Amplitude, Inc.

Recording in progress. I'm John Stropa, Head of Investor Relations, and joining me today are Spencer Skates, CEO and Co-Founder of 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.

Thanks, John. Good afternoon, everyone, and welcome to Amplitude's second quarter 2025 earnings call. Today, I'll cover three things. First, our strong Q2 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 Q2 results. Our second quarter revenue was $83.3 million, up 14% year over year and exceeding the high end of our guidance. Annual recurring revenue was $335 million, up 16% year-over-year and up $15 million from last quarter. We saw our highest net new ARR in 11 quarters. Non-GAAP operating loss was $1.5 million. Customers with more than $100K in ARR grew to $634, an increase of 16% year-over-year. In addition to these results, our multi-product attach rates continue to grow as customers choose Amplitude as their end-to-end platform. 67% of ARR now comes from multi-product 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 Q2, 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 multi-product 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 going to demo some of the outputs from this shortly. We are also leveraging M&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 of 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&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 Jana 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 our roadmap, which I'll demo for you shortly. Finally, we acquired the founders of June, a startup 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 Balistreri, 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 10th, 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 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 want to show you Amplitude AI agents in action with a 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 conversion flows and analyzing session replays. The first agent I want to show you is focused on optimizing website conversions. I'm going to select an event for the agent to optimize. I'm going to 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 CTA's 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, contextualizes 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 going to 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've assigned to it, and then surfaces the top insights. In one of these takeaways, if 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 an action. With the dashboard agent, customers have unlimited resources to monitor analytics. This saves analysts tons of times and 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 co-founder 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 agent's recommendations into action. We believe Amplitude is the only company in digital analytics doing anything meaningful with AI today. We are the most complete digital analytics platform, and we are out executing everyone else with elite talent. I want to 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 going to 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 being mentioned by LLMs. If 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. You 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 in this dropdown. For example, we rank number 8 in GPT 4.1 Mini and number 2 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 going to 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 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 roadmap. 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 G2's Summer 2025 report, including the top spot in product analytics for the 20th 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 Musinsa. I'm going to highlight a few. Viator, a trip advisor 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 15x 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, Vitor 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. Q2 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 re-architect 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.

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 Q2, 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 $8.9 million in free cash flow during the six months ended June 30, 2025, compared to $5.7 million 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 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 base 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 down sales 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 right-sizing 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 June 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 $83.3 million, up 14% year-over-year and 4% quarter-over-quarter. Total ARR increased to $335 million exiting the second quarter, an increase of 16% year-over-year, and $15 million sequentially, the highest net new ARR ad we've had in 11 quarters. Now, here are more details on the elements of the quarter. We had a strong platform expansion sale, especially replacing legacy endpoint 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. End-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 of 2025. Gross margin was 75% for the second quarter, down one point from the second quarter of 2024. Gross margin was impacted by increased data ingestion costs, higher amortization of software development costs, and 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 margins. Sales and marketing expenses were 44% of revenue, a decrease of 4 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&A was 14% of revenue, down one point from the second quarter of 2024. We expect G&A to improve as a percentage of revenue over time. R&D was 18% of revenue, up one point from the second quarter of 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 recruiting as well as opportunistic corporate activity, similar to what we did with Craftful, June, and Inari. Total operating expenses were $64 million, 76% of revenue, down three points sequentially. Operating loss was a negative $1.5 million, or 1.8% of revenue. The net income per share was $0.01, based upon 140.2 million diluted shares, compared to a net loss per share, zero, with 122.6 million basic shares a year ago. Free cash flow in the quarter was 18.2 million, or 22% of revenue, compared to 6.8 million, 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 position 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 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 downsell cohorts, we believe we'll continue to expand through both upsell and cross-sell. While we showed strength on net new AR on 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, 2025, we expect revenue to be between 85 and 87 million, representing an annual growth rate of 14% at the midpoint. We expect non-GAAP operating income to be between a negative 2 million and positive 1 million. and we expect non-GAAP net income per share to be between negative 0 cents and positive 2 cents, assuming basic weighted average shares outstanding of approximately 133.4 million and diluted weighted average shares outstanding of 144.3 million, 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 338.2 million, an annual growth rate of 12.5% at the midpoint. We are adjusting our range for our full-year non-GAAP operating income to be between negative $2 million and positive $3 million, reflecting growth of investments and taking into account the recent acquisitions we mentioned. We expect non-GAAP net income per share to be between $0.04 and $0.08, assuming weighted average shares outstanding of approximately $142.8 million as measured on a fully diluted basis. In closing, I want to reflect on the journey we've been on. In Q2 2024, amplitude growth rates were declining. Net revenue retention was below 100%, and our strategies to re-accelerate growth were still taking shape. We highlighted that we expected the second quarter of 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&A. Over to you, John.