Amplitude (AMPL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $73.3 million, up 8% year-over-year, with annual recurring revenue (ARR) at $290 million, a $5 million sequential increase.

• Paying customers grew 38% year-over-year to 3,224, with 547 customers generating $100,000+ in ARR, up 10% year-over-year; notable new customers include HubSpot, Cloudflare, Volvo, SketchUp, Cook Children's Health Care System, and Character.AI.

• The company beat all guided metrics for the quarter, generated $5.7 million in free cash flow year-to-date, and improved net loss to $23.4 million from $27.8 million a year ago.

• Amplitude was named the only leader in the Forrester Wave for Feature Management and Experimentation Q3 2024.

• Andrew Casey was appointed as CFO, bringing extensive enterprise software experience.

Financial highlights

• Q2 2024 non-GAAP gross margin was 75.6%, with GAAP gross margin at 73.4%; non-GAAP operating margin was -5.1%.

• Net loss per share was $0.00 (non-GAAP) and $0.19 (GAAP), compared to $0.02 and $0.24 a year ago, respectively.

• Free cash flow was $6.8 million (9.3% margin), down from $19.3 million (28.5%) a year ago.

• Sales and marketing expenses rose to 48% of revenue, up 3 points year-over-year; operating expenses totaled $81.0 million.

• Cash, cash equivalents, and restricted cash totaled $283.2 million as of June 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $294.5–$296.5 million (7% growth at midpoint); Q3 revenue expected between $73.5–$74.5 million.

• Full-year non-GAAP operating income guidance reduced to -$5 million to -$2 million, mainly due to Russian sanctions.

• Non-GAAP net income per share for the year expected between $0.05 and $0.08.

• Free cash flow positive for the full year remains expected; current liquidity sufficient for at least 12 months.

• New U.S. sanctions on Russia effective September 2024 are expected to negatively impact collections and ARR by $3 million.