Amplitude, Inc.

Management will make forward-looking statements, including statements regarding our financial outlook for the second 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 internally to 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 a 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.

Thanks, John. Good afternoon, everyone, and welcome to Amplitude's first quarter 2025 earnings call. Today, I'll go through three key areas. First, our Q1 results in the reacceleration of our business. Second, our platform strategy and how we are winning the enterprise. And last, product innovation and customer stories. Let's start with our Q1 results. We exceeded the midpoint of our revenue and operating loss guidance. Our first quarter revenue was 80 million, up 10% year over year. Annual recurring revenue was 320 million, up 12% year over year, and up 8 million from last quarter. Non-GAAP operating loss was 2.1 million. Customers with more than 100K in ARR grew to 617, an increase of 18% year over year. We are re-accelerating the business. We are growing through platform deals and focus on the enterprise. We are also continuing to improve churn. 2025 is the year of the platform. Every company needs data they can trust, an understanding of their customers, and ways to take action. During Q1, we saw more enterprise customers embracing our full digital analytics platform, leading to stronger multi-product attach rates, more multi-year deals, and wider usage across teams. Multi-product customers now make up 30% of our installed base and 64% of our total ARR. We are seeing strong enterprise momentum overall. We landed new customers like Hertz and The Economist Group, and almost two-thirds of our ARR base comes from enterprise customers. These deals are bigger and more likely to expand in the future. We have also created a new strategic enterprise accounts team to focus on our top 30 customers and top 30 prospects. That effort is already paying off in Q1 with stronger executive relationships and more multi-product wins. We are making steady progress on churn and are past the worst of it. Our dollar-based net retention reached 101% in Q1, up five points from its lowest level in Q2 of last year. As the macro remains challenging, our priority is helping customers derive value from the Amplitude platform as quickly as possible. Moving on to product innovation. When we spoke during Q4 earnings, we had just launched our newest product, Guides and Surveys. Guides and Surveys helps customers deliver in-product guidance and feedback that is deeply personalized, a far cry from static pop-ups. It is built on our analytics foundation and is a prime example of how to move from insights to action quickly. Since then, there has been a phenomenal response. We have seen faster adoption and more incremental ARR in the first quarter than for any other new product to date, including experiment and session replay, which were very successful in their own right. We've already displaced a number of point solutions and legacy tools with guides and surveys, and it is becoming a core element of our platform story. We are getting better at adding to the amplitude platform. In Q1, we also shipped self-serve data deletion, heat maps, session replay for mobile, and session replay everywhere. Now, session replay is embedded across the entire Amplitude platform, including analytics, experiments, and guides and surveys. Last year, we saw the increased influence that marketing leaders had on enterprise deals. To be successful, marketers need to look at the same user data, evaluate the end-to-end customer journey, and leverage capabilities outside of analytics in the same platform. Legacy marketing solutions are not set up to do that. We are making two announcements next week specifically for marketers. First, on Wednesday, May 14th, we are launching a series of platform updates that enable marketers to understand conversion, product adoption, and customer lifetime value and retention. Our goal is to eliminate the blind spots created by traditional marketing analytics tools. Second, we are joining Twilio at Signal, their annual user conference, also on Wednesday, to announce that Amplitude is now Segment's recommended analytics platform. To give you a better idea of what we're releasing, I'd like to show you our latest marketing updates in action. For this demo, I'm an e-commerce marketer looking to increase customer purchases. This screen shows my advertising performance. There are pre-built metrics on the screen for impressions to customer acquisition cost and return on ad spend so I can best understand my best and worst performing channels. I also see a problem. I'm getting thousands of visitors, but less than 5% of customers make purchases. Why is that? Instead of guessing or needing to switch to another point solution, I can use Amplitude's heat maps to find out more. This visual shows my website with hotspots representing customer activity. I can understand where users are engaging and where they're getting stuck. I just found out that this top banner here gets a ton of clicks. I'd like to experiment with new messaging to see if that will drive more purchases. I can do this all on the same screen in Amplitude. I highlight and click the banner, and then I can launch an experiment. What you see now is the visual editor. I can select elements like the banner, update the copy with a new promo code, and go ahead and deploy that experiment. Finally, still within amplitude, I see my experiment results. Users who see the new banner messaging are converting at a higher rate. What you just saw is not possible with any other tool out there, only amplitude. We want amplitude to be the default platform for marketers everywhere. At Investor Day, we shared our vision for Amplitude AI agents. Our agents turn Amplitude into a team of experts you lead. These agents are monitoring your data, looking for changes, doing a root cause analysis, watching sessions, forming a hypothesis, suggesting experiments, taking your feedback, shipping changes, monitoring the impact, and then repeating the cycle over again. On June 10th, we're hosting an event in San Francisco where we'll announce the closed beta of agents. We will welcome other leading AI companies on stage with us and show some product demos of what Amplitude agents can do, including agents that automatically and iteratively use analytics and session replays for deep analysis to find the root cause of issues. Agents that automatically create hundreds of variants of the same website to see which performs the best. agents that automatically create user guides to walk customers through your product. This is the first agent in the data space that is doing anything meaningful beyond code and SQL generation. Our customers are excited about it too. Agents was the top voted new product at multiple of our customer advisory boards this year. Let us know if you'd like an invitation to the June 10th event. I'd love to see you there. We had a great quarter for new and expansion deals with enterprise customers, including The Economist Group, Hertz, Atlassian, Joe and the Juice, First Horizon Bank, Whoop, 1Password, Away, Lamond, Syngenta, ZocDoc, and AppFire. I want to talk about three of them in more detail. The Economist Group chose Amplitude as its full platform solution to power its digital analytics and experimentation strategy. Like many media organizations, the Economist Group was navigating a complex shift from print to digital and struggling with disconnected tools and low data adoption. Its teams were stitching together insights across analytics providers, warehouses, and other point solutions. This made answering even the most basic customer journey questions time-consuming and inconsistent. The Economist Group adopted analytics, experiment, session replay, and guides and surveys to bring insights and actions together in one place. It now has a single platform to understand how users engage across all its digital properties. Its teams can analyze what drives subscriptions, test experiences in real time, and build smarter engagement flows. Syngenta is a global ag tech company that helps millions of farmers grow food. Their applications help farmers understand when and how to plant different foods in their local geographies to produce better yields. Syngenta adopted Amplitude in 2021. Today, almost 300 employees use our platform to understand how users differ across regions so they can tailor the experience. In Q1, Syngenta added guides and surveys. Now its team will be able to gather user feedback through NPS and promote key events in a timely, targeted way. This will help its team improve user engagement and increase feature adoption. Joe and the Juice, the international juice bar and coffee shop chain, was facing rising demand. The team turned to digital channels and amplitude to help grow same-store sales. Joe and the Juice realized that its app could be a key tool for driving orders and improving the customer experience at pickup. The team added experiment and activation to its existing amplitude stack and was able to optimize their customer journey. Join the Juice can now personalize the ordering and picking up experience for each individual customer. Having all of its data in one place allows the team to move fast, iterate quickly, and increase order sizes. Before I hand it over to Andrew, I want to reiterate our continued progress and growing amplitude. We have successfully returned to double-digit revenue growth. We are the complete end-to-end digital analytics platform for the enterprise. Customers can now use Amplitude to replace any point solution on the market, and we continue to expand the platform's features and functionalities at scale. We have also deepened our customer relationships, improved our operational efficiency, and created a sustainable growth business. I am proud of the Amplitude team for their focus and dedication in Q1. While there is always more for us to do, we will continue to execute regardless of any changes in the macro environment. Thank you for your interest in Amplitude. I'll now hand it over to Andrew to walk through our financial results.

Thank you, Spencer, and good afternoon, everyone. I'm pleased with our execution in the first quarter, setting the stage for a strong year as we set out to expand our enterprise customer base and extend the reach of our platform. During our last earnings call, we shared our plans to accelerate the growth of our business and that growth would come with greater leverage. Our first quarter results are another proof point of the improved execution of our teams are exhibiting as both revenue growth and operating income outperformed expectations. The first quarter also showed that we are becoming more strategic partners with our enterprise customers. With total RPO accelerating to 30% growth year over year and long-term RPO accelerating to 72% growth year over year. We are confident in our strategy as a platform of choice for customers looking to consolidate spend across vendors and believe that we can accelerate our growth without meaningful improvement or clarity in the macro environment. As we explained in our investor day, we are focused on two levers to accelerate growth and get more leverage out of our business. First, our sellers are focused on the enterprise customer, which we define as customers with greater than 1,000 employees or over 100 million in revenue. Here we had a great quarter from both landing new accounts as well as expanding additional accounts. As Spencer highlighted in his remarks, our push to extend into the marketing persona is directly related to this goal. Enterprises are looking across teams to drive additional growth and improve their customer journey. Our platform can give marketers and product owners a single view into that customer journey and offer differentiated data that can help product owners optimize their in-product experiences. This gives the marketers unique insights into the behavioral aspects of their customers they've never been able to activate before. The second growth lever is to extend the reach of our platform into all of our customers. Again, this quarter was strong with 30% of our customers being on multi-product compared to 21% last year. Our platform works better together and we will continue to sell the platform across both our current customer base as well as new lands. In the first quarter, 42% of our new enterprise customers landed as multi-product, which is great progress. As we increase our enterprise customer base and expand the adoption of our platform, we are becoming more strategic partners with our customers. Contract duration is a key focus for us, as it represents customers' commitments to our roadmap and the value they receive. As we extend the duration of our contracts, we give ourselves greater opportunity to deliver value before renewal. This also provides us greater time to earn the opportunity to expand with customers through sales of additional products. We had a strong renewal quarter, and we managed to extend our average contract duration in many of these renewals. Lastly, I want to touch on our ability to drive greater leverage within our business. I'm pleased with our outperformance in the first quarter from our initial expectation, and we will continue to look for additional opportunities to create greater efficiencies. We are focused on a profitable business model and will continue to make incremental improvements each quarter. Turning to our first 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 in our earnings press release and the supplemental financials on our IR website. First quarter revenue was $80 million, up 10% year-over-year and 2% quarter-over-quarter. Total ARR increased to $320 million exiting the first quarter, an increase of 12% year-over-year and $8 million sequentially. Here are more details on the key elements of our We had a strong new customer core reflecting balance with expansions. However, macro uncertainty will continue to make every new logo challenging. The number of customers representing 100,000 or more of ARR in Q1 grew to 617, an increase of 18% year over year. In-period NRR was 101%, a one-point increase sequentially. NRR on a trailing 12-month basis was 98%. We continue to make progress on improvements and retention and continue to expect NRR will increase throughout 2025 as we drive greater expansions opportunities. Gross margin was 77% for the first quarter in line with the last quarter. Sales and marketing expenses were 45% of revenue, a slight decrease year over year, but up slightly sequentially as we had some one-time events in the first quarter to prepare for the year, such as our sales kickoff. We continue to focus on improving sales efficiencies, driving improvements through our changes in our processes, coverage, and expansion of the enterprise customers. G&A was 15% of revenue. In line with first quarter 2024, G&A will continue to be optimized to improve as a percentage of revenue over time. R&D was 19% of revenue, up one percentage point sequentially, primarily due to the acquisition of Command AI. Total operating expenses were 63 million, 79% of revenue, up two percentage points sequentially, primarily due to the aforementioned increases in sales and marketing and our acquisition of Command AI. Operating loss was a negative 2.1 million or 2.6% of revenue, which was approximately 2.4 million better than the midpoint of our guidance. Net loss per share was zero based on 129.7 million basic shares compared to net income per share of one cent with 130.9 million diluted shares a year ago. Free cash flow in the quarter was negative 9.2 million or 12% of revenue compared to negative 1.1 million or 2% of revenue a year ago. This was largely driven by our annual bonus payout, which we expected during the quarter. Going forward, we will shift to a semi-annual payment framework under which the first payment is expected to occur in the third quarter of 2025. Now turning to our outlook. We have built our business to be more resilient. 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-gap 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 are not assuming a positive inflection in the macro environment and believe it will continue to be challenging in the near future. However, we are encouraged by the proof points we are seeing from the strategic changes we've made to our business. We expect that every new logo will continue to be tough and buyer scrutiny has not shifted positive over the past six months. As we get through the larger levels of churn, we continue to address structural issues in our go-to-market motion to influence greater retention and incent deep adoption of our platform. However, the digital channel remains an important investment as ever with companies trying to get deeper connections with their customers. We are building a durable enterprise SaaS business that is enabling us to drive growth as we deliver increasing value to our customers. For the second quarter of 2025, we expect revenues to be between 80.3 and 82.3 million, representing an annual growth rate of 11% at the midpoint. We expect non-GAAP operating loss to be between negative 2.9 and negative 0.9 million. And we expect non-GAAP net income per share to be between negative 1 cent and positive 1 cent, assuming basic weighted average shares outstanding of approximately 132 million. and diluted weighted average shares outstanding 139 million, respectively. For the full year 2025, we are raising our revenue expectation due to the outperformance in the first quarter to be between 329 and 333 million, an annual growth rate of 10.5% at the midpoint. We are also increasing our outlook for non-GAAP operating income to be between zero and positive 5 million, reflecting our focus on growth with leverage. We expect non-GAAP net income per share to be between $0.05 and $0.10, assuming weighted average shares outstanding of approximately $141 million, as measured on a fully diluted basis. In addition, today we announced that our Board of Directors has approved a $50 million share repurchase program that we will use to take advantage of dislocations in our stock price, as well as to help manage future dilution. In my second full quarter as the CFO, I am pleased with the early progress we've made. I'm confident in our ability to build a durable growth model by aligning to the right customers, driving the right types of contracts, investing in greater innovation, and building out value for our customers. Our long-term opportunity remains incredibly compelling. With increased discipline and execution, I believe we will be in a great position to capture it. With that, we'll open it up for Q&A. Over to you, John.