Q1 2022 Amplitude Inc Earnings Call
122 report, which is based on customer reviews ranked amplitude is the number one product analytics solution for the seventh quarter in a row.
And we ranked number three in digital analytics for the fifth quarter in a row.
Amplitude was also recognized in fast company's most innovative companies list ranking number three in the enterprise category.
And finally amplitude was features in Gardner's market guide for web product and digital experience analytics, which predicts a convergence across the digital analytics market.
Gartner now recommends combining web analytics with either product or digital experience analytics. This really validates the power product analytics and amplitudes opportunity to expand into the broader digital analytics space.
We're also making investments for the long term in Europe , where the pressure to shift away from third party data is particularly intense.
Companies around the world are looking for privacy centric ways to create personalized product experiences, making amplitude the ideal partner in Q1, we landed new customers in Europe , like lunar and info bet, the London and group buy expressive Paris.
To meet rising demand in the region, we're scaling our team and have opened up new Workspaces in London and Paris.
Our leadership team has also been closely following the unlawful an unjustified invasion of Ukraine. We've taken several actions since February to help support our employees and give our Ukrainian customers operating flexibility.
We've also evaluated and terminated customer relationships in the region that we know to be either number one targeted by U S sanctions, including subsidiaries of those companies or number two Russian government or oligarch owned.
<unk> will provide additional information about the financial impact of these decisions amplitude took these steps to comply with sanctions and make it clear we are against the actions of the Russian government.
Our business continues to grow rapidly and we believe in the broad based opportunity for amplitude. This is evidenced by the strong demand for our products from organizations across a variety of sizes verticals in digital maturity and.
In Q1, our customer base expanded by 49% several notable new wins in the quarter include Barnes and noble education retail me not Hopper Brinks security snap finance and hydro.
We also had several customer expands with Dropbox block or square Venmo, Paypal OK Cupid, the weather company culture Amp and on Gummy and we continue to make encouraging progress with the adoption of our new products experiment and recommend I'll expand upon a few customer stories from the first quarter to provide additional context on what drew.
Some of these wins and our increasing value to customers.
A great example of an enterprise win in Q1 as Bartleby, a student's success hub developed by Barnes <unk> Noble education, a leading solutions provider for the education industry.
The Bartleby team selected amplitude of Q1 to deepen their understanding of user behavior across their E learning platform.
With the addition of amplitude analytics, the Bartleby team will increase their ability to generate customer insights and further maximize engagement and conversion opportunities.
A great example of an expansion from Q1 as venmo owned by Paypal Venmo provides seamless digital payments and checkout options for merchants and consumers.
Venmo originally partnered with amplitude of 2016 today Venmo teams use amplitude analytics testator during our hypotheses and products engagement in Q1, Venmo completed a volume based expansion with amplitude.
Next I wanted to share a great example of a customer bringing on our new product experiment amplitude experiment Dropbox, a leading global collaboration platform as a pioneer of product led growth with hundreds of millions of registered users can a suite of digital products.
<unk> partnership with amplitudes enables teams to analyze end to end product experiences run measurable experience experiment faster and ultimately better understand their customer needs and dropbox in Q1, Dropbox scaled their amplitude analytics implementation to more products and added amplitude experiment, which allowed them.
To conclude experiments significantly faster than what they were using before.
Another exciting example of a company, adding amplitude experiment as the weather company and IBM business in an existing amplitude analytics customer in Q1, the weather company expanded its partnership to leverage amplitude experiment, starting with AD placement testing and web platform optimization with both amplitude analytics and amplitude.
<unk>. They are now equipped to pursue several strategic initiatives aimed at advertising and product capabilities on the weather channel website and apps.
A great example of customer expansion and adding amplitude recommended culture amp a market leading employee experience platform.
Organizations of all sizes youth culture amp to gather organizational feedback through engagement surveys to drive development and performance the culture and team originally partnered with amplitude in 2020 to deepen customer insights for a new product growth team in Q1 culture Amp renewed their partnership with amplitude and expanded the volume of.
Eventually ingest culture Amp also added amplitude recommend so customer success customer experience and user experience teams will be able to connect with users at the right time to help them get more value out of culture.
Last but not least is hydro the leading.
At home connected fitness rowing machine known for its patented technology and immersive live and on demand content.
After relying on amplitude starter plan for several years and experiencing exponential growth during the pandemic and beyond hydro chose to become a paid customer of amplitude analytics in Q1 hydro uses amplitude analytics to understand customer behavior and drive adoption and retention in their apps. They are now expanding their relationship to leverage amplitude analytic.
For their <unk> data as well hydro is investing in a data driven culture product led growth and amplitude will be key to this initiative.
Now, let's take a look ahead to Q2, we have been making significant investments in our product development over the past year and you'll be hearing about the early outputs of those investments at our marquee conference amplify the number one product in growth conference. The event is taking place in person in Las Vegas and <unk>.
Online from May 24 to 26, and we will be gathering product leaders from around the world to learn about amplitudes latest product innovations participate in amplitude training sessions and here from an amazing lineup of speakers, including Emmy winning comedian Hassan Minaj, Philadelphia 70, Sixers former general <unk>.
Manager, Sam Hankie and product and growth leaders from the NBA okta under armour hub spot Miro call tricks and more.
In closing I am pleased with our Q1 results and I'm proud of our team's continued execution I believe we are at the beginning of a significant market opportunity and we're investing aggressively in our pursuit of capturing that thank.
Thank you for your interest in amplitude and now I'd like to turn it over to want to walk through the financial results.
Thanks, Spencer and thanks, again to everyone joining us today.
Our team delivered a strong quarter overcoming a couple of headwinds.
First I wanted to discuss a large customer churn in Q1, Twitter because of their massive user activity and monetization of those activity decided it made sense to bill Taylor internal solution.
Combined with the fact that they acquire in Toronto, a product company in 2020, we believe this is an isolated case.
The conflict in Ukraine. It's also been a headwind we made the right decision to show our support by seizing new business and ending our relationship with certain customers in the region, but those decisions will have an impact on the results of this year.
I will elaborate on those impact in a moment.
Despite this we saw robust growth in new customer has the second largest expansion cohort in the company history, which translated to strengthen our net retention rate. So fantastic growth in <unk> and had our best quarter ever with amplitude experiment. These results support our confidence in the long term opportunity for amplitude and a market for digital optimization.
For Q1 revenue came in at $53 1 million, representing 60% annual growth. We ended the quarter with 1701 paying customer and increase of 49% year over year.
We saw customer expanding usage of our platform to drive product led growth, which is reflected in our dollar based net retention rate.
<unk>, which increased 300 basis points sequentially, and 800 basis point year over year to 126%.
Strengthen NR was driven by strong expansion the second largest quarter in number of million plus deals and total expansion dollar value.
<unk> also benefited as orders with Covid related churn dropped off our strength strong MLR reflects the long term underlying expansion opportunity of our business as our customer embraced product led growth, but we expect to see ongoing fluctuation and NR in the quarters ahead, as we digest the timing of large expansion and customer churn.
From a geographic standpoint revenue from the U S increased 59% year over year.
In Q1 to $33 5 million and international revenue increased 62% to $19 5 million.
The U S was 63% of total revenue versus 37 for international consistent with the prior year.
As a result of the actions we took related to the Ukraine conflict combined with term due to the associated collection with we estimate about $1 million in quarter revenue impact beginning in Q2, and a decrease in FY 'twenty two customer count by about 2% to 3%.
Turning to remaining performance obligation or RPM in Q1, total <unk> increased to $194 4 million up 84% year over year current RVO also increased to $149 6 million up 62% year over year, representing approximately 77% of total RPM.
The strength in RPM growth is driven by expansion, coupled with early renewals and longer term contracts, reflecting customers' increasing confidence in the value of our digital optimization services.
I will 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 on our IR website.
Gross margin improved to 72% compared to 70% in Q1 2021.
Excited about the progress towards our long term goal of 75% as we continue to scale the business.
Moving now to operating expenses.
For Q1 sales and marketing expense was $24 9 million compared to $15 9 million last year and represented 47% of revenue compared to 48% of revenue in Q1 'twenty one.
R&D expense in Q1 was $12 million compared to $6 1 million last year. This represented approximately 23% of revenue compared to 18% of revenue in Q1 'twenty one.
As planned we caught up on our investments in product development. So that we can extend our leadership in Arctic analytics and build additional solutions to service a chief product officer role.
G&A expense was $9 2 million for the first quarter compared to $4 6 million in the first quarter of last year.
G&A was 17% of revenue versus 14% of revenue.
Last year due to incremental cost of operating as a public company.
As a result loss from operations in the first quarter was $7 7 million compared to a loss of $3 2 million last year.
Operating margin was negative 15% compared to a negative 10% in the same period last year.
<unk> net loss of <unk> 8 million compared to $3 5 million in the first quarter of 2021.
Net loss per share was <unk> <unk> based on $109 6 million shares compared to a loss of 13 in the first quarter of 2021 with $27 9 million shares.
Turning to free cash flow.
Free cash flow was negative $9 6 million or negative <unk>, 18% of revenue compared to negative $1 1 million or a negative 3% of revenue in the first quarter of 2021.
Turning to our balance sheet, our cash and cash equivalents were $304 million at the end of Q1 down from $307 4 million at the end of the prior quarter.
Before turning to guidance I wanted to offer some high level perspective on our strategy for balancing growth and profitability long term our top priority is still growth, but because of our favorable unit economics. We are committed to improving operating margins every year as we target breakeven non-GAAP operating margins and positive 10% free cash flow in the medium term.
Moving to guidance for the second quarter of 2022, we expect revenue to be between $54, five and $55 5 million, representing an annual growth rate of 40% at the midpoint. This takes into account about 2 million negative impact from actions in Ukraine and Twitter.
We expect non-GAAP operating margin loss of 23% to 24%, we expect operating loss to be the widest in Q2 due to our amplify event, which is being held in person in Las Vegas.
Also incorporates higher expenses from travel and return to office.
We expect non-GAAP net loss per share to be between 11 and 12.
Assuming shares outstanding of approximately $111 6 million.
For the full year 2022, we expect revenue to be between 229 and $235 million, representing an annual growth rate of 37% to 40%.
Given our strong Q1 performance, we raised the midpoint of our range by $2 million.
We expect non-GAAP op margin loss between 19% and 20% an improvement from our previous expectation of negative 20% to 22%.
And we expect non-GAAP net loss per share to be between 39% and 40 <unk>.
<unk> shares outstanding of approximately $112 6 million.
We had some unexpected headwinds in Q1, while our team responded with strong execution delivered a very successful Q1 on a number of fronts. We believe that we're well positioned to drive attractive revenue growth as we help companies build better products. Upon the foundation of our digital optimization system. We're.
We're looking forward to continuing our discussion with all of you over the coming months and are excited about <unk> market opportunity with that I will open the call for your questions.
Yeah.
Thanks, Ron and at this time, we will turn the call over to the Q&A portion of the discussion.
And our first question today will come from Tyler Radke with Citi and following him will be argued Matteo with William Blair kind of go ahead.
Hey, Thanks, a lot for taking the questions.
Sure.
I appreciate all the disclosure on the moving pieces in the forecast one <unk>.
I wanted to start.
Just kind of a broader question for you. So you talked a little bit about the convergence of some of these analytics categories, obviously the Google.
Product change too.
How are you thinking about kind of the broader opportunity in that lens I mean, clearly your roots are and product analytics, you have some interesting traction and experiment and recommend but but how do you go after that broader opportunity without kind of staying focused on.
Kind of the traditional strength of amplitude. Thanks, Yeah for sure Tyler happy to answer that question.
There is the first thing to understand is that what we're seeing in the market is that customers don't really think about themselves differently. If the marketing experience versus if I'm in the product experience. It's just all one end to end journey about customer experience and so one of the big reasons that we talk about digital optimization as opposed to.
Product optimization of product data is that from a customer standpoint, it doesn't really matter and so when youre building a whether you are building the marketing experience for a for your customers Youre building product experience you want all of those to be seamlessly integrated and you want to understand how signing up and doing the free trial impacts your long term usage.
Of your product.
And so we believe that all of those things are going to be converging over time, and that's a huge opportunity for us and so I think historically, you've seen marketing and product be quite separate separate functions separate team separate infrastructure stacks that we see those converging over time.
Thank the updates that garners market guide provided where they said hey.
Marketing analytics is going to convert to a product analytics flash digital analytics is just kind of another sign.
Often with analysts they are really just playing catch up to what they see in market. We're already seeing this I mean, one of one of the crazy things that I've seen a lot of tech companies is that CMO will actually have a product background.
Facebook CMO has that Theres a bunch of other companies that have that case and so I think from a data perspective that means you just need one platform to unify at all and so things that were built for just a marketing analytics world like Google analytics are no longer going to be enough to serve that end product journey.
The last thing I think I'll close out with is our strength has been product. It's always been product that's been our focus in our core.
Our product is product analytics, but.
So we expect that to continue to remain true while we brought in.
Into these other areas of digital marketing what have you analytics.
Great and if I could ask a follow up for long. So I appreciate the help on the moving pieces I guess, if we look at current RPI growth in the quarter.
Does that include some of those headwinds I mean that that grew 62% year over year, I think accelerated a little bit from Q4 yet.
Yet obviously the revenue guidance is about.
I think 2015 to 20 points lower.
For Q2, so just help us understand if those headwinds arent in.
Current RPI guidance, and what would kind of explain that that slowdown.
In revenue if they are thank you, yes, yes, Tyler absolutely when we gave that additional clubs to mainly try to connect those points. So the headwinds in terms of like whether it's the churn that we may have taken related to Ukraine or Twitter are reflected obviously in your <unk>.
The main thing is most of those and they say they were already running through most of what was already in remaining performance obligations that you already were coming down to a quarter of a balanced now at zero. So youre, just not adding any new ones in the renewals right now the reason <unk> is growing at a faster rate, obviously is growing 62% year over year, but the annualized quarterly growth rates.
<unk> was up 42%, obviously above is still a great number but those factors obviously as companies.
Mentioned the company that are more and more thing Hey, we wanted that on <unk>, we thought that until we're seeing also longer term contracts until you have longer term contracts. The movement from long term, our <unk> is actually causing a little bit of that increase in <unk> year over year and that's why you're also seeing <unk> outpaced the RPI.
Great. Thank you.
Thanks Tyler.
Next we'll take Arjun Bhatia with William Blair and following argument will take that Koji Ikeda with Bofa.
Thank you Bonnie <unk> start with Europe .
So continuing on some of the commentary and the discussion we had last quarter around.
Turning to you at the time of expansion.
Curious on your visibility on Corona expansion cadence.
Hello, and three months later into the year.
Terrific.
Wonderful.
Our customer growth on your mind.
And it's far from last quarter.
Now the hallmark.
Yes.
No.
Yes, I think when we talked about last quarter, our visibility into large expansion stays the same I think what we are factoring in last quarter. When we're looking at some of the macroeconomic conditions. We are confident that these customers will expand which is a question of like it the exact timing of when and I think what we saw in Q1.
Both kind of the fact that we hit 126% net retention rate. The fact that we had our second largest expansion ever. It we actually saw Cochrane going now we really do believe highlight growth is very critical and we're going to move on and we're going to keep doing it and so we actually saw really large.
Good large expansion and happening in Q1.
<unk>.
Our timing was a little bit uncertain, whether they were going to exactly happens we wanted to make sure we were being smart about our forecast but.
We executed extremely well and the team really deliver on that front I think as far as Twitter that determines whether you know obviously, we don't ever want to lose any account and I think at the beginning of the quarter. We thought that we were going to be able to save the account the count there wasn't necessarily an expansion, but it was going to be something that would say I think I mentioned in my prepared remarks, given the unique circumstances that were actually happening here.
Actually a lot happening on Twitter and so when you think about that combined with just the amount of data they have and the monetization of that data along with the fact that you did acquire in Toronto, they've made a decision toward the end that they were going to obviously build something internally and so that was not.
Something that we expected.
Alright 100 broker.
Hum.
Okay.
Most of what they're getting on with the category and for our customers.
Increasingly investment.
Partner, when you think about what's normal and recommend.
Pascal.
<unk> mall.
Should we think about that that's still on the spot market.
Thanks.
Sure.
Okay.
Sure.
Just a little hard to hear you.
You got most of that though in go ahead.
Maybe I don't know Carmelo Papa.
Hi, everybody.
I was just curious if customers.
Customers are dealing with.
Ma'am.
Sure.
Right.
Platform.
Perfect.
Okay.
At this point, yes, so we definitely have a few cases, where customers have landed with experiment and thats been a big part of the deal but both in the case of Dropbox and IBM in most of our largest.
Experiment customers those tend to be expansions on top of the core analytics I think what makes me really excited so I was close to both the dropbox and the IBM deals and use cases, and what was exciting about those from my standpoint.
They had decided in both cases to move away from an internal system of doing experimentation onto amplitude and Dropbox I was partly driven by cost savings because they just have so many engineers that were running at in Ibm's case. It was really driven by the goal of just running more experiments they were at like five or six experiments a quarter and they wanted to up.
Increase the number of experiments they were able to execute to 30 or 40.
And both those customers had already been very successful customers on the analytics front.
And gotten a lot of a ton of value out of there and so.
I think.
It was really a breakout quarter for the experiment a product from my standpoint, because I think before we had mainly seen it was commercial SMB teams, maybe enterprise using a precise use case here and there but in both those cases it was like Hey, we're going to move our main experimentation muscle onto amplitude experiment.
So I think that gives me a lot of confidence over the long term that we'll continue to see more enterprise customers like that and as we get into 2023 and beyond that experiment can be a big driver from a revenue perspective on the expansion side.
Okay.
Great and our next question will come from Koji Ikeda with.
And following <unk> will take us from Nicholas <unk> with Baird.
Hey, Spencer Hanwang, thanks for taking my questions.
Wanted to ask you guys a question on a recent press release I saw.
And I noticed that you announced you're now in the AWS marketplace as of March.
I guess.
Can you can you talk a little bit about how this could potentially increase the adoption of the platform maybe from an awareness perspective or also from maybe removing friction of the adoption of the platform being available in the marketplace and also could you. Please remind us are you available on the azure marketplace or where DCP marketplaces right now.
Yes, so were not available in azure or DCP AWS as the first one that we've gotten into I think the really big deal. There is folks can use.
Either credits or committed revenue from AWS, an amplitude as a product and so we just got that agreement in place and so I think unlocking that as just another channel from our partnerships angle has the potential to be big over time as you know any SaaS company as you get towards the $1 billion Mark so much of the.
Revenue comes through the <unk>.
<unk> as opposed to direct which is the vast majority of the business today and so our expectation is that will happen over time now they really want to.
In terms of any channel partner, it's like they really want to see that you can drive business for them. So it's not to your business to sufficiently baked that theyre going to care and send you stuff.
But the fact that we've set it up on AWS is like a really huge deal allows us to work with a broader spectrum of customers that we might otherwise and so really pleased that we got that out the door in Q1.
Got it got it and then just one follow up for me here too.
Actually digging in a little bit more on the partner channel strategy.
Quickly went to the website notice you had about 23, you can't solution partners kind of worldwide.
How do we think about this channel expanding really kind of thinking about expanding or partnering up with some of the regional size or maybe even the GSI is over time.
And I guess I should ask how do we think about the partners from a technology and integration partner network to from here.
Yes, So let me take the technology, one one and then I'll leave it to long for the.
The GSI and the solutions partners.
I think the big thing from a tech standpoint is that the data product data lives in so many different places and companies it could live and your own because we live in a kafka Q it could live and Youre a snowflake.
Data warehouse that could live in GCB could live in like a million different places and so the more places that you integrate with and make accessible the more surface area you have to be able to work with customers that have product data in those places.
And so I think it's a big contrast, with what I think of as kind of a previous Gen. You look at Google analytics, and Adobe, where they're really most for the most part pretty closed ecosystems and they don't have the list of build out integrations, we have where they can send and receive data to all these places and so it makes it tough to.
Keep up with all the different use cases and applications for our product data that are out there and.
And so for US it's just like we're thinking about getting a constant steady stream of every single time, we see a customer that has data in a new place we want to unlock that as a use case will actually be announcing a product around that might amplify in a few weeks, which I'm excited about.
And so obviously, we have DCP last quarter, we had snowflake the quarter before that we announced.
We will expect to continue to announce more integrations and more ways to get data into and out of amplitude and that will just further cement our differentiation versus the previous gen of the analytics players.
Yeah. Thanks, Pat there now on the solutions side I think.
Early on we saw that.
Bunch of companies, especially the phase of outside attack that we're interested in going into product like whether it's heading up their data infrastructure are there growth stocks and they would go to a regional kind of a solution partner to help them with that and so we start partnering with those because they they were coming and say hey, we want to emphasize two to be part of that solution. As we look out we kind of see that as being a huge opportunity.
Unity, because I think when you think about of work it takes to actually get the data already go through the activation and implementation that's one aspect, but the more interesting and more compelling part is even once you have it going.
They still need help in resource to kind of understand the data make recommendation of the data and how to really kind of an instrument and implement totals recommendation and so we think there is a ton of work out there for the right partner to have the right relationship with those clients and until I think that <unk> is going to be a big growth driver for us and so you can kind of go out into other verticals, where they need at <unk>.
And so we continue and we've mentioned it before during our Investor Day, we started investing in partnerships and solutions group and a technical technical technical solutions partner group, both about year and a half ago and will contain one building that out and you're starting to see continuing dividends coming from that.
Got it thanks, guys I'll hop back in the queue. Thanks, so much.
Great. Thanks, and we will take our next question from Mr. <unk> with Baird and following will take Michael <unk> with Keybanc.
Hey, Thanks for taking my questions.
The number of paying customers so.
Growing very nicely, 49% you highlighted the integrations with.
A bunch of <unk> and the <unk> migration services conversion from Google analytics.
I believe it's been like over a quarter now since you launched the Adobe extension.
It's kind of a similar generic conversions from Adobe. So if we can offer some color there.
Start progressing.
How much if at all is that contribution to the land motion and just the go to market learnings from that as you embark on this bigger Google opportunity with with a big migration catalysts that we talked about.
Yes, sure happy to happy to answer that so I think Google analytics has always been a great source of leads it's pretty ubiquitous on the website and so it's a very common starter product for most companies out there and I think we've consistently quarter in quarter out gotten huge number of customers that have migrated or upgraded off of Google analytics.
To amplitude I think this recent forced move from Universal analytics that <unk> four is just going to accelerate that so we just put out a campaign last week to really target.
Current universal wireless customers, who are very unhappy and theirs was.
It's really interesting is if you hear the party line from Google always say, Hey, everyone's happy on this migration, but their customers and partners are just are or anything but.
So it's a.
That'll, we'll continue to see more customers landing and having switched off of <unk>.
Google analytics, the amplitude on the Adobe front, it's a little earlier for us and so.
As you know Adobe is very entrenched in the ecosystem and they have a lot of customers who have built out massive stacks on them.
And it's not just the analytics product they have 60 different products as part of their marketing cloud.
And so theres a few that we are working with actively.
To have them look at amplitude as potential alternatives.
But.
Its really early there and in most cases, we actually play pretty well alongside Adobe in terms of Adobe customers being able to get great product analytics from amplitude and vice versa. I think in the long term, we do see as I meant the <unk>.
Reports suggested in that I mentioned on a previous answer we do see those spaces converging and so we will continue to build out more capabilities there.
But it's still pretty early days for that.
Got it got it thanks, a lot depends on.
Just a quick a follow up on the on the.
That protection.
Carbon selected higher from last time in the previous quarter. So.
You highlighted the second largest expansion the best experiment a quarter.
Dropbox or other channels on <unk>.
You kind of discuss a bit but just trying to unpack.
These contributions a bit.
It wasn't a core product analytics still demand driver for expansion within department across Department.
I have stated that sit at the periphery.
Of course, he was still in these larger <unk> companies are these examples from recommend an experiment are also moving the needle in a meaningful way when it comes to expansion.
Yeah Okay.
Yes, that's great question.
Absolutely planning analytics prices still the main product in the main source of our expansion.
That number I mean, both experiment and recommend we're in our third quarter were extremely.
Pleased with kind of the part of the last quarter, we reported that we had over 100 customers using both product and now we just talked about some really large expansion annual at the IBM and net dropbox around experiment and so.
We're starting to see continuous pick up but still in the early days of both of those new product and they don't make up a material portion of either expansion or the net retention rate yet.
But given the progress and momentum we have there we hope to see that.
Alright, Thanks, a lot thanks Spencer I'll.
I'll go back to it thanks.
Thanks, Rick.
Great. Thanks, and we will take our next question from Michael <unk> from Keybanc and following Michael we'll take <unk>.
<unk> with UBS.
Hi, This is Michael Vick on for Michael Church and Thanksgiving.
Michael.
Yeah.
So thanks for giving the clarity on the Russia commentary, but are you seeing any extension of that to western Europe are any broader impacts from the.
Ongoing work.
I would actually say we have not.
Our Europe growth continues to be strong as we mentioned international growth actually outpaced domestic growth by a little bit in Q1.
Had a lot of great land I mentioned earlier in the prepared remarks, Lino and <unk> in London and grouped by express in Paris, we're continuing to grow and invest our team.
In the region open Workspaces in both London, and Paris, now that we're starting to get to the other side of the pandemic and we're continuing to scale our investment.
Huge shout out to the team in Europe for continuing to deliver in spite of what's going on.
With with Russia, and Ukraine, and so I think we.
I think in the short term, we're obviously have that onetime hit that long mentioned.
Moving out a bunch of Russian customers, but.
Growth from everywhere else in the region is very strong.
Great I appreciate that and then just a quick follow up last quarter, you talked about challenges with customers being slower to expand or building in house solutions.
<unk> being more of an evangelical sale I guess, how are you doing anything to combat that or any changes, you're making internally against that Moshe.
Yes, I mean, that's.
The top focus of the team.
I think.
It's also we had it because we had a really strong expansion quarter in Q1 that was a <unk>.
Driven by a lot of focus and execution.
By the folks on the ground so really proud of the team's work there as we focused on getting more repeat ability and predictability in the expansions.
I think to be clear I think we haven't seen that.
Factor change I think when we see us land quite consistently and then it's really that kind of first expansion to a core product or to a suite of products will become standardized on amplitude that can add variability in timing because that depends on when different executives are bought into product with growth and data driven product that depends on proving out that.
Success in the first product.
And Theres a bunch of different factors in play for that.
In terms of what we're doing about it I think there's two things I think about the air water in the ground War. The Air War is really just continuing to educate and to evangelize. What it is that we do and why product data is so incredibly important.
We're actually really excited about our amplify conference we wouldn't know if we'd be able to get.
A lot of people to turn up in person, but we already have over 1000 folks registered for the conference and that is going to be huge part of driving the idea of this is the way to do it.
That's a long term play there on the on the ground War side. This is where I think we've had a kind of good.
Foundation with some of our customer facing teams, but we're always looking to mature their I mentioned, we brought in Lambert Walsh Chief customer officer. So I'm really excited about the leadership he is going to be able to provide in bringing us to the next level of maturity with helping teams out with customized services.
Things around training and implementation that we might not have been able to do before and those will help accelerate that and so I think I have confidence that the combination of those things over the long term will make that motion much more predictable and repeatable.
And to be clear.
Is it repeatable motion and we see all the signs is just the precise timing can vary and.
And so that's what we're looking at improving as we go throughout this year.
Great really appreciate that thanks.
And our final question will come from clear journeys with UBS.
Great. Thanks for taking my question. So just wanted to follow up a little of that on the full year Guide you of course mentioned the impact from the conflict in Ukraine.
But is there anything else to call out that you're even seeing environment or maybe touched on extension activity, so far but keeping to call out that's influencing your outlook for the rest of the year.
Yes, no I think we raised the midpoint of the range by $2 million, while narrowing it and I think that that's it.
So not only do we had a great Q1, but we actually have more confidence that we'll get more than the net retention rate is and where the new products are on.
Trending we feel really confident in the market and that's what's in the guidance.
Thank you.
As we close things out here I just wanted to make a quick plug for amplify in Las Vegas. So come join US may 24 to 26 in there I promise that if you come join US I'll go hang out with you in person would love to see folks there.