- Revenue of $53.1 million, up 60% year-over-year
- Current Remaining Performance Obligations of $149.6 million, up
62% year over year
Amplitude, Inc. (Nasdaq: AMPL), the pioneer in digital
optimization, today announced financial results for its first
quarter ended March 31, 2022.
"Digital products are becoming the central driver for how
businesses operate, go to market and generate revenue,” said
Spenser Skates, CEO and co-founder of Amplitude. “Q1 was a strong
quarter demonstrating increasing demand for the Amplitude Digital
Optimization System. We believe we are in the very early stages of
a large market opportunity. We’re excited to help organizations
drive their product strategy and deliver exceptional customer
journeys.”
First Quarter 2022 Financial Highlights:
(in millions, except per share and
percentage amounts)
First Quarter 2022
First Quarter 2021
Y/Y Change
Revenue
$53.1
$33.1
60%
Remaining Performance Obligations
$194.4
$105.5
84%
Current Remaining Performance
Obligations
$149.6
$92.5
62%
GAAP Loss from Operations
$(22.0)
$(6.1)
$(15.9)
Non-GAAP Loss from Operations
$(7.7)
$(3.2)
$(4.5)
GAAP Net Loss Per Share
$(0.20)
$(0.23)
$0.03
Non-GAAP Net Loss Per Share
$(0.07)
$(0.13)
$0.06
Net Cash used in Operating Activities
$(8.3)
$(0.5)
$(7.8)
Free Cash Flow
$(9.6)
$(1.1)
$(8.5)
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 direct listing costs.
Stock-based compensation expense and employer related payroll taxes
were $13.8 million in the first quarter of 2022 compared to $2.6
million in the first quarter of 2021. These increases were driven
by an increase in the fair value of Amplitude’s common stock and
increases in our 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.
First Quarter and Recent Business Highlights:
- Number of paying customers grew 49% year-over-year to
1,701.
- Dollar-based net retention rate at the end of March 31, 2022,
was 126% compared to 118% at the end of March 31, 2021.
- Amplitude hired Lambert Walsh as the company’s first Chief
Customer Officer.
- Amplitude was named by Fast Company as #3 in the top most
innovative enterprise companies.
- Amplitude’s Digital Optimization System launched in AWS
Marketplace.
- The G2 Spring 2022 Report ranked Amplitude as the #1 Product
Analytics solution for the seventh quarter in a row and #1 in
Mobile Analytics.
Financial Outlook:
The second 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 second quarter and full year 2022, the Company
expects:
Second Quarter 2022
Full Year 2022
Revenue
$54.5 - $55.5 million
$229 - $235 million
Non-GAAP Operating Margin
(24%) - (23%)
(20%) - (19%)
Non-GAAP Net Loss Per Share
$(0.12) - $(0.11)
$(0.41) - $(0.39)
Weighted Average Shares Outstanding
111.6 million
112.6 million
An outlook for GAAP loss from operations, GAAP operating margin,
and 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 first quarter ended March 31, 2022, as
well as the financial outlook for its second 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 second quarter of 2022 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. 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 direct listing costs. 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 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 the pioneer in digital optimization software. More
than 1,700 customers, including Atlassian, Instacart, NBCUniversal,
Shopify, and Under Armour rely on Amplitude to help them innovate
faster and smarter by answering the strategic question: "How do our
digital products drive our business?" The Amplitude Digital
Optimization System makes critical data accessible and actionable
to every team — unifying product, marketing, developers, and
executive teams around a new depth of customer understanding and
common visibility into what drives business outcomes. Amplitude is
the best-in-class product analytics solution, ranked #1 in G2’s
2022 Spring Report. Learn how to optimize your digital products and
business at amplitude.com.
AMPLITUDE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) (unaudited) March 31,
2022 December 31, 2021 Assets Current assets: Cash and
cash equivalents
$
300,422
$
307,445
Accounts receivable, net
23,273
20,444
Prepaid expenses and other current assets
21,577
19,116
Deferred commissions, current
8,876
8,112
Total current assets
354,148
355,117
Property and equipment, net
6,235
4,832
Intangible assets, net
3,065
3,554
Goodwill
4,073
4,073
Restricted cash, noncurrent
850
850
Deferred commissions, noncurrent
22,199
20,573
Operating lease right-of-use assets
11,398
—
Other noncurrent assets
12,225
11,389
Total assets
$
414,193
$
400,388
Liabilities and Stockholders' Equity Current liabilities: Accounts
payable
$
2,035
$
3,363
Accrued expenses
22,697
17,936
Deferred revenue
75,137
69,294
Total current liabilities
99,869
90,593
Operating lease liabilities, noncurrent
9,632
—
Noncurrent liabilities
1,843
3,247
Total liabilities
111,344
93,840
Stockholders’ equity: Common stock
1
1
Additional paid-in capital
504,859
486,354
Accumulated deficit
(202,011
)
(179,807
)
Total stockholders’ equity
302,849
306,548
Total liabilities and stockholders’ equity
$
414,193
$
400,388
AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts)
(unaudited) Three Months Ended March 31,
2022
2021
Revenue
$
53,065
$
33,110
Cost of revenue (1)
16,063
10,255
Gross profit
37,002
22,855
Operating expenses: Research and development (1)
16,501
6,985
Sales and marketing (1)
28,130
16,770
General and administrative (1)
14,362
5,249
Total operating expenses
58,993
29,004
Loss from operations
(21,991
)
(6,149
)
Other income (expense), net
86
(12
)
Loss before provision for income taxes
(21,905
)
(6,161
)
Provision for income taxes
315
278
Net loss
$
(22,220
)
$
(6,439
)
Net loss per share Basic and diluted
$
(0.20
)
$
(0.23
)
Weighted-average shares used in calculating net loss per share:
Basic and diluted
109,553
27,926
(1) Amounts include stock-based compensation expense as
follows:
Three Months Ended March 31,
2022
2021
Cost of revenue
$
922
$
236
Research and development
4,284
910
Sales and marketing
3,240
823
General and administrative
5,057
608
Total stock-based compensation expense
$
13,503
$
2,577
AMPLITUDE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands) (unaudited) Three Months
Ended March 31,
2022
2021
Cash flows from operating activities: Net loss
$
(22,220
)
$
(6,439
)
Adjustments to reconcile net loss to net cash used in operating
activities Depreciation and amortization
901
541
Stock-based compensation expense
13,503
2,577
Other
118
231
Non-cash operating lease costs
809
—
Changes in operating assets and liabilities: Accounts receivable
(2,905
)
2,126
Prepaid expenses and other current assets
(2,460
)
(2,251
)
Deferred commissions
(2,391
)
(1,269
)
Other noncurrent assets
(836
)
(1,316
)
Accounts payable
(1,328
)
(1,555
)
Accrued expenses
2,946
(737
)
Deferred revenue
5,843
7,630
Operating lease liabilities
(269
)
-
Net cash used in operating activities
(8,289
)
(462
)
Cash flows from investing activities: Purchase of property and
equipment
(713
)
(250
)
Capitalization of internal-use software costs
(594
)
(381
)
Net cash used in investing activities
(1,307
)
(631
)
Cash flows from financing activities: Proceeds from the exercise of
stock options
3,989
2,018
Cash received for tax withholding obligations on equity award
settlements
7,342
287
Cash paid for tax withholding obligations on equity award
settlements
(8,758
)
(287
)
Net cash provided by financing activities
2,573
2,018
Net increase (decrease) in cash, cash equivalents, and restricted
cash
(7,023
)
925
Cash, cash equivalents, and restricted cash at beginning of the
period
308,295
118,863
Cash, cash equivalents, and restricted cash at end of the period
$
301,272
$
119,788
AMPLITUDE, INC. Reconciliation of GAAP to Non-GAAP
Data (In thousands, except percentages and per share
amounts) (unaudited) Three Months Ended March 31,
2022
2021
Reconciliation of gross profit and gross margin GAAP gross
profit
$
37,002
$
22,855
Plus: stock-based compensation expense and related employer payroll
taxes
922
236
Plus: amortization of acquired intangible assets
489
222
Non-GAAP gross profit
$
38,413
$
23,313
GAAP gross margin
69.7
%
69.0
%
Non-GAAP adjustments
2.7
%
1.4
%
Non-GAAP gross margin
72.4
%
70.4
%
Reconciliation of operating expenses GAAP research and
development
$
16,501
$
6,985
Less: stock-based compensation expense and related employer payroll
taxes
(4,482
)
(933
)
Non-GAAP research and development
$
12,019
$
6,052
GAAP research and development as percentage of revenue
31.1
%
21.1
%
Non-GAAP research and development as percentage of revenue
22.6
%
18.3
%
GAAP sales and marketing
$
28,130
$
16,770
Less: stock-based compensation expense and related employer payroll
taxes
(3,233
)
(839
)
Non-GAAP sales and marketing
$
24,897
$
15,931
GAAP sales and marketing as percentage of revenue
53.0
%
50.6
%
Non-GAAP sales and marketing as percentage of revenue
46.9
%
48.1
%
GAAP general and administrative
$
14,362
$
5,249
Less: stock-based compensation expense and related employer payroll
taxes
(5,140
)
(620
)
Less: direct listing expenses
—
(53
)
Non-GAAP general and administrative
$
9,222
$
4,576
GAAP general and administrative as percentage of revenue
27.1
%
15.9
%
Non-GAAP general and administrative as percentage of revenue
17.4
%
13.8
%
Reconciliation of operating loss and operating margin GAAP
loss from operations
$
(21,991
)
$
(6,149
)
Plus: stock-based compensation expense and related employer payroll
taxes
13,776
2,628
Plus: amortization of acquired intangible assets
489
222
Plus: direct listing expenses
—
53
Non-GAAP loss from operations
$
(7,726
)
$
(3,246
)
GAAP operating margin
(41.4
%)
(18.6
%)
Non-GAAP adjustments
26.9
%
8.8
%
Non-GAAP operating margin
(14.6
%)
(9.8
%)
Reconciliation of net loss GAAP net loss
$
(22,220
)
$
(6,439
)
Plus: stock-based compensation expense and related employer payroll
taxes
13,776
2,628
Plus: amortization of acquired intangible assets
489
222
Plus: direct listing expenses
—
53
Non-GAAP net loss
$
(7,955
)
$
(3,536
)
Reconciliation of net loss per share GAAP net loss per
share, basic and diluted
$
(0.20
)
$
(0.23
)
Non-GAAP adjustments to net loss
0.13
0.10
Non-GAAP net loss per share, basic and diluted
$
(0.07
)
$
(0.13
)
Weighted-average shares used in GAAP and non-GAAP per share
calculation, basic and diluted
109,553
27,926
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 March 31,
2022
2021
Net cash used in operating activities
$
(8,289
)
$
(462
)
Less: Purchases of property and equipment
(713
)
(250
)
Capitalization of internal-use software costs
(594
)
(381
)
Free cash flow
$
(9,596
)
$
(1,093
)
Net cash used in operating activities margin
(15.6
%)
(1.4
%)
Non-GAAP adjustments
(2.5
%)
(1.9
%)
Free cash flow margin
(18.1
%)
(3.3
%)
Note: Certain figures may not sum due to rounding
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220503006408/en/
Investor Relations Willa McManmon ir@amplitude.com
Communications Darah Easton press@amplitude.com
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