UPDATED 21:06 EDT / AUGUST 03 2022

BIG DATA

Amplitude shows strong revenue growth and beats Wall Street’s expectations

Behavior tracking software firm Amplitude Inc. reported strong second-quarter results today that surpassed Wall Street’s expectations.

It also offered some encouraging guidance for the next quarter, but its stock didn’t move much, having made impressive gains earlier in the day.

The company reported a loss before certain costs such as stock compensation of eight cents per share on sales of $58.1 million, up 48% from a year earlier. Overall, Amplitude delivered a net loss of $24.5 million. The numbers were better than expected, with Wall Street looking for a bigger loss of 12 cents per share on lower sales of $55.2 million.

Amplitude’s stock dipped less than a percentage point on the report, having increased by more than 8% during the regular trading session.

Amplitude is the provider of a useful software suite that enterprises can use to track and analyze customer interactions with digital products and services. The software is popular with product managers, since it provides insights that guide them in adding and fine-tuning new functionality to their offerings, based on how customers interact with them.

What’s really useful about Amplitude’s software is that it doesn’t stop at analytics. It also provides recommendations on what kinds of new features to add to digital products. Further, it provides a way for product teams to experiment with new feature implementations.

Amplitude co-founder and Chief Executive Spenser Skates (pictured) said his company delivered a “great quarter of execution.” “We want to help every company build better products through data,” Skates said. “Our focus is on driving sustainable growth against our large and growing market opportunity. We believe that now, more than ever, companies need Amplitude to drive growth and revenue in today’s uncertain environment.”

It’s a belief that many enterprises share, if Amplitude’s results are any kind of measure. The company reported current remaining performance obligations of $170.2 million at the end of the quarter, up 46% from a year earlier. RPO is a key growth metric that refers to the sum of its deferred revenue and backlog.

Amplitude also did well on the customer acquisition front. It said it ended the quarter with 1,836 paying customers, up 43% from a year earlier. Meanwhile, Amplitude’s dollar-based net retention rate, which measures its ability to retain its existing customer base, was 126%, up from 119% in the same period one year ago.

Holger Mueller of Constellation Research Inc. said that as enterprises become digital they need to manage and optimize that side of their products, and this is why Amplitude’s business is growing almost 50%>

“Unfortunately the costs are up even more than revenue, but the good news is that the bulk of that increase went on R&D,” Mueller said “This is good because Amplitude needs to keep investing in this new and dynamic market. Investors will be happy to hear that team around Spencer Skates plans to deliver better results for Q3 and the rest of the FY.”

Amplitude had a busy quarter on the product front, announcing the launch of its new Amplitude Customer Data Platform, which does away with the need to integrate with third-party analytics services. Instead, Amplitude CDP can collect and analyze the data gathered by its main product analytics platform to aid with data-driven decision-making.

In addition to that release, the company announced a new data-sharing integration with Snowflake Inc.’s Data Cloud platform. With the integration, Amplitude said, joint customers have greater flexibility to unlock insights into customer behavior without needing to export data from Snowflake first.

Amplitude believes its efforts on the product front can drive further growth as it moves forward. For the third quarter, the company said it’s anticipating a loss of between seven and eight cents per share on revenue of $59.5 million to $60.5 million. That’s just ahead of Wall Street’s consensus estimate of a 10-cent loss on sales of $59.5 million.

Amplitude also raised its full-year guidance. It said it now expects a loss of 34 to 36 cents per share, with revenue of between $232 million and $236 million. That’s up from an earlier estimate of a 42- to 44-cent loss on sales of $226 million to $234 million. Wall Street is looking for a full-year loss of 40 cents per share on revenue of $232.4 million.

Photo: Amplitude/YouTube

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU