Release Date: February 19, 2025

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

Positive Points

• Amplitude Inc (NASDAQ:AMPL) reported a 9% year-over-year increase in Q4 revenue, reaching $78 million.
• Annual recurring revenue (ARR) grew by $13 million from the previous quarter, totaling $312 million.
• The company saw a 16% year-over-year increase in customers with more than $100k in ARR, reaching 591 customers.
• Amplitude Inc (NASDAQ:AMPL) launched several new products, including session replay and web experimentation, enhancing its platform capabilities.
• The company successfully integrated Command AI's technology, launching the guides and surveys product within four months of acquisition, demonstrating strong execution capabilities.

Negative Points

• The macroeconomic environment remains challenging, impacting new customer acquisitions and overall growth.
• Churn rates, particularly among lower-end market customers, continue to be a concern, although they are showing signs of stabilization.
• Sales and marketing expenses increased to 44% of revenue, reflecting higher investments in enterprise coverage.
• The company anticipates a non-GAAP operating loss between $5.5 million and $3.5 million for Q1 2025, indicating ongoing financial challenges.
• Despite progress, 75% of customers still use only one Amplitude product, highlighting a need for better cross-selling strategies.

Q & A Highlights

• Warning! GuruFocus has detected 4 Warning Sign with AMPL.

Q: Can you explain the drivers behind the significant increase in net new ARR, and how much of it was influenced by Command AI? A: Andrew Casey, CFO: The increase in net new ARR is primarily due to our focus on enterprise coverage, which began in early 2024. Sales cycles in the enterprise can take 9 to 12 months, so we're now seeing the results of those efforts. Command AI contributed approximately $2 million to the ARR.

Q: What is the potential cross-sell opportunity with the newly launched Guides and Surveys product from Command AI? A: Spencer Skates, CEO: The Guides and Surveys product completes our core offerings for product managers, eliminating the need for point solutions. We anticipate a 20% to 50% uplift on top of the analytics contract, similar to what we see with experimentation. Early interest is strong, with a recent $200k deal closed and larger deals in the pipeline.

Q: How are you addressing sales attrition and strategically investing in your go-to-market strategy? A: Spencer Skates, CEO: We re-segmented the business last year, moving sellers from SMB to focus on enterprise accounts. This year, we've added a strategic accounts segment to increase focus. Sales attrition is a natural part of evolving the business, and we're set up from a capacity standpoint to pursue enterprise opportunities.

Q: How do you see the role of product analytics changing with AI integration in user experiences? A: Spencer Skates, CEO: The biggest blocker to value in digital analytics is the manual effort required to extract insights. AI can continuously analyze data and surface valuable insights, such as usage spikes or bugs, making it more efficient. Customizing pop-ups based on user behavior can significantly enhance engagement rates.

Q: Can you discuss the impact of the Google Analytics end-of-life on your customer acquisition strategy? A: Spencer Skates, CEO: Google Analytics is widely used, and as we build our leadership, we expect more customers to transition to Amplitude. We aim to create a smooth upgrade path from Google Analytics to Amplitude, making it an obvious choice for users seeking more advanced analytics capabilities.

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