- Revenue of $61.6 million, up 35% year-over-year
- Current Remaining Performance Obligations of $183.9 million, up
46% year-over-year
Amplitude, Inc. (Nasdaq: AMPL), a leading digital analytics
platform, today announced financial results for its third quarter
ended September 30, 2022.
“Amplitude helps companies build amazing products, drive growth,
and win their categories,” said Spenser Skates, CEO and co-founder
of Amplitude. “New business performance in the quarter was
exceptional. It was our highest quarter for new land bookings in
Amplitude’s history. Our market is early and growing, and I’m
confident we’re making the right investments in product and
go-to-market to win in the long-term.”
Third Quarter 2022 Financial
Highlights:
(in millions, except per share and
percentage amounts)
Third Quarter 2022
Third Quarter 2021
Y/Y Change
Revenue
$61.6
$45.5
35%
Remaining Performance Obligations
$248.1
$152.0
63%
Current Remaining Performance
Obligations
$183.9
$125.9
46%
GAAP Loss from Operations
$(24.2)
$(36.8)
$12.6
Non-GAAP Loss from Operations
$(4.9)
$(2.3)
$(2.6)
GAAP Net Loss Per Share
$(0.20)
$(0.93)
$0.73
Non-GAAP Net Loss Per Share
$(0.03)
$(0.05)
$0.02
Net Cash Used in Operating Activities
$(3.1)
$(15.1)
$12.0
Free Cash Flow
$(3.9)
$(15.8)
$11.9
Non-GAAP loss from operations and non-GAAP net loss per share
exclude expenses related to stock-based compensation expense and
related employer payroll taxes, amortization of acquired intangible
assets, and non-recurring costs, such as costs related to the
direct listing of our Class A common stock (the “Direct Listing”).
Direct listing costs, which were $16.1 million in the third quarter
of 2021, did not recur in the third quarter of 2022. Stock-based
compensation expense and employer-related payroll taxes were $18.8
million in the third quarter of 2022 compared to $17.9 million in
the third quarter of 2021. This increase was primarily driven by
increases in employee headcount. Free cash flow is GAAP net cash
used in operating activities, less cash used for purchases of
property and equipment and capitalized internal-use software costs.
The section titled "Non-GAAP Financial Measures" below contains a
description of the non-GAAP financial measures and reconciliations
between historical GAAP and non-GAAP information are contained in
the tables below.
Third Quarter and Recent Business Highlights:
- Number of paying customers grew 35% year-over-year to
1,913.
- Dollar-based net retention rate was 123% as of September 30,
2022, compared to 121% as of September 30, 2021.
- Amplitude hired Tifenn Dano Kwan as Chief Marketing
Officer.
- The G2 Fall 2022 Report ranked Amplitude as the #1 product
analytics solution for the ninth quarter in a row, #1 in mobile
analytics for the fourth quarter in a row, and #3 in digital
analytics for the seventh quarter in a row.
- Amplitude was identified as an Insights & Analytics
category leader in Snowflake's inaugural “Modern Marketing Data
Stack” report.
Financial Outlook:
The fourth quarter and full year 2022 outlook information
provided below is based on Amplitude’s current estimates and is not
a guarantee of future performance. These statements are
forward-looking and actual results may differ materially. Refer to
the “Forward-Looking Statements” section below for information on
the factors that could cause Amplitude’s actual results to differ
materially from these forward-looking statements.
For the fourth quarter and full year 2022, the Company
expects:
Fourth Quarter 2022
Full Year 2022
Revenue
$62.5 - $64.5 million
$235 - $237 million
Non-GAAP Operating Margin
(10%) - (11%)
(11%) - (12%)
Non-GAAP Net Loss Per Share
$(0.03) - $(0.04)
$(0.21) - $(0.22)
Weighted Average Shares Outstanding
113.3 million
111.6 million
An outlook for GAAP loss from operations, GAAP operating margin,
GAAP net loss per share and a reconciliation of expected non-GAAP
loss from operations to GAAP loss from operations, expected
non-GAAP operating margin to GAAP operating margin, and expected
non-GAAP net loss per share to GAAP net loss per share have not
been provided as the quantification of certain items included in
the calculation of GAAP loss from operations, GAAP operating
margin, and GAAP net loss per share cannot be reasonably calculated
or predicted at this time without unreasonable efforts. For
example, the non-GAAP adjustment for stock-based compensation
expense requires additional inputs such as the number and value of
awards granted that are not currently ascertainable, and the
non-GAAP adjustment for amortization of acquired intangible assets
depends on the timing and value of intangible assets acquired that
cannot be accurately forecasted.
Conference Call Information:
Amplitude will host a live video webcast to discuss its
financial results for the third quarter ended September 30, 2022,
as well as the financial outlook for its fourth quarter and full
year 2022 today at 2:00 PM Pacific Time / 5:00 PM Eastern Time.
Interested parties may access the webcast, earnings press release,
and investor presentation on the events section of Amplitude’s
investor relations website at investors.amplitude.com. A replay
will be available in the same location a few hours after the
conclusion of the live webcast.
Forward-Looking Statements:
This press release contains express and implied "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements regarding the Company’s
financial outlook for the fourth quarter and full year 2022, the
Company’s growth strategy and business aspirations and its market
position and market opportunity. These statements are often, but
not always, made through the use of words or phrases such as “may,”
“should,” “could,” “predict,” “potential,” “believe,” “expect,”
“continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,”
“plan,” “projection,” “would,” and “outlook,” or the negative
version of those words or phrases or other comparable words or
phrases of a future or forward-looking nature. These
forward-looking statements are not statements of historical fact,
and are based on current expectations, estimates, and projections
about the Company’s industry as well as certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond the Company’s control. These statements are
subject to numerous uncertainties and risks that could cause actual
results, performance, or achievement to differ materially and
adversely from those anticipated or implied in the statements,
including risks related to: the Company’s limited operating history
and rapid growth over the last several years, which makes it
difficult to forecast the Company’s future results of operations;
the Company’s history of losses; any decline in the Company’s
customer retention or expansion of its commercial relationships
with existing customers or an inability to attract new customers;
expected fluctuations in the Company’s financial results, making it
difficult to project future results; the Company’s focus on sales
to larger organizations and potentially increased dependency on
those relationships, which may increase the variability of the
Company’s sales cycles and results of operations; downturns or
upturns in new sales, which may not be immediately reflected in the
Company’s results of operations and may be difficult to discern;
unfavorable conditions in the Company’s industry or the global
economy, or reductions in information technology spending, which
could limit the Company’s ability to grow its business; the market
for SaaS applications, which may develop more slowly than the
Company expects or decline; the Company’s intellectual property
rights, which may not protect its business or provide the Company
with a competitive advantage; and evolving privacy and other
data-related laws. Additional risks and uncertainties that could
cause actual outcomes and results to differ materially from those
contemplated by the forward-looking statements are or will be
included under the caption "Risk Factors" and elsewhere in the
reports and other documents that the Company files with the
Securities and Exchange Commission from time to time, including the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2021 and the Company’s Quarterly Report on Form 10-Q
being filed at or around the date hereof. The forward-looking
statements made in this press release relate only to events as of
the date on which the statements are made. The Company undertakes
no obligation to update any forward-looking statements made in this
press release to reflect events or circumstances after the date of
this press release or to reflect new information or the occurrence
of unanticipated events, except as required by law.
Non-GAAP Financial Measures:
This press release includes financial information that has not
been prepared in accordance with GAAP. The Company uses non-GAAP
financial measures internally in analyzing its financial results
and believes they are useful to investors, as a supplement to GAAP
measures, in evaluating the Company’s ongoing operational
performance. The Company believes that the use of these non-GAAP
financial measures provides an additional tool for investors to use
in evaluating ongoing operating results and trends and in comparing
the Company’s financial results with other companies in the
industry, many of which present similar non-GAAP financial measures
to investors. There are a number of limitations related to the use
of non-GAAP financial measures versus comparable financial measures
determined under GAAP. For example, other companies in the
Company’s industry may calculate these non-GAAP financial measures
differently or may use other measures to evaluate their
performance. In addition, free cash flow does not reflect the
Company’s future contractual commitments and the total increase or
decrease of its cash balance for a given period.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. A reconciliation of the Company’s
non-GAAP financial measures to their most directly comparable GAAP
measures has been provided in the financial statement tables
included below in this press release. Investors are encouraged to
review the reconciliation of these non-GAAP financial measures to
their most directly comparable GAAP financial measures below.
Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP
Operating Expenses, Non-GAAP Loss from Operations, Non-GAAP
Operating Margin, Non-GAAP Net Loss, and Non-GAAP Net Loss per
Share.
The Company defines these non-GAAP financial measures as their
respective GAAP measures, excluding expenses related to stock-based
compensation expense and related employer payroll taxes,
amortization of acquired intangible assets, and non-recurring
costs, such as costs related to the Direct Listing. The Company
excludes stock-based compensation expense and related employer
payroll taxes, which is a non-cash expense, from certain of its
non-GAAP financial measures because it believes that excluding this
item provides meaningful supplemental information regarding
operational performance. The Company excludes amortization of
intangible assets, which is a non-cash expense, related to business
combinations from certain of its non-GAAP financial measures
because such expenses are related to business combinations and have
no direct correlation to the operation of the Company’s business.
Although the Company excludes these expenses from certain non-GAAP
financial measures, the revenue from acquired companies subsequent
to the date of acquisition is reflected in these measures and the
acquired intangible assets contribute to the Company’s revenue
generation. The Company excludes non-recurring costs from certain
of its non-GAAP financial measures because such expenses do not
repeat period over period and are not reflective of the ongoing
operation of the Company’s business.
The Company uses non-GAAP gross profit, non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP loss from operations,
non-GAAP operating margin, non-GAAP net loss, and non-GAAP net loss
per share in conjunction with its traditional GAAP measures to
evaluate the Company’s financial performance. The Company believes
that these measures provide its management, board of directors, and
investors consistency and comparability with its past financial
performance and facilitates period-to-period comparisons of
operations.
Free Cash Flow and Free Cash Flow Margin. The Company
defines free cash flow as net cash used in operating activities,
less cash used for purchases of property and equipment and
capitalized internal-use software costs. Free cash flow margin is
calculated as free cash flow divided by total revenue. The Company
believes that free cash flow and free cash flow margin are useful
indicators of liquidity that provides its management, board of
directors, and investors with information about its future ability
to generate or use cash to enhance the strength of its balance
sheet and further invest in its business and pursue potential
strategic initiatives.
Definitions of Business Metrics:
Dollar-based net retention rate
The Company calculates dollar-based net retention rate as of a
period end by starting with the Annual Recurring Revenue (“ARR”)
from the cohort of all customers as of 12 months prior to such
period-end (the “Prior Period ARR”). The Company then calculates
the ARR from these same customers as of the current period-end (the
“Current Period ARR”). Current Period ARR includes any expansion
and is net of contraction or attrition over the last 12 months, but
excludes ARR from new customers as well as any overage charges in
the current period. The Company then divides the total Current
Period ARR by the total Prior Period ARR to arrive at the
point-in-time dollar-based net retention rate. The Company then
calculates the weighted-average of the trailing 12-month
point-in-time dollar-based net retention rates, to arrive at the
dollar-based net retention rate.
The Company defines ARR as the annual recurring revenue of
subscription agreements at a point in time based on the terms of
customers’ contracts. ARR should be viewed independently of
revenue, and does not represent the Company’s GAAP revenue on an
annualized basis, as it is an operating metric that can be impacted
by contract start and end dates and renewal rates. ARR is not
intended to be a replacement for or forecast of revenue.
About Amplitude
Amplitude is a leading digital analytics platform. More than
1,900 customers, including Atlassian, Chick-fil-A, Marks &
Spencer, NBCUniversal, Shopify, and Under Armour rely on Amplitude
to gain self-service visibility into the entire customer journey.
When teams understand how people are using their product, they can
deliver better product experiences. With Amplitude, teams can
understand what product features are working, where users are
getting stuck, and what actions lead to the right outcomes. Nothing
is more critical to driving revenue growth. Amplitude is the
best-in-class analytics solution for product, data, and marketing
teams, ranked #1 in multiple categories in G2’s 2022 Fall Report.
Learn how to optimize your digital products and business at
amplitude.com.
AMPLITUDE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) (unaudited) September 30,
2022 December 31, 2021 Assets Current assets: Cash and
cash equivalents
$
247,248
$
307,445
Accounts receivable, net
31,384
20,444
Prepaid expenses and other current assets
19,909
19,116
Deferred commissions, current
10,526
8,112
Total current assets
309,067
355,117
Marketable securities, noncurrent
59,348
—
Property and equipment, net
8,773
4,832
Intangible assets, net
2,595
3,554
Goodwill
4,073
4,073
Restricted cash, noncurrent
852
850
Deferred commissions, noncurrent
25,747
20,573
Operating lease right-of-use assets
10,053
—
Other noncurrent assets
7,753
11,389
Total assets
$
428,261
$
400,388
Liabilities and Stockholders' Equity Current liabilities: Accounts
payable
$
2,493
$
3,363
Accrued expenses
25,571
17,936
Deferred revenue
95,460
69,294
Total current liabilities
123,524
90,593
Operating lease liabilities, noncurrent
7,741
—
Noncurrent liabilities
1,960
3,247
Total liabilities
133,225
93,840
Stockholders’ equity: Common stock
1
1
Additional paid-in capital
544,738
486,354
Accumulated other comprehensive loss
(580
)
—
Accumulated deficit
(249,123
)
(179,807
)
Total stockholders’ equity
295,036
306,548
Total liabilities and stockholders’ equity
$
428,261
$
400,388
AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Revenue
$
61,614
$
45,473
$
172,809
$
117,837
Cost of revenue (1)
18,076
13,982
51,199
36,372
Gross profit
43,538
31,491
121,610
81,465
Operating expenses: Research and development (1)
21,590
18,493
58,397
34,022
Sales and marketing (1)
32,528
22,199
94,793
59,009
General and administrative (1)
13,610
27,567
39,184
41,098
Total operating expenses
67,728
68,259
192,374
134,129
Loss from operations
(24,190
)
(36,768
)
(70,764
)
(52,664
)
Other income, net
1,442
123
1,821
143
Loss before provision for (benefit from) income taxes
(22,748
)
(36,645
)
(68,943
)
(52,521
)
Provision for (benefit from) income taxes
(204
)
(86
)
389
560
Net loss
$
(22,544
)
$
(36,559
)
$
(69,332
)
$
(53,081
)
Net loss per share Basic and diluted
$
(0.20
)
$
(0.93
)
$
(0.63
)
$
(1.64
)
Weighted-average shares used in calculating net loss per share:
Basic and diluted
112,016
39,301
110,876
32,362
(1) Amounts include stock-based compensation expense as
follows:
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Cost of revenue
$
1,793
$
425
$
4,385
$
909
Research and development
7,486
7,390
19,153
9,454
Sales and marketing
5,029
2,312
11,474
4,001
General and administrative
4,184
4,412
11,819
5,773
Total stock-based compensation expense
$
18,492
$
14,539
$
46,831
$
20,137
AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands) (unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Cash flows from operating activities: Net loss
$
(22,544
)
$
(36,559
)
$
(69,332
)
$
(53,081
)
Adjustments to reconcile net loss to net cash used in operating
activities Depreciation and amortization
1,316
873
3,226
2,210
Stock-based compensation expense
18,492
14,541
46,831
20,137
Other
(157
)
250
(62
)
663
Non-cash operating lease costs
969
—
2,758
—
Changes in operating assets and liabilities: Accounts receivable
(3,347
)
2,416
(10,890
)
(5,389
)
Prepaid expenses and other current assets
(1,131
)
(6,843
)
(793
)
(11,931
)
Deferred commissions
(2,693
)
(1,154
)
(7,588
)
(6,671
)
Other noncurrent assets
1,696
(835
)
3,636
(3,526
)
Accounts payable
1,418
(501
)
(1,173
)
(1,200
)
Accrued expenses
6,855
2,319
8,923
7,546
Deferred revenue
(2,907
)
10,407
26,166
30,633
Operating lease liabilities
(1,106
)
—
(2,488
)
—
Net cash used in operating activities
(3,139
)
(15,086
)
(786
)
(20,609
)
Cash flows from investing activities: Purchase of marketable
securities
(59,712
)
—
(59,712
)
—
Purchase of property and equipment
(487
)
(302
)
(3,012
)
(957
)
Capitalization of internal-use software costs
(260
)
(394
)
(1,523
)
(1,125
)
Cash paid for acquisitions, net of cash acquired
(394
)
(1
)
(394
)
1,724
Net cash used in investing activities
(60,853
)
(697
)
(64,641
)
(358
)
Cash flows from financing activities: Proceeds from issuance of
redeemable convertible preferred stock, net
—
26,500
—
199,802
Proceeds from the exercise of stock options
1,044
10,623
6,209
16,634
Cash received for tax withholding obligations on equity award
settlements
4,031
105,499
14,026
106,919
Cash paid for tax withholding obligations on equity award
settlements
(3,856
)
(100,136
)
(14,988
)
(101,556
)
Repurchase of unvested stock options
(2
)
(1
)
(15
)
(1
)
Net cash provided by financing activities
1,217
42,485
5,232
221,798
Net increase in cash, cash equivalents, and restricted cash
(62,775
)
26,702
(60,195
)
200,831
Cash, cash equivalents, and restricted cash at beginning of the
period
310,875
292,992
308,295
118,863
Cash, cash equivalents, and restricted cash at end of the period
$
248,100
$
319,694
$
248,100
$
319,694
AMPLITUDE, INC. Reconciliation of GAAP to Non-GAAP
Data (In thousands, except percentages and per share
amounts) (unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Reconciliation of gross profit and gross margin GAAP gross
profit
$
43,538
$
31,491
$
121,610
$
81,465
Plus: stock-based compensation expense and related employer payroll
taxes
1,793
426
4,384
909
Plus: amortization of acquired intangible assets
534
500
1,517
1,151
Non-GAAP gross profit
$
45,865
$
32,417
$
127,511
$
83,525
GAAP gross margin
70.7
%
69.3
%
70.4
%
69.1
%
Non-GAAP adjustments
3.7
%
2.0
%
3.4
%
1.8
%
Non-GAAP gross margin
74.4
%
71.3
%
73.8
%
70.9
%
Reconciliation of operating expenses GAAP research and
development
$
21,590
$
18,493
$
58,397
$
34,022
Less: stock-based compensation expense and related employer payroll
taxes
(7,646
)
(9,894
)
(19,661
)
(12,023
)
Non-GAAP research and development
$
13,944
$
8,599
$
38,736
$
21,999
GAAP research and development as percentage of revenue
35.0
%
40.7
%
33.8
%
28.9
%
Non-GAAP research and development as percentage of revenue
22.6
%
18.9
%
22.4
%
18.7
%
GAAP sales and marketing
$
32,528
$
22,199
$
94,793
$
59,009
Less: stock-based compensation expense and related employer payroll
taxes
(5,126
)
(2,835
)
(11,626
)
(4,544
)
Less: direct listing expenses
—
—
—
(13
)
Non-GAAP sales and marketing
$
27,402
$
19,364
$
83,167
$
54,452
GAAP sales and marketing as percentage of revenue
52.8
%
48.8
%
54.9
%
50.1
%
Non-GAAP sales and marketing as percentage of revenue
44.5
%
42.6
%
48.1
%
46.2
%
GAAP general and administrative
$
13,610
$
27,567
$
39,184
$
41,098
Less: stock-based compensation expense and related employer payroll
taxes
(4,228
)
(4,776
)
(11,988
)
(6,169
)
Less: direct listing expenses
—
(16,052
)
—
(18,178
)
Non-GAAP general and administrative
$
9,382
$
6,739
$
27,196
$
16,751
GAAP general and administrative as percentage of revenue
22.1
%
60.6
%
22.7
%
34.9
%
Non-GAAP general and administrative as percentage of revenue
15.2
%
14.8
%
15.7
%
14.2
%
Reconciliation of operating loss and operating margin GAAP
loss from operations
$
(24,190
)
$
(36,768
)
$
(70,764
)
$
(52,664
)
Plus: stock-based compensation expense and related employer payroll
taxes
18,793
17,931
47,659
23,645
Plus: amortization of acquired intangible assets
534
500
1,517
1,151
Plus: direct listing expenses
—
16,052
—
18,191
Non-GAAP loss from operations
$
(4,863
)
$
(2,285
)
$
(21,588
)
$
(9,677
)
GAAP operating margin
(39.3
%)
(80.9
%)
(40.9
%)
(44.7
%)
Non-GAAP adjustments
31.4
%
75.8
%
28.5
%
36.5
%
Non-GAAP operating margin
(7.9
%)
(5.0
%)
(12.5
%)
(8.2
%)
Reconciliation of net loss GAAP net loss
$
(22,544
)
$
(36,559
)
$
(69,332
)
$
(53,081
)
Plus: stock-based compensation expense and related employer payroll
taxes
18,793
17,931
47,659
23,645
Plus: amortization of acquired intangible assets
534
500
1,517
1,151
Plus: direct listing expenses
—
16,052
—
18,191
Non-GAAP net loss
$
(3,217
)
$
(2,076
)
$
(20,156
)
$
(10,094
)
Reconciliation of net loss per share GAAP net loss per
share, basic and diluted
$
(0.20
)
$
(0.93
)
$
(0.63
)
$
(1.64
)
Non-GAAP adjustments to net loss
0.17
0.88
0.44
1.33
Non-GAAP net loss per share, basic and diluted
$
(0.03
)
$
(0.05
)
$
(0.19
)
$
(0.31
)
Weighted-average shares used in GAAP and non-GAAP per share
calculation, basic and diluted
112,016
39,301
110,876
32,362
Note: Certain figures may not sum due to rounding
AMPLITUDE,
INC. Reconciliation of GAAP Cash Flows from Operations to
Free Cash Flows (In thousands, except for percentages)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Net cash used in operating activities
$
(3,139
)
$
(15,086
)
$
(786
)
$
(20,609
)
Less: Purchases of property and equipment
(487
)
(302
)
(3,012
)
(957
)
Capitalization of internal-use software costs
(260
)
(394
)
(1,523
)
(1,125
)
Free cash flow
$
(3,886
)
$
(15,782
)
$
(5,321
)
$
(22,691
)
Net cash used in operating activities margin
(5.1
%)
(33.2
%)
(0.5
%)
(17.5
%)
Non-GAAP adjustments
(1.2
%)
(1.5
%)
(2.6
%)
(1.8
%)
Free cash flow margin
(6.3
%)
(34.7
%)
(3.1
%)
(19.3
%)
Note: Certain figures may not sum due to rounding
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221101006368/en/
Investor Relations Yaoxian Chew ir@amplitude.com
Communications Darah Easton press@amplitude.com
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