On August 8, 2024, Amplitude Inc (AMPL, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Amplitude Inc is a software company that provides a digital analytics platform to help companies analyze customer behavior within digital products. The company operates on a software-as-a-service (SaaS) model, generating revenue primarily through subscriptions.
Performance Overview
Amplitude Inc reported a second-quarter revenue of $73.3 million, surpassing the analyst estimate of $71.96 million. This represents an 8% year-over-year increase from $67.8 million in Q2 2023. However, the company reported a GAAP net loss per share of $0.19, which is a slight improvement from the $0.24 loss per share in the same quarter last year but missed the analyst estimate of -$0.17.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Y/Y Change |
|---|---|---|---|
| Annual Recurring Revenue | $290 million | $268 million | 8% |
| Revenue | $73.3 million | $67.8 million | 8% |
| GAAP Loss from Operations | $(27.2) million | $(30.9) million | $3.7 million |
| Non-GAAP Income (Loss) from Operations | $(3.7) million | $(0.8) million | $(2.9) million |
| GAAP Net Loss Per Share | $(0.19) | $(0.24) | $0.05 |
| Non-GAAP Net Income (Loss) Per Share | $(0.00) | $0.02 | $(0.02) |
| Cash Flow from Operations | $9.2 million | $20.4 million | $(11.2) million |
| Free Cash Flow | $6.8 million | $19.3 million | $(12.5) million |
Challenges and Achievements
Despite the revenue growth, Amplitude Inc faced challenges with its free cash flow, which decreased by 19 percentage points year-over-year. The company also reported a decrease in cash flow from operations, down to $9.2 million from $20.4 million in Q2 2023. These declines highlight potential liquidity issues that could impact future investments and operational flexibility.
On the positive side, the number of paying customers grew by 38% year-over-year to 3,224, and the number of customers representing $100,000 or more of annual recurring revenue (ARR) increased by 10% to 547. These metrics indicate strong customer acquisition and retention, which are crucial for sustaining long-term growth in the SaaS industry.
Income Statement Highlights
Amplitude Inc's gross profit for Q2 2024 was $53.8 million, up from $50.6 million in Q2 2023. However, operating expenses remained high at $81.0 million, leading to a loss from operations of $27.2 million. The company also reported a net loss of $23.4 million, an improvement from the $27.8 million loss in the same quarter last year.
Balance Sheet and Cash Flow
As of June 30, 2024, Amplitude Inc had total assets of $445.4 million, up from $433.7 million at the end of 2023. The company's cash and cash equivalents stood at $282.3 million, providing a solid liquidity buffer. However, the decrease in free cash flow and cash flow from operations could pose challenges if not addressed in future quarters.
Commentary
Today, companies win or lose based on their digital experience," said Spenser Skates, CEO and co-founder of Amplitude. "Understanding your customers is the key to building better experiences, and that's why companies across almost every industry rely on Amplitude. Our platform approach is differentiated, customers are finding value quickly, and we've never been better positioned to win in the long term."
Analysis
Amplitude Inc's Q2 2024 results show a mixed performance. While the company exceeded revenue expectations and improved its net loss per share, challenges in cash flow and operational expenses remain. The growth in paying customers and high-value accounts is a positive indicator of the company's market position and potential for future growth. However, the decline in free cash flow and cash flow from operations could impact the company's ability to invest in new initiatives and maintain its competitive edge.
Investors should monitor these financial metrics closely in the coming quarters to assess whether Amplitude Inc can sustain its growth trajectory while addressing its liquidity challenges.
Explore the complete 8-K earnings release (here) from Amplitude Inc for further details.
