies -- a it's with running knew

So our -- philosophically, we want to be data agnostic.

way the one. every different do for to top sure win just make data. work we want continues, how do to proliferation of then to of your applications another data set stack as different Warehouse-native to up it's So the And on us with ways that. that about we is

So analytics, come. experimentation, CDP, to Session Replay, we'll more have

Arjun Bhatia

here. Congrats quarter on the

Yaoxian Chew

Next question, Baird. from Oliver Rob Nick by Scotia, from Altmann followed

Nicholas Altmann

in how new that Spenser, macro drag be? think how some the go-to-market motion induced. go-to-market bit fruit. churn lapping on here. of and you the hopefully are and go-to-market guys of we through a we highlighted But better As the a adjustments of you improvements when and to about -- lot And has things get dynamic, been macro ARR, in base upswing, a much get induced environment guys sort you the of are you when when the of how think little the progress, Yeah. the starting churn bear better demand gets renewal about can improvements net right, this this historical impactful

Spenser Skates

Yes.

quarter. bad massive, moved of We're just I those much a massive the we're as changes long-term. accelerate about a wider this change out that of want We're improvement. So was after. like, and quarters talking putting XXXX, hundreds the driving number were contract. start that on Nick, up stickier, across larger, terms talking named as to path total doing we're that hey, we're starting going the enterprise a in year deployments about at say not some been cases. The instead mean, halved a we arrow year contract how new to of in X structure I in with made clear thousands look at as saying, year customers to I or few much X any we companies dependent up the set macro. the I'd are account we reacceleration people it is of We're and of improvements stays to net we've the focus, be through in next macro still

driven And see. went about XX,XXX. to from So that about XX,XXX it that to great focus we're execution has really starting

So of shows that That shows That call lands. shows made expansions. up larger second in up at healthier and right up rates in just platform up start. half in QX. the landed the shows more in that the out healthier renewal I That pipeline being for with

ROI. human using going you're those the resources have so where And expensive you're to greatest to

much much, a that, we'd going say worse in without a place I'd as business. So that's be

so to next macro even will the quarters. stay bad us And if set the continues few for that over up reacceleration

Nicholas Altmann

wouldn't question And have historically answer, discussions in right? who with. customers dovetail just that of to then the you off second maybe, kind speaking, be You

I think XX%. the ASPs are you up pipeline the in said

of take in challenge elongate sort the deals is things with definitely The sales that cycles there's and maybe close. can maybe So pipeline. to bigger longer

of pipeline guess side with going with those I with, quarters big look bit equation you maybe the close? And in So you helpful. there, those sales equation on sort deals or elongation of longer what the of of around have from terms side they flip are over at deals deals? commentary larger Just stuff baking be to move a sort past forward little the of would in the taken out of kind of flip any around Have couple this when you to cycle guys the seen large quarter-to-quarter?

Spenser Skates

a business to quarter longer-term of is mean, to you. I that the be have versus of in going outlook sort one having of when the changes think that you I Yes, front after just you're through go

I'd we're a of We're maximize year quarter-to-quarter is to very already is versus renewals quarter. the when motions XXXX. they fighting call but kind QX would pipeline. quarters say is at in from renewals multiple why looking the so call to out Which now glossed And that important, that gave over, your out. just out at I on out at one of We're looking I've particular looking pipeline

around, so months you meeting trapped few quick will hey, much part into marketing CEO's from is like, customer -- story they're so cycles. I hey, within to in equation we asking, say investments whatever of a I side had urgency get Europe very And of their of demonstrate a the that total ROI some Like, and to some And actually data with get. I in this and that ROI. I'll because ago, a stack. otherwise -- an is leaders the going customer want so is. Ans terms where There get lot one product of much stack there's have locked made urgency just up is actually self-service, going to out a period. have you such leaders data up complete And of switch had Like, team time. and been bunch with all part a their that when Google big a those to and happy drive that's key month is market, that longer Analytics this? over within they weren't we you'll valuation had their of many entire companies and not a to is time Google the to they Decathlon, natural They driven with their users. XX tell long changes Amplitude longer X, in goal data Analytics we're that

in by So the fastest multiple they've gone this on to have X seen then about to goal of ever the thousands end I've getting to get the someone year. speed they is That for And quarters. with ramp analytics. users to up from X Amplitude XXX

I have great really the going we make urgency lighthouse switch. customers. as lot retail are them be for that other speaks So to we successful, to that's that this away seeing the buyers story of make But in blown by had environment. it to that was a they And a urgency

Mike Dean

In adding of high. question scrutiny guidance, increase this our buyer we backdrop where ASPs pipeline how a impacts remains is in and your against it recognize with on also also

And well. into baked fully so that, guidance as our with that's

Yaoxian Chew

followed Baird, McGinnis Rob question, Next by from Taylor UBS. from Oliver

Robert Oliver

follow-up just Nick's from customers paying So really $XXX,XXX over me, sequentially. one on XX%, just question. a accelerated Spenser The grew on

most You called self-help. And of side this it out sounds as on non-analytics is some well. success like the

there consolidating happening post a tough vendors curious guys. with to macro? customers the are continuing sense Is point in that you're of But you to look what's pipeline are are is know I'd where the other in expand guys that that now around Are signs. you terms we at I significant a as what fact encouraging there's you very 'XX be market, you've getting of seeing opportunity some when a those, market. part of at the So that you in well? consolidation said and know notwithstanding your the

Spenser Skates

absolutely. Yes,

of then the of actually one never the macro first, ownership, want the which the people advantages of was the because better just is thesis to -- integrated. the tools tough analytics, together. driving mind is I is consolidation Well, lower think. the core founding was want Amplitude, And that the these platform And that stack. of They total fewer be having cost have work for relationships. there's vendor

they're universally, CDP, Session more So I Optimizely experimentation. a want our there offer to stuff single further to integrated the on hey, from It's buyers, to got that. Every that conversation for entire moved leader roadmap, ended of why with large to out with vision planning is whenever it's called Amplitude. broad our have is a company the platform. move up some cited platform that cited solution It's I moving point the I from be desire SketchUp, the it's whether whether got we're a of to that customer global it's experimentation, something than because on I it's analytics -- the and don't in Forrester as a whether is to part out our Replay, other us hearing and job company for just a

with a the our pillars being customers we generally. And of platform is that think why the huge, category. both of strategy the had suite, be doing driver about the a win of to I motion going it big doing our hands the That's the yes, get of in -- to in going creation So and into our space. talked one right, the is we the driving trend -- that success along the business to that's huge past,

just analytics And the Replay experimentation it's so and that about work with anymore, does about and stack. it's other Session parts how not of

Robert Oliver

the talk account, is a bit wins international? little about having was which the One cited a include that it? move international. positive quick And go-to-market, then just on impact clearly international. out also a you named is that of you call your towards follow-up Does on And can

So if how is force the a about well. sales structured little could as international talk you bit

Spenser Skates

Yes, to international approach Asia. Europe, U.S., chosen at is named few to applies Yes, the a X named we've way to at, account it so accounts. Tier look we've look -- markets. the We both we applies done applies

well within list. our missed velocity we're in X focus sellers Korea There's enterprise U.S., XX,XXX enterprise saying, and sellers For example, markets, else let's And bucket. into and goes these the our then those okay, Brazil. named Europe, that make Germany, as Asia. I UK, And I'm sure accounts. then and anything France, emerging the sure Japan, as to -- on our Canada obviously,

who's running to we a actually, going We there. be we announcement. sales in made team leader an hired So just the Edwards, Lee new Europe, out

excited. very very, So

great there. lot Decathlon a I have accounts We mentioned of earlier.

enterprises. do same And Le success have the there. in about have Monde, other of lot had we've great how bring We we a that U.S. you it's the

is the you just early all recognize the I where to think thing over, matter important no go. market's

GLs that's to sure we And opportunity. so appropriately we to want that have teams that I field make And mentioned. invest against and the why all

from question, by Next KeyBanc. Jackson Gerdes followed UBS, Claire Ader from

Claire Gerdes

it'll -- started. the platform. Amplitude lower September, hear It barriers the sounds ask on for getting new Exciting to I for McGinnis. launch the that. Here about like in to just of new about wanted Taylor Yes, some to of the

you or just changes of? of should up? that kind like will pricing kind new be what guess open I And we any anything expecting are opportunities So that of mindful

Spenser Skates

launch Amplitude what is future. of very about not changes not on pricing we're what look is Amplitude, to any just analytics The is launch. the as doing So what going thinking the part like focused -- in

talk process trying if so will how and you analytics self-service to team any to you these implement about a all the is. get company, And long painful stories at

You tracking of you get of create a to to hundreds have lines have plan, the implement team to engineering code.

how a you is in, a possible. it, mean, what on. And have you chart what so to funnel out got as flowing analysis, you do the the data to on -- learn train to much cut You get do your that team got does and semantics goal of of to as

dashboards code, line and box, of of doing as value analytics one that train bunch only getting out of you're you're of So getting a the possible. as you're then quickly whole on

to that'll get to long two, is currently it to what that on think years like different as I train. If difficult this -- there takes. new about expect value cumbersome going in then to to quicker whole going is really to or wanted be is them X going have winning and to I a space bring struggled today. the that company but get now analytics that no One, analytics that that -- from much processes it few it's with have start out the things. XX implementation And and way set So it is of as look companies a how

I areas last So that be been on launch for about in a of over all team And few development we've the months the work different the going outlined. in we're lot launch preparation to speed putting going whole of product yes, customers landing. companies XX going that's and going a get segment accelerate more to to open that think to That's up up faster. that's and them new to we excited September to this

Next question, followed Jackson J.R. from KeyBanc by Piper. from ] [

Jackson Ader

marketing how your get on split go much the expenses motion, question between new sales sales marketing versus net First renewals? are

Spenser Skates

So what end the of the minimize trying obviously renewals the is day. to do amount we're that's on at

expanding existing -- new new kind really So of And you're customers really running, minimize that is And focusing you where when sales well net efforts the up on goal both you're that's the and spending you're as cost. the as customers. cycle.

that introducing made getting to, is let's attach services let's you're make premium value, specifically just implemented, package we've make okay, sure let's you're helps changes the renew. sure a sure make of One you

don't I any And or way helps know a we it. on that costs. Mike, to so the that breakdown any of of characterize stuff separate some out have if

Mike Dean

No, but everything that is there. publicly, that highlighted we you've don't share

is investment other the The gross enterprise. that an that's and services related that better in happening is we're impacting margin there. highlight to that's customer I'd what's enterprise And the base the thing investing in specifically. all professional that the to But so

Jackson Ader

away of product we is the in I an expenses then And some might maybe lines, marketing end, leaning next of you're lower line. led shifting how into years? of, and changes some talk just we along R&D? of bit structural Like into some yes, kind reshape can quick of the expense couple the be sales growth opportunity similar think a there the a like, the some But look going these I should little like follow-up about just if R&D to on -- guess expect structurally a to

Spenser Skates

on guidance. explicit -- as shape we're I Andrew to be going so something, Yes, that's about about together looking as we giving so Board, think it. to that Obviously, careful comes be to want we're any

me though. on Let it, high-level points some give

on. right you're that is First

think you're putting XXX,XXX, that resources and key million is call line, the more expensive automating if thinking it human then And you're the onto you're enterprise where more. opportunity. XXX,XXX, below the about Plus accounts getting sub that see, XXX,XXX, you I anything really --

need, especially when So there's you be at always scale. a about to deployment going talk digital a analytics

For more work of human then to like more There's mentioned, automating them successful. And the you and to all coordinate end, need stakeholders. at make interaction, motion. of you the low

that I PLG, think as of benefit the implementation. resources for it easier, even you the those you is other all need all makes mentioned, human much it so don't

cost well in as the actually sale through large obviously of out cheaper. came them think much, getting coming of one that as I the quarter, through motion. railway and makes the Plus companies base aspirations there chip you're the absolutely, We've much and mentioned motion the one more running getting I up of seen that and successes company last a PLG customer few enterprise early of there. the that's a So long-term where

absolutely that time. to customers using that's acquire we're be So overall a lever going over reduce cost, expense to to

a company, product led product a fundamentally are We company.

Amplitude. with product starting great so of And the is great winning product with and core

time -- more Investing where Yes. basis. their we're relative directly over a going. on time is so And over their

Yaoxian Chew

from ] Porter Morgan Stanley. Elizabeth followed Piper, [ from J.R. by

Unknown Analyst

year? back just to Replay helpful. since to moment. views And pricing earlier competition adding on any the there. general, this What's the I'd seen turn aggressive score if curious for you've And been Session in more competitive go a product would be response love

Spenser Skates

products Replay, Session in that terms one just is ownership been that uses integration says, -- I really no, and company can just, been and analytics happy has analytics. single so It makes it consolidating. and interested ramp don't our it too. so vendor additional with to one. of lower in third-party total has that already because do another key we've and QX fastest so has outside it for launched our that seen we Every in think we the Session the oh, talk a Yes, of to cost talked we're actually I've workflows standalone you is have Replay then much sense of

One something encountered then already customers can then the that. use at, not you a an ran Replay cases standalone. analytics We've go back used Replay Session where using you sessions a caused and an and users of that encountered that have look can We've and the great to fix they issue, say, or use bug that. if Session lot into with of that it's a and do our it that what is and watch provider error you seen and see

a pull end. we're of seeing that from So lot

we drives the customer to like, to accretive players something the are overall terms cost, the price more costs, like, In these but and market to give - of other can -yes, point. offer I'd say values. in saves pressure that going we yes, We're the is that's half reducing us, the money,

Just on a fronts. all win

a lower the And our provider lot ways, you're onto are cost of because coming platform. we so in of kind

Yaoxian Chew

Davidson. Next question. Clark D.A. Elizabeth Porter, Morgan by Stanley, Wright, followed

Elizabeth Elliott

rollout. view And any that of I changes in our retention curious on to have just the follow to rollouts those I actually new inform have sort look may to prior KPI's product in precedents seen historical question we had of it relates I'm new -- can past and platform if a opportunity. engagement? the in as to kind Claire's or any looking new improvement was you've what on you the up

Spenser Skates

like We since we've one haven't been public. done that

made years was I X this think ago. or that we change X probably last the in

done that time. the biggest we've is in this since So that point

isn't say and about stats, some somewhere activation. of between So will there data there quick seeing XX% the ton I Elizabeth, in we're there on just -- a isn't precedent. What of increase XX% a

up up, lot the that on data. end of new percentage of people how more on seeing customers experimentation. getting many a We're and Replay Session sign from So actually engagement

in us as to whole customers more funnel. lead more customers that's been do expectation having getting get positive activating in to a through likely the as the well. My real as So will come is this be be successful well that

so we're else and this and past September to iterate anyone on we this here to Amplitude. the continue be to reason of want because choose kind the so at XX beat salvo and there's first our is over leaders going it that drum no Now

the And the report excited in get see so we launch. side to I'm the once other to and of results

Elizabeth Elliott

as follow-up actually drivers just quickly better out between as some Would And and bit you'd a call sell expected. upsell, that saw kind to was of churn, down of worse? of modest unpack the on contraction, of there little maybe bit then what absolute got improvement? kind a that love NRR, areas little any Kind just a of

Mike Dean

Yes.

we're and that where now. multi-year right said optimizations this for happened, to we've the well that, we contracts fundamentally mid-XXs going with in The impact Russia big and going that QX obviously trough have are well. to we're place year is the So the reaccelerate then that's different that's believe within our to as in Absent and a a we're headwind we growth reach. in

Yaoxian Chew

Last question, Davidson. D.A. Clark Wright,

Clark Wright

So we've seen accelerating... consecutive quarters

Yaoxian Chew

much better. audio. the on you hear Much can't better, we Clark, Sorry,

Clark Wright

Good now? Okay, perfect.

it's have quarters these drive seen ads do your [ consecutive adoption XX,XXX growth. accelerating to through we to companies new Plus And ]? we'd at So starting of whether understand where customer cohort, love plan are seed how or logos count and product to incremental you these

Spenser Skates

which customer only end so the I Yes, count, because historically, at but have year. continue the it lumps clear as be to want last we started in that on of well, to we customers Plus disclose

year-on-year So it's not a comparisons are the -- apples-to-apples.

] And can real large as Plus is are so or those XXX,XXX disclosed you [ think the customer those because like, reason we customers. part of why of or enterprise

on to contribution will do see those that. With upgrade to And They're I'd to so more to And well. on focus said, Amplitude feeding great first see larger of time. companies to small the the companies plans, as for quarter more those you that where time. use is many great starting are so ground be Plus a a to coming it revenue over

So we look it's year to apples-to-apples if much. don't yes, it so it's quite you But emphasize not comparison a with an quite were as ago, all good.

Yaoxian Chew

that question. I'm further no that, for you questions seeing last queue. in Awesome. With Great. Thank

September. Thank very the at be Conference be Sandler Growth on Frontiers our you call. Tech will and much IR Citigroup Piper in will Conference for posted our XQ website. Global We Details earnings conference attending

now disconnect. may You

Spenser Skates

Thank you, everyone.

Mike Dean

you. Thank

Andrew Casey

Thank you.

Amplitude (AMPL) 8 Aug 242024 Q2 Earnings call transcript