Amplitude Exceeds Earnings Expectations with Consistent Revenue Growth and Customer Acquisition

Amplitude Inc. today reported higher second-quarter earnings and revenue driven by solid customer growth for its behavioral tracking software services.

Amplitude broke even in the quarter ended June 30, down from earnings of 2 cents per share in the second quarter of 2023 on revenue of $73.3 million, up 8% year over year. Both results were modest, as analysts had expected a loss of 1 cent in earnings per share on revenue of $72 million.

Amplitude ended the quarter with $290 million in annual recurring revenue, up 8% year over year and $5 million more than in Q1. The company had 3,224 customers at the end of June, up an impressive 38% year over year, and the number of customers with $100,000 or more in annual recurring revenue increased 10% to 547.

Cash flow from operating activities for the quarter was $9.2 million, down $11.2 million from Q2 2023, while free cash flow was $6.8 million. Amplitude ended the quarter with $283.2 million in cash, cash equivalents and restricted cash.

Highlights of the quarter included Amplitude’s launch of a native Snowflake offering, which enables companies to leverage product analytics directly within Snowflake without leaving the platform. Additionally, Amplitude announced new and expanded integrations with Contentful GmbH, Hubspot Inc., WordPress, Movable Inc., Humanic AI Inc., and unitQ Inc. to simplify customer behavior analysis and enhance user experience development.

The company also introduced Data Mutability, a service that enables data synchronization within a company’s data warehouse, and Data Access Controls, another new service that securely manages visibility into Amplitude.

“Today, companies win or lose based on their digital experience,” the Spenser Skates co-founder and CEO said in the company’s earnings call. “Understanding customers is key to building better experiences, which is why companies across nearly every industry rely on Amplitude.”

Amplitude expects adjusted earnings between a breakeven and a cent per share on revenue of $73.5 million to $74.5 million in the fiscal third quarter and earnings per share between five cents and eight cents on revenue of $294.5 million to $296.5 million. Both revenue forecasts were roughly in line with analysts’ expectations at the midpoint of the fiscal period.

Image: Amplitude