Amplitude Inc (AMPL) Q1 2025 Earnings Call Highlights: Strong ARR Growth and New Product ...

In This Article:

  • Revenue: $80 million, up 10% year over year.

  • Annual Recurring Revenue (ARR): $320 million, up 12% year over year and $8 million sequentially.

  • Non-GAAP Operating Loss: $2.1 million.

  • Customers with >$100k ARR: 617, an increase of 18% year over year.

  • Dollar-Based Net Retention Rate (NRR): 101%, up 5 points from Q2 of last year.

  • Gross Margin: 77% for the first quarter.

  • Sales and Marketing Expenses: 45% of revenue.

  • General and Administrative (G&A) Expenses: 15% of revenue.

  • Research and Development (R&D) Expenses: 19% of revenue.

  • Total Operating Expenses: $63 million, 79% of revenue.

  • Net Loss Per Share: $0, based on 129.7 million basic shares.

  • Free Cash Flow: $9.2 million, 12% of revenue.

  • Revenue Guidance for Q2 2025: $80.3 million to $82.3 million.

  • Full Year 2025 Revenue Expectation: $329 million to $333 million.

  • Share Repurchase Program: $50 million approved by the board.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Amplitude Inc (NASDAQ:AMPL) exceeded the midpoint of its revenue and operating loss guidance for Q1 2025.

  • Annual recurring revenue (ARR) increased to $320 million, up 12% year over year.

  • The company saw a significant increase in enterprise customers, with 64% of total ARR coming from this segment.

  • New product innovations, such as guides and surveys, have seen faster adoption and incremental ARR than previous products.

  • Amplitude Inc (NASDAQ:AMPL) has successfully returned to double-digit revenue growth, indicating strong business momentum.

Negative Points

  • Despite improvements, macroeconomic uncertainties continue to pose challenges for new customer acquisitions.

  • The company is still working through past contract churns from 2021 and 2022, which have impacted growth.

  • There is a need for increased market awareness about Amplitude Inc (NASDAQ:AMPL)'s expanded platform beyond analytics.

  • Sales cycles may be affected by the push for longer-term contracts amidst a dynamic macro environment.

  • The company faces ongoing scrutiny from CFOs regarding the return on investment for its platform, necessitating clear value demonstration.

Q & A Highlights

Q: Can you explain the factors behind the $8 million increase in net new ARR this quarter? A: Spencer Skates, CEO, explained that the increase was primarily due to overcoming past contract churns from 2021 and 2022. The company is now experiencing a more stable churn rate. Additionally, enterprise wins and the introduction of new products like session replay and guides and surveys contributed to the growth.