Earnings call transcript: Amplitude Q2 2025 sees revenue rise, stock steady

Amplitude Inc. (AMPL), a digital analytics company with a market capitalization of $1.6 billion, reported its earnings for the second quarter of 2025, revealing a robust revenue increase and steady earnings per share (EPS) that met analyst expectations. Despite a slight dip in stock price, the company’s solid financial performance and strategic advancements in AI technology were highlighted. Revenue reached $83.3 million, surpassing forecasts, while EPS remained steady at $0.01. The stock closed at $12.22, reflecting a minor decline of 0.08%, though it has gained an impressive 15.8% year-to-date.

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Key Takeaways

• Revenue climbed 14% year-over-year to $83.3 million, exceeding forecasts.
• EPS was in line with expectations at $0.01.
• Stock price showed a slight decrease of 0.08% in aftermarket trading.
• Strategic focus on AI and enterprise sales is driving growth.
• Guidance for Q3 2025 projects continued revenue growth.

Company Performance

Amplitude demonstrated strong performance in Q2 2025, with revenue increasing by 14% compared to the same quarter last year. The company’s focus on AI-driven solutions and enterprise sales strategies has bolstered its market position. The digital analytics market is evolving, and Amplitude’s innovations in AI, such as the launch of AI Agents in closed beta and the acquisition of three AI-focused companies, have set it apart from competitors.

Financial Highlights

• Revenue: $83.3 million, a 14% increase year-over-year
• Earnings per share: $0.01, meeting analyst expectations
• Annual Recurring Revenue (ARR): $335 million, up 16% year-over-year
• Free Cash Flow: $18.2 million, representing 22% of revenue
• Dollar-Based Net Retention Rate: 104%, up from 101% last quarter

Earnings vs. Forecast

Amplitude’s actual revenue of $83.3 million surpassed the forecasted $81.32 million, marking a revenue surprise of 2.43%. The EPS of $0.01 was precisely in line with expectations, resulting in no earnings surprise. This consistency reflects Amplitude’s stable financial management and strategic execution.

Market Reaction

Following the earnings announcement, Amplitude’s stock experienced a slight decline of 0.08%, closing at $12.22 in aftermarket trading. With a beta of 1.55, the stock tends to show higher volatility than the broader market. Analyst price targets range from $11 to $16, suggesting potential upside opportunities. The stock has shown resilience amidst broader market trends and remains a strong contender in its sector, having delivered a remarkable 57% return over the past year.

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Outlook & Guidance

Looking ahead, Amplitude provided guidance for Q3 2025, anticipating revenue between $85 and $87 million, which would represent a 14% annual growth. The company also reaffirmed its full-year 2025 revenue guidance of $335.2 to $338.2 million. Amplitude’s strategic focus on AI innovation and platform expansion is expected to drive future growth.

Executive Commentary

CEO Spencer emphasized the significance of AI, stating, "2025 is the year of the platform." The CEO also highlighted Amplitude’s unique position in the digital analytics space, asserting, "We believe Amplitude is the only company in digital analytics doing anything meaningful with AI today." CFO Andrew Casey shared long-term aspirations, noting, "Our long-term aspirations are certainly that we’re above 115% in NRR."

Risks and Challenges

• Market Competition: Increasing competition from established players and new entrants in the digital analytics space.
• Technological Integration: Challenges in integrating new AI technologies and acquisitions.
• Economic Conditions: Potential impact of macroeconomic factors on customer spending.
• Customer Retention: Maintaining and improving the dollar-based net retention rate.
• Regulatory Changes: Navigating evolving regulations in data privacy and AI usage.

Q&A

During the earnings call, analysts inquired about the monetization strategy for AI agents, improvements in sales efficiency, and upsell opportunities within the platform. Executives detailed the progress in enterprise sales motion and highlighted the potential for future growth through strategic customer engagements.

Overall, Amplitude’s Q2 2025 earnings report showcases a company that is effectively leveraging its strengths in AI and enterprise sales to achieve steady growth. While the market reaction was muted, the company’s strategic initiatives and solid financial performance suggest a positive outlook for the future.

Full transcript - Amplitude Inc (AMPL) Q2 2025:

John, Moderator/Operator, Amplitude: Amplitude and Andrew Casey, chief financial officer. During today’s call, management will make forward looking statements, including statements regarding our financial outlook for the third quarter and full year 2025, the expected performance of our products, our expected quarterly and long term growth investments, and our overall future prospects. These forward looking statements are based on current information, assumptions, and expectations and are subject to risks and uncertainties, some of which are beyond our control that could cause actual results to differ materially from those described in these statements. Further information on the risks that could cause actual results to differ is included in our filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward looking statements, and we assume no obligation to update these statements after today’s call except as required by law.

Certain financial measures used on today’s call are expressed on a non GAAP basis. We use these non GAAP financial measures to internally facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. These non GAAP financial measures have limitations and should not be used in isolation from or as a substitute for financial information prepared in accordance with GAAP. Additional information regarding these non GAAP financial measures and reconciliation between these GAAP and non GAAP financial measures are included in our earnings press release and the supplemental financial information, which can be found on our investor relations website at investors.amplitude.com. With that, I’ll hand the call over to Spencer.

Spencer, CEO, Amplitude: Thanks, John. Good afternoon, everyone, and welcome to Amplitude’s second quarter twenty twenty five earnings call. Today, I’ll cover three things. First, our strong q two results and momentum in the enterprise. Second, our platform strategy and how we are expanding through acquisition.

Third, product innovation, AI developments, and a spotlight on our customers. Let’s start with q two results. Our second quarter revenue was 83,300,000.0, up 14% year over year and exceeding the high end of our guidance. Annual recurring revenue was 335,000,000, up 16% year over year and up 15,000,000 from last quarter. We saw our highest net new ARR in 11.

Non GAAP operating loss was 1,500,000.0. Customers with more than 100 k in ARR grew to 634, an increase of 16% year over year. In addition to these results, our multiproduct attach rates continue to grow as customers choose Amplitude as their end to end platform. 67% of ARR now comes from multiproduct customers, up from 64 last quarter. 2025 is the year of the platform.

Every company needs three things, trusted data on their customers, insights on that data, and ways to take action on those insights. Amplitude delivers all three in a single platform. In q two, we saw dozens of new enterprise customers come on board and many existing customers expand their Amplitude footprint. We also saw more traction with marketing teams after announcing a new suite of marketing capabilities in May. We continue to win against legacy vendors and point solutions as companies look to simplify their tech stacks.

This is what drove a record level of multiproduct ARR. We’ve been deliberately focusing on the enterprise, and the progress this quarter is the result of that work. Many of the deals we closed this quarter were years in the making and required multiple steps, including hiring the right reps, building the right named account strategy, finding the right solution fit, instrumenting value, closing the deal, and driving impact for customers. Let’s shift to product innovation. I have spent a lot of time transforming the Amplitude team to become AI native.

Back in June, we ran a week of AI training for the product development team. Then in July, we hosted a week long hackathon focused on building AI products. I’m gonna demo some of the outputs from this shortly. We are also leveraging m and a to become AI native and expand the platform, and our acquisition of Command AI late last year is a great example. We acquired the company in October 2024, launched guides and surveys four months later, and today, it has the fastest adoption curve of any product in Amplitude’s history.

Command AI had a mature product backed by an exceptional team. Many individuals from that team are now leading our efforts on AI agents and other AI products. We continue to use m and a and talent acquisitions to expand our platform and bring great talent into Amplitude. Over the past two months, we’ve added three exceptional teams. First, we acquired Craftful, an AI native voice of the customer startup turning unstructured feedback such as support tickets, app reviews, and customer calls into actionable insights.

I’ve admired Yana and Craftful for years, and I’m excited I get the opportunity to work with her and the Craftful team to give customers a complete view of the user experience. Craftful works with tens of thousands of product builders, and many Amplitude customers have been asking for voice of the customer insights. We’re integrating Craftful’s proprietary AI analysis into our platform. Second, we acquired the Inari team, an AI startup focused on surfacing insights from unstructured data using LLMs. The founders, Frank Lee and Eric Kim, bring deep expertise in implied AI.

They have joined our AI agents team and are already working to accelerate a road map, which I’ll demo for you shortly. Finally, we acquired the founders of June, a start up that built a distinct product, brand, and a thriving community around simplifying product analytics. Two years ago, they created the first product analytics tool to integrate LLMs for generating insights in natural language. The founders, Enzo Avigo and Ferruccio Balestre, bring a product first philosophy that inspired our thinking for Amplitude Made Easy last year. Now that we’re working together, we’re excited to leverage their expertise to simplify digital analytics while developing the next generation of agent driven experiences.

Now let me share with you what we’re building. On June 10, we announced the beta program for Amplitude’s AI agents. With our agents, what once took Teams weeks can now take one person minutes. That changes how product, marketing, and data teams build, ship, and learn. LLMs allow AI agents to quickly combine taxonomy data, watch south thousands of session replays, generate insights, and then make suggestions for product changes on your behalf.

That makes them great product analysts. The potential benefits of agents are huge. As an example, it normally takes Amplitude about a month to optimize a website conversion workflow from idea generation and experimentation to engineering and launch. With an Amplitude AI agent, the same workflow now takes less than one day. I wanna show you Amplitude AI agents in action with the demo.

When we launch later this year, our customers will be able to leverage ready to use templates focused on popular use cases like optimizing convert version flows and analyzing session replays. The first agent I wanna show you is focused on optimizing website conversions. I’m gonna select an event for the agent to optimize. I’m gonna choose CTA clicked and then create the agent. The agent will then think and come up with a plan on improving CTAs clicked.

As part of this, the agent is identifying which pages are highly correlated with CTAs clicks and is then presenting them as different options. Gone ahead and selected the pricing page since it’s one of our highest converting pages. The agent is now analyzing recent events and session replays tied to the pricing page. The agent has identified that buyers are running into dead clicks while interacting with pricing plan headers. The agent takes that learning, contextualize it with Amplitude events and best practices, and brainstorms three new strategies for me to review.

One of the strategies the agent recommends is making the pricing plan headers animated and clickable based on the session replay learning. So let’s go ahead and explore that strategy. The agent is creating new variants based on this strategy and is now live generating code for potential strategies we can preview in our experiment visual editor. I’m gonna go ahead and take a look at this first variant here. In this, the agent added a hover effect to the pricing plan sections and made them clickable, which optimizes for CTAs clicked.

I can review, edit, and approve this variant before deploying a new experiment. To summarize, our agent identified issues with pricing page conversion, recommended a strategy for solving it, and then created a new page that improves the experience. In addition, we’re also building agents that focus on insights. These are always on analysts that perform hundreds of analyses and automatically surface insights with minimal human work. To do this, let’s go ahead and create a dashboard monitoring agent.

With the dashboard monitoring agent, customers can select a few dashboards they’ve created on Amplitude and have the agent surface top themes on a weekly basis and then run root cause analysis that explains major changes. I’ve created the agent, and it analyzes every chart across each dashboard that I have assigned to it and then surfaces the top insights. In one of these takeaways, you look at the second one here on the page, the agent identified 71% of testers create agents, 60% generate strategies and new variants, while only 6% have directly deployed in action. With the dashboard agent, customers have unlimited resources to monitor analytics. This saves analysts tons of times and then covers lots of insights they wouldn’t have found otherwise.

Since our announcement in June, we have received a huge amount of customer interest. Customers in the beta have been blown away by what our agents can do. On an onboarding call, the product analytics lead at HotSinger stopped us mid demo and said, if this actually runs an experiment, wow. That is amazing. The cofounder at Resume called our session replay agent a home run, and the product owner at Global Radio said his team was already meeting about how to put our agents’ recommendations into action.

We believe Amplitude is the only company in digital analytics doing anything meaningful with AI today. We have the most complete digital analytics platform, and we are out executing everyone else with elite talent. I wanna show you one more example. We are also helping companies with AI transformation in other ways. Companies want to know how they rank on LLMs, so we’re building LLM brand analytics to answer this question.

I’m gonna show you a demo of how this works. With Amplitude, customers will be able to quickly understand how AI is talking about their brand. They can understand the types of queries and prompts that lead to be being mentioned by LLMs. You look here. The bar on the right indicates what percentage of queries Amplitude shows up in.

Here, we can see that we rank well in behavioral analytics and digital product analytics. We can go deeper by looking at more specific prompts. Let’s take a look at analytics for marketers. You can see what percentage of the time we show up for each prompt and what our rank is in the prompt on the right. For example, when prompting for alternatives for Google Analytics for advanced marketing insights, Amplitude shows up 100% of the time with an average rank of 4.2.

We also get the exact ranking per model on this drop down. For example, we ranked number eight in GPT 4.1 Mini and number two in Gemini 2.5 Flashlight. Customers can also track mentions across various LLM platforms and focus their attention across different models. We can see here that Amplitude ranks quite well with Claude, but we have opportunities for improvement with ChatGPT. We are gonna continue to aggressively innovate.

This has been a breakout quarter with industry analysts. Last week, the 2025 Forrester Wave for digital analytics solutions was published for the first time. Of the 10 vendors evaluated, Amplitude was named both a leader and a customer favorite. We we received the highest current offering score of any vendor in the report and the highest score possible across 21 criteria. The Forrester report shared that Amplitude is ideal for product led organizations where product and marketing teams need close alignment and ease of use is a priority.

It also recognized our agentic AI capabilities, intuitive interface, and compelling road map. Most importantly, the Forrester evaluation shared that customers praise Amplitude’s collaborative partner like approach. We are not just a better analytics tool. We’re invested in our customers’ long term success. This is a testament to our platform strategy and the momentum we’re seeing as a business.

Amplitude also ranked number one in eight categories in g two summer twenty twenty five report, including the top spot in product analytics for the twentieth quarter in a row. This recognition positions Amplitude as a clear market leader, setting us apart from legacy vendors and point solutions. We had a great quarter for new and expansion deals with enterprise customers, including Microsoft, Twilio, Redis, Telenor Denmark, Viator, chess.com, GoFundMe, Landmark Group, and Mucinza. I’m gonna highlight a few. Viator, a TripAdvisor company for booking travel experiences, partnered with Amplitude to accelerate product innovation and foster a culture of data driven decision making.

With Amplitude, Viator has increased its speed to insight and pace of experimentation. Amplitude’s self-service analytics has enabled the Viator team to quickly optimize experience, surface bugs faster, and improve interface performance, unlocking a 15 x ROI in just one year. Now Viator is expanding with session replay combining behavioral data with visual context to further reduce friction in the traveler journey. With the Amplitude platform at its center, Viator is building faster, smarter, and more personalized experiences to help travelers around the world plan unforgettable trips. Telenor Denmark, part of one of The Nordic’s largest telecom groups, turned to Amplitude to power a full transformation of its marketing analytics stack.

Replacing a legacy toolset, Telenor chose Amplitude for the unified platform approach and the ability to blend both web analytics with activation capabilities. Telenor’s investment in Amplitude is part of its long term vision to consolidate analytics, experimentation, and activation within a single ecosystem. Centered on behavioral analytics and the capability to scale, Telenor is working on modernizing its marketing ecosystem to drive greater personalization. Lastly, we are now working with a leading North American title insurance provider as they transform how digital products are built for consumers and brokers. Facing a patchwork of disparate tools and siloed teams, they turn to Amplitude to help unify their approach.

Today, they’re using analytics, experiment, guides and surveys, and session replay to give product teams shared visibility and control. By consolidating onto the Amplitude platform, they can now analyze behavior, test improvements, and drive revenue through better usability, accelerating innovation within a traditionally slow moving industry. Q two was a strong quarter for Amplitude. It reflects our years of work refocusing the company on the enterprise and on our strategy to expand the platform. We believe our most recent efforts to rearchitect Amplitude to be AI native will accelerate the strategy and drive success in the years ahead.

While I’m proud of the team’s achievements, we are just at the start. We are still early in our opportunity, and we will continue to execute against the plan we’ve laid out. Now I’d like to turn it over to Andrew to walk you through the financials.

Andrew Casey, Chief Financial Officer, Amplitude: Thank you, Spencer, and good afternoon, everyone. The second quarter was another quarter of focused execution, ARR growth acceleration, and building on our strategy. Over the past two years, we’ve created a comprehensive platform, improved our internal workflows, and driven growth with leverage. We believe we are on the right track. The work is not finished.

We have made progress, and it gives us confidence that our goal for future acceleration. In q two, we grew our ending ARR 16% year over year compared to 12% last quarter and 8% a year ago. We’ve increased our dollar based net retention to 104 compared to 101% last quarter and a low in the second quarter last year of 96%. We increased our free cash flow margin to 22% for the quarter and have generated 8,900,000.0 in free cash flow during the six months ended 06/30/2025 compared to 5,700,000.0 over the same six months last year. In March, we shared our path to acceleration, emphasizing our focus on enterprise customers and expanding our platform capabilities.

In the second quarter, we continued to deliver on these goals by increasing sales productivity and the with the introduction of new products to our platform. On the go to market side, we believe we continue to improve our enterprise land, expand, and retain motion. We had a strong quarter of expansions, which was largely driven by our platform deals in the enterprise. This drove our dollar based net retention up three points sequentially. Turning to our platform.

Customers with more than one product accounted for 67% of our total ARR, up from 64% last quarter and 55% in the second quarter last year. Our ability to expand our contracts over the past three quarters has largely been driven by platform upsells, while we overcame headwinds from contract downsells based on volume. However, the growth of data being ingested into our platform has grown 20% year over year. And as we get past the headwind of rightsizing our contracts, we believe we can monetize both upsell and cross sell opportunities to drive further acceleration. We’re creating a more durable business.

This is evidenced by creating greater visibility into our future revenue streams and building in a profitable way. As of 06/30/2025, our RPO growth accelerated to 31% year over year compared to 11% in the same quarter last year. Our current RPO is now growing 20% year over year, up from only 8% in the second quarter last year. We believe this is the culmination of the work putting focus on the right customers with the right alignment to value. As we work toward building a more durable revenue stream, we believe innovation is the base of our future growth.

Over the past two years, we have invested in tying our platform together to create more value when used together. We will continue to invest in our platform approach where customers can create their own workflows on top of our platform and become the center of how our customers understand and interact with their customers. We’re confident in our strategy as a platform of choice for customers looking to consolidate spend across vendors and believe that we’re in a good position to accelerate our growth without meaningful improvement or clarity in the macro environment. Now turning to our second quarter results. As a reminder, all financial results that I will be discussing, with the exception of revenue, are non GAAP.

Our GAAP financial results, along with a reconciliation between GAAP and non GAAP results, can be found on our earnings press release and supplemental financials on the Investor Relations page. Second quarter revenue was $83,300,000 up 14% year over year and 4% quarter over quarter. Total ARR increased to $335,000,000 exiting the second quarter, an increase of 16% year over year and 15,000,000 sequentially, the highest net new ARR add we’ve had in eleven quarters. Now here are more details on the elements of the quarter. We had a strong platform expansion sale, especially replacing legacy EventPoint solutions.

The number of customers representing 100,000 or more of ARR in Q2 grew to 634, an increase of 16% year over year and up 17 since the first quarter. In period NRR was 104%, a three point increase sequentially led by large cross sell expansions. We expect to make continued improvement in retention and enterprise expansions, which should drive sequential improvements in the second half twenty twenty five. Gross margin was 75% for the second quarter, down one point from the 2024. Gross margin was impacted by increased data ingestion costs, higher amortization of software development costs, and an investment in professional services.

Investment in professional services is the foundation to build our long term partner strategy and will act as an offset of future potential services expenses as we accelerate ARR. We believe increased data ingestion and professional services costs are a prelude to future revenues, so there is no change to our long term focus of increasing gross Sales and marketing expenses were 44% of revenue, a decrease of 4%, four points from the second quarter last year, but up sequentially on a dollar basis. We continue to focus on improving sales efficiencies, driving improvement through our changes in process, coverage and expansion of our enterprise customers. G and A was 14% of revenue, down one point from the 2024. We expect G and A to improve as a percentage of revenue over time.

R and D was 18% of revenue, up one point in the 2024. We expect to continue to invest in the talent and capabilities of our team to drive greater innovation in the future. We expect to continue to attract talent through both recurring recruiting as well as opportunistic corporate activity similar to what we did with Craftful, June, and Inari. Total operating expenses were 64,000,000, 76% of revenue, down three points sequentially. Operating loss was a negative 1,500,000.0 or 1.8% of revenue.

Net income per share was 1¢ based upon 140,200,000.0 diluted shares compared to a net loss per share zero with 122,600,000.0 basic shares a year ago. Free cash flow in the quarter was 18,200,000.0 or 22% of revenue compared to 6,800,000.0 or 9% of revenue during the same period last year. In the second quarter, we managed our cash collections very well and made meaningful progress on shifting to contracts with annual payments in advance. Now turning to our outlook. While we believe we continue to accelerate our business, we will look for ways to be even more efficient in the future.

We have built our business to be more resilient. We believe through both our product positioning as a platform of choice when customers are looking to consolidate spend and by focusing on operational excellence, we have oriented the business for positive free cash flow and non GAAP profitability. We continue to operate our business with a focus on investing in areas that we see real return with ROI for our customers. We built our guidance based on what we believe is achievable from our actions and positioning in an evolving market. We believe we will continue to make progress attracting new enterprise customers.

As we begin to lap our churn and down sell cohorts, we believe we’ll continue to expand through both upsell and cross sell. While we showed strength on net new AR in the second quarter, we expect third quarter to be down slightly from a net new perspective, but our year over year growth rate should continue to accelerate slightly. Lastly, we are building a durable growth business that will balance incremental investment with the opportunity to create future growth opportunities. So for the third quarter twenty twenty five, we expect revenue to be between 85 and 87,000,000, representing an annual growth rate of 14% at the midpoint. We expect non GAAP operating income to be be between a negative 2,000,000 and positive 1,000,000.

And we expect non GAAP net income per share to be between negative 0¢ and positive 2¢, assuming basic weighted average shares outstanding of approximately 133,400,000.0 and diluted weighted average shares outstanding of 144,300,000.0 respectively. For the full year of 2025, we are raising our revenue expectation due to the quarter’s positive performance. We expect full year revenue to be between 335.2 and 338,200,000.0, an annual growth rate of 12 and a half percent at the midpoint. We are adjusting our range for our full year non GAAP operating income to be between negative $2,000,000 and positive $3,000,000 reflecting growth of investments and taking into account the recent acquisitions we mentioned. We expect non GAAP net income per share to be between zero four dollars and $08 assuming weighted average shares outstanding of approximately 142,800,000.0 as measured on a fully diluted basis.

In closing, I wanna reflect on the journey we’ve been on. In q two twenty twenty four, Amplitude growth rates were declining. Net revenue retention was below 100%, and our strategies to reaccelerate growth are still taking shape. We highlighted that we expected the 2024 to be the low point, but many were skeptical. A year later, our platform is driving consolidation, and we’re increasingly winning new enterprise customers against competitors.

Our growth has accelerated, and we see a continued path towards improved growth with leverage. This has only occurred through the focused execution of our employees and a relentless drive towards creating value for our customers. With that, we’ll open it up for q and a. Over to you, John.

John, Moderator/Operator, Amplitude: Thank you, Andrew. We will now turn to q and a. For the sake of time, please limit yourself to one question and one follow-up. Our first question will come from the line of Rob Oliver at RW Baird, followed by Clark Wright from D. A.

Davidson. Rob, your line is open.

Rob Oliver, Analyst, RW Baird: Great. Thanks, John. Can you guys hear me okay?

John, Moderator/Operator, Amplitude: Loud and clear.

Rob Oliver, Analyst, RW Baird: Okay. Great. Good afternoon. Thank you for very much for taking my questions. I had two.

Spencer, one for you to start. Going back to the command.ai acquisition and through the recent acquisitions you made, it’s evident in the demo. And then with the announcement that you guys had on, AI agents about a month and a half ago, a tremendous amount of project progress on the agentic AI front. I was wondering if you can help frame for us how much the recent acquisitions and the integrations you guys have done helps accelerate Amplitude’s efforts in this regard and, how we should think about that starting to get towards monetizable outcomes for for you guys. And then I had a quick follow-up for Andrew.

Spencer, CEO, Amplitude: Yeah. Yeah. For sure. So on the AI agents, it’s I wanna be clear. It’s early

You saw some amazing demos today, but we’re in the closed beta. We’re gonna be looking at launching this later this year. I think for in terms of the like, the the key part about the agents is it just gives every Amplitude customer a tremendous amount of leverage in terms of getting value out of Amplitude. Right? So it’s always looking over your data to find insights for you.

It’s proposing strategies and ideas for you to experiment on. It’s identifying problems based on session replays. And, like, that already, like, that’s a huge deal. In terms of the monetization, you know, the the thing I’d say there, we’re we aren’t focused I mean, first, we’re not focused on that yet. I think if you look at Amplitude as a whole, we have a really strong ability to price high.

Right? You know, for a company with 335,000,000 ARR, we have over $40,000,000 customers. And so we’ve never had problems commanding a premium value, and so I’m confident with how we’re gonna you know, as long as we’re creating the value, we’ll figure out some way to capture it whether we charge directly for the agents or or otherwise. So but we we aren’t there yet in figuring that out. I think the main thing is to make sure they’re valuable for customers, and, know, you they they create a lot.

I I think what you see in contrast, lot of other SaaS companies have done is they’ve, you know, kinda slapped some very high level, AI, you know, like functionality on top of some existing workflows and then used it to justify a pricing increase, and, like, that to me doesn’t make any sense.

Rob Oliver, Analyst, RW Baird: Got it. Very helpful. Exciting stuff. And then, Andrew, for you, a lot of lot of progress clearly in your time at the company. I guess, would focus in on the sales efficiency side that was evident in the numbers this last quarter.

You would talk about, what sort of continued progress or opportunity you have there on the sales efficiency side while also balancing that need to invest, which I know was reflected in part in the back half of the year, but great progress. Thanks.

Andrew Casey, Chief Financial Officer, Amplitude: Yeah. Thank thank you, Rob. I think it’s always when we were looking at the territories you’ve built, you know, how you’re assigning the right reps to those territories, where we’re seeing progress on the pipeline build that you that you make. The processes, have evolved quite a bit in the sales methodologies. I mean, we shifted much more from a a transactional model to a value oriented sales model, and that’s very evident with some of the big deals we’ve seen that are sold on a platform basis where customers are making multiyear bets with amplitude to go drive huge efficiencies in their operations.

So it’s kind of an iterative thing. You continually look at it and really make sure you’re making the right investments in the right territories to generate the right coverage and pipeline and and constantly looking at your conversion rates. You know, it’s, it’s something that a lot of enterprise software companies is immature they go through, and and Amplitude has done a great job at, coming up that curve. And I my and I’m very pleased with how well, you know, the investments we’ve made in the strategic segments have really started to pay off.

Rob Oliver, Analyst, RW Baird: Helpful. Okay. Thanks, guys. Good to see you. Appreciate

Andrew Casey, Chief Financial Officer, Amplitude: it. Thanks, Rob.

John, Moderator/Operator, Amplitude: Thanks, Rob. Our next question will come from Clark Wright at D. A. Davidson followed by Brent Bracelin at Piper Sandler. Go ahead, Clark.

Rob Oliver, Analyst, RW Baird: Thank you. You know, it’s great to see improvement in in the retention metrics. Love to kind of understand if you can quantify how much of that improvement is is related to the churn dynamic versus how much of the bump is the momentum in in the upselling motion.

Andrew Casey, Chief Financial Officer, Amplitude: I I could take that one. Real think we made really great progress with our platform sales. I mean, you see more and more customers value all the components we’re putting together. In Amplitude, we say one plus one isn’t two. It’s it’s 11.

It’s reflective of the power of the platform as we as customers use those applications together. So when we see these really big cross sells, it’s it’s really driving our NRR. Now having said that, I think that the teams have done a great job as well on getting working through, you know, some really tough, volumetric contract structures we’ve had in the first half, and we’re making great strides on gross retention as well. So it’s on both fronts, but, I have to I have to say that both the the the team understanding how to sell the platform better and the augmentations that our our development team has done to our platform are really driving growth.

Rob Oliver, Analyst, RW Baird: Got it. And then a follow-up if I could here. In terms of just sales enablement, that was a key objective. And just since you’ve gotten to the firm, I’d love to kind of understand maybe a progress report on on where you’ve started versus where you are today.

Andrew Casey, Chief Financial Officer, Amplitude: Look. I I think, it it’s really about a change of mentality that started with, you know, moving into the enterprise and how the enterprise sales process works. It’s refining our funnel dynamics, you know, where we’re making investments so that there’s adequate coverage. It’s about understanding as opportunities go through the funnel, inspecting that, you know, the opportunities are actually progressing towards the close dates that are forecasted, and and reiterating that we expect to see, you know, a ramp in productivity associated with, investments we’re making in specific territories. So all those things, I think you just kinda bring together with a little bit of rigor, and you get better and better outputs.

And I and I think that that’s also one of the reasons why we continue to lean and invest in territories where we see progress. You know, when you see that, you’re getting more pipeline than the the reps that can handle in any given one territory, you start to add more reps. That’s your early signal that, that things are going well.

Rob Oliver, Analyst, RW Baird: Awesome. Appreciate that. Have a good one.

John, Moderator/Operator, Amplitude: Thanks, Clark. Our next question will come from the line of Brent Bracelin from Piper Sandler followed by Elizabeth Porter from Morgan Stanley. Go ahead, Brent.

Brent Bracelin, Analyst, Piper Sandler: Thank you. Lots of signals. Things are going well there here for the for the team. I guess, Andrew, for you, as we think about six consecutive quarters of accelerating CRPO growth. Great to see that, back to 20%.

How much of that is driven by platform attach rates? You talked about 55% going to 67% relative to customer with with one or more products. But I know in the past, renewals, were being downsized. You do you do have a data consumption component. I wondered if that might also start to be either flattening or becoming less of a drag going forward.

So how much of that improvement in CRPO is tied to platform attached versus actually the consumption trends starting to reverse?

Andrew Casey, Chief Financial Officer, Amplitude: So great great question. And I would tell you, it’s it’s kind of a a bit of both. You know, you see both. We have really strong platform upsells and and the sales team understanding and showing customers what their journey is gonna be on the Amplitude platform, how they get more value and customers leaning in and making those investments over multiple years. I think we’ve talked in the past about how increasingly what what enterprise customers want when they’re making these big transformations, maybe in cases of of multiple products that they’ve had to stitch together, they want a longer term value oriented relationship with their with their partners.

And that’s allowed us to increase our contract duration, which, you know, right now, it’s it’s about twenty one months on a dollar based average. And frankly, I would love for that to get closer, you know, above the thirty, months average. And so our sales team knows that. They’re they’re continuing to go have those conversations with enterprise customers. And the one area I think we need to do a little bit better is on renewals.

You know, historically, those those accounts, those those implementations weren’t on multiyear contracts. And and so we’re really pivoting more and more to focus on how do we make sure that the renewals are going there as well. So it’s increasing contract duration, but as you said, and we expect that as we get through some of these big headwinds associated with volumetric contracts that we’re equally gonna see customers wanting to do more and more ingestion into the platform so they can get greater and greater value. And that’s certainly what our postulate was with the acquisition of Craftful. It’s another data element that customers can bring together, which increases the level of data ingestion, which over the long term certainly should drive upsells at a much larger basis than they have in the past.

Brent Bracelin, Analyst, Piper Sandler: Helpful. And as a follow-up for for Spencer here, battle for talent. This is, one of the quadrants that we’re watching here closely. I think it’s gonna dictate between the winners and losers in AI here. You’ve been able to attract talent here, Command AI, Craftful, and Nari.

What’s resonating with these founders to kinda join the Amplitude mission? If you’re doing something right there, we’d love to just double click into what’s resonating with some of these founders that are that are joining the team.

Spencer, CEO, Amplitude: So in all of those cases, we are looking for teams that are aligned to our long term mission. So we’re thinking about how can we take data and use that in different ways to help companies build great products. And Command was a great example where they were leading in the guides and surveys space. We really like the approach, they were they were willing to join, the Amplitude team and have the same impact except in a much broader platform. You know, we’re the leader in digital analytics today, and that’s a really attractive thing for a lot of these teams that have been working for a bunch of years to be able to get access to that customer base and that level of impact.

You know, and frankly, there’s there’s something to be said to just working with other people who are just really passionate about the the same mission. Yeah. I know it sounds so basic, but, you know, like, you bring kind of enough of them here. I I think it was actually James from the command team that helped lead and bring on and and kind of was the first point of contact to to bring on both Craftful and Ari and the and the folks from June. And so, you know, other great, you know, great people just wanna work with great people.

The other thing the the other part I don’t wanna miss in the in the talent war is that, you know, I mean, frankly, I hate to say it, but we’re a larger company now. We’re 800, you know, 800 or so people. And what I think a lot of larger companies are getting wrong on that is they think, okay, hey, can just hire an AI team that’s like a little bit separate from my core team and just have them go innovate. But the reality is if as AI disrupts every category and every part of the of the product, it’s like, no. No.

No. No. You’re gonna have to redo the core of your product. So like I showed the LLM analytics, you know, customers are now starting to be more interested instead of SEO. They’re thinking about how do I rank highly on LLMs.

And so we had one of our engineers lead that effort. And that wouldn’t have been possible if we hadn’t done the AI week and AI hackathon and retrained a lot of the existing team on these on these new tools. So I I think people like, you need to go deep on a talent basis, both with your existing talent and bringing great new talent in. And if you do that, you can successfully transform the business. But it’s a hard thing to it’s a really hard thing to do properly.

Brent Bracelin, Analyst, Piper Sandler: Helpful. Thank you. Thanks,

John, Moderator/Operator, Amplitude: Brent. Our next question will come from Elizabeth Porter from Morgan Stanley, followed by Scott Berg from Needham. Elizabeth, the

Spencer, CEO, Amplitude: floor is yours.

Elizabeth Porter, Analyst, Morgan Stanley: Thank you so much. So at your agent launch event in San Francisco recently, I talked to a couple customers. And

Spencer, CEO, Amplitude: coming, by the way.

Elizabeth Porter, Analyst, Morgan Stanley: Yeah. Of course. And the customers were saying, look. It’s like a no brainer to be adding on some of these new products, like surveys or session replays next to analytics. There was this, like, long list of one all one off solutions they could move over.

So two questions. One, it seemed that many were still just, like, learning about the broader portfolio. So I wanted to better understand how you’ve seen your portfolio awareness evolve and what are the steps you’re taking to accelerate that? And then second, how much more of the incremental wallet you think you can start to address, particularly as you add into the fold some of the capabilities from recent acquisitions?

Spencer, CEO, Amplitude: Yeah. For sure. So I I mean, Elizabeth, I think while I’ve been talking about the platform piece for years, you know, we’ve made 2025 the year of the platform. The reality is exactly what you saw, which is that a lot of customers are just kinda waking up to like, oh, I can actually combine session replay and analytics and experiment and guides and surveys on the same platform. I I regularly talk to to current customers who have been with us for years that don’t fully realize that we could do other parts of the of the of the suite for them, you know, as as you saw again at that the agents launch.

So I it’s just that’s part of why so so that’s part of why we’ve made, you know, twenty twenty five year of the platform is that we want everyone in our field to be continually educating new customers and existing customers that we have all these capabilities. I’d say where we’ve done very well is with new customers. So, you know, I mentioned that that title insurance company that came on board. You know, they came on board to the whole platform right off the bat. That was fantastic.

I think where we are still have a bunch of work to do is existing customers who have known us for, you know, five, six, seven years as just an analytics company that we can do other parts to them. Agents Launch is, for what it’s worth, a helpful part of it because you can see how these workflows come together and that obviously, you know, you have to use some of these other pieces in order to do them successfully. So we still have a ways to go. I’d say, you know, so 67 of ARR, but on a customer base, it’s still less than 50% that are on multiple products. So especially some of the smaller ones still don’t know that that we do have these other pieces.

So, you know, there’s no substitute for the work having the conversations with them, explaining the value of these, training our team to be very comfortable and demoing and pitching and saying, hey, we can replace replace a point solution for you if you come to Amplitude. And then lastly, in terms of the wallet share, I think, you know, I I probably, you know, it’s it’s what I’ve seen in total is once you go from that analytics piece only to the whole platform, you’re probably around two to three x the total spend that you are on on just analytics piece. Now how you attribute that might vary customer to customer. You know? Like, maybe you’re paying an incremental 25% for experiment or 50% for session replay.

But once you kinda bundle that all up together and look at that in totality, you’re you’re probably talking about two to three x what it is on just analytics alone.

Elizabeth Porter, Analyst, Morgan Stanley: Great. And then just as a follow-up, maybe for Andrew. Really helpful and great to hear about the continued progress in NRR quarter over quarter for the back half of the year. Where do you think it should kind of settle out kind of near term? Any thoughts that we can have in mind as we kind of look beyond kind of the the back half of the year?

Andrew Casey, Chief Financial Officer, Amplitude: Look. I think I I would tell you that we our long term aspirations are certainly that we’re above 115% in NRR. So that comes with continued progress and execution of the sales team of selling the platform and really showing customers the value they can get out of the multiple products that we have within it. So we’ve we’ve taken a look at our pipeline. We know what it looks like.

We know what the opportunities are, and I can tell you that I’m confident that we’re gonna continue to make progress. And certainly, the Forrester report, highlighting the fact that we are the number one in the marketplace will help us with your awareness.

Elizabeth Porter, Analyst, Morgan Stanley: Okay. Thank you.

John, Moderator/Operator, Amplitude: Thank you, Elizabeth. Our next question will come from Scott Berg from Needham followed by Koji Ikeda from Bank of America. Go ahead, Scott.

Scott Berg, Analyst, Needham: Hi, everyone. Really nice quarter here. I guess two questions for me. Let’s start with sales in the quarter. Your NRR or at least net new NRR, ARR in the quarter, excuse me, kind of crushed it versus our expectations.

Are the sales improvements being driven more towards volumes of deals or just, value in size of transactions? I think the the outperformance was so significantly large just trying to understand, you know, where you’re benefiting from the most.

Spencer, CEO, Amplitude: Right. What was the distinction you just made, Scott? I just wanna make sure I understand it.

Scott Berg, Analyst, Needham: Volume of deals, so number of transactions, or the size of the transactions.

Spencer, CEO, Amplitude: It’s I I may hate to say it’s both, but, if you look at it, I think we had some rec you know, we had a record expand deal in particular that was a big driver. But we also saw a lot of kind of broad based success across different verticals, you know, companies like Telenor Denmark or the title insurance company I mentioned, you know, and as well as, like, Viator and, like, Twilio was a, you know, first time customer of ours. So it was it was it was very broad based. It wasn’t like, okay. You know, this was a few large volume expansions.

These were all, like, companies saying, hey. I wanna take and deploy Amplitude in a much broader context than than I have before versus just like, hey. We’re we’re growing in volume.

Scott Berg, Analyst, Needham: Helpful there. And then if I go back to your prescripted, remarks, Spencer, one of the comments you made is you’re seeing new traction with marketing teams after, you know, the launch of several new solutions here in the spring is when you when you look at that marketing analytics space, I assume that’s the functionality at least that that you were mentioning is, how are those transactions comparing to analytics space? I know your your product journey is still newer there relative to, you know, to product analytics, but what are you seeing for, you know, pricing and and sizing there? Because that market has a significant amount of existing spend out there today.

Spencer, CEO, Amplitude: Yeah. No. Absolutely. So maybe to draw a comparison, on the platform side, that motion has been a big part of driving our growth. You know, if you look at if you break it down net new ARR or or attach rate or whatever metric you wanna use, it’s like, okay.

Yeah. That’s very consistent. And that has, you know whereas on on marketing, that’s much earlier. If I were to go back two years, almost nobody was using us as replacement for legacy marketing tools. It was like, hey.

You’re gonna bring in Amplitude alongside, you know, Google Analytics or something like that. Now what we’re seeing in the last few quarters is people are evaluating us as a full sale replacement for these, but it’s still relatively small compared to know, you mentioned, yeah, these businesses have many more customers and are much larger than us. So I think that opportunity we’re in the earlier days of, and we have a bunch of work to do to to to go capture it. And, you know, and as we do, we’ll that that’ll be a a great growth lever for us over the next few years.

Scott Berg, Analyst, Needham: Very helpful. Nice quarter. Thank you.

Spencer, CEO, Amplitude: Thanks, Scott.

John, Moderator/Operator, Amplitude: Thank you, Scott. Our next question will come from the line of Koji Ikeda from Bank of America, followed by Tyler Radke from Citi. Go ahead, George.

George McGreen, Analyst, Bank of America: Hi. I appreciate it. George McGreen on for Koji. So I I wanted to ask on this, you know, continued strong momentum we’re seeing on the RPO side, you know, especially on the long term side. I wanted to kind of get a sense of how our conversations going in those strategic deals.

Obviously, you guys have added a lot of value to the platform. You’ve brought in new team members that have expertise speaking on these enterprise strategic deals. How is kind of the tone of conversations going today versus you know, maybe a year ago, and and what what are kind of the the the key points that that often come up?

Spencer, CEO, Amplitude: I I’d say I mean, a lot of times, if I if I were to go back a few years, we weren’t having the right level of conversations, and so we’d kinda be stuck in in, you know, at maybe the manager or director level in a lot of these accounts. Now we’re consistently, you know, in all of our large accounts consistently having conversations with VP and C level folks, and that is helping us have a conversation about how we fit in to what their vision for their data stack looks like and how we can help drive a lot of value. And so, you know, there was a customer that we had come over that was willing to do you know, had been a customer for many years, but had been on a one year contract that just moved over to a three year one because we aligned we finally had a review with the head of data there. And that was fantastic to see because it’s like, okay. They’re making that level of commitment, you know, and that takes a whole bunch of risk off and we say for us, and then we know we’re gonna be investing a lot into making Amplitude successful for you guys on on both sides.

And so that that’s very consistent. You know, strategic accounts team was was a kind of a a maybe another call out where it’s like you have a dedicated account teams for the the top 30 existing customers and top 30 prospects. And so that, you know, again, you know, there’s a different profile of seller that we have for there and different profile of the support set so that we make sure that, you know, we’re we’re having those senior level conversations about how we fit into someone’s data strategy. When you start getting into the millions, you know, million plus range in terms of customer spend, you know, that’s a real line item that a lot of people are concerned about, and you need to you need to need to be strategic for a customer. Otherwise, you’re you’re gonna be out.

And so, yeah, we just weren’t if I were to reflect, you know, that that two or three years ago, we just most of time, we weren’t having those conversations. Now, by and large, we are. Now still lots of work for us to do on those. It’s, by no means over. We wanna continue to make sure those are set up well, those customers are set up well.

We have more work to do on the long tail, but we’re in a very different place than we were a few years back.

John, Moderator/Operator, Amplitude: Great. Thank you, George. Our next question will come from Tyler Radke at Citi, followed by our last question by Arjun Bhatia from William Blair. Go ahead, Tyler.

Tyler Radke, Analyst, Citi: Yeah. Thank you very much. Nice net new ARR in the quarter. Wanted to just touch on that. So you talked about the record expand deal.

You know, was curious if you could elaborate a little bit more on, you know, the the size of the the contract and and scope. And then also just talk about what you’re seeing among kinda your AI native customers, how those usage trends are going? I know for instance, Cursor is is a customer and, you know, are you are you seeing your your growth sort of scale with with the growth of those types of businesses as well?

Spencer, CEO, Amplitude: Yeah. For sure. So I obviously I wanna be we don’t have permission to talk about exactly who it was, so I I gotta be careful. But they were a customer who had been using us already in some smaller parts of the business as technology company and then ended up deciding to make a very big bet for a for one of their kinda core parts of their platform. And so that that was a huge deal, know, multimillion dollar deal and and a record expansion in a number of ways for us as a as a company.

Now, you know, we just because we signed it, know, we gotta go prove out the value and and do a bunch of work on it, but it’s it’s great to see that company willing to make that level of bet on Amplitude. In terms of the AI companies, they’re still very small as a percentage of overall our overall customer base. So, you know, we have a lot of great ones. You obviously mentioned Cursor, Midjourney. We have Midjourney.

We have Character AI. We have a bunch of others. They are their growth is helpful, but it is, you know, it’s it’s like there’s still a very small percentage of the overall customer base. And so, you know, it’s not like that that changes anything, you know, quarter to quarter.

Tyler Radke, Analyst, Citi: Great. And just a follow-up on on gross margins. You talked a little bit about the puts and takes causing the compression this quarter. But how should we think about almost seems like a little bit of a mini investment cycle before you get maybe some of the returns either on the agentic side or the new product front. But where should those sort of trough and what sort of the timeline for those investments to monetize and know, ultimately drive that expansion again?

Andrew Casey, Chief Financial Officer, Amplitude: So I’ll take that one. Yeah. So the good point, Tyler. I think that the the thing we’ve been signaling is let’s start with the services side. We made investments in services to make sure that we can continue to build out our partner ecosystem.

Long term long term, we actually believe that our partners will be generating upwards of 20 to 40% of our demand. And so having the capability to go create that and plummet now, you know, over the long term is is gonna enable us to, one, drive billable utilization associated resources that are doing implementation services as well as kinda create that that top of funnel longer term. And so when and the cycle is when you hire new consultants. They take a little while to ramp up, and then they start engaging with customers, and that that drives that billable utilization. Now we’ll never really have great margins associated with services, and we, frankly, would much rather have our partners do the implementation services.

This is a cycle where we have to invest in that to make sure that our enterprise clients are successful, and we start that flywheel. On the on the hosting side, look, more data ingestion into our platform long term is a really good thing. Now remember, we we monetize Amplitude service delivery through our subscriptions on two ways. One, it’s on the data ingested into the platform, and two, it’s into the applications that are used throughout, throughout the platform. And so the more data we see customers bringing into the platform, it’s a method for us to drive an upsell.

But more importantly, it’s a reflection of the fact that customers are getting greater and greater value by bringing in more data sets into our system such that they are getting better and better at using the system to drive their outcomes. So I know it’s I know it’s one of those areas where you you know, you you hate to see a a short term investment not matched by a by the revenue, but in some cases, you know, you’d have to make those investments and then expect that you’re gonna generate the returns over a longer period of time. And so there’s no real change in our focus on driving gross margins up. We will continue to focus on it. This quarter, we just kinda found ourselves at the beginning of that investment cycle.

Tyler Radke, Analyst, Citi: Thank you.

John, Moderator/Operator, Amplitude: Thank you, Tyler. And our last question will come from the line of Arjun Bhatia from William Blair. Go ahead.

Willow Miller, Analyst, William Blair: Hi, team. I’m Willow Miller on for Arjun Bhatia. Thanks for taking our question. Asking a follow-up question to the go to market questions asked earlier, Can you remind us on where you’re at in your go to market evolution? And is it fair to think about this as more of a continuous evolution?

And maybe you can comment on how the Salesforce is responding to the changes.

Spencer, CEO, Amplitude: Yeah. It’s it’s definitely a continue well, so I I guess if I were to go back three years to before, you know, Thomas and some of the existing team was here on the go to market side, it you know, we weren’t fully ready for the level of enterprise deals that we’re doing. You know, like I mentioned, you know, we’re doing a a million dollar plus deal. It just requires a very different level of engagement than the one that we were set up for then. Today, I’d say, yeah, we’re we’re there for the most part.

Now to your point, it’s always an evolution, and so we just did the strategic accounts team this year. We’re gonna do you know, we’ll make more changes as appropriate next year in terms of taking things that work there and bring them across the business, and we’re gonna kinda continue to evolve it. I’m actually really pleased with the Amplitude team and how they’ve responded. Folks have leaned into that like by and large. And so I I think of some of the longest, most successful sellers here have been a big part of that change or folks in other functions like customer success and marketing have have really done a great job of of leading in leaning into that change.

One of the one of the cultural values we have here at Amplitude is growth mindset, and the idea behind that is that your job is always changing here. And so you have to relearn it and make sure that you’re figuring out how you can make an impact with what it is in the future. It doesn’t mean, you know, it it because whatever it is is gonna be different from from where you were before.

Willow Miller, Analyst, William Blair: Great. Thank you.

John, Moderator/Operator, Amplitude: Thank you, Willow. That will conclude our second quarter earnings call. Thank you for your time and interest. We look forward to seeing you this quarter on the road as we attend conferences hosted by KeyBanc, Citi and Piper Sandler. Thank you.

Spencer, CEO, Amplitude: Thank you all. Thank you.

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