Q3 2021 Amplitude, Inc. Earnings Conference Call
<unk> ability and productivity to drive more positive business outcomes.
Our final critical differentiator of the amplitude digital optimization system is the breadth and depth of our integrations across the technology ecosystem, we take a neutral approach to helping customers export their customer event data into our system, we ingest data through customer data platforms, our CDP, our own SDK and data warehouses.
I'm excited to announce today is that we announced we launched a new product integration and partnership with Snowflake, we're combining the power of digital optimization with snowflakes data cloud starting today anyone who's a snowflake can be common amplitude customer in just a few clicks are bidirectional integration joins together snowflake and Apple juice of their share customers can breakdown.
Data silos, and rich customer data sets and unlock real time self service insights. This means every member of an organization can use amplitude to run lightning fast bruises snowflake data on the amplitude platform.
This integration speeds of time to insight from days to minutes expanse data accessibility and maximizes return on data cloud investments.
Making customers successful drives our own success, our paying customer base continued to expand in the third quarter, increasing 54% year on year to 1417 customers driven by strong demand for our products from organizations across a variety of sizes vertical digital maturity.
Several notable new wins include Macmillan learning trip actions Carvana offer up not a list and global.
We continue to make encouraging progress with the adoption of new products experiment and recommend.
I will expand upon a few customer stories from the third quarter to provide additional context of what drove some of these wins and our increasing value to customers.
We continue to gain traction with some of the world's biggest brands in Q3, a global 100 manufacturer of automobiles motorcycles power equipment selected amplitude as their digital optimization system moving away from Adobe analytics. This company will leverage amplitude for their core digital products, which allows customers to control and stay connected to their.
Cars for any device wherever they are with amplitude. This company will be able to automate and deliver self serve customer insights to improve customer satisfaction convert and retain customers increase revenue and drive long term brand loyalty.
Another Q3 winners global one of the world's leading delivery platforms based in Europe, which delivers restaurants takeout and groceries to more than 10 million users in Q3 global choose chose amplitudes digital optimization system as part of a seven figure deal to drive product strategy and move away from dependency on business intelligence tools to navigate faster amplitude will.
Help global gain a competitive edge by rolling out customer improvements faster retain more customers deliver customer journey insights answer questions about conversion enable real time data access for their team.
We're also seeing the power of amplitudes digital optimization system help with customers critical business goals and enable them to become more product plan. This leads to more expansion and up sells within existing accounts and increasing customer adoption with our new products experiment and recommend.
Square, a leading financial services software and payments company continues to scale and expand their use of amplitude in Q3, the increased access to amplitude across multiple business units and teams include AG, including engineering product marketing growth data science and customer success. These teams can now leverage common insights to make critical.
Agents, they've also added amplitude recommend as part of their analytics strategy to drive growth across the business.
<unk> also uses amplitudes, new integration with snowflake to power its teams to better engage understand engage and delight their customers.
Another Great example expansion as smart recruiters, a global leader in enterprise recruitment software Smart recruiters began using amplitude starter edition as part of an analytics improvement initiatives driven by their CTO to better understand customer behavior in December of 2020, they became a paying customer of amplitude purchasing amplitude analytics.
This past quarter Smart recruiters also added amplitude experiment to learn faster and turn the experience of millions of candidates into competitive advantage for its customer base of 4000 companies worldwide.
This will include testing different solutions and U S. REIT valuable insights to candidates about the jobs. They have applied for and are planning to apply for and ultimately create a better application experience and increase the chances of hiring for both the candidate in the company.
Another Great example of an upsell in Q3 of Spirit Airlines, leading airlines to bring the United States Latin America, and the Caribbean Spirit Airlines worked with starting with amplitude in 2019 to collect feedback and gain a deeper understanding of user behavior. This year and they wanted to drive traffic to their mobile app to increase revenue.
<unk> ancillary purchases in mobile check ins through amplitude.
Track, what users interact with investigator identified issues through user lookup and cohorts proactively monitor data data and track Kpis for executive Readouts, everyone. Now has access to clear data and actual insights within seconds, allowing them to make product roadmap decisions faster and prioritize for their app updates amplitudes insights have helped.
The team increased flight check ins on mobile trending ahead of their end of year goal as a result spirit increased their portfolio with an amplitude through a volume based upsell in Q3.
Beyond these Q3 beyond these Q3 wins I am pleased to announce the opening of amplitude European data Center in Frankfurt, Germany.
European organizations can now experienced the power of amplitudes number one product analytics solution, while storing their customer data within the EU in adherence with local data privacy standards amplitude.
Has selected <unk>.
<unk> web services to hosted data center, given its stringent data privacy and technology standards amplitude customers can now chief product innovation and data privacy compliance at the same time.
Like to thank everyone amplitude and everyone who is involved and the team for completing this important project, which is our testament to our commitment to our customers' success in the international growth opportunity ahead.
Finally, as we've shared amplitude has a unique vantage point into product data the offers insights into product and industry trends.
Not only do we enabled digital optimization, we can help our customers learn and benchmark from an anonymised aggregated data to accelerate our customers' product led journeys today, we launched our inaugural product report 2021.
We share insights into COVID-19 impact on digital behaviors across industries predict the next hottest products and demonstrates the evolution of cross functional data access never before have so many digital products been used so frequently in fact, our data shows the massive acceleration of daily product usage daily active usage of our product of our customer.
Digital products has grown 54% since January 2020.
I encourage you to read the report and learn more about the market trends going on in the product world in closing I am pleased with our Q3 with our Q3 results and proud of our team's continued execution. We're at the beginning of a significant market opportunity and look forward on the opportunity to continue to report on our success in the future. Thanks for your interest in amplitude and I'm now going to turn it over to <unk>.
To walk through our financial results.
Okay.
Thank you Spencer and thanks again to everyone. Joining us today, we had a solid third quarter with accelerating revenue growth customer count and higher net retention rate.
Three revenue came in at $45 $5 million, representing 72% annual growth and continuing the momentum we're seeing in digital optimization.
As we mentioned in our last call. We had some large expansion in Q2, 'twenty one while it easier year over year comp due to the impact of Covid that are contributing to our growth rate.
We ended Q3, 'twenty, one with 1417 paying customers an increase of 54% year over year versus 51% last quarter, continuing the acceleration of customer growth.
Overall, our team continues to execute well on our land and expand strategy improving our dollar based net retention rate or an NR NR to 121% and up 200 basis points, both sequentially and year over year.
As a reminder, this metric is calculated on a trailing 12 month basis.
From a geographic standpoint, Q3 revenue from the U S increased 75% year over year to $29 6 million and international revenue increased 68% to $15 $9 million. The U S. A 65% and international 35% of reported revenue versus 64% and 36% in the prior year.
Turning to remaining performance obligations or RPM.
In Q3, total <unk> increased to $152 million up 79% year over year.
Current RPI increased to $125 9 million up 56% year over year and represented about 83% of total RPM, providing additional visibility into expected revenue in the quarters ahead.
Before turning to gross margins expenses and profitability. Please note that I'll be discussing non-GAAP results going forward as a reminder, our GAAP financial results along with a reconciliation between GAAP and non-GAAP results can be found in our earnings press release and supplemental financial available on our IR website.
Gross margin was 71% consistent with Q3 2020 in the prior quarter.
Moving to operating expenses for Q3 sales and marketing expenses were $19 4 million compared to $11 million last year. This was up 76% year over year and represented 43% of revenue compared to 42% of revenue in Q3 last year.
R&D expense in Q3 was $8 6 million compared to $4 8 million last year. This represented approximately 19% of revenue compared to 18% of revenue in Q3 of last year.
G&A expense was $6 7 million for the third quarter compared to $3 7 million in the third quarter of last year, G&A was 15% of revenue versus 14% of revenue last year.
As a result loss from operations in the third quarter with $2 3 million compared to a loss of $2 7 million last year.
Operating margin of negative 5% to negative 3% in the same period last year as we as we accelerate investment for growth net loss was $2 1 million compared to <unk> 9 million in the third quarter of 2020 net loss per share of <unk> based on $39 3 million shares compared to <unk> <unk> in the third.
Order of 2020.
Based on $25 1 million shares as a reminder earnings per share is calculated based on a weighted average share count and takes into account, but first stock conversion to common and RF used upon our direct listing in September.
Turning to free cash flow free cash flow was negative $15 8 million or 35% of revenue compared to a positive $1 9 million or 7% of revenue in the third quarter of 2020.
Note that Q3 free cash flow also absorbed approximately $10 9 million in direct listing expenses paid in the quarter.
Nothing for this Q3, 2021 free cash flow margin would have been negative 11%.
Turning to our balance sheet, our cash and cash equivalents was $317 8 million as of September 32021 up from $291 1 million in the prior quarter. This increase is primarily due to our series a financing and employee stock options exercised.
Minor company did not raise any capital during our direct listing.
Let's now move into our financial expectations for the rest of 2021 based on the strong third quarter results and the leading indicators that we monitor we're raising our guidance for the fourth quarter and the rest of fiscal 2021 from our prior guidance.
For the fourth quarter of 2021, we now expect revenue to be between 46% and $47 million, representing an annual corporate a 55% at the midpoint compared to our earlier imply expectations of 50% growth.
We expect non-GAAP operating loss to be between $9, two and $8 2 million.
We expect non-GAAP net loss per share to between <unk> and <unk>.
Assuming shares outstanding of approximately $108 5 million.
And for the full year of 2021, we now expect revenue to be between 163, eight and $164 8 million up from our prior expectations of $160 million to $162 million and representing an annual growth rate of 60% at the midpoint.
We expect non-GAAP operating loss to be between $18 5 million and $17 5 million compared to our earlier expectation of a loss of 25% to $23 million.
We expect non-GAAP net loss per share to be between 37 and 35.
Compared to prior expectations of a loss of <unk> 50, 246 times.
And assuming shares outstanding of approximately $51 5 million.
Normally we would not discuss next fiscal year during our Q3, earning call, but because we provided an outlook require direct listing we wanted to affirm our belief that we are well positioned to grow 2022 revenue over 40%, we'll provide more color on our expectations with fiscal year 2022 on our Q4 earnings call.
But in the meantime, I would like to note that for modeling purpose and as we shared during our Investor day, we are expecting to see significantly increased our investment to build awareness sales capacity and product over the next few quarters.
In addition, we're planning to do our company kickoff in Q1 2022, and also host our amplify user conference in Q2 2022, both of which will be in person versus 2021.
In total we expect these investments to increase our non-GAAP operating loss margin to over 20% in fiscal year 2022. We believe we are still in the early stages of our market when it prudently invest for growth given our product position and strong unit economics.
We're looking forward to continuing our discussions with investors and analysts in the quarters ahead and are excited about <unk> continued strong momentum and market leadership opportunity in digital optimization with that I'll turn it back over to Jason to moderate the Q&A session.
Okay. Thanks, a lot and we will now begin the Q&A portion of our webcast with sell side analysts and our first question will come from Elizabeth Elliot for Morgan Stanley followed by Rob Oliver RW Baird.
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We will go with Rob Oliver at RW Baird.
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Rob if you'll go ahead in a neat yourself entering a camera on please.
Great.
Sorry kicked me out and probably back in so thanks very much appreciate it.
And thanks for taking my question.
Or just one for you really.
Clearly strong.
The momentum in the core product, but you guys are also seeing uptick now from from recommend and experiment and indeed you cited some specific.
Customer wins, which were pretty telling.
And so it seems like you've gotten a lot of traction in a pretty short time with those products would love to hear some color around that.
Use cases, and you know, what's driving those engagements and what else you're potentially seeing within your customer base in terms of potential engagement with recommended experiment and then I had a quick follow up for <unk>, yes, so to be clear, it's still very early for both recommend an experiment. This is the first Q <unk>.
The first full quarter that they've been launched products and so yes.
Yes, it's still very very early I think we're going to I'm excited to see what sort of impact we're going to have in 2022 and beyond.
I'll start with experiment and then I'll talk about recommend with experiments.
That was really exciting to me I think you talked to that's been one that's been requested by our customer base for many many years at this point.
The feedback that we've gotten is that Avi testing and analytics really should be together in the same system and so so many customers has developed workarounds for tried using third party tools.
About their own in house tooling to work with amplitude and what's exciting to me for this one is that we just seen tons of examples of companies, saying that hey, let's go ahead.
Use the experimentation platform.
And because the first in terms of just where the tasks. So knowing okay. Here are the different places that I should look for.
The things that I can test seconds in terms of wanting to integrating the results back in your analytics platform thirdly, being able to target and cohort youre users, so being able to say hey, I want to target users only in this geo or fall under this thing and so there's just a lot of natural synergies between 80 testing in and.
And analytics and so definitely really excited about that I think we're seeing the the earliest traction happen and the commercial business because they're able to change their experimentation a lot more quickly, but we're still we're seeing enterprise wins as walnuts thats exciting on both fronts.
On the recommend front.
That's.
That's an upgrade of our product that we had in our product that we had earlier called engage where we could actually deploy cohorts of users.
One of the really interesting things about that one is that you can do smart recommendations on a per customer basis, so heavy depending on what they previously done.
Being able to say, okay, Hey, I think theyre going to be really interested in this feature or this promotion or I send them a notification that looks like this they're going to allow a lot of value out of that.
It tends to be the we have two different flavors of therefore, we call level one level. Two so we've seen a lot of adoption of kind of the basic version and then a few sophisticated teams embraced the more advanced version that has some of the animal models and stuff like that so really excited about those but again to be clear. Those are just launched in Q2, we're only still.
I've only seen one quarter of results from those off we're really excited about.
How these have brought us into a full suite of products beyond just the analytics, which we've always been known for.
Yes, it's exciting what Jason Thanks for allowing me a very quick follow up on Rob I'm just just.
You know that the NRI Guang broke out you guys have been operating down in a fairly tight range in it.
Broken out nicely here, obviously trailing metric, but I assume that.
That's you know more about just volume increase.
Increases in analytics and cross sell there that it to upsell there than it is on cross selling the products, but now that we are starting to see it again, it's early but now that we are starting to see that cross sell motion.
Work.
Is that a trend we can expect to perhaps continue in terms of of that IRR. Thanks, guys.
Yeah, Rob I think if we look at the kind of medium long term, we see opportunity to grow net retention rate both not differently cashing. It you mentioned with both volume up sell but what we call consider horizontal upsell, where you're selling to different use cases, our additional business unit and product line inside the company and then obviously the addition of recommendation recommend an experiment as you just mentioned that.
This gives us additional firepower to go after our existing base and so the combination of the strength that we're seeing along with him. We mentioned in Q2, we had some really great expansion and then you are coming off of some quarter that that you had let's say less more churn coming from F&B and other from Covid is why we're seeing the increase in net retention rate and where you are going.
Defining paned out and keep that well above one <unk>.
Thanks again.
Great. Okay, we're actually going to try and go back to Elisabeth Elliot with Morgan Stanley and then will circle.
Go next to tailor mcginnis at UBS afterwards, so Elizabeth hopefully we're off to a better example of this trend can you guys hear me now a little bit better yeah, we can great great. Thanks, so much.
This is Greg and today that snowflake integration and can you provide a little color on how does this expanded dataset that you had can ingest into ampere Kid and what's the opportunity to get breakeven genre kind of new customers coming in.
Yes, I think.
Getting data into amplitude is the biggest challenge from a customer standpoint today, you need dedicated resources you need engineers to build out that data pipeline categorizing. The taxonomy. So we have a whole process that we help companies do that with.
The exciting thing about the Snowflake integration is it makes that process a lot faster for customers, who already have their data and snowflake.
One of the really interesting things we've seen with Snowflake is the most predominant use case is actually to put product data into snowflake and so given how widespread usage of snowflake is it's a huge opportunity for us to tap into that data stream as opposed to having to instrument that from two fronts.
From scratch and so anyway. So we developed our integration that makes it much more simple. So you don't have to do a lot of ton of custom engineering work to actually get that data piped into amplitude.
We're kind of agnostic to the source we were not you can send it to us directly from your servers you can use the CDP you can now with Snowflake integration you can send it for something like Snowflake and so it just unlocks a whole another set of data in a place customers, we're already trying to collect it and manage it already for amplitude. So it's early so we still have.
We're only have just started having a few customers and beta testing it out, but really excited about that and just.
One I think it's one of the biggest places from a product data standpoint that has been unlocked.
Because of because of this integration and so we'll continue to do more stuff like that and the idea is just to make it easier and easier to get set up and started on amplitude.
Great and then just as a follow up one of the things you guys are investing a lot in post-attack listing is just the go to market channel.
Strategy. So could you give us an update on how sales ranking is hiring and are you seeing any sort of impact from the tight labor market. Yeah. I think we're doing actually while they as kind of I think madden binding kind during investor day, I think we feel really great about kind of where it's getting the story that we're able to tell both in our market and customers and that's what we're actually having in terms of winning new copper and expanding.
Customers I think all of those actually bodes well as youre trying to compete in a tight labor market and we're continuing to see that we're able to grow ourselves capacity at this point no greater number were growing on the revenue side and that's intentional Kevin deposit we took last year prudently.
We're looking forward to next year and continue to build out capacity at this point.
Thank you great. Thanks, a lot.
Okay. Our next question will come from Taylor Mcginnis at UBS, and then we will be go into Michael <unk> at Keybanc next so Taylor hope we'd rather.
Yes, I am hi, guys congrats on the quarter.
So.
Just looking at the <unk> Guide you only raised it slightly and it implies that quarter over quarter growth in the low single digits, which is a must.
Curious bill out of the strong double digit sequential growth you guys have a part in the last several quarters. So can you maybe just talk about some.
Some of the assumptions that are embedded in the park you guide how the guidance philosophy might be similar or different to what we saw last quarter and just you know if there is anything like one time or how we should think about that for Q guide.
Yeah. Thanks for the question I think obviously, we're as kind of a new public company, we wanted to be pretty prudent about how we're thinking about the next quarter Guide I would say that the one difference is that when we gave last quarter guidance. We gave that toward the end of September right. Before we went there are direct listing and so we obviously had a lot more visibility into that and into what we are.
Doing over the next few weeks, whereas obviously now we're a little bit earlier, and so I think that when you think about that additional timeframe you wanted to be a little bit more.
Prudently conservative about where youre looking when you're guiding for the year.
And then last one for me is just on dollar based net expansion rates without obviously it continues to trend up trend up nicely, but I guess, if you look at your expansion rate. It is lower like relative to some other usage based company. So can you just maybe talk about like what's driving some of that difference like how your model might be different or.
As we look ahead, how do you guys expect that to evolve going forward.
And I think that the biggest difference is that because what we're doing with this organization I think the base of our customer early on with more call. It in the <unk>.
Commercial or SMB space, and technology and more companies and so you do have that mix versus Colo companies are working particularly on the enterprise side as we think we mentioned prior and we'll give an update when we do our annual fiscal year earnings in February we'll continue to see great momentum in customers over 100, K and over $1 million and if we can.
Shift that business, adding additional product and do those things I think that we're expecting to kind of maintain a very healthy net retention rate and keep our goal of about 120.
Awesome great. Thank you thanks Don.
Our next question will come from Michael Terrific Keybank, and then a follow up youll be followed by <unk> at Bank of America.
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Thank you thank you Herman.
Okay that helps.
Hey, Michael Sorry, Youre, just cutting out right there.
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Alright, Michael you should be able to start your great. Thank you so much.
Great.
So all the colors.
Thanks Anna.
I want to you Spencer.
Sure.
And then for you and also so that's right.
Well one of the things that really Fascinates me.
The product and what it seems to me at the intersection of a lot of other juice.
There is a product focused others comes from companies that are focusing on product management more broadly some of them are doing digital adoption. There are companies that are approaching this from the from our perspective I know you've given.
Even with an experienced management guys have product product management or to the product experience.
I'm I'm I want to know when do you guys really focusing on the analytics space and broadening out from there how do you see that expanding strategically how do you think you'll be competing relative to some of these others other companies and other areas.
We're coming at products from those perspectives, sorry, yeah, yeah, Yeah for sure Yeah, I think you'll see a lot of companies converging on a similar ish value prop because there is so much value out there in terms of people wanting to use data to leverage that and their product and drive revenue.
And growth for their business. So I think that for sure is happening from our standpoint. It comes back to the differentiator as I mentioned earlier. So first in terms of we've architected for the ground up from product data product. It is fundamentally different from different types of data from other types of data like marketing data our CRM data.
Log data and so it requires a unique type of architecture and approach and so we've done that when you want to answer questions about okay. What has the most positive.
Packed on user journey, one of my best users, having comments youre coming back.
Need certain ways of looking at the product and make it successful. We've also been developing amplitude for nine years now and so have really robust built out SaaS platform that.
Allows people to understand and access that product data and then.
So you've seen that with amplitude.
Number one in the product analytics space and then it's about taking product analytics and then leveraging our success there into these other categories.
The best analogy I have seen is if you look at what Omniture and now part of Adobe has done in the marketing cloud de leverage their strength with.
With their site catalyst analytics product for marketing and then translated that too.
To our success and our whole marketing cloud and so we're taking the same approach with the.
The product buyer.
Great, Thanks, Vincent and Hong.
To come back to the guide question and I thought it interesting and helpful response from you on visibility and when you reported this time versus last time, so maybe there's a good opportunity to walk through the degree of visibility you have on call. It a next one next quarter basis, how much is coming off the balance sheet. How much do you have in terms of linear.
Or is it that you feel that you can you can do.
As you can see at this point, because again I think that low single digits pretty different than what you put up this quarter.
Yeah, I think again you know.
We look at kind of what we kind of quoted for RTL and <unk> I think we do actually have pretty good visibility from that standpoint, I think the exact revenue timing as this again, if you think about last quarter. We reported dollar I talk about it with about a week left in the quarter, though for US is that we knew we already had most of it there and we want to make sure that we.
We're correct about that here, we still have about two months left and so it's really more about the timing risk and how much is still left in our core and trying to make sure that we're being prudent about that and so I think if we kind of getting to obtain four reported more regularly and at this time, we'll use that same kind of consistency, but I do think there was a little bit of a uniqueness given the timing of the direct listing and how.
Close it was to the end of our last quarter and so we didn't want to get so.
It just didn't make sense at a point, where we don't have a week left in what we already knew at that point in time.
Thanks, Ron.
Great. Thanks, Michael.
And our next question will come from Koji Ikeda of Bank of America, and then we will go to Arjun Bhatia at William Blair.
Hey, guys. Thanks for taking my questions apologies, having a little bit.
Tissues on my video here.
So got a question on the new customer adds in the quarter you know really really nice there was a 137 is that a company record I think that's up quite a bit both on an absolute net adds compared to last quarter notes.
And last year too. So is there anything we should be thinking about in the third quarter that would drive such a nice net new adds number.
No I mean, I think like we mentioned we did have an acceleration in intolerant customer until you know your math.
Right I think that it is showing that we're in that.
That that early stage of that market and we're beginning to both the awareness and help you understanding both the power of what we do in this optimization and how they can leverage that as they move away from and get past I should say in the digital transformation of period, we're seeing that uptake and we will continue to look forward to adding those new customers and kind of the growth that they will bring so I think he.
You saw that last quarter, and we continued that this quarter.
Got it got it thanks, Tom and maybe a question for you or for Spencer on the competitive front, we are beginning to hear more and more about other digital product analytics vendors out there and then maybe can you give us an update on the competitive front end and who if any are you seeing during your sales cycles out there.
Yes, so I think.
Two candidly.
Curious to hear you, please being <unk>, but we haven't seen a ton and product analytics.
Within our kind of core target buyer, which is in the enterprise I think like any SaaS company you see a bunch of folks at the low end and SMB and commercial that's something that we're always watching carefully to make sure that we're always.
Painting, our number one position and continuing to build on it.
I think.
The in terms of.
I would say within the enterprise the biggest competition is other ways of solving the same problems. So either teams building an in house.
Through API tool or something like that or trying to force fit marketing analytics. So we're actually not seeing there's not been that much that has changed at least from our standpoint in terms of on a deal basis and with customers in terms of what they are choosing for product analytics in the enterprise.
Got it thanks, so much guys. Thanks appreciate it.
Okay. Our next question will come from origin at William Blair and then we will wrap up with Tyler Radke Citi harder.
Awesome. Thanks, guys.
Thanks, Jason Scott, maybe one for you I wanted to follow up on.
Michael <unk> question about just broader kind of customer experience space and I wanted maybe to get your perspective on what role if any you think qualitative customer feedback from a product perspective, what role that plays in kind of Apple to speech revision, if any and if there's any plans that you have.
Maybe incorporate that into our entire roadmap over time.
Yes, we don't.
Are there any plans now when it comes to qualitative feedback I think qualitative feedback is an important.
Signal or channel four product leaders to be able to understand their customers.
We're very much focused on the quantitative perhaps if it has to do with the user journey and product data related to it and that's what we want to be best in class with.
And so being a system of record for that and everything.
Obviously, it's a it's an overlapping buyer and so there could be a future where that's interesting to us, but right now where we're very focused on everything within digital optimization and kind of the core of our product data.
Okay understood and then just as you think about the <unk>.
The product road map over time, I think you've laid out maybe a goal of launching one to two new products.
A year or.
So two questions on that maybe first if you think about in broad strokes strokes, if theres any kind of.
So you can get off of where you intend to focus those product investments.
Over the next year or so and then two when you think about monetization should we.
Perceive that to be.
Directly those new products to be directly monetize upfront or would you wait until there was a critical mass of adoption.
You start focusing on monetization.
So.
It depends a lot on the product.
I think one of the areas that we've been spending a lot of time is on the data front. So we acquired <unk>.
Data management company earlier, this year and we're looking to do a whole bunch more there.
Both through internally and through potentially acquisitions, if the right opportunity comes along for us and so we.
We will be doing a whole bunch more of their you know snowflake integration is as part of that as well from a monetization standpoint. It really does depend on the product experiment and recommend our two products that have kind of a very direct monetization path, where it's like hey, you get more value you unlock these workflows that you weren't able to do before and so we're able to charge for them directly there.
Other again it depends on the product and like for more data centric products. So for example, that's something that we'd be looking more to give away to our customer base to help them get set up and properly use amplitude because the ROI on that site. We would rather just don't have it for free then the Gabon asset charge point.
But it varies per product.
And it varies in the perceived value of I think the end goal is less on like Hey, you know, we're going to up sell 20% from this product and 50% from this product and more hey, he has the full cancer.
In terms of a complete suite.
That we're able to say hey, we solve the product data problem for you and everything associated with it and then that's when you can get a real premium on what we are able to charge our customers because we're no longer just sub solving a piece of it you are saying, even though the product leader in to say Hey, we're solving everything end to end when it comes to managing your your your digital business.
Perfect that makes sense. Thank you very much and congrats on the quarter. Thanks.
And our final question will come from pilot Ratty at Citi.
Hey, Tyler.
Hey, good afternoon, guys. Thanks for taking my question I wanted to ask you just going back to the Snowflake question.
I guess first was this something that you really saw strong demand for from your customers in and Spencer you mentioned that it sounds like kind of in the final stage the product.
Customers on Snowflake will kind of be able to deploy amplitude pretty.
Pretty quickly so I'm, just curious how youre thinking about that kind of accelerating the pace of new customer acquisitions longer term. Thank you.
We're not forecasting any particular, hey, it's going to be this much with that much I think it's kind of more of a arrow in the quiver, where it's like helps remove a blocker to getting on board with amplitude and one that I'm I'm pretty excited about just because its like.
We can there's a whole new class of customers that really didn't have the opportunity to be amplitude customers before but now do and.
So I'm. So so it definitely is one of the things that will help drive that but.
But it's not like a magic bullet in itself to say Oh, all of a sudden immuno our customer acquisition rate has been a double and so.
As you know.
We will continue doing things like that in order to make it more frictionless for people to get set up with amplitude.
Great and then you mentioned in one of the I think customer examples in the prepared remarks, just around displacing an adobe solution and I was just wondering kind of what youre seeing in terms of the mix of rip and replacement versus.
Versus greenfield.
Where that is stay and how you expect that to evolve. Thank you, yes, so to be clear I think that that's an exciting.
Example, because I think that is a huge long term potential for amplitude has to become.
Particularly as we see the product and marketing functions converge over time I think in the vast majority of cases, though will be coming in alongside an adobe or Google analytics or marketing.
And most organizations those the product and the marketing organizations are quite distinct and so we will sell into the product.
Continue using whatever martech tools they have.
And so I think that that's probably more of an exception at this point than it is the goal, but in terms of the datasets overlapping and potentially combining over the long term and it absolutely is a trend there and so.
It's I think it's a really interesting case, which is why I was excited to share today.
Thanks, so much.
Great. Thanks, a lot, okay and with that we'll conclude today's discussion thanks for being on our webcast. Today, we look forward to seeing many of you virtually this quarter and hopefully in person next year take care.
Thank you all guys.