Q2 2024 Amplitude Inc Earnings Call

Yaoxian Chew: Hello, everyone. Welcome to Amplitude's second quarter 2024 earnings conference call. I'm Yaoxian Chew, Vice President of Investor Relations. Joining me are Spenser Skates, CEO and co-founder of Amplitude, Andrew Casey, Chief Financial Officer, and Mike Dean, BP Corporate Controller.

Yaoxian Chew: Hello, everyone. Welcome to Amplitude's second quarter of 2024 earnings conference call. I'm Yaoxian Chew, Vice President of Investor Relations. Joining me is Spencer Skates, CEO and co-founder of Amplitude, Andrew Casey, Chief Financial Officer, and Mike Dean, BP Corporate Controller.

Yaoxian Chew: During today's call, management will make forward-looking statements, including statements regarding our financial outlook for the third quarter and full year 2024, 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.

Speaker Change: During today's call, management will make forward-looking statements, including statements regarding our financial outlook for the third quarter and full year 2024, 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 I'll be under control, because actual results have differ materialies from those described in these statements.

Yaoxian Chew: Further information on the risks that could cause actual results to differ is included in our filings with the Securities and Exchange Commission. We 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 in today's call are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes.

Yaoxian Chew: Other information on the risks that could cause actual results to differ is included in our filings with the Securities and Exchange Commission.

Yaoxian Chew: 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.

Yaoxian Chew: We use these non-gap financial measures internally to facilitate the analysis of a financial and business trends and for internal planning and forecasting purposes.

Yaoxian Chew: 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. A reconciliation between these GAAP and non-GAAP financial measures is included in our earnings press release, which can be found on Investor Relations' website at investors.amplitude.com.

Yaoxian Chew: 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.

Yaoxian Chew: Reconciliation between these gaps and non-gap financial measures is included in our earnings press release, which can be found out in the vessel relations website at investors.ampatute.com. With that, I'll hand the call over to Spenser.

Spenser Skates: With that, I'll hand the call over to Spenser.

Spenser Skates: Thanks, Yao. Good afternoon, everyone.

Spenser: Thanks Yao, and good afternoon everyone. Welcome to our 2024 second quarter earnings call. I'm going to focus on three topics today.

Spenser Skates: Welcome to our 2024 second quarter earnings call. I'm going to focus on three topics today. Q2 financial results and what we're seeing, how we're going after our market opportunity and continued product innovation and customer story. I'm pleased to report that we beat across all guided metrics this quarter. Our second quarter revenue was $73.3 million, up 8% year over year. Annual recurring revenue was $290 million, up $5 million from the end of the first quarter.

Spenser: Q2 Financial Results and What We're Seeing, How We're Going After Our Market Opportunity, and Continued Product Innovation and Customer Stories.

Spenser: I'm pleased to report that we beat across all guided metrics this quarter.

Spenser: Our second quarter revenue was $73.3 million, up 8% year-over-year. Annual recurring revenue was $290 million, up $5 million from the end of the first quarter. We now have more than 3,200 paying customers.

Spenser Skates: We now have more than 3,200 paying customers. In Q2, customers representing $100,000 or more of ARR grew to 547, an increase of 10% year over year. We are operating responsibly and have generated 5.7 million of free cash flow year to date. Before we get into the quarter's details, I want to call out that we were revising our annual guidance lower on non-GAAP operating profit for the year while raising revenue. This is due to a change in Russian sanctions announced in June. Without this, operating profit guidance would have been unchanged. We'll go into more detail shortly.

Spenser: In Q2, customers representing $100,000 or more of ARR grew to 547, an increase of 10% year-over-year.

Spenser: We are operating responsibly and have generated $5.7 million of free cash flow year-to-date.

Speaker Change: Before we get into the quarter's details, I want to call out that we are revising our annual guidance lower on non-GAAP operating profit for the year while raising revenue.

Spenser: This is due to a change in Russian sanctions announced in June . Without this, operating profit guidance would have been unchanged. We'll go into more detail shortly.

Spenser Skates: Our top priority at Amplitude is re-accelerating growth. We are making great progress. New business remained healthy in the second quarter.

Speaker Change: Our top priority at Amplitude is re-accelerating growth. We are making great progress.

Yaoxian Chew: Hello everyone, welcome to Amplitude's second quarter, 2024 Earnings Conference call.

Spenser: New Business remained healthy in the second quarter.

Spenser Skates: Amplitude's value proposition continues to resonate, and our win rates are strong. In spite of tight IT budgets, companies are investing in the digital experience. I would characterize the macro environment as stable quarter to quarter.

Speaker Change: Amplitude's value proposition continues to resonate and our win rates are strong. In spite of tight IT budgets, companies are investing in digital experiences.

Yaoxian Chew: I'm Yaoxian Chew, Vice President of Investive Relations. Joining me are Spenser Skates, CEO and co-founder of Amplitude, Andrew Casey, Chief Financial Officer, and Mike Dean, VP Corporate Controller. During today's call, management will make four looking statements, including statements regarding a financial outlook for the third quarter and four year 2024. The expected performance of our products are expected quarterly and long term growth, investments in our overall future prospects. These four looking statements are based on current information, assumptions, and expectations, and a subject to risks and uncertainties, some of which are beyond a control that cause actual results to differ materially from those described in these statements.

Spenser: I would characterize the macro environment as stable quarter to quarter. We continue to feel great about our competitive position, particularly against point solutions and legacy players.

Spenser Skates: We continue to feel great about our competitive position, particularly against point solutions and legacy players. We have a differentiated platform approach, customers find value quickly, and privacy regulations are helping to drive incremental demand. As expected, churn also remained high in the second quarter.

Yaoxian Chew: Further information on the risks that could cause actual results to differ is included in our filings with the Securities and Exchange Commission. Your caution is not to place undue reliance on these four looking statements and we assume no obligation to update these statements after today's call, except it's required by law.

Spenser: We have a differentiated platform approach, customers find value quickly and privacy regulations are helping to drive incremental demand.

Spenser: As expected, churn also remained high in the second quarter. This was driven by some of our most severe legacy contract resets, which we have been highlighting for several quarters.

Spenser Skates: This was driven by some of our most severe legacy contract resets, which we have been highlighting for several quarters. We are optimistic that the significant majority of overbought to optimization contracts of this nature are now in our rearview mirror. We are building momentum from the many improvements we've made and our go-to-market strategy. Amplitude Plus, our self-serve offering, continues to gain momentum with customers of all sizes and types. Plus performance was strong in Q2. New onboarding improvements and a simplified data setup process are driving uplifts and activation. Plus also continues to serve as a valuable feedback loop informing our WinSimple approach to core amplitudes.

Spenser: We are optimistic that the significant majority of overbought to optimization contracts of this nature are now in our rear view mirror.

Spenser: We are building momentum from the many improvements we've made in go-to-market.

Yaoxian Chew: Certain financial measures use on the day's call I expressed on a non-gap basis. We use these non-gap financial measures internally to facilitate analysis of our financial and business trends and for international planning and forecasting purposes. These non-gap financial measures have limitations and should not be used in isolation from or as a substitute for financial information prepared in accordance with gap. A reconciliation between these gap and non-gap financial measures is included in our earnings press release, which can be found out in Investive Relations website at investors.amplitude.com.

Spenser: Amplitude Plus, our self-serve offering, continues to gain momentum with customers of all sizes and types. Plus performance was strong in Q2. New onboarding improvements and a simplified data setup process are driving uplifts and activation.

Spenser: Plus also continues to serve as a valuable feedback loop, informing our wind symbol approach on core amplitude.

Spenser Skates: Our named account approach led to higher quality deals in Q2 than in the prior quarter. We also saw better platform attach rates and steady improvement in enterprise land ASPs. Improved account management is letting us better align with customer initiatives and land larger customer engagements from the start. We are growing our ability to gain mind share and budget across product, marketing, and data buyers. The customer expansions we are unlocking are also of higher quality. During the start of the pandemic, data volume increases drove many of our largest expansions.

Spenser: Our name, the counterprote, led to higher quality deals in Q2 than in prior quarters. We also saw better platform attached rates and steady improvement in enterprise land ASPs.

Spenser Skates: With that, I'll hand the call over to Spencer. Thanks, Yao, and good afternoon everyone. Welcome to our 2024 second quarter earnings call. I'm going to focus on three topics today. Q2 financial results in what we're seeing, how we're going after our market opportunity, and continued product innovation and customer stories. I'm pleased to report that we beat across all guided metrics this quarter. Our second quarter revenue was 73.3 million, up 8% year-to-year.

Spenser: Improved account management is letting us better align with customer initiatives and land larger customer engagements from the start. We are growing our ability to gain mindshare and budget across product, marketing and data buyers.

Spenser: The customer expansions we are unlocking are also of higher quality. During the start of the pandemic, data volume increases drove many of our largest expansions.

Spenser Skates: Today, customers are expanding because Amplitude is viewed as the right future-proof, enterprise-ready platform in a world where companies win and lose based on their digital experience. I'm also very encouraged by the continued green shoots that we called out in prior quarters. Customer relationships are healthier post-renewal, with customers using more of our platform and attaching services. We are more aligned with our customers' current growth ambitions than we have been in the last year. In our top 100 customers, underlying utilization trends continue to improve quarter to quarter, and cohort health is visibly improving.

Spenser Skates: Annual recurring revenue was 290 million, up 5 million from the end of the first quarter. We now have more than 3,200 paying customers. In Q2, customers representing $100,000 or more of ARR grew to 547, an increase of 10% year-to-year. We are operating responsibly and have generated 5.7 million of free cash flow year-to-date.

Spenser: Today, customers are expanding because Amplitude is viewed as the right, future-proof, enterprise-ready platform in a world where companies win and lose based on their digital experience.

Spenser: I'm also very encouraged by the continued green shoots that we call that in prior quarters.

Spenser: Customer Relationships are healthier post- renewal with customers using more of our platform and attaching services. We are more aligned with our customer's current growth ambitions than we have been in the last year.

Spenser Skates: Before we get into the quarter's details, I want to call out that we are revising our annual guidance lower on non-gap operating profit for the year while raising revenue. This is due to a change in Russian sanctions announced in June. Without this, operating profit guidance would have been unchanged. We'll go into more detail shortly. Our top priority at amplitude is re-accelerating growth. We are making great progress. New business remained healthy in the second quarter.

Spenser: In our top 100 customers, under why utilization trends continue to improve quarter to quarter.

Spenser Skates: For customers who have optimized with us one time, the majority of the associated ARR either renews flat or grows off of that base. For customers acquired in the second half of 2022 and later, growth and net retention patterns continue to show better dynamics than those from 2020 and 2021. Pipeline signals also are encouraging for the second half of the year and into 2025, thanks to coordinated efforts across marketing, sales, and partnership. We are seeing particular strength in our U.S. enterprise business. International markets, while behind the United States in terms of maturity, are demonstrating the same level of latent demand.

Coherit Health: Coherit Health is visibly approving, for customers who have optimized with us one time, the majority of the associated ARR, either renews flat or grows off of that face.

Coherit Health: For customers required in the second half of 2022 and later, gross and net retention patterns continue to show better dynamics than those from 2020 and 2021.

Spenser Skates: Amplitudes value proposition continues to resonate and our win rates are strong. In spite of type IT budgets, companies are investing in digital experiences. I would characterize the macro environment as stable quarter to quarter. We continue to feel great about our competitive position, particularly against point solutions and legacy players. Partners. We have a differentiated platform approach, customers find value quickly, and privacy regulations are helping to drive incremental demand. As expected, Churn also remained high in the second quarter.

Coherit Health: Pipeline signals also are encouraging for the second half of the year and into 2025, thanks to coordinated efforts across marketing, sales, and partnerships.

Coherit Health: We are seeing particular strength in our U.S. enterprise business. International markets, while behind the United States in terms of maturity, are demonstrating the same level of latent demand.

Spenser Skates: Average deal size in our second half pipeline is up by 25% year on year, and we're seeing a significant increase in large deal opportunities. Now, let's address the item that accounts for the change in non-GAAP operating profit outlook. In April 2022, we stopped all new sales activity in Russia and Belarus. We also terminated all contracts with customers that we knew to be targeted by US sanctions. Russian Government-owned, Russian Oligarch-owned, or Russian Government-Controlled News Outlets

Coherit Health: Average deal size in our second half pipeline is up by 25% year-on-year and we're seeing a significant increase in large deal opportunities.

Coherit Health: [inaudible]

Spenser Skates: This was driven by some of our most severe legacy contract recess, which we have been highlighting for several quarters. We are optimistic that the significant majority of overbought to optimization contracts of this nature are now in our rearview mirror. We are building momentum from the many improvements we made and go to market. Amplitude Plus, our self-serve offering, continues to gain momentum with customers of all sizes and types. Plus performance was strong in Q2.

Coherit Health: Now, let's address the item that accounts for the change in non-GAAP operating profit outlook.

Coherit Health: In April 2022, we stopped all new sales activity in Russia and Belarus. We also terminated all contracts with customers that we knew to be targeted by U.S. sanctions, Russian government-owned, Russian oligarch-owned, or Russian government-controlled news outlets.

Spenser Skates: We continue to serve customers who do not meet that criteria. On June 12, the U.S. Department of the Treasury increased the scope of sanctions in Russia, leaving us unable to serve any customers in Russia and highly unlikely to be able to collect from these previously unaffected customers. If not for this isolated insulin, our outlook on operating profit for the year would have been unchanged. While this weighs on what would have been a much stronger Q3 and exit growth rate, I would like to draw attention to the bigger picture.

Coherit Health: We continue to serve customers who did not meet that criteria.

Coherit Health: On June 12th, the US Department of the Treasury increased the scope of sanctions in Russia, leaving us unable to serve any customers in Russia and highly unlikely to be able to collect from these previously unaffected customers.

Spenser Skates: New onboarding improvements in a simplified data setup process are driving upless in activation. Plus, also continues to serve as a valuable feedback loop, informing our wind simple approach on core amplitude. Our named account approach led to higher quality deals in Q2 than in prior quarters. We also saw better platform attachments and steady improvement in enterprise land ASPs. Improved account management is letting us better align customer initiatives and land larger customer engagements from the start.

Coherit Health: If not for this isolated insulin, our outlook on operating profit for the year would have been unchanged.

Coherit Health: While this weighs on what would have been a much stronger Q3 and exit growth rate, I would like to draw focus to the bigger picture. We are raising revenue guidance for the year despite facing material headwind in Q3.

Spenser Skates: We are raising revenue guidance for the year to spike despite facing material headwinds in Q3. The business improvements we have put in place are starting to deliver results. We believe ARR and revenue reacceleration are both well within our reach. We expect to be free cash flow positive for the year, and we continue to invest behind the biggest driver of long-term growth for Amplitude product innovation. Next slide.

Spenser Skates: We are growing our ability to gain mind share and budget across product, marketing and data buyers. The customer expansions we are unlocking are also a higher quality. During the start of the pandemic, data volume increases drove many of our largest expansions. Today, customers are expanding because amplitude is viewed as the right future proof enterprise ready platform in a world where companies win and lose based on their digital experience. I'm also very encouraged by the continued green shoots that we called out in prior quarters.

Coherit Health: The business improvements we have put in place are starting to deliver results. We believe ARR and revenue reacceleration are both well within our reach. We expect to be free cash flow positive for the year.

Coherit Health: We continue to invest behind the biggest driver of long-term growth for Amplitude product innovation.

Speaker Change: Thank you for watching, see you in the next video!

Speaker Change: Thanks for watching, and don't forget to like, share, and subscribe to our channel.

Spenser Skates: Our thesis is that analytics is the center of gravity for any workflow that touches customer and product data. Without analytics, the rest of the stack is much less important. Session replay is making rapid progress in its second live quarter. However, there is a lot of customer pain experienced from fragmented tooling. Our platform is continuing to displace point solutions, aid in renewal discussions, and offer a shorter time to value for our platform. We expect a larger unlock when we launch mobile session replay later this year. Experiment and CDP landed with marquee customers.

Speaker Change: Next slide, please.

Speaker Change: Our thesis is that analytics is the center of gravity for any workflow that touches customer and product data. Without analytics, the rest of the stack is much less useful.

Speaker Change: Session replay is making rapid progress in its second live quarter.

Spenser Skates: Customer relationships are healthier post renewal with customers using more of our platform and attaching services. We are more aligned with our customers current growth ambitions than we have been in the last year. In our top 100 customers, underlying utilization trends continue to improve quarter to quarter. Cohort health is visibly approving. For customers who have optimized with us one time, the majority of the associated ARR either renews flat or grows off of that base.

Speaker Change: There is a lot of customer pain, experience, from fragmented tooling. Our platform is continuing to display point solutions, aid and renewal discussions, and offer a shorter time to value for our platform. We expect a larger unlock when we launch a mobile session replay later this year.

Speaker Change: Experiment and CDP landed with marquee customers, and some of our largest expansions this quarter were catalyzed by our non analytics offerings.

Spenser Skates: And some of our largest expansions this quarter were catalyzed by our non-analytics office. A Confluence of Tight Customer Budgets, Enhanced Product Maturity, and Improving Field Enablement are letting us lean in. Today, 21% of our annual contracted customers use more than one product, up from 15% at the same time last year. Customers who use more products retain better.

Speaker Change: A confluence of tight customer budgets, enhanced product maturity, and improving field enablement are letting us lean in.

Spenser Skates: For customers required in the second half of 2022 and later, growth and net retention patterns continue to show better dynamics than those from 2020 and 2021. Pipeline signals also are encouraging for the second half of the year and into 2025, thanks to coordinated efforts across marketing, sales and partnerships. We are seeing particular strength in our U.S, enterprise business. International markets while behind the United States in terms of maturity are demonstrating the same level of latent demand. Average deal size in our second half pipeline is up by 25% year on year and we're seeing a significant increase in large deal opportunities.

Speaker Change: Today, 21% of our annual contracted customers use more than one product, up from 15% at the same time last year.

Speaker Change: Customers who use more products retain better.

Spenser Skates: Industry analysts are also recognizing our leadership. Amplitude was named the only leader in the latest Forrester wave for feature management and experimentation. We achieved the highest possible scores across 11 criteria, with particular callouts for our platform breadth, depth, user interface, pricing, and vision.

Speaker Change: Industry analysts are also recognizing our leadership, amplitude was named as the only leader in the latest forester wave for feature management and experimentation. We achieved the highest possible scores across 11 criteria with particular call-outs for a platform breadth depth, user interface, pricing and vision.

Spenser Skates: We announced the general availability of Amplitude's Snowflake Native offering in June. Our warehouse native approach is all about extending what has made Amplitude successful, being one of the most open, agnostic, and trusted ways to access and find insights from customer data. Early interest here is encouraging.

Speaker Change: We announced the general availability of Amplitude's Snowflake Native offering in June. Our Warehouse Native approach is all about extending what has made Amplitude successful, being one of the most open, agnostic, and trusted ways to access and find insights from customer data.

Spenser Skates: Now, let's address the item that accounts for the change in non-gap operating profit health. Lock. In April 2022, we stopped all new sales activity in Russia and Belarus. We also terminated all contracts with customers that we knew to be targeted by US sanctions, Russian government owned, Russian oligarch owned, or Russian government controlled news outlets. We continued to serve customers who did not meet that criteria. On June 12, the US Department of the Treasury increased the scope of sanctions in Russia, leaving us unable to serve any customers in Russia, and highly unlikely to be able to collect from these previously unaffected customers.

Speaker Change: Early interest here is encouraging.

Spenser Skates: We've made other huge strides in our mission to win the enterprise. Large, sophisticated enterprises have different needs, and one of their top requests is for enterprise-grade controls. That's why I'm excited to announce enterprise-grade data access controls and data immutability. These advancements help to eliminate data drift, ensure compliance, and reduce friction around managing data by the. With our enterprise-grade digital analytics platform, customers can keep data in sync with their data warehouse, and confidently control who sees what. With improved security, scalability, and privacy, we're confident we can convert the most conservative chief data officers into amplitude champions. Last quarter, I talked about radical simplicity.

Speaker Change: We've made other huge strides in our mission to win the enterprise. Large sophisticated enterprises have different needs, and one of their top requests is for enterprise-grade controls. That's why I'm excited to announce enterprise-grade data access controls and data mutability.

Speaker Change: These advancements help to eliminate data drift and share compliance and reduce friction around managing data by the sea.

Speaker Change: With our enterprise-grade digital analytics platform, customers can keep data in sync with their data warehouse, confidently control who sees what. With improved security, scalability, and privacy, we're confident we can convert the most conservative chief data officers into Amplitude champions.

Spenser Skates: If not for this isolated insulin, our outlook on operating profit for the year would have been unchanged. While this weighs on what would have been a much stronger Q3 and exit growth rate, I would like to draw focus to the bigger picture. We are raising revenue guidance for the year despite facing material headwind and Q3. The business improvements we have put in place are starting to deliver results. We believe ARR and revenue re-acceleration are both well within our reach. We expect to be free cash flow positive for the year. We continue to invest behind the biggest driver of long-term growth for amplitude product innovation.

Speaker Change: [inaudible]

Speaker Change: Last quarter, I talked about Radical Simplicity. We've always been a self-serve platform, but now we want to eliminate the learning curve altogether. This is one of the most ambitious projects we've taken on as a company.

Spenser Skates: We've always been a self-serve platform, but now we want to eliminate the learning curve altogether. This is one of the most ambitious projects we've taken on as a company. We've reimagined our product experience from top to bottom, and we will be launching a brand new Amplitude on September 10. We're offering users a single line of code to get up and running, default dashboards out of the box, auto-capture and visual tagging, bundling of session replay and experiment SDKs with analytics out of the box, new navigation and user interface, and a new conversational version of our Analytics today is hard, but we are going to make it easy.

Speaker Change: We've reimagined our product experience from top to bottom and we will be launching brand new amplitude on September 10th.

Speaker Change: We're offering users a single line of code to get up and running, default dashboards out-of-the-box, auto-capture and visual tagging, bundling Obsession Replay and Experiment SDKs with analytics out-of-the-box, new navigation and user interface, and a new conversational version of our AI Assistant in Search.

Spenser Skates: Next slide, please. Rethesis is that analytics is the center of gravity for any workflow that touches customer and product data. Without analytics, the rest of the stack is much less useful. Session replay is making rapid progress in its second live quarter. There is a lot of customer pain experienced from fragmented tooling. Our platform is continuing to displace point solutions aid in renewal discussions and offer a shorter time to value for our platform.

Spenser Skates: All the priceless customer behavior, product, and community knowledge embodied in Amplitude will be approachable to every user. It'll be radically easier to get started, get insights, and get value. We want Amplitude to be a daily habit, and our new platform will help get us there. We can't wait to share more. Turning the Cusp.

Speaker Change: Analytics today is hard. We are going to make it easy. All the priceless customer behavior, product, and community knowledge embodied in Amplitude will be approachable to everyone.

Speaker Change: It will be radically easier to get started, get insights, and get value. We want Amplitude to be a daily habit, and our new platform will help get us there. I can't wait to share more.

Spenser Skates: We expect a larger unlock when we launch mobile session replay later this year. Experiment and CEP landed with marquee customers and some of our largest expansions this quarter were catalyzed by our non-analytics offerings. A confluence of tight customer budgets enhanced product maturity and improving field enablement are letting us lead in. Today, 21 percent of our annual contracted customers use more than one product up from 15 percent at the same time last year.

Spenser Skates: In Q2, we landed and grew with HubSpot, Fanatics Live, CloudFlare, SketchUp, Writer, Character AI, Volvo, Icelandair, Cook Children's Healthcare System, and Farmers Business Network. A notable highlight this quarter is SketchUp, a business unit of Trimble. Globally, they are one of the largest 3D modeling tools in the construction and industrial industry, with tens of millions of monthly users. With this renewal, product and data teams are drastically increasing the amount of data from their web and mobile applications, in addition to going live with Amplitude CDP.

Speaker Change: Turning the customers.

Speaker Change: In Q2, we landed and grew with HubSpot, Fanatics Live, CloudFlare, SketchUp, Rider, Character AI, Volvo, Icelandair, Cooke Children's Healthcare System, and Farmers Business Network.

Spenser Skates: SketchUp aims to democratize data across the business, empowering product managers with self-service insights. With Amplitude, SketchUp will be able to enact PLG best practices, everything from encouraging free to paid upgrades, keeping users engaged after the initial learning curve, and identifying churn as a habit. We're excited to support SketchUp and their ongoing data-centric transformation and look forward to contributing to their continued success. We also had a win with Cook Children's Healthcare System, one of the largest nonprofit pediatric medical centers in the US.

Speaker Change: The notable highlight this quarter is SketchUp, a business unit, Trimble. Glovely they want to be largest 3D modeling tools in the construction and industrial industry with tens of millions monthly users.

Spenser Skates: Customers who use more products retain better. Industry analysts are also recognizing our leadership. Amplitude was named as the only leader in the latest forster wave for feature management and experimentation. We achieved the highest possible scores across 11 criteria with particular callouts for a platform breadth depth user interface pricing and vision. We announced the general availability of amplitude snowflake native offering in June. Our warehouse native approach is all about extending what has made amplitude successful. Being one of the most open, agnostic and trusted ways to access and find insights from customer data. Early interest here is encouraging.

Speaker Change: With this renewal, product and data teams are drastically increasing the amount of data from their web and mobile applications in addition to going live with Amplitude CDP. SketchUp aims to democratize data across the business, empowering product managers with self-service insights.

Speaker Change: With Amplitude, SketchUp will be able to enact PLG best practices, everything from encouraging free-to-paid upgrades, keeping users engaged after the initial learning curve, and identifying churn as it happens.

Speaker Change: We're excited to support SketchUp and their ongoing data-centric transformation and look forward to contributing to their continued success.

Speaker Change: We also had a win with Cook Children's Healthcare System, one of the largest non-profit pediatric medical centers in the US. They are migrating from Google due to data privacy and hip-a-compliance concerns.

Spenser Skates: They are migrating from Google due to data privacy and HIPAA compliance concerns. With a focus on digital transformation and optimizing the patient experience, they chose Amplitude to power user insights with their newly launched web experience. Amplitude will let them connect web and mobile patient journeys to increase patient appointment conversion and identify channel performance across marketing campaigns. Character AI has been an Amplitude customer for less than a year and is already expanding its use cases and adoption of Amplitude.

Speaker Change: With a focus of digital transformation and optimizing the patient experience, they chose amplitude to power user insights with their newly launched web experience. Amplitude will let them connect web and mobile patient journeys to increase patient appointment conversion and identify channel performance across marketing campaigns.

Spenser Skates: We've made other huge strides in our mission to win the enterprise. Large sophisticated enterprises have different needs and one of their top requests is for enterprise grade controls. That's why I'm excited to announce enterprise grade data access controls and data mutability. Early. These advancements help to eliminate data drift and share compliance and reduce friction around managing data privacy. With our enterprise-grade digital analytics platform, customers can keep data in sync with their data warehouse, confidently control who sees what. With improved security, scalability, and privacy, we're confident we can convert the most conservative chief data officers into amplitude champions.

Speaker Change: Character AI has been an Amplitude customer for less than a year and is already expanding its use cases and adoption of Amplitude. They're one of the fastest growing AI companies, empowering users to create and interact with various AI characters that feel alive.

Spenser Skates: They're one of the fastest growing AI companies empowering users to create and interact with various AI characters that feel alive. Amplitude has proven critical in tracking their users' onboarding flow and the success of new feature releases. This is especially important as they roll out their new voice feature, which allows users to hear characters speaking to them in one-to-one chat.

Speaker Change: Amplitude has proven critical in tracking their users onboarding flow and the success of new feature releases. This is especially important as they roll out their new voice feature, which allows users to hear character speaking to them in one-to-one chats.

Spenser Skates: They are consolidating their analytics efforts by adding our whole suite to this renewal. Another great win this quarter was with a global job search platform that saw the potential to consolidate multiple point solutions and for Amplitude to become their single source of truth. Before Amplitude, the team couldn't trust the results of the experiments they would run. They spent more time arguing than running tests.

Spenser Skates: Last quarter, I talked about radical simplicity. We've always been a self-serve platform, but now we want to eliminate the learning curve altogether. This is one of the most ambitious projects we've taken on as a company. We've reimagined our product experience from top to bottom, and we will be launching brand new amplitude on September 10th. We're offering users a single line of code to get up and running, default dashboards out of the box, auto-capture and visual tagling, bundling of session replay and experiment SDKs with analytics out of the box, new navigation and user interface, and a new conversational version of our AI assistant and search.

Speaker Change: They are consolidating their analytics efforts by adding our whole suite to this renewal.

Speaker Change: Another great win this quarter is with the global job search platform, which saw the potential to consolidate multiple point solutions and for Amplitude to become their single source of truth.

Speaker Change: Before Amplitude, the team couldn't trust the results of the experiments they would run. They spent more time arguing than running tests.

Spenser Skates: By moving away from Optimizely onto Amplitude, they could finally scale their experimentation program by eliminating two big blockers, a lack of data trust and the painful overhead associated with integrations and data pipelines. This is a great example of how our amplitude approach solves pain with unbeatable value. With our digital analytics platform, Amplitude is able to bring together product leaders, data scientists, engineers, and growth teams to make data-driven decisions, streamline workflows, and connect insights to actions at scale.

Speaker Change: By moving away from optimisingly onto amplitude, they could finally scale their extermination program by eliminating two big blockers, a lack of data trust, and the painful overhead associated with integrations and data pipelines.

Spenser Skates: Analytics today is hard. We are going to make it easy. All the priceless customer behavior product and community knowledge embodied in the amplitude will be approachable to everyone. It will be radically easier to get started, get insights and get value. We want amplitude to be a daily habit, and our new platform will help get us there. I can't wait to share more.

Amplitude: This is a great example of how our Amplitude approach solves pain with unbeatable value. With our digital analytics platform, Amplitude is able to bring together product leaders, data scientists, engineers, and growth teams to make data-driven decisions, streamline workflows, and connect insights to actions at scale.

Speaker Change: Thank you for watching, see you in the next video.

Spenser Skates: Before I turn the call over, I want to thank Mike Dean for his contributions during this period of transition at Amplitude. He is one of the rock stars at this company and has done an amazing job rising to this occasion at an important time for Amplitude as interim finance leader. I'm excited to introduce our new Chief Financial Officer, Andrew Case. Andrew has more than 25 years of battle-tested enterprise software experience. He has had senior finance roles across ServiceNow, Oracle, and HP. More recently, he took Walk.me public in its IPO and was CFO of Lace.

Spenser Skates: Turning to customers. In Q2, we landed and grew with HubSpot, FanaticsLive, CloudSlayer, SketchUp, Writer, Character AI, Volvo, Iceland there, Cook Children's Healthcare System, and Farmers Business Network.

Speaker Change: Before I turn the call over, I want to thank Mike Dean for his contributions during this period of transition at Amplitude. He is one of the rock stars at this company and has done an amazing job rising to this occasion at an important time for Amplitude as interim finance leader.

Spenser Skates: A notable highlight this quarter is SketchUp, a business unit of Trimble. Globally, they are one of the largest 3D modeling tools in the construction and industrial industry with tens of millions monthly users. With this renewal, product and data teams are drastically increasing the amount of data from their web and mobile applications in addition to going live with Amplitude CDP. SketchUp aims to democratize data across the business empowering product managers with self-service insights. With Amplitude, SketchUp will be able to enact PLG best practices, everything from encouraging free-to-paid upgrades, keeping users engaged after the initial learning curve and identifying churn as it happens.

Speaker Change: I'm excited to introduce our new Chief Financial Officer, Andrew Casey. Andrew has more than 25 years of battle-tested enterprise software experience.

Speaker Change: He has had senior finance roles across ServiceNow, Oracle, and HP. More recently, he took WalkMe public in his IPO and was CFO of Lacework.

Spenser Skates: I've gotten to know Andrew well recently. He has a fantastic combination of strategic thinking while being able to get into the details operationally. He also has a genuine passion for the space we're in. We're both in it for the long term, and I'm looking forward to working closely with him as we write the next chapter of growth for Ample. We have been enhancing every area of our business and building momentum.

Speaker Change: I've gotten to know Andrew well recently, he's a fantastic combination of strategic thinking while being able to get into the details operationally. He also has a genuine passion for the space we're in.

Speaker Change: We're both in it for the long term, and I'm looking forward to working closely with him as we write the next chapter of growth for Amplitude.

Spenser Skates: We're excited to support SketchUp and their ongoing data-centric transformation and look forward to contributing to their continued success.

Speaker Change: We have been up leveling every area of our business and building momentum. We continue to see more pockets of strength and weakness.

Spenser Skates: We continue to see more pockets of strength than we did last year. We will turn our green shoots into something more as we build a defining generational software. Thank you for your interest in Amplitude. I'd now like to turn it over to Andrew for a brief introduction before Mike walks you through the financial results.

Spenser Skates: We also had a win with Cook Children's Healthcare one of the largest nonprofit pediatric medical centers in the US. They are migrating from Google due to data privacy and HIPAA compliance concerns. With a focus on digital transformation and optimizing the patient experience, they chose Amplitude to power user insights with their newly launched web experience. Amplitude will let them connect web and mobile patient journeys to increase patient appointment conversion and identify channel performance across marketing campaigns.

Speaker Change: We will turn our green shoots into something more as we build a defining, generational software company.

Speaker Change: Thank you for your interest in Amplitude. I'd now like to turn it over to Andrew for a brief introduction before Mike walks you through the financial results.

Andrew Casey: Thank you, Spenser. I'm very excited to be here. I joined Amplitude because it solves a universal critical business need with an elegant solution. I've never met a company that has ever said that they want to understand their customers less or that they don't really care about their digital product.

Andrew: Thank you, Spenser. I'm very excited to be here. I joined Amplitude because it solves a universal, critical business need with an elegant solution.

Mike: I've never met a company that ever said that I want to understand my customer less or that they don't really care about their digital products.

Spenser Skates: Character AI has been an Amplitude customer for less than a year and is already expanding its use cases and adoption of Amplitude. They're one of the fastest growing AI companies, empowering users to create and interact with various AI characters that feel alive. Amplitude has proven critical in tracking their users onboarding flow and the success of new feature releases. This is especially important as they roll out their new voice feature which allows users to hear characters speaking to them in one-to-one chats. They are consolidating their analytics efforts by adding our whole suite to this renewal.

Andrew Casey: Over the last few days, I've spent time meeting many people across our organization, and I found that there are so many great materials that have already been put in place over the last year. I have been most impressed by the passionate customers, the world-class platform that Amplitude provides, and the team that Spenser is building. I can't wait to turn the page together and have a part in leading Amplitude toward the next chapter of growth. I look forward to getting to know many of you in the coming weeks, and with that, I'll pass it over to Mike to share more details on the results and outlook for the quarter.

Speaker Change: For the last few days I spent meeting many people across our organization and I found that there are so many great materials that have already been put in place over the last year. I've been most impressed by the passionate customers, the world-class platform that amplitude provides and the team that Spencer is building.

Speaker Change: I can't wait to turn the page together and have a part in leading Amplitude toward the next chapter of growth.

Speaker Change: I look forward to getting to know many of you in the coming weeks. And with that, I'll pass it over to Mike to share more details on results and outlook for the quarter.

Spenser Skates: Another great win this quarter is with a global job search platform which saw the potential to consolidate multiple point solutions and for Amplitude to become their single source of truth. Before Amplitude, the team couldn't trust the results of the experiments they would run. They spent more time arguing than running tests. By moving away from optimizely onto Amplitude they could finally scale their experimentation program by eliminating two big blockers, a lack of data trust and the painful overhead associated with integrations and data pipelines.

Mike Dean: Thanks, Andrew and Spenser, and thanks to everyone joining us today. I'm happy to report that we beat across the board on all guided metrics this quarter. 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 the reconciliation between our GAAP and non-GAAP results, can be found in our earnings press release and supplemental financials on our IR website.

Mike: Thanks, Andrew and Spenser, and thanks to everyone joining us today. I'm happy to report that we beat across the board on all guided metrics this quarter.

Mike Dean: Second quarter revenue was $73.3 million, up 8% year over year and 1% quarter over quarter. Total ARR increased to 290 million exiting Q2, an increase of 8% year over year and 5 million sequentially. Here are more details on key elements of the course.

Mike: 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 .

Speaker Change: Our GAAP financial results, along with a reconciliation between our GAAP and non-GAAP results, can be found on our Earnings Press Release and Supplemental Financials on our IR website.

Speaker Change: [inaudible]

Spenser Skates: This is a great example of how our Amplitude approach solves pain with unbeatable value with our digital analytics platform. Amplitude is able to bring together product leaders, data scientists, engineers and growth teams to make data driven decisions, streamline workflows and connect insights to actions at scale.

Speaker Change: Second quarter revenue was $73.3 million, up 8% year-over-year and 1% quarter-over-quarter.

Speaker Change: Total ARR increased to 290 million exiting Q2, an increase of 8% year over year and 5 million sequentially.

Speaker Change: Here are more details on key elements of the quarter.

Mike Dean: New ARR was about one-third land and two-thirds expansion driven. Turn was down slightly quarter-to-quarter as customers on multi-year contracts optimized their renewal. Linearity on churn was better than expected, which resulted in sequential revenue growth. The total number of customers representing 100,000 or more of ARR and Q2 grew to 547, an increase of 10% year over year. Underlying utilization trends across our largest customers continue to improve quarter to quarter, which is also impacting gross margin. We believe that the worst excesses of the pandemic surge embedded in our ARR are now behind us.

Speaker Change: New ARR was about one-third land and two-thirds expand-driven.

Spenser Skates: Before I turn the call over I want to thank Mike Dean for his contributions during this period of transition at Amplitude. He is one of the rock stars at this company and has done an amazing job rising to this occasion at an important time for Amplitude as in-term finance leader.

Speaker Change: Turn was down slightly quarter to quarter, as customers on multi-year contracts optimize their renewals.

Speaker Change: Linearity on churn was better than expected, which resulted in sequential revenue growth.

Speaker Change: The total number of customers representing 100,000 or more of ARR and Q2 grew to 547, an increase of 10% year-over-year.

Spenser Skates: I'm excited to introduce our new Chief Financial Officer Andrew Casey. Andrew has more than 25 years of battle-tested enterprise software experience. He has had senior finance roles across service now, Oracle and HP. More recently he took walk me public in his IPO and was CFO of lacework. I've gotten to know Andrew well recently. He is a fantastic combination of strategic thinking while being able to get into the details operationally. He also has a genuine passion for the space we're in.

Speaker Change: Underlying utilization trends across our largest customers continue to improve quarter-to-quarter, which is also impacting gross margin.

Speaker Change: We believe that the worst excesses of the pandemic surge embedded in our ARR are now behind us.

Mike Dean: In-period NRR was 96%, and NRR on a trailing 12-month basis was 98%. Gross margin was 76% for the second quarter, down two percentage points year over year and one percentage point quarter over quarter. Investments in enterprise-related professional services, along with improving utilization, caused the sequential margin downturn. Sales and marketing expenses were 48% of revenue, up 3 percentage points year over year. Here we are focusing investment around our named account approach.

Speaker Change: End-period NRR was 96%, and NRR on a trailing 12-month basis was 98%.

Speaker Change: Gross margin was 76% for the second quarter, down 2 percentage points year over year, and 1 percentage point quarter over quarter.

Spenser Skates: We're both in it for the long term and I'm looking forward to working closely with him as we write the next chapter of growth for Amplitude. We have been up leveling every area of our business and build a momentum. We continue to see more pockets of strength and weakness. We will turn our green shoots into something more as we build a defining generational software company.

Speaker Change: Investments in enterprise-related professional services, along with improving utilization, caused a sequential margin downtick.

Speaker Change: Sales and marketing expenses were 48% of revenue, up 3 percentage points year over year. Here we are focusing investment around our named account approach.

Spenser Skates: Thank you for your interest in Amplitude.

Mike Dean: Increased investment in our international efforts and travel expenses were also key drivers of the year-on-year increase. G&A was 15% of revenue, up one percentage point year over year. There was approximately $0.6 million of non-recurring expenses in the quarter related to executive search, severance, and legal fees. Total operating expenses were $59 million, up 11 percentage points year on year. We continue to be judicious about hiring across the board.

Andrew Casey: I'd now like to turn it over to Andrew for a brief introduction before Mike walks you through the financial results. Thank you Spencer.

Speaker Change: Increased investment in our international efforts and travel expenses were also key drivers of the year-on-year increase.

Andrew Casey: I'm very excited to be here. I joined Amplitude because it solves a universal critical business need with an elegant solution. I've never made a company that I ever said that I want to understand my customer less or that they don't really care about their digital products. Over the last few days I spent meeting many people across our organization and I found that there are so many great materials that have already been put in place over the last year. I've been most impressed by the passionate customers, the world class platform that Amplitude provides and the team that Spencer is building.

Speaker Change: G&A was 15% of revenue, up 1 percentage point year-over-year. There was approximately $0.6 million of non-recurring expenses in the quarter related to executive search, severance, and legal fees.

Speaker Change: Total operating expenses were $59 million, up 11 percentage points year-on-year.

Speaker Change: We continue to be judicious about hiring across the board.

Mike Dean: Operating profit was negative $3.7 million, or negative 5% of revenue, which represents a 4 percentage point decline on a year-over-year basis. Net loss per share was $0 based on $122.6 million of basic and fully diluted shares compared to net income per share of $0.02 with $126.3 million diluted shares a year ago. Free cash flow in the quarter was positive $6.8 million, or 9.3% of revenue, compared to $19.3 million, or 28.5% of revenue, a year ago. Free cash flow was impacted by lower operating profit and early timing of some payments.

Speaker Change: Operating process was negative 3.7 million or negative 5% of revenue, which represents a 4% point decline on a year over year basis.

Andrew Casey: I can't wait to turn the page together and have a part in leading Amplitude towards the next chapter of growth.

Speaker Change: Net loss per share was $0.00, based on $122.6 million of basic and fully diluted shares, compared to net income per share of $0.02, with $126.3 million diluted shares a year ago.

Mike Dean: I look forward to getting to know many of you in the coming weeks and with that I'll pass it over to Mike to share more details on results and outlook for the course. Thank you, Andrew and Spenser, and thanks to everyone joining us today. I'm happy to report that we beat across the board on all guided metrics this quarter.

Speaker Change: 3 cash flow in the quarter was positive 6.8 million, or 9.3% of revenue, compared to 19.3 million, or 28.5% of revenue a year ago.

Mike Dean: Turning to our second quarter results, as a reminder, all financial results that I will be discussing with the exception of revenue are non-gap. Our gap financial results, along with the reconciliation between our gap and non-gap results, can be found on our earnings press release and supplemental financials on our IR website. Second quarter revenue was 73.3 million, up 8% year over year and 1% quarter over quarter. Total ARR increased to 290 million exiting Q2, an increase of 8% year over year and 5 million sequentially.

Speaker Change: Pre-cash flow was impacted by lower operating profit and early timing of some payments.

Mike Dean: Now let's turn to our assumptions. We are assuming that the macroeconomic environment continues to be challenging throughout the rest of the year. Spenser mentioned that we are seeing a greater number of larger deals in our pipeline. We believe this warrants additional conservatism as buyer scrutiny remains high.

Speaker Change: Now let's turn to our outlet.

Speaker Change: We are assuming that the macroeconomic environment continues to be challenging throughout the rest of the year.

Speaker Change: Spenser mentioned that we are seeing a greater number of larger deals in our pipeline. We believe this warrants additional conservatism is by our scrutiny remains high.

Mike Dean: Now let me unpack how Russian sanctions affect our financial results. We estimate a negative impact of $3 million to full year ARR. We also estimate a negative impact on full year operating profit of $4 million. This is due to a combination of lost revenue and changes to our expectations of our ability to collect open receivables. It is important to note that our full-year operating income guidance would have remained unchanged without these sanctions. As a result of these factors, we are expressing heightened caution on the Q3 ARR.

Spenser: Now let me unpack how Russian sanctions affect our financials.

Spenser: We estimate a negative impact of 3 million to full year ARR.

Spenser: We also estimate a negative impact to full year operating profit of $4 million.

Mike Dean: Here are more details on T elements of the quarter. New ARR was about 1-3rd land and 2-3rds expand driven. Turn was down slightly quarter to quarter, as customers on multi-year contracts optimized their renewals. Linearity on churn was better than expected, which resulted in sequential revenue growth. The total number of customers representing 100,000 or more of ARR and Q2 grew to 547, an increase of 10% year over year. Underline utilization trends across our largest customers continue to improve quarter to quarter, which is also impacting growth margin.

Speaker Change: This is due to a combination of lost revenue and changes to our expectations of our ability to collect open receivables.

Spenser: It is important to note that our full year operating in some guidance would have remained unchanged without these sanctions.

Speaker Change: As a result of these factors, we are expressing heightened caution on Q3 ARR.

Mike Dean: For the third quarter of 2024, we expect Q3 revenue to be between $73.5 and $74.5 million, representing an annual growth rate of 5% at the mid-point. We expect non-GAAP operating loss to be between negative 2.2 and negative 1.2 million. And we expect non-GAAP net income per share to be between 0 cents and 1 cent, assuming diluted shares outstanding of approximately $131.6 million. For the full year, we are raising our full year revenue outlook to be between $294.5 and $296.5 million, an annual growth rate of 7% at the mid. We are reducing our outlook for non-GAAP operating income to be between negative $5 million and negative $2 million. We expect non-GAAP net income per share to be between $0.05 and $0.08, assuming shares outstanding of approximately $131.4 million as measured on a fully diluted basis. And here's more color for your modeling purposes.

Speaker Change: For the third quarter of 2024, we expect Q3 revenue to be between $73.5 and $74.5 million, representing an annual growth rate of 5% at the midpoint.

Speaker Change: We expect non-GAAP operating loss to be between negative 2.2 and negative 1.2 million.

Mike Dean: We believe that the worst excesses of the pandemic surge embedded in our ARR are now behind us. In period NRR was 96% and NRR on a trailing 12 month basis was 98%. Growth margin was 76% for the second quarter, down 2% year over year and 1% quarter over quarter. Investments in enterprise related professional services, along with improving utilization, caused the sequential margin down tick. Sales and marketing expenses were 48% of revenue, up 3% year over year.

Spenser: And we expect non-GAAP net income per share to be between 0 cents and 1 cent, assuming diluted shares outstanding of approximately $131.6 million.

Spenser: For the full year, we are raising our full-year revenue outlook to be between $294.5 and $296.5 million, an annual growth rate of 7% at the midpoint.

Spenser: We are reducing our outlook for non-GAAP operating income to be between negative $5 million and negative $2 million.

Spenser: We expect non-GAAP net income per share to be between $0.05 and $0.08, assuming shares outstanding of approximately $131.4 million as measured on a fully diluted basis.

Mike Dean: Here we are focusing investment around our increased investment in our international efforts and travel expenses were also key drivers of the year on year increase. GNA was 15% of revenue of 1% year over year. There was approximately 0.6 million of non-recurring expenses in the quarter related to executive search, severance, and legal fees. Total operating expenses were 59 million, up 11% year on year. We continued to be judicious about hiring across the board.

Spenser: And here's more color for your modeling purposes.

Yaoxian Chew: We continue to expect end-period NRR to remain below 100% and NRR to trough in the mid-90s. Additionally, we continue to expect year-over-year ARR growth to trough in Q3 of this year in the mid-single digits. We continue to expect to be free cash flow positive for the full year. Our long-term opportunity remains unchanged. We are controlling what we can control. We are delivering on free cash flow and investing appropriately against opportunities that we expect will drive long-term value. We believe ARR and revenue reacceleration are both well within our reach. With that, I'll open it up to Q&A. It's over to you, Yao.

Spenser: We continue to expect in-period NRR to remain below 100% in NRR to trust in the mid-90s this year.

Spenser: We continue to expect year-over-year ARR growth to trough in Q3 of this year in the mid-single digits.

Spenser: We continue to expect to be free cash flow positive for the full year.

Mike Dean: Operating profit was negative 3.7 million, or negative 5% of revenue, which represents a 4% point decline on a year over year basis. Net loss per share was 0 cents based on 122.6 million of basic and fully diluted shares compared to net income per share of 2 cents with 126.3 million diluted shares a year ago. Precash flow in the quarter was positive 6.8 million, or 9.3% of revenue, compared to 19.3 million, or 28.5% of revenue a year ago. Precash flow was impacted by lower operating profit and early timing of some payment.

Spenser: Our long-term opportunity remains unchanged. We are controlling what we can control, we are delivering on free cash flow, and investing appropriately against opportunities that we expect will drive long-term value.

Spenser: We believe ARR and revenue re-accelerations are both well within our reach. With that, I'll open it up to Q&A over to you, Yao.

Yaoxian Chew: Great. Spenser and Mike will be answering questions. Please turn your microphone and camera on and limit yourself to one question, one follow-up in the interest of time. Our first question comes from Koji Ikeda, Bank of America, followed by Tyler Radke from Citi.

Speaker Change: Breaked, Spenser and Mike will be answering questions. Please turn your microphone and camera on and let me yourself to one question. One follow-up in the interest of time. Our first question comes from Koji Akeda, the Bank of America, followed by Tyler Racky from City.

Koji Ikeda: Hey guys, thanks so much for taking the question. I wanted to dig in a little bit more about this Russia impact. I might be a little bit confused here, but I just wanted to make sure I ran through these numbers properly. Okay, so essentially, what happened was there were additional considerations for Russia's business, and it's affecting ARR, but just trying to understand why operating income goes down but revenue goes up, you know, I'm trying to understand those puts and takes there of why that happens because it seems like X Russia, the guidance would have been raised I'm just just trying to understand that a little bit more, please.

Koji Akeda: Hey guys, thanks so much for taking the question. I wanted to dig in a little bit more about this Russia impact.

Mike Dean: Now let's turn to our outlook. We are assuming that the macroeconomic environment continues to be challenging throughout the rest of the year. Spenser mentioned that we are seeing a greater number of larger deals in our pipeline. We believe this warrants additional conservatism as buyer scrutiny remains high.

Speaker Change: I might be a little bit confused here, but I just wanted to make sure I run through these numbers properly. Okay, so essentially what happened was there was additional considerations for Russia business.

Speaker Change: and it's affecting ARR, but just trying to understand why operating income goes down but revenue goes up, you know, I'm trying to understand those puts and takes there of of why that happens because it seems like

Mike Dean: Now let me unpack how Russian sanctions affect our financials. We estimate a negative impact of 3 million to full-year error. We also estimate a negative impact to full-year operating profit of 4 million. This is due to a combination of lost revenue and changes to our expectations of our ability to collect open receivables. It is important to note that our full-year operating income guidance would have remained unchanged without these sanctions. As a result of these factors, we are expressing heightened caution on Q3 error.

Speaker Change: X Russia, the guidance that it been raised quite a bit. I'm just just trying to understand that a little bit more please.

Spenser Skates: Yeah, certainly. Thanks. Thanks for the question.

Speaker Change: Yeah, certainly, thanks for the question.

Spenser Skates: One of the big impacts is bad debt. So there's aged receivables there. And so with that, you're going to have an opex impact, as well as, as, as revenue. When we talk about raising the revenue for the full year, though, that's because we believe that we're in a fundamentally different place as a business. And as a reminder, we've beat our expectations for the first half of the year.

Speaker Change: One of the big impacts is bad debt. So there's age receivables there. And so with that, you're going to have an OpEx impact, as well as revenue. Talking about raising revenue for the full year, though, that's because we believe that we're in a fundamentally different place as a business.

Mike Dean: For the third quarter of 2024, we expect Q3 revenue to be between 73.5 and 74.5 million, representing an annual growth rate of 5% at the midpoint. We expect non-gap operating loss to be between negative 2.2 and negative 1.2 million. And we expect non-gap net income for share to be between 0.1 and 1.1, assuming deluded shares outstanding of approximately 131.6 million.

Speaker Change: And as a reminder, we've beat our expectations for the first half of the year. And so with that, naturally, that's going to flow through to the full year.

Spenser Skates: And so with that, naturally, that's going to flow through to the full year. And so the Russia impact is a mix of both lost revenue, but there is a large bad debt component to large aged receivables at that time.

Speaker Change: and so the Russia impact is a mix of both cost revenue but there is a large bad debt component to large age receivable at that time.

Koji Ikeda: Got it. No, that that makes a lot more sense.

Speaker Change: [inaudible]

Speaker Change: Got it. No, that makes a lot more sense. Thank you. And let me just make maybe the follow-up there. And one more, if I may, is Andrew gonna be on the call too, or are you holding them back for maybe the next one? No, no, we do have him here. I just wanna make it clear. He's only been here for, since Monday of this week. And so- I gotcha, I gotcha. He's in the business. And so the representations come from me as CEO, as well as Mike as interim head of finance. Gotcha, gotcha, gotcha.

Mike Dean: For the full year, we are raising our full-year revenue outlook to be between 294.5 and 296.5 million, an annual growth rate of 7% at the midpoint. We are reducing our outlook for non-gap operating income to be between negative 5 million and negative 2 million. We expect non-gap net income for share to be between 0.5 and 0.8, assuming shares outstanding of approximately 131.4 million as measured on a fully deluded basis.

Speaker Change: So, so I guess from, you know, just, just one quick follow up there on the, on the Russia impact. Is this just a second half effect or should we expect any sort of bleed through into 2025?

Mike Dean: And here's more color for your modeling purposes. We continue to expect in-period NRR to remain below 100% in NRR to trough in the mid-90s this year. We continue to expect year-over-year NRR growth to trough in Q3 of this year in the mid-single digits. We continue to expect to be free cash flow positive for the full year.

Speaker Change: So, most of the impacts can be felt in Q3, but there is a lost revenue impact as well. And so, without there will be some impact in the 20-25 as well.

Koji Ikeda: Thank you. And let me maybe follow up on that. And one more question, if I may: is Andrew going to be on the call too? Or are you holding them back for maybe the next one?

Andrew: Okay, I gotcha. And then maybe just one quick one for Andrew. I do realize that you started on Monday. You know, welcome to the team. Super excited to be working with you. But just thinking, you know, big picture perspective. What are some of the first priorities or things that you'll be looking at, you know, maybe over the next six months?

Spenser Skates: No, no, we do have him here. I just want to make it clear. He's only been here since Monday of this week. And so I gotcha. I gotcha in the business. And so the representation comes from me as CEO, as well as Mike as interim head of finance.

Koji Ikeda: Gotcha. Gotcha. Gotcha. So, so I guess from, you know, just one quick follow up there on the Russia impact. Is this just a second half effect, or should we expect any sort of bleed through into 2025?

Mike Dean: Our long-term opportunity remains unchanged. We are controlling what we can control. We are delivering on free cash flow and investing appropriately against opportunities that we expect will drive long-term value. We believe ARR and revenue re-exceleration are both well within our reach.

Spenser Skates: So most of the impact is going to be felt in Q3, but there is a lost revenue impact as well. And so with that, there will be some impact in 2025 as well.

Andrew: I think it's really important as a new leader joining an organization that you spend time to really understand how the business has been run. Spenser and team have built a really vibrant business with a really great customer base.

Koji Ikeda: Okay, I got you. And then, maybe just one quick one for Andrew.

Andrew Casey: I do realize that you started on Monday. You know, welcome to the team. Super excited to be working with you, but just thinking, you know, from a big picture perspective. What are some of the first priorities or things that you'll be looking at, you know, maybe over the next few weeks?

Unknown Executive: With that, I'll open it up to Q&A.

Andrew: And I want to understand, you know, how we're aligning our strategic objectives, our long-term growth perspectives around those objectives, and then see how I can lean in. As you may or may not know, I've had a lot of experience with respect to scaling businesses in my past.

Unknown Executive: Over to you, yeah. Great.

Unknown Executive: Spencer and Mike will be answering questions. Please turn your microphone and camera on and limit itself to one question, one follow-up in the interest of time.

Andrew Casey: I think it's really important as a new leader joining an organization that you spend time to really understand how the business has been run. Spencer and his team have built a really vibrant business with a really great customer base. And I want to understand, you know, how we're aligning our strategic objectives, our long-term growth perspectives around those objectives, and then see how I can lean in. As you may or may not know, I've had a lot of experience with respect to scaling businesses in my past.

Andrew Casey: And I spend a good amount of time meeting with customers and helping the sales teams work with our customers to drive the greatest value possible. And I figure that's probably where I'll spend some of my initial time, to understand what processes we have in place and how best I can help the teams really drive value.

Koji Ikeda: Our first question comes from Koji Akeda, Bank of America, followed by Tyler Rackie from City. Hey guys, thanks so much for taking the question. I wanted to dig in a little bit more about this Russia impact. I might be a little bit confused here, but I just wanted to make sure I run through these numbers properly. Essentially what happened was there was additional considerations for Russia business and it's affecting ARR, but just trying to understand why operating income goes down, but revenue goes up.

Andrew: and I spend a good amount of time meeting with customers and helping the sales teams work with our customers to drive the greatest value possible. I figure that's probably where I'll spend some of my initial time is to understand what processes we have in place and how best I can help the teams really drive that growth.

Koji Ikeda: Got it. Thanks, guys. Thanks for taking the question. Thanks. Next question, Matt Pry from Citi, followed by Arjun Bhatia from Blair. Matt, go ahead, please. Hi.

Matt Pry: Thanks. Next question is Matt Pry from Citi, followed by Arjun Bhatia from Blair. Matt, go ahead, please.

Andrew: Got it. Thanks guys. Thanks for taking the questions.

Speaker Change: Thanks, next question, Matt Pride from City, followed by Arjun Bach here from Blair.

Speaker Change: Let's go ahead, please.

Matt Pride: Hi team, just one quick question on AI. You know, just curious if what you see in terms of event volume intensity for gen AI use cases like character AI.

Koji Ikeda: I'm trying to understand those puts and takes there of why that happens because it seems like X Russia, the guidance would have been raised quite a bit. I'm just trying to understand that a little bit more. Please. Yeah, certainly. Thanks. Thanks for the question. One of the big impacts is bad debt. So there's age receivables there. And so with that, you're going to, you're going to have an off-ex impact, as well as as as revenue.

Spenser Skates: Yeah, I think so. First of all, these are software applications, first and foremost. Now, obviously, the interface is a little different in that you'll have a chat or conversational interface versus, you know, one where you're pointing and clicking or using a touch interface. But at the end of the day, what we track is customer behavior. And so it ends up being the same thing underlying.

Speaker Change: Yeah, I think, so first it's.

Spenser Skates: Character AI, you know, has a huge amount of use, as you might expect. We also work with Mid Journey, which has a huge amount of use, as you'd expect. And they're tracking similar sorts of things. What does the onboarding funnel look like? Where are users getting stuck? What are the things that correlate to upsell or to long-term engagement and retention? And so even though the interface with generative AI is different, the underlying idea that you're tracking a user journey, and you're trying to figure out how to improve that, is all the same.

Speaker Change: These are software applications, first and foremost.

Speaker Change: Now, obviously, the interface is a little different in that you'll have a chat or conversational interface.

Speaker Change: versus, you know, one where you're pointing and clicking or using a touch interface.

Andrew: But

Andrew: At the end of the day, what we track is customer behavior, and so it ends up being the same thing underlying.

Koji Ikeda: As talking about raising the raising revenue for the full year, though, that's because we believe that we're in a fundamentally different place as a business. And as a reminder, we've we've beat our expectations for the first half of the year. And so with that, naturally, that's going to flow through to the full year. And so the Russia impact is a mix of both lost revenue, but there is a large bad debt component to large age receivables at that time.

Speaker Change: Character AI has a huge amount of use, as you might expect. We also work with Mid Journey, who has a huge amount of use, as you'd expect.

Speaker Change: and they're tracking similar sort of things. What is the onboarding funnel look like where users getting stock, whether the things that correlate to upsell or to long-term engagement and retention. And so even though the interface with generative AI is different, the underlying idea that you're tracking a user journey and you're trying to figure out to improve that is all the same.

Koji Ikeda: Got it. No, that makes a lot more sense. Thank you. And maybe the follow up there. And one more if I may, is Andrew going to be on the call to or are you holding them back for maybe the next one? No, no, we do have him here. I just want to hear clear. He's not. He's only been here for since Monday of this week. And so I got you. I got you in the business.

Yaoxian Chew: Arjun, go ahead. Next question after Arjun, Nick Altmann from Scotia.

Speaker Change: Got it. Thank you.

Andrew: Arjun, go ahead. Next question after Arjun. Nick Altmann from Scotia.

Arjun Bhatia: All right. Thanks, guys, Spenser. Maybe I'll start off.

Nick Altmann: All right. Thanks, guys, Spenser. Maybe I'll start off the...

Spenser Skates: It's interesting to hear and encouraging to hear that you're seeing strength in the U.S. enterprise business and large deals in the pipeline. I'm curious how the composition of those enterprise customers that are evaluating Amplitude is different, perhaps, from what your customer base was three, four years ago. What's new and what's maybe not there that was there several years ago? And then part of that question is, why now? Because, you know, we do hear of macro challenges in the enterprise. So what's your perspective on why these businesses are looking at Amplitude right now?

Nick Altmann: It's interesting to hear and encouraging to hear that you're seeing strength in the U.S. enterprise business and large deals.

Koji Ikeda: And so the representations come from me as CEO, as well as Mike is in term head of finance. Gotcha. So I guess from, you know, just just one quick follow up there on the on the Russia impact. Is this just a second half a factor or should we expect any sort of bleed through into 2025? So most of the impact is going to be felt in Q3, but there is a lost revenue impact as well.

Koji Ikeda: And so with that, there will be some impact in the 2025 as well. Okay, I got you. And then maybe just one quick one for Andrew, I do realize that you started on Monday. You know, welcome to the team. Super excited to be working with you, but just thinking, you know, big picture perspective. What are some of the first priorities or things that you'd be looking at, you know, maybe over the next six months?

Nick Altmann: in the pipeline of curious how the constitution of those enterprise customers that are evaluating amplitude is different perhaps from what your customer base was.

Speaker Change: 3-4 years ago, what's new and what's maybe not there that was there.

Speaker Change: Several years ago. And then part of that question is why now? Because, you know, we do hear of, you know, macro challenges in the enterprise. So what's your perspective on why these businesses are looking at Amplitude right now?

Spenser Skates: Yeah, so let me hit on the macro challenges piece, and then I'll talk about how the composition has changed over the last few years. I think even during the worst parts of macro in the last few quarters, new business demand for amplitude and digital analytics generally has always been strong. I think the growth deceleration that we've seen has purely been a result of the optimization of the contracts. And now that a significant majority of those are in our rear view mirror, that is a structural change to how we're going to be set up for growth. Even if you were to look internally at the new numbers, for any particular quarter, they'd be quite good.

Speaker Change: Yeah, so let me hit the macro challenges piece and then I'll talk about how the composition has changed over the last few years.

Speaker Change: I think.

Speaker Change: Even during the worst parts of macro in the last few quarters.

Koji Ikeda: I think it's really important as a new leader during your organization that you spend time to really understand how the business has been run. I, you know, Spencer and team have built a really vibrant business with a really great customer base. And I want to understand, you know, how we are aligning our strategic objectives or long-term perspectives around those objectives. And then see how I can lean in. As you may or may not know, I've had a lot of experience with respect to scaling businesses in my past.

Speaker Change: New Business demand for amplitude and digital analytics generally has always been strong.

Nick Altmann: I think the growth deceleration that we've seen has purely been, has been largely as a result of the optimization of the contracts and now that the significant majority of those in our rear view mirror, that is a structural change to how we're going to be set up for growth, you know, even if you were to look internally at the new numbers, any particular quarter, they'd be quite good.

Koji Ikeda: And I spend a good amount of time meeting with customers and helping the sales teams work with our customers to drive the greatest value possible. I think you're, that's probably where I'll spend some of my initial times to understand what processes we have in place and how best I can help the teams really drive back growth. Got it. Thanks guys. Thanks for taking the questions. Thanks.

Spenser Skates: In terms of the customer base, I think the changes that Thomas has been driving over the last two years in our go to market enterprise motion, we're really starting to see some great impacts from that. A lot more conversations with traditional companies, like we're talking with some of the largest quick serve restaurants in the world, as an example. Healthcare companies like Cook Children's Healthcare System, that was a really big win in Q2. And we didn't really see those companies. If I were to go rewind the clock two or three years ago.

Nick Altmann: In terms of the customer base, I think the changes that Thomas has been driving over the last two years in our go-to-market enterprise motion, we're really starting to see some great impacts from that a lot more conversations with traditional companies.

Speaker Change: We're talking with some of the largest quick-serve restaurants in the world, as an example. Healthcare companies like Coke Children's Healthcare System, that was a really big win in Q2. And we didn't really see those companies.

Spenser Skates: Next question, Matt Pride from City, followed by Ardren Baca from Blair. Matt, go ahead, please. Hi, team. Just one quick question on AI. You know, just curious if what you see in terms of even volume intensity for gen AI use cases like character AI. Yeah, I think so first it's, these are software applications first and foremost. Now, obviously the interface is a little different in that you'll have a chat or conversational interface versus, you know, one where you're pointing and clicking or using a touch interface.

Speaker Change: If I were to go rewind the clock two or three years ago, and so I think the strategic focus across the board.

Spenser Skates: And so I think the strategic focus across the board with go-to-market, with the named account structure that we rolled out, that drove more focus from marketing partnerships and sales and SDRs. And then with everything we're doing on the product side, like we just announced both data mutability and data access controls, which are a big deal for those traditional enterprises, has really helped show that, okay, we are a viable player.

Nick Altmann: with GoToMarket with the name to count structure that we rolled out that drove more focus.

Nick Altmann: from marketing, partnerships, and sales, and SDRs. And then with everything we're doing on the product side, like we just announced both data mutability and data access controls, which are a big deal for those traditional enterprises, has really helped.

Spenser Skates: And this technology is not just for digital native tech companies, but it also applies to anyone with a digital experience, including if you're a traditional company. I think now, obviously, we're still seeing a lot of great traction with tech companies and expect that to be a significant part of our customer base for some time. But it's great to see us making progress on that, crossing the chasm moment to the rest of the world.

Nick Altmann: Show that, okay, we are a viable player, and this technology is not just for digital-needed tech companies, but it also applies to anyone with a, with a, with a digital experience, including if you're a traditional company.

Spenser Skates: But at the end of the day, what we track is customer behavior. And so it ends up being the same thing underlying character AI, you know, has huge amount of use as you might expect. We're also work with mid journey who has a huge amount of use as, as, as you'd expect. And they're tracking similar sort of things. What does the onboarding funnel look like? Where users getting stuck? Whether things that correlate to upsell or to long-term engagement and retention? And so even though the interface with generative AI is different, the underlying idea that you're tracking a user journey and you're trying to figure out how to improve that is all this. The same. Thank you.

Unknown Executive: Arjun, go ahead.

Nick Altmann: I think now, obviously we're still seeing a lot of great traction with tech companies and expect that to be a significant part of our customer base for some time, but it's great to see us making progress on that crossing the cash in the moment to the rest of the enterprise.

Spenser Skates: Yeah, for sure. That's great to hear.

Nick Altmann: Yeah, for sure, that's that's great to hear. And then, actually, Andrew, I'm starting to get something to say to open additional things. I think a lot of times in industry, we get a little focused on the...

Speaker Change: Digital Transformation is a multi-decade process, and every company is going to go through a process and steps through which they're going to digitize their methods of reaching out to customers and their business processes.

Unknown Executive: Next question up to Arjun, Nick Altmann from Scotia.

Unknown Executive: All right. Thanks, guys, he's been answered.

Spenser Skates: I was going to say just one additional thing. I think a lot of times in industry, we get a little focused on the soup du jour, if you will, of macro things that are going on. But digital transformation is a multi-decade process, and every company is going to go through a process and steps through which they're going to digitize their methods of reaching out to customers and their business processes.

Spenser Skates: Well, maybe I'll start off the. It's interesting to hear an encouraging to hear that you're seeing strength in the US enterprise business and large deals in the pipeline. I'm curious how the constitution of those enterprise customers that are evaluating ample to is different perhaps from what your customer base was three, four years ago. What's new and what's maybe not there that was there several years ago. And then part of that question is why now because you know you we do hear of the macro challenges in the enterprise. So what's your perspective on why these businesses are looking at amplitude right now?

Speaker Change: And ultimately, I think Amplitude has a really great opportunity to be a lead player in that transformative event for most of those customers. So I think it's great that even though we have a macro background, which isn't great,

Spenser Skates: And ultimately, I think Amplitude has a really great opportunity to be a lead player in that transformative event for most of those customers. So I think it's great that even though we have a macro background, which isn't great, these types of investments, these types of focus, they take many, many, many years to evolve. And it's great that we're starting to make those investments now. Yeah, and you're going to do them regardless of the macro, as I mentioned, like you, this is a top priority for so many companies that we talk with, even though they're thinking through, you know, tighter budgets, more scrutiny, more questions, and ROI. Yeah, for sure. Yeah, there's a secular trend there.

Speaker Change: These types of investments, these types of focuses, they take many, many, many years to evolve and it's great that we're starting to make those investments now.

Speaker Change: And you're going to do them regardless of macro, as I mentioned, this is a top priority for so many companies that we talk with, even though they're thinking through tighter budgets, more scrutiny, more questions and ROI.

Spenser Skates: And then the follow-up, actually, on the product side, Spenser, the warehouse native analytics and the work that you're doing with Snowflake, how should we think about where that impacts your customers? Is it ease of implementation? Is it cost savings? Is it better outcomes? What is the ROI that the customers will see from that?

Speaker Change: Yeah, for sure. Yeah, there's a secular trend there. And then the follow-up actually on the product side, Spenser, the warehouse native analytics and the work that you're doing with Snowflake,

Spenser Skates: Yeah, so let me hit the macro challenges piece and then I'll talk about how the composition has changed over the last few years. I think even during the worst parts of macro in the last few quarters, new business demand for amplitude and digital analytics generally has always been strong. I think the growth deceleration that we've seen has purely been has been largely as a result of the optimization of the contracts. And now that the significant majority of those in our review mirror that is a structural change to how we're going to be set up for growth.

Spenser: How should we think about where that impacts your customers? Is that ease of implementation? Is that cost savings? Is that better outcomes? What is the ROI that the customers will see from that?

Spenser Skates: ease of implementation, and access to that existing customer base from Cloud Data Warehouse, particularly Snowflake, to become Amplitude customers more easily. So the big deal with Warehouse Native Amplitude is, instead of having to create a data pipeline from your Cloud Data Warehouse to an analytics product like Amplitude, you're just running SQL queries directly on top of that data. And so if you have that data already collected on the customer journey, then you can just turn Amplitude on on top of it and be off and running with a lot less implementation cost. It's early in the morning.

Spenser: ease of implementation, and access to that existing customer base from cloud data warehouse, particularly Snowflake, to become Amplitude customers more more easily.

Speaker Change: So the big deal with warehouse native amplitude is instead of having to create a data pipeline from your cloud data warehouse.

Spenser Skates: Even if you were to look internally at the new numbers any particular quarter, they'd be quite good. In terms of the customer base, I think the changes that Thomas has been driving over the last two years in our go to market enterprise motion, we're really starting to see some great impacts from that a lot more conversations with traditional companies. Like we're talking talking with some of the largest quick serve restaurants in the world as an example, healthcare companies like cook children's healthcare system that was a really big win in Q2.

Speaker Change: to an analytics product like Amplitude, you're just running SQL queries directly on top of that data. And so if you have that data already collected on the customer journey, then you can just turn Amplitude on on top of it and be off and running with a lot less implementation cost.

Speaker Change: And so we've already seen it come up. You know, it's early, we just launched it in June . We've already seen it come up as a consideration, particularly in larger companies that have made big investments into the cloud data warehouse. I was in one conversation with a traditional company a few weeks ago where they called it the biggest differentiator we had versus everything else they were looking out on the market because they knew that it would make it much easier to get some of their smaller teams up and running more quickly. So, our.

Spenser Skates: We just launched it in June, and we've already seen it come up as a consideration, particularly in larger companies that have made big investments in the Cloud Data Warehouse. I was in one conversation with a traditional company a few weeks ago where they called it the biggest differentiator we had versus everything else they were looking at in the market because they knew that it would make it much easier to get some of their smaller teams up and running more quickly.

Spenser Skates: And we didn't really see those companies, you know, if I were to go rewind the clock two or three years ago. And so I think the strategic focus across the board with go to market with the name to count structure that we rolled out that drove more focus from marketing partnerships and sales and SDRs. And then with everything we're doing on the product side, like we just announced both data mutability and data access controls, which are a big deal for those traditional enterprises has really helped show that okay, we are a viable player and this technology is not just for digital native tech companies, but it also applies to anyone with a with a digital experience, including if you're a traditional company.

Spenser Skates: So our philosophy is, you know, we want to be data agnostic. So as the proliferation of different ways to set up your data stack continues, we want to make sure to work with every different one. Warehouse Native is just kind of another way to do that. And then, for us, it's about how do we win the applications on top of that data. So analytics, experimentation, CDP, session replay; we'll have more to come.

Speaker Change: Philosophically, it's, you know, we want to, we want to be data agnostic. So

Speaker Change: As the proliferation of different ways to set up your data stack continues, we want to make sure to work with every different one. Warehouse Native is just kind of another way to do that. And then for us, it's about how do we win the applications on top of that data. So analytics, experimentation, CDP, session replay, we'll have more to come.

Spenser Skates: I think now obviously we're still seeing a lot of great traction with tech companies and expect that to be a significant part of our customer base for some time, but it's great to see us making progress on that crossing the cas in a moment to the rest of the enterprise.

Arjun Bhatia: Okay, perfect. Awesome. Congratulations on the quarter here. Thanks, Arjun.

Speaker Change: Okay, perfect. Awesome. Congrats on the quarter here. Thanks, Arjun. Next question, Nick Altmann from Scotia, followed by Rob Oliver from Baird. Nick, go ahead, please.

Nick Altmann: Next question is Nick Altmann from Scotia, followed by Rob Oliver from Baird. Nick, go ahead, please.

Nick Altmann: Awesome. Thank you.

Nick Altmann: Awesome. Thank you. Spenser, you guys highlighted how some of the go-to-market adjustments are...

Spenser Skates: Yeah, for sure, that's great to hear. I was going to say just one additional thing. I think a lot of times in industry, we get a little focused on the the sutra juror, if you will, of macro things are going on, but digital transformation is a multi decade process and every company is going to go through a process and steps through which they're going to digitize their methods of reaching out to customers and their business processes.

Spenser Skates: Spenser, you guys highlighted how some of the go-to-market adjustments are starting to bear fruit. And when you think about the historical drag on that new ARR, right, a lot of that has been macro-induced and churn-induced, but when we think about sort of the upswing when the macro gets better, and you guys are sort of lapping this churn dynamic. How much of the improvements in go-to-market, you know, how impactful can the improvements in the go-to-market motion sort of be as things kind of progress, you get through this renewal base, and hopefully, we kind of get a little bit of a better demand environment here?

Speaker Change: Starting to bear fruit, and when you think about the historical drag on that new wearer, a lot of that has been...

Nick Altmann: Macro induced and turn induced. But when you think about sort of the upswing when the macro gets better and you guys are sort of laughing this turn dynamic.

Speaker Change: How much of the improvements in go-to-market, you know, how impactful can the improvements in the go-to-market motion sort of be as things kind of progress you get through this renewal base and hopefully we kind of get a little bit of a better demand environment here.

Spenser Skates: And ultimately, I think amplitude has a really great opportunity to be a lead player in that transformative event for most of those customers. So I think it's great that even though we have a macro background, which isn't great.

Spenser Skates: Yeah, so Nick, I want to be clear, like the path to reacceleration, as I look through the next few quarters and in 2025, we're not dependent on any improvements in macro; we're saying, hey, macro stays as bad as it is, and we're still set up to accelerate in terms of how much net error we put up a quarter.

Spenser Skates: These types of investments, these types of focuses, they take many, many, many years to evolve, and it's great that we're starting to make those investments now. Yeah, and you're going to do them regardless of the macro, as I mentioned, this is a top priority for so many companies that we talk with, even though they're thinking through tighter budgets, more scrutiny, more questions than ROI. Yeah, for sure, yeah, there's a secular trend there.

Speaker Change: Yeah, so I don't want to be clear like

Speaker Change: The path to reacceleration, as I look through the next few quarters and in 2025, we're not dependent on any improvements in macro. We're saying, hey, macro stays as bad as it is. And we're still set up to accelerate in terms of how much net error are we're putting up a quarter.

Spenser Skates: I'd say the changes that we've been driving with the enterprise focus are a massive, massive improvement. I mean, those customers are just stickier, long term. We're talking about starting out on a three-year contract instead of a one-year contract; we're talking about doing much larger, wider deployments across hundreds or thousands of people in some cases. The change that we made at the start of this year was that we moved to a new named account structure that had the total number of companies we're going after.

Nick Altmann: I'd say the changes that we've been driving with the enterprise focus, massive, massive improvement. I mean, those customers are just stickier long term, you know, we're, you know, we're talking about starting out at a three year contract instead of a one year contract. We're talking about doing much larger, wider deployments across hundreds or thousands of people in some cases.

Spenser Skates: And then the follow up actually on the product side, Spenser, the warehouse native analytics and the work that you're doing with snowflake, how should we think about where that impacts your customers, is that ease of implementation, is that cost savings that better outcomes, what is the ROI that the customers will see from that ease of implementation and access to that existing customer base from cloud data warehouse, particularly snowflake to become amplitude customers more, more easily. So the big deal with warehouse native amplitude is instead of having to create a data pipeline from your cloud data warehouse to an analytics product like amplitude, you're just running SQL queries directly on top of that data.

Nick Altmann: Um...

Nick Altmann: The change that we made at the start of this year was we moved to a new named account structure that halved the total number of companies we were going after. So it went from about 24,000 to about 12,000. And that focus has driven a really great execution that we're starting to see.

Spenser Skates: So it went from about 24,000 to about 12,000. And that focus has driven really great execution that we're starting to see. So that shows up in the pipeline callout that I made for the second half of Q4, that shows up in larger deals, that shows up in just healthier renewal rates, and healthier expansions, that show up with more of the platform being landed right at the start. And so you're using those expensive human resources where you're going to have the greatest ROI.

Speaker Change: So that shows up in the pipeline callout that I made for second half in Q4, that shows up in larger lands, that shows up in just healthier renewal rates.

Speaker Change: and help your expansions that shows up with.

Speaker Change: More of the platform being landed right at the start and so you're using those expensive human resources.

Spenser Skates: And so if you have that data already collected on the customer journey, then you can just turn amplitude on on top of it and, you know, be off and running with a lot less implementation cost. And so we've already seen it come up, you know, it's early, we just launched in June, we've already seen it come up as a consideration, particularly in larger companies that have made big investments into the cloud data warehouse.

Speaker Change: to where you're gonna have the greatest ROI. So, you know, I'd say that's going without that, we'd be in, you know, much, much worse places of business. And so that will set us up for re-celeration, even if the macro continues to stay bad over the next few quarters.

Spenser Skates: So, you know, I'd say that without that, we would be in a much, much worse place as a business. And so that will set us up for reacceleration, even if the macro continues to stay bad over the next few quarters.

Nick Altmann: Okay, awesome. And then the second question, just kind of to dovetail off that answer, right?

Speaker Change: Okay, awesome. And then the second question, just kind of to dovetail off that answer, right? You have

Spenser Skates: I was in one conversation with a traditional company a few weeks ago where they called it the biggest differentiator we had versus everything else they were looking out on the market, because they knew that it would make it much easier to get some other smaller teams up and running more quickly. So our philosophically, it's, you know, we want to, we want to be data agnostic. So as the proliferation of different ways to set up your data stack continues, we want to make sure to work with every different one warehouse native is just kind of another way to do that. And then for us, it's about how do we win the applications on top of that data, so analytics experimentation, CVP session replay wall more to come.

Spenser Skates: You have, you know, customers who, historically speaking, you won't be in discussions with. I think you said the ASPs in the pipeline are up 25%. So there's definitely sort of bigger deals in the pipeline. The challenge with that is maybe sales cycles can elongate, and things maybe take longer to close. So I guess, what have you seen maybe over the past couple quarters with those big deals? Have they taken a little bit longer to close?

Speaker Change: You know, customers who may be historically speaking, you want to be in discussions with, I think you said the ASP's in the pipeline are up 25% so there's...

Unknown Executive: Perfect. Awesome.

Speaker Change: Definitely sort of bigger deals in the pipeline.

Speaker Change: The challenge with that is maybe sales cycles can elongate and things maybe take longer to close. So

Speaker Change: What have you seen maybe over the past couple quarters with those big deals? Have they taken a little bit longer to close?

Nick Altmann: On the flip side of the equation, going forward, when you look at this pipeline with no larger deals out there, are you guys sort of baking in sales cycle elongation or stuff to kind of move around from quarter to quarter? Just any commentary around the flip side of the equation in terms of those large deals would be helpful. Thanks.

Speaker Change: On the flip side of the equation.

Speaker Change: Going forward with when you look at this pipeline with larger deals out there are you guys sort of baking in sales cycle elongation or stuff to kind of move around from core to core just any commentary around sort of the

Unknown Executive: Congrats on the quarter year. Thanks, Arden.

Rob Oliver: Next question, Nick Altman from Scotia, followed by Rob Oliver from Baird. Nick, go ahead, please. Awesome. Thank you. Spencer, you guys highlighted how some of the go to market adjustments are starting to bear fruit. And when you think about the historical drag on that new where are right. A lot of that has been macro induced and intern induced. But when we think about sort of the upswing when the macro gets better and you guys are sort of lapping this, this turned dynamic.

Speaker Change: The flip side of the equation in terms of those large deals of the helpful.

Spenser Skates: Yeah, I mean, I think one of the changes that you have to go through when you're going after that sort of business is to have a longer-term outlook versus just the quarter in front of you. And so I'd say one of the things that I've kind of glossed over, but your call out is very important, is we're now looking at pipeline multiple quarters out; we're looking at renewals, you know, a year out from when they would versus just kind of fighting quarter to quarter to maximize that particular quarter, which is why, you know, I gave the call out on Q4 pipeline.

Speaker Change: Yeah, I mean, I think one of the changes that you have to go through when you're going after that sort of business is to be having a longer term outlook.

Speaker Change: versus just the quarter in front of you. And so I'd say one of the motions that I've kind of glossed over, but to your call out is very important is we're now looking at pipeline multiple quarters out. We're looking at renewals, you know, a year out from when they would versus just kind of fighting quarter to quarter to maximize that particular quarter, which is why, you know, I gave the call out on Q4 pipeline. We're already looking at, you know, renewals in 2025.

Rob Oliver: How much of the improvements in go to market. Now, how impactful can the improvements in the go to market motion sort of be as things kind of progress you get through this renewal base. And hopefully we kind of get a little bit of a better demand environment here. Yeah, so Nick, I want to be clear. Like the path to re acceleration as I look through the next few quarters and in 2025, we're not dependent on any improvements in macro.

Spenser Skates: We're already looking at, you know, renewals in 2025. And so that's a natural part, you know, of going up market is that you'll get those longer evaluation cycles. But I will say they're not that much longer in terms of total time, you know, there is an urgency to get.

Speaker Change: And so that's a natural part, you know, of going up market is that you'll get those longer evaluation cycles. I will say they're not that much longer in terms of total time, you know, there is an urgency to get

Spenser Skates: Like a lot of companies, they have made big investments in their data. And you have CEOs and product leaders and marketing leaders asking, hey, when is this actually going to get some ROI out of this? And we're such a key part of that equation because we drive that self-service. Otherwise, the data is all locked up and trapped within whatever their data stack is.

Speaker Change: Like a lot of so many companies have made big investments in their data stack.

Rob Oliver: We're saying, hey, macro stays as bad as it is. And we're still set up to accelerate in terms of how much net air are we're putting up a quarter. I'd say the changes that we've been driving with the enterprise focus massive, massive improvement. I mean, those customers are just stickier long term, you know, we're, you know, we're talking about starting out at a three year contract instead of a one year contract.

Speaker Change: And you have CEOs and product leaders and marketing leaders asking, Hey, when is this actually going to get some ROI out of this? And we're such a key part of that equation because we drive that self-service. Otherwise, the data is all locked up and trapped within whatever their data stack is.

Spenser Skates: And so there's very much an urgency from the customer side around, hey, I want to demonstrate some quick ROI. Like, I'll tell you one story where we had a meeting with a customer in Europe a few months ago, Decathlon, and they had been longtime Google Analytics users. They weren't happy with a bunch of the changes in Google Analytics 4. They had actually driven their entire team to switch over to Amplitude, and their goal is to complete that within a 12-month period.

Speaker Change: And so there's very much an urgency from the customer side around, hey, I want to demonstrate some quick ROI. Like, I'll tell you one story where we had a meeting with a customer in Europe a few months ago, Decathlon.

Rob Oliver: We're talking about doing much larger wider deployments across hundreds or thousands of people in some cases. The change that we made at the start of this year was we moved to a new named account structure that have the total number of companies we were going after. So it went from about 24,000 to about 12,000. And that focus has driven a really great execution that we're starting to see. So that shows up in the pipeline call out that I made for second half and Q4 that shows up in larger lands that shows up in just healthier renewal rates and healthier expansions that shows up with more of the platform being landed right at the start.

Speaker Change: and they had been long time Google Analytics users.

Speaker Change: They weren't happy with a bunch of the changes with Google Analytics 4. They had actually driven their entire team to switch over to Amplitude, and their goal was to complete that within a 12-month period. So they've gone from zero to about 600 users on Amplitude in two quarters.

Spenser Skates: So they've gone from zero to about 600 users on Amplitude in two quarters. That is the fastest ramp I've ever seen for someone getting up to speed with analytics, and then they have the goal to get to multiple thousands by the end of this year. So I was blown away by the urgency that they had to make that switch. And as we make them successful, that's going to be a great lighthouse story for other retail customers. But it really speaks to the urgency that we are seeing a lot of buyers have in this environment.

Speaker Change: That is the fastest ramp I've ever seen for someone get getting up to speed with analytics and then they have the goal to get to multiple thousands by the end of this year. So I was blown away.

Speaker Change: by the urgency that they had to make that switch. And as we make them successful, that's gonna be a great lighthouse story for other retail customers. But it really speaks to the urgency that we are seeing a lot of buyers have in this environment.

Rob Oliver: And so you're using those expensive human resources to where you're going to have the greatest ROI. So, you know, I'd say that's going without that we'd be in a much, much worse place as a business. And so that will set us up for re acceleration, even if the macro continues to stay bad over the next few corners. Sanders. Okay, awesome. And then the second question, just kind of the dovetail off of that answer, right?

Spenser Skates: In addition to your question of how it impacts our guidance, we recognize this increase in pipeline and ASPs is also against a backdrop where buyer scrutiny remains high. And so with that, that's fully baked into our guidance as well.

Speaker Change: In adding on also with your question of how it impacts our guidance, we recognize this increase in pipeline and ASPs is also against a backdrop where buyer scrutiny remains high. And so with that, that's fully baked into our guidance as well.

Rob Oliver: You have, you know, customers who maybe historically speaking, you want to be in discussions with, I think you said the ASPs in the pipeline are up 25%. So there's definitely sort of bigger deals in the pipeline. The challenge with that is maybe sales cycles, can you elongate and things maybe take longer to close. So I guess, what have you seen maybe over the past couple quarters with those big deals? Have they taken a little bit longer to close on the flip side of the equation, going forward with when you look at this pipeline with no larger deals out there?

Speaker Change: Awesome. Thank you. Great. Next question, Rob Oliver from Baird, followed by Taylor McGinnis from UBS. Rob, go ahead, please.

Rob Oliver: Thank you. Great. Next question is Rob Oliver from Baird, followed by Taylor McGinnis from UBS. Rob, go ahead, please.

Rob Oliver: Great. Thanks, guys. Appreciate it. Appreciate your time. So just one for me, Spenser, really just to follow up on Nick's question.

Rob Oliver: Great. Thanks, guys. Appreciate it.

Rob Oliver: Appreciate your time. So just one for me, Spenser. I'm really just a follow-up on next question. The Cosmos Paying Over 100K, Group Temporary Standing Celebrated Sequentially.

Spenser Skates: The customer's paying over $100K, and it grew 10% accelerated sequentially. You called out some success on the non-analytic side as well. And, you know, it sounds like most of this is self-help.

Speaker Change: You called out some success on the non-analytic size well.

Spenser Skates: So, very encouraging signs. I'd be curious to know what you're seeing in terms of consolidation in the market. Are we at the point now where some of those, and I know you said customers that, you know, are post-22 are continuing to expand with you guys? But are you getting a sense when you look at your pipeline that there is a significant opportunity around you guys consolidating other vendors as well? Is that part of what's happening in the market, notwithstanding the fact that there's a tough macro environment? Absolutely.

Rob Oliver: Are you guys sort of baking in sales cycle, elongation or stuff to kind of move around from court to court or just any commentary around sort of the flip side of the equation in terms of those large deals would be helpful. Thanks. Yeah, I mean, I think one of the changes that you have to go through when you're going after that sort of business is to be having a longer term outlook versus just the quarter in front of you.

Rob Oliver: And, you know, it sounds like most of this is self-help, so very encouraging signs. I'd be curious to know what you're seeing in terms of consolidation in the market. Are we at the point now where some of those, and I know you said customers that, you know, are post-22, are continuing to expand with you guys.

Rob Oliver: And so I'd say one of the motions that I've kind of glossed over it, but to your call out is very important is we're now looking at pipeline multiple quarters out. We're looking at renewals, you know, a year out from when they would versus just kind of fighting quarter to quarter to maximize that particular quarter, which is why, you know, I gave the call out on Q4 pipeline. We're already looking at renewals in 2025.

Speaker Change: But are you getting a sense when you look at your pipeline that there is a significant opportunity around you guys consolidating other vendors as well? Is that part of what's happening in the market, notwithstanding the fact that there's a tough macro? Yes.

Spenser Skates: I think, well, first, the tough macro is actually driving the consolidation because people want fewer vendor relationships. They want, you know, they want to have a lower total cost of ownership, you know, nevermind the advantages of having the platform be integrated. And then there's, you know, just the fact that these tools work better together.

Speaker Change: Absolutely. I think, well, first, the tough macro is actually driving the consolidation because people want fewer vendor relationships. They want

Speaker Change: you know, they want to have lower, lower total cost of ownership.

Rob Oliver: And so that's a natural part of going out market is that you'll get those longer evaluation cycles. I will say they're not that much longer in terms of total time. There is an urgency to get like a lot of so many companies have made big investments into their data stack. And you have CEOs and product leaders and marketing leaders asking, hey, when is this actually going to get some ROI out of this?

Rob Oliver: You know, never mind the advantages of having the platform be integrated.

Speaker Change: And then there's, you know, just the, these tools work better together, and that was one of the, that was the founding thesis for Amplitude, which is analytics is the core of the stack. So, you know, I cited that SketchUp moved on to our CDP, I cited, you know, a large global job

Spenser Skates: And that was one of the founding principles for Amplitude, which is that analytics is the core of the stack. So, you know, I mentioned that SketchUp moved on to our CDP. I cited, you know, a large global job company that ended up moving from Optimizely to Amplitude. It's part of why Forrester called us out as the leader because our vision is for the entire platform. And they're hearing that from buyers. Hey, I just don't want a point solution for experimentation.

Rob Oliver: And we're such a key part of that equation because we drive that self service. Otherwise, the data is all locked up and trapped within whatever their data stack is. And so there's a there's like very much an urgency from the customer side around, hey, I want to demonstrate some quick ROI. Like I'll tell you one story where we had as meeting with a customer in Europe a few months ago to capital on.

Speaker Change: Company ended up moving from optimisedly to amplitude. It's part of why forest are called as the leader. It's because our vision is for the entire platform. They're hearing that from buyers. They don't want to point solution for experimentation. It's got to be integrated with the analytics. It's got to offer something more broad than that.

Spenser Skates: It's got to be integrated with the analytics, and it's got to offer something more broad than that. Every single company that, whenever I have a conversation with a customer, universally, whether it's session replay, whether it's experimentation, whether some of the other stuff we're planning further out in our roadmap, there is a desire to move on to the platform. Um, so yeah, that is a huge, huge trend driving our business generally.

Speaker Change: every single company that whenever I have a conversation with a customer.

Rob Oliver: Universally.

Rob Oliver: And they had been longtime Google Analytics users. They weren't happy with a bunch of the changes with Google Analytics for. They had actually driven their entire team to switch over to amplitude and their goal is to complete that within 12 month periods. So they've gone from zero to about 600 users on amplitude in two quarters. That is the fastest ramp I've ever seen or someone get getting up to speed with analytics.

Rob Oliver: It's whether it's session replay, whether it's experimentation, whether it's some of the other stuff we're planning further out in our roadmap, there is a desire to move on to the platform.

Rob Oliver: So yeah, that is a huge, huge trend.

Spenser Skates: And I think that doing that right, doing both the creation of the platform and the suite, uh, along with the movement to get it into the hands of customers, uh, is going to be a big driver of our success in the space. That's why we had, we talked about our strategy in the past, one of the pillars being when the category. And so it's not just about analytics anymore. It's about how that works with session replay and experimentation and other parts. It was exciting.

Rob Oliver: Driving our business generally, and I think that's going to be doing that right, doing both the creation of the platform and the suite, along with the motion to get it into the hands of customers, is going to be a big driver of our success in the space. That's why we had, we talked about our strategy in the past, one of the pillars being when the category, and so it's not just about analytics anymore. It's about how does that work with session replay and experimentation and other parts of the stack?

Rob Oliver: And then they have the goal to get to multiple thousands by the end of this year. So I was blown away by the urgency that they had to make that switch. And as, you know, as we make them successful, that's going to be a great lighthouse story for other retail customers. But it really speaks to the urgency that we're seeing a lot of buyers have in this environment. And adding on also with your question of how it impacts our guidance, we recognize this increase in pipeline and ASPs is also against the backdrop where buyer scrutiny remains high. And so with that, that's fully baked into our guidance as well. Awesome. Thank you. Great.

Spenser Skates: And then just a quick follow-up on international. Does the move towards named accounts, which clearly is having a positive impact on your go-to-market, also include international? And can you talk a little bit about it? One of the call-out wins that you cited was international. So if you could talk a little bit about how the international sales force is structured as well, that would be great. Thanks.

Speaker Change: Exciting. And then just a quick follow-up on international. Does the move towards named account

Speaker Change: So, which clearly is having a positive impact on you're going to market. Is that also included in our national and can you talk a little bit about it and one of the call that wins that you studied was international. So, if you can talk a little bit about, you know, how the international Salesforce is structured as well. Thanks.

Spenser Skates: Yeah, you know, named accounts, yeah, the named account approach both applies to the US, applies to Europe, and it applies to Asia. We look at, so the way we've done internationals, we look at, we've chosen a few tier one markets, for example, UK, France, Germany, Europe, Japan, Korea, and Asia. You know, there's the US, obviously, as well as Canada and Brazil. I'm sure I missed one on that list.

Speaker Change: Yeah, you know, named accounts. Yeah, the named account approach both applies to us applies to Europe , it applies to Asia, you know, we look at so the way we've done international is we look at we've chosen a few tier one markets, for example, UK, France, Germany,

Rob Oliver: Next question, Rob, all of them from Baron, followed by killing McGinnis from UBS. Great. Thanks, guys. Appreciate it. Appreciate your time.

Spenser Skates: So, just one for me, Spenser, I really just to follow up on next question. The customers paying over 100K, grew 10% accelerated sequentially. You called out some success on the non-analytic side as well. And, you know, it sounds like most of this is self-help, so very encouraging signs. I'd be curious to know what you're seeing in terms of consolidation in the market. Are we at the point now where some of those that I know you said customers that, you know, are post-22, are continuing to expand with you guys?

Speaker Change: Europe , Japan, Korea, and Asia.

Speaker Change: You know, there's the U.S. obviously, as well as Canada and Brazil. I'm sure I missed one in that list. But, and then within those markets, we're saying, okay, let's make sure to focus our enterprise sellers and our emerging enterprise sellers on these 12,000 named accounts.

Spenser Skates: But and then within those markets, we're saying, okay, let's make sure to focus our enterprise sellers and our emerging enterprise sellers on these 12,000 named accounts. And then anything else goes into our velocity bucket. So we actually made an announcement. We just hired a new leader in Europe, Lee Edwards, who's going to be running the sales team out there. So very, very excited.

Speaker Change: and then anything else goes into our Velocity bucket. So we actually, we made an announcement. We just hired a new leader in Europe , Lee Edwards, who's gonna be running the sales team out there. So very, very excited. We have a lot of great accounts there. You know, I mentioned Decathlon earlier. We have LeMond. We have a lot of other great enterprises and it's about how do you bring the same success that we've had in the U.S. there. I think the important thing to recognize is just the market's early all over, you know, no matter where you go. And so,

Spenser Skates: We have a lot of great accounts there. You know, I mentioned Decathlon earlier. We have LeMond, we have a lot of other great enterprises. And it's about how do you bring the same success that we've had in the US there? I think the important thing to recognize is just the early markets everywhere, you know, no matter where you go. And so we want to make sure to invest appropriately against that opportunity. And that's why we have field teams and all the geos that I mentioned.

Spenser Skates: But are you getting a sense when you look at your pipeline that there is a significant opportunity around you guys consolidating other vendors as well as that part of what's happening in the market, notwithstanding the fact that there's a tough macro? Yes, absolutely. I think, well, first, the tough macro is actually driving the consolidation because people want fewer vendor relationships. They want, you know, they want to have lower total cost of ownership, you know, never mind the advantages of having the platform be integrated.

Speaker Change: We want to make sure to invest appropriately against that opportunity, and that's why we have field teams and all the geos that I mentioned.

Rob Oliver: Great. Awesome.

Speaker Change: Great. Awesome. Well, appreciate it. Thanks, Spencer. Andrew, look forward to working with you as well. Thanks, guys. Of course. Next question, Claire Gurdage from UBS, followed by Jackson Ader from KeyBank. Claire, go ahead, please.

Spenser Skates: Well, I appreciate it. Thanks, Spencer. Andrew, I look forward to working with you as well. Thanks, guys. Of course.

Claire Gerdes: Next question is Claire Gerdes from UBS followed by Jackson Ayer from KeyBank.

Spenser Skates: And then there's, you know, just the, these tools work better together. And that was one of the, that was the founding thesis, which is analytics is the core of the stack. So, you know, I cited that sketchup moved on to our CDP. I cited, you know, a large, a large global job company ended up moving from optimizely to amplitude. It's part of why Forrest are called us out as the leader is because our vision is for the entire platform.

Spenser Skates: The audio's not working. Can you give that another try? Oh, here we go. Is that better?

Speaker Change: Audio's not working, can you...

Claire Gurdage: Give that another try. Oh, there we go, it's that better. Sorry about that. No, thanks for taking the question here on for Taylor McGinnis. Yeah, I just wanted to ask about the launch of the new Ambitude in September, the new platform, exciting to hear about that. It sounds like it'll, you know.

Spenser Skates: And they're hearing that from buyers. I just don't want to point solution for experimentation. It's got to be integrated with the analytics and it's got to offer something more broad than that. Every single company that, whenever I have a conversation with a customer, universally it's whether it's session replay, whether it's experimentation, whether it's some of the other stuff we're planning further out in our roadmap, there is a desire to move on to the platform.

Speaker Change: Lower some of the barriers to getting started. So I guess what kind of new opportunities are you expecting to that will open up and just any kind of like pricing changes or anything we should be mindful of?

Spenser Skates: So we're not doing any pricing changes as part of the launch. The launch is very focused on thinking about what amplitude is, what is not just amplitude, and what analytics is going to look like in the future. And so, if you talk to any team trying to implement self-service analytics at a company, you will get all these stories about how painful and long the process is. You have to create a tracking plan, you have to get the engineering team to implement hundreds of lines of code, you have to get data flowing in, you got to train your team on it, you have to learn the semantics of what a chart means, how do you do a funnel analysis, and so on.

Speaker Change: We're not doing any pricing changes as part of the launch, the launch is...

Speaker Change: Very focused on thinking about what is amplitude, what is not just amplitude, what is analytics going to look like in the future.

Spenser Skates: So, yeah, that is a huge, huge trend driving our business generally. And I think that's going to doing that right, doing both the creation of the platform and the suite along with the the motion to get it into the hands of customers. It's going to be a big driver of our success in the space. That's why we had, we talked about our strategy in the past, one of the pillars being win the category. And so, it's not just about analytics anymore. It's about how does that work with session replay and experimentation and other parts of the stack.

Speaker Change: And so if you talk to any team trying to implement self-service analyst at the company, you will get all these stories about how painful and long the process is. You have to create a tracking plan, you have to get the engineering team to implement hundreds of lines of code.

Spenser Skates: Exciting.

Speaker Change: You have to get data flowing in, you've got to train your team on it, you've got to learn the semantics.

Speaker Change: of what is a chart mean, what how do you do a funnel analysis and so on.

Spenser Skates: And the goal is to cut as much of that out as possible. So you're only doing one line of code, you get a whole bunch of dashboards out of the box, and then you get on that train of analytics value as quickly as possible. So I expect that to do a few different things. One, it's going to bring analytics to a whole new set of companies that have wanted it but have really struggled with the cumbersome and long implementation processes that analytics currently takes. And then two, that'll get them to value that much quicker and start to get on that train.

Speaker Change: And the goal is to cut as much of that out as possible. So you're only doing one line of code, you're getting a whole bunch of dashboards out of the box.

Spenser Skates: And then just a quick follow up on international. Because the move towards name to count, which clearly is having a positive impact on your go-to-market, is that also included in international? And can you talk a little bit about it? One of the call that wins that you cited was international. So, if you can talk a little bit about how the international Salesforce is structured as well. Thanks. Yeah, you know, name to count.

Speaker Change: And then you're getting on that train of analytics value as quickly as possible. So I expect that to a few different things. One, it's going to bring analytics to a whole new set of companies that have wanted it, but have really struggled.

Speaker Change: with the cumbersome and long implementation processes that analytics

Speaker Change: currently takes. And then two, that'll get them to value that much quicker and start to get on that train. You know, if I think out five or 10 years from now about how, you know, what the winning company in this space is going to look like, there is no way that is going to be as difficult as it is today. So we've

Spenser Skates: Yeah, the name to count approach both applies to US, applies to Europe, it applies to Asia. We look at, so the way we've done international as we look at, we've chosen a few tier one markets. For example, UK, France, Germany, Europe, Japan, Korea, and Asia. You know, there's the US obviously as well as Canada and Brazil. I'm sharing this one in that list. And then within those markets, we're saying, okay, let's make sure to focus our enterprise sellers and our emerging enterprise sellers on these 12,000 and then anything else goes into our velocity bucket. So we actually, we made an announcement.

Jackson Ayer: If I think out five or 10 years from now about what the winning company in this space is going to look like, there is no way that it's going to be as difficult as it is today. So we've been putting in a lot of work on the product development team over the last few months in preparation for this launch in all the different areas that I outlined. And yeah, we're going to be excited to launch that on September 10th. And we think that's going to open up a whole new segment of customers that's going to accelerate more companies landing, that's going to get them up to speed and faster.

Speaker Change: been putting in a lot of work on the product development team over the last few months in preparation for this launch about all the different areas that I outlined.

Speaker Change: And yeah, we're going to be excited to launch that September 10th, and we think that's going to open up a whole new segment of customers that's going to accelerate, you know, more companies landing, that's going to get them up to speed and faster.

Spenser Skates: We just hired a new leader in Europe, the Edwards, who's going to be running the sales team out there. So very, very excited. We have a lot of great accounts there. You know, I mentioned to Castle on earlier, we have Le Mans, we have a lot of other great enterprises and it's about, how do you bring the same success that we've had in the US there? I think the important thing to recognize is just the markets early all over, no matter where you go.

Spenser Skates: Next question is Jackson from KeyBank, followed by J.R. from Piper. Jackson, go ahead.

Speaker Change: Awesome, thank you. For sure. Next question, Jackson from KeyBank, followed by JR from Piper. Jackson, go ahead, please.

Jackson Ayer: Thanks, y'all. Hey, guys. First question on the sales marketing motion: how much your sales marketing expenses are split between, you know, net new go get versus

Speaker Change: Thanks, y'all. Hey, guys.

Speaker Change: First question on the sales marketing motion, how much your sales marketing expenses are split between net new, go get versus renewals?

Spenser Skates: And so, we want to make sure to invest appropriately against that opportunity. And that's why we have field teams and all the geos that I mentioned. Right. Awesome. Well, appreciate it. Thanks, Spencer. Andrew, look forward to working with you as well. Thanks, guys. Of course.

Spenser Skates: Um, so what we're trying to do is obviously minimize the amount that's on renewals at the end of the day. So you're really focusing the sales efforts on both, you know, new, net new customers, as well as expanding existing customers. And that's really where you spend the cycle.

Speaker Change: So what we're trying to do is obviously minimize the amount that's on renewals at the end of the day.

Speaker Change: You're really focusing the sales efforts on

Speaker Change: both.

Speaker Change: you know, new net new customers as well as expanding existing customers. And that's really where you're spending the cycle.

Spenser Skates: Next question, Claire Gerdes, Mubius, followed by Jackson Ader from Keybank. Claire Gerdes, please. Hey, Claire, we can't hear you. Can you do that another try? Oh, there we go. Is that better? Sorry about that. No, thanks for taking the question here on for Taylor McGinnis. Yeah, I just wanted to ask about the launch of the new amplitude in September, the new platform, exciting to hear about that. It sounds like it'll, you know, lower some of the barriers to getting started. So I guess what kind of new opportunities are you expecting to that will open up and just any kind of like pricing changes or anything we should be mindful of. Thanks.

Spenser Skates: And the goal is when you're up and running, you kind of minimize that cost. One of the changes we've made is introducing a premium services package that helps attach specifically just to, okay, let's make sure you're implemented, let's make sure you're getting value, let's make sure you renew. And so that, you know, helps separate out some of the costs. Mike, I don't know if we have a breakdown on any of that stuff or any way to characterize it. No, we don't, we don't share that publicly, but everything that you've highlighted is there.

Speaker Change: And the goal is when you're up and running, you know, you kind of minimize that cost. One of the changes we've made is introducing a premium services package that helps attach specifically just to, okay, let's make sure you're implemented. Let's make sure you're getting value. Let's make sure you renew. And so that, you know, helps separate out some of the costs.

Speaker Change: Mike, I don't know if we have a breakdown on any of that stuff or any way to characterize it. No, we don't. We don't share that publicly, but everything that you've highlighted is there. The other thing that I'd highlight is that we're investing in the enterprise. And so professional services related to that is impacting the gross margin specifically. And that's what's happening there. But that's all an investment to better the customer base in the enterprise.

Jackson Ayer: The other thing that I'd highlight is that we're investing in the enterprise. And so professional services related to that are impacting the gross, the gross margin, specifically. And that's what's happening there. But that's all an investment to improve the customer base in the enterprise.

Spenser Skates: And then I guess a quick follow-up along a similar line, but I just think, you know, if you're leaning into some of the product-led growth on the lower end, is there going to be an opportunity to kind of structurally reshape some of these expense lines, you know, maybe shifting sales marketing away and into R&D, like, should we, yeah, can we just talk a little bit about how the Yeah, so.

Spenser Skates: What is not just amplitude, what is analytics going to look like in the future. And so if you talk to any team trying to implement self service analytics to the company, you will get all these stories about how painful and long the process is you have to create a tracking plan, you have to get the engineering team to implement hundreds of lines of code. You have to get data flowing in, you got to train your team on it, you got to learn the semantics of what is a chart mean, what how do you do a funnel analysis and so on.

Speaker Change: And now I guess a quick follow-up along the similar line, but I just think, you know, if you're leaning into some of the product-led growth on the lower end, is there going to be enough to need it?

Speaker Change: I can structurally reshape some of these expense lines, you know, maybe shifting some sales marketing away and into R&D. Like, should we? Yeah. Can we just talk a little bit about how the structural changes of the expenses might look in the next couple of years? Yeah. So, you know, we're.

Spenser Skates: And the goal is to cut as much of that out as possible. So you're only doing one line of code, you're getting a whole bunch of dashboards out of the box. And then you're getting on that train of analytics value as quickly as possible. So I expect that to a few different things. One, it's going to bring analytics to a whole new set of companies that have wanted it, but I've really struggled with the cumbersome and long implementation processes that analytics.

Spenser Skates: Yeah, so, you know, we're You know, so I want to be, I'll be careful about giving any explicit guidance. Obviously, that's something as Andrew comes on board that we're going to be looking to shape together. As we think about it, let me give some high-level points on it, though.

Spenser Skates: First, you're right on. I think the key is putting the expensive human resources on the enterprise accounts, where you see, you know, call it, 300,000, 500,000 million plus opportunity. And then anything below that line, if you're thinking about sub 100,000, you're really getting, you're automating that more and more. So there's always going to be a need, especially when you talk about a digital analytics deployment at scale. For human interaction, you need to coordinate stakeholders, you know, there's, there's, there's work to make all of them successful.

Speaker Change: Yaoxian Chew,

Speaker Change: So I want to be careful about giving any explicit guidance, obviously, that's something as Andrew comes on board that we're going to be looking to shape together as we think about it. Let me give some high level points on it, though. First is that, you're right on, I think the key is putting the expensive human resources onto the enterprise accounts where you see, you know, call it

Speaker Change: 300,000, 500,000 million plus opportunity. And then anything below that line, if you're thinking about sub 100,000, you're really getting, you're automating that more and more. So there's always going to be a need, especially when you talk about a digital analytics deployment at scale. For human interaction, you need to coordinate stakeholders, you know, there's, there's, there's work to make all of them successful.

Spenser Skates: Currently takes, and then two, that'll get them to value that much quicker and start to get on that train. You know, if I think out five or 10 years from now about how you know what the winning company in this space is going to look like there is no way is going to be as difficult as it is today. So we've been putting in a lot of work on the product development team over the last few months in preparation for this launch about all the different areas that I outlined.

Spenser Skates: And then at the low end, you know, like you mentioned, automating more and more of the motion. I think the other benefit of PLG, as you mentioned, is that it makes it much easier. So you don't even need all those human resources for all the implementation. So I think, absolutely, that's a long-term aspiration where you get more of the enterprise customer base coming through the PLG motion. We've seen a few early successes there.

Speaker Change: And then at the low end, you know, like you mentioned, automating more and more of the motion. I think the other benefit of PLG, as you mentioned, is that it makes it much easier. So you don't even need all those human resources for all the implementation. So I think

Spenser Skates: And yet we're going to be excited to launch that September 10th and we think that's going to open up a whole new segment of customers that's going to accelerate more companies landing that's going to get them up this speed and faster. Awesome. Thank you. For sure.

Speaker Change: Absolutely, that's long term one of the aspirations where you're getting more of the enterprise customer base coming through the PLG motion. We've seen a few early successes there. You know, I mentioned like a railway company last quarter as well as a

Spenser Skates: You know, I mentioned a railway company last quarter, as well as one of the large chip companies out there that came in actually through the plus motion. And that obviously makes the cost of sale and getting them up and running much, much cheaper. So that's absolutely a lever that we're going to be using to reduce cost, you know, overall expense to acquire customers over time. We are fundamentally a product company, a product-driven company. And so starting with great products and winning with great products is the core of amplitude. And so on a relative basis, yeah, investing more over their time, their whole time is directly where we're going.

Jackson Ader: Makes question Jackson from a key bank followed by J.R, from Piper Jackson go ahead, please. Thanks. Yeah. Hey guys.

Speaker Change: One of the large chip companies out there that came in actually through the plus motion and that made that obviously makes the cost of sale and getting them up and running much, much cheaper. So that's absolutely a lever that that we're going to be using to reduce cost.

Unknown Executive: First question on the sales marketing motion. How much of your sales marketing expenses are split between, you know, net new go get versus renewals. So what we're trying to do is obviously minimize the amount that's on renewals at the end of the day. So you're really focusing the sales efforts on both, you know, new net new customers as well as expanding existing customers. And that's really where you're spending the cycle. And the goal is when you're up and running, you know, you kind of minimize that cost.

Speaker Change: overall expense to acquire customers over time. We are fundamentally a product company, a product-led company. And so starting with great product and winning with great product is the core of Amplitude. And so on a relative basis, yeah, investing more over their time there over time is directly where we're going.

Speaker Change: Thank you guys.

Elizabeth Porter: Jr. from Piper, followed by Elizabeth Porter from Morgan Stanley.

Jr: Thank you. JR from Piper, followed by Elizabeth Porter from Morgan Stanley. Great, thanks for taking the question.

Speaker Change: JR from Piper, followed by Elizabeth Porter from Morgan Stanley .

Unknown Executive: One of the changes we've made is introducing a premium services package that helps attach specifically just to. Make sure you're implemented was make sure you're getting value is make sure you renew. And so that, you know, help separate out some of the cost. Mike, I don't know if we have a breakdown on any of that stuff or any way to characterize it. No, we don't, we don't share that that publicly, but everything that you've highlighted is there.

Speaker Change: Great, thanks for taking the question. I'd love to go back to a special replay for a moment. What's been the competitive response since I'm the proud realtor this year? And curious if you've seen pricing turn more aggressive there.

Speaker Change: And just in general, any views on the competition in the square would be helpful.

Spenser Skates: Yeah, so Session Replay, that has been, we just launched it in Q1. And it has been the fastest ramp we've seen in terms of additional products outside of analytics. Every single company that we talked to that already uses our analytics and has another third-party vendor for Session Replay is interested in consolidating. I don't think I've talked to one that says, Oh, no, we're happy with our standalone one. It just makes so much sense.

Speaker Change: Yeah, so Session Replay, that has been, so we just launched it in Q1, and it has been the fastest ramp we've seen in terms of additional products outside of analytics.

Unknown Executive: The other thing that I'd highlight is that we're investing in the enterprise. And so professional services related to that is impacting the gross, the gross margin specifically. And that's that's what's happening there, but that's all investment to better the customer base in the enterprise.

Speaker Change: every single company that we talk to that already uses our analytics and has another third party vendor for session replay.

Speaker Change: is interested in consolidating. I don't think I've talked to one that says, Oh, no, we're happy with our standalone one. It just it makes so much sense because you can do, you know, have a lower total cost of ownership. And then the integration and workflows is actually already really key to one of the

Spenser Skates: And I guess a quick follow up along a similar line, but I just think, you know, if you're leaning into some of the product led grows on the lower end, is there going to be an opportunity to kind of structurally reshape some of these expense lines, you know, maybe shifting some sales marketing away and into aren't it like should we? Yeah, can we just talk a little bit about how the structural changes of the expenses might look in the next couple of years?

Spenser Skates: Because you can do, you know, have a lower total cost of ownership. And then the integration and workflows are actually really key to one of the great use cases for using Session Replay and analytics is that you can look at, say, users that encountered a bug or encountered an issue and error, and then watch the sessions to see where they ran into that and what caused it, and then go back and fix that. We've already used it, and we've seen a lot of our customers use it. And it's not something you can do if you have a standalone Session Replay provider.

Speaker Change: Great use cases with using Session Replay and Analytics is that you can

Speaker Change: look at say users that encountered a bug or encountered an issue and error and then watch the sessions to see where they

Speaker Change: Right into that and what caused it and then go back and fix that. We've already used that. We've seen a lot of our customers use that and it's not something you can do if you have a session replay provider stand alone. So we're seeing a lot of pull up from that end. In terms of the cost, like, yeah, that is the point, you know, we're we're reducing, yeah, we are going to give price pressure to these other players in the market and, you know, we can offer something like I'd say half the cost.

Spenser Skates: Yeah, so, you know, we're, you know, so I want to be, you know, I want to be careful about giving an explicit guidance, obviously that something as Andrew comes on board that we're going to be looking to shape together as we think about it, let me give some high level points on it though. First is that you're right on, I think the key is putting the expensive human resources onto the enterprise accounts where you see, you know, call it 300,000 500,000 million plus opportunity.

Spenser Skates: So we're seeing a lot of pull from that end. In terms of cost, like, yeah, that is the point. We're reducing prices; we are going to give price pressure to these other players in the market. And, you know, we can offer something like, I'd say half the cost, but that's accretive to us, saves the customer money, drives more overall values, just win on all fronts. And so, in a lot of ways, we are kind of the lower cost provider because you're coming onto our platform.

Speaker Change: But that's accretive to us, you know, saves the customer money, drives more overall values, just a win on all fronts. And so in a lot of ways, we are kind of the lower cost provider, because you're coming on to our platform.

Spenser Skates: And then anything below that line, if you're thinking about sub 100,000, you're really getting you're automating that more and more. So there's always going to be a need, especially when you talk about a digital analytics deployment at scale for human interaction, you need coordinate stakeholders, you know, there's there's there's work to make all of them successful. And then at the low end, you know, like you mentioned, automating more and more of the motion, I think the other benefit of PLG as you mentioned is that it makes it much easier.

Elizabeth Porter: For sure. Next question: Elizabeth Porter, Morgan Samy, followed by Clark Wright, and T.A. Davidson. Elizabeth, go ahead, please.

Elizabeth Porter: Perfect. Makes sense. Thank you. For sure. Next question, Elizabeth Porter, Morgan Sami, followed by Clark Wright, TA Davidson. Elizabeth, go ahead, please. Great. Thanks so much. I actually have a follow-up to Claire's question on the new product rollout.

Elizabeth Porter: Great, thanks so much. I actually have a follow-up to Claire's question on the new product rollout. I was curious if you've had prior new platform rollouts and what those were, any sort of changes in KPIs you may have seen in the past as it relates to improvement in retention or engagement instead of just looking to any historical precedents that we can look to kind of inform our view on the new opportunity.

Elizabeth Porter: I was curious if you've had...

Elizabeth Porter: Prior a new platform below and what those winnings or changes in KPI you may have seen in the past is a really true improvement in retention or engagement. And I'm just looking to any historical precedent that we can look to kind of inform our viewers in the new opportunity.

Spenser Skates: So you don't even need all those human resources for all the implementation. So I think absolutely that's long term, one of the aspirations where you're getting more of the enterprise customer base coming through the PLG motion. We've seen a few early successes there, you know, I mentioned like a railway company last order as well as one of the large ship companies out there that came in actually through the PLA motion and that made that obviously makes the cost of sale and getting them up and running much, much cheaper.

Spenser Skates: We haven't done one like that since we've been public. I think the last change that we made in this was probably six or seven years ago. So this is the biggest, you know, that we've done since that point in time. So there isn't, you know, there isn't a ton of precedent.

Speaker Change: We haven't done one like that since we've been public. I think the last change that we made in this was probably six or seven years ago, so this is the...

Elizabeth Porter: This is the biggest, you know, that we've done since that point in time. So there isn't, you know, Elizabeth, there isn't a ton of precedent. What I will say on just some of the quick stats we're seeing about

Spenser Skates: So that's absolutely a lever that we're going to be using to reduce cost, you know, overall expense to acquire customers over time. We are fundamentally a product company, a product led company. And so starting with great product and winning with great product is core of amplitude. And so on a relative basis, yeah, investing more over their time, their overtime is directly where we're going.

Spenser Skates: What I will say on just some of the quick stats is that we're seeing about somewhere between a 40 and 50 percent increase in data activation. So of the percentage of people that sign up, how many actually end up getting data? We're seeing a lot more engagement from new customers on session replay and experimentation, so that's been a real positive as well. My expectation is this will lead to us getting more customers, as well as having the customers that do come in be more likely to be successful and activating, kind of getting through the whole funnel.

Elizabeth Porter: somewhere between a 40 and 50% increase in data activation. So of the percentage of people that sign up, how many actually end up getting data? We're seeing a lot more engagement from new customers on session replay and on experimentation. So that's been a real positive as well.

Unknown Executive: Thank you guys.

Elizabeth Porter: My expectation is this will lead to

J.R.: J.R, from Piper, followed by Elizabeth Porter from Morgan Stanley. Great, thanks for thinking the question.

Elizabeth Porter: us getting more customers, as well as having the customers that do come in, be more likely to be successful and activating kind of get through the whole funnel. Now it is our first salvo at this. And so we're going to kind of continue iterate and beat the drum past September 10th on this.

Spenser Skates: Now, this is our first salvo at this, and so we're going to kind of continue, iterate, and beat the drum past September 10th on this because we want to be the leaders here, and so there's no reason to choose anyone else over Amplitude. And so, you know, I'm excited to see and report on the results once we get to the other side of the launch.

Spenser Skates: We'd love to go back to a special replay for a moment. What's been the competitive response since I and the product earlier this year and curious if you've seen pricing turn more aggressive there. And just in general, any views on the competition square would be helpful. Yeah, so session replay that has been so we just launched a Q one. And it has been the fastest ramp we've seen in terms of additional products outside of analytics.

Elizabeth Porter: Because we want to be the leaders here and so that there's no reason to choose anyone else over Amplitude. And so, you know, I'm excited to see and report on the results once we get to the other side of the launch.

Spenser Skates: Great. And then just as a follow-up quickly on NRR, it was modest contraction, as expected. Would just love to unpack some of the drivers between absolute churn, down cell, and up cell, kind of any areas that you call up that actually saw a little bit of better improvement and what maybe got a little bit worse.

Speaker Change: Great. And then just as a follow-up quickly on NRR, it was modest contraction as expected. Would just love to unpack some of the drivers between absolute churn, down-cell and up-cell, kind of any areas that you call up that actually saw a little bit of better improvement, and what maybe got a little bit worse.

Spenser Skates: Every single company that we talk to that already uses our analytics and has another third party better under for session replay is interested in consolidating. I don't think I've talked to one that says, oh, no, we're happy with our standalone one. And it just it makes so much sense because you can do, you know, have a lower total cost of ownership. And then the integration and workflows is actually already really key to one of the great use cases with using session replay and analytics is that you can look at say users that encounter to bug or encounter an issue and error and then watch the sessions to see where they ran into that and what caused it and then go back and fix that we've already used that we've seen a lot of our customers use that.

Spenser Skates: Yeah, so we've said that we're going to trough in the mid-90s this year, and that's where we are right now. The big impact is obviously the optimizations for the multi-year contracts that happened, and then we're going to have a headwind in Q3 with Russia as well. Absent that, we believe we're in a fundamentally different place to re-accelerate growth, and that's well within our reach.

Speaker Change: Yeah, so we've said that we're going to trough in the mid 90s this year, and that's where we are right now. The big impact is obviously the optimizations for the multi-year contracts that happened. And then we're going to have a headwind in Q3 with Russia as well. Absent that, we believe we're in a fundamentally different place to re-accelerate growth, and that's well within our reach.

Spenser Skates: Awesome. Last question, Clive Wright, Dear Davidson:

Speaker Change: Thank you.

Spenser Skates: And it's not something you can do if you have a session replay provider stand alone. So we're seeing a lot of pull from that end in terms of the cost like, yeah, that is the point, you know, we're reducing. Yeah, we are going to give price pressure to these other players in the market and, you know, we can offer something like I'd say half the cost, but that's a creative to us, you know, say the customer money tries more or a value is just a win on all fronts. And so in a lot of ways we are kind of the lower cost provider because you're coming on to, you know, our platform. Oliver. Thanks, Sam. Thank you. For sure.

Elizabeth Porter: Awesome, last question, Clive Wright, Dear Davidson, go ahead please Clive.

Clive Wright: Sorry, Clive, we can't hear you on the audio. Oh, much better, much better.

Elizabeth Porter: We've seen consecutive

Speaker Change: Sorry, Clive, we can't hear you on the audio.

Clive Wright: Oh, much better, much better. Okay, perfect. So we have seen consecutive quarters of accelerating customer account growth, and we'd love to understand where these companies are starting at and how you plan to drive these new logos to your 50k plus cohort, whether it's through incremental product adoption or seed ads.

Clive Wright: We have seen consecutive quarters of accelerating customer account growth, and we'd love to understand where these companies are starting from and how you plan to drive these new logos to your 50k plus cohort, whether it's through incremental product adoption or CDAD. Yeah, so I want to be clear on customer count; we continue to disclose that because we have historically, but it lumps in the plus customers as well, which only started at the end of last year. So it's the year on year comparisons are not apples to apples.

Speaker Change: Yeah, so it'll be clear in customer count. We continue to disclose that because we have historically, but it lumps in the plus customers as well, which only started at the end of last year. So it's the year on your comparisons are not apples to apples.

Elizabeth Porter: Next question, Elizabeth Porter Morgan, Sammy, followed by Clark Wright, D.A. Davidson, Elizabeth, go ahead, please. Great, thanks so much. I actually have a follow-up to Claire's question on the new product rollout. I was curious if you've had prior new platform rollout and what those changes in KPIs you may have seen in the past as it relates to improvement in retention or engagement. I'm just looking to any historical precedents that we can look to inform our viewers on the new opportunity.

Spenser Skates: And so part of the reason why we disclose the 100k customer plus is because those are like, you know, you can think of those as real or large or enterprise customers. And so I'd focus more on that. With that said, you know, it is great to see so many companies coming on the plus side for the first time. And those are great feeding ground where those companies will upgrade to larger plans using more amplitude over time.

Speaker Change: and so part of the reason why we disclosed the 100k customer plus is because those are like you know you can think of those as real or large or enterprise customers and so I'd focus

Elizabeth Porter: More on that. With that said, you know, you do see it is great to see so many companies coming onto Plus for the first time, and those are a great feeding ground to

Elizabeth Porter: For those companies will upgrade to larger plans, use more of amplitude over time.

Spenser Skates: You know, there's starting to be a small revenue contribution to the quarter as well. So it's, it's, it's, it's all good. But yeah, I, it's not quite an apples to apples comparison with, you know, if you were to look a year ago, so I, we don't emphasize it quite as much.

Elizabeth Porter: We haven't done one like that since we've been public. I think the last change that we made in this was probably six or seven years ago, so this is the biggest that we've done since that point in time. There isn't a ton of precedent. What I will say on just some of the quick stats we're seeing about somewhere between a 40 and 50% increase in data activation. Of the percentage of people that sign up, how many actually end up getting data.

Elizabeth Porter: You know, there's starting to be a small revenue contribution to the quarter as well, so it's it's it's it's all good. But yeah, I it's not quite an apples to apples comparison with, you know, if you were to look a year ago, so I we don't emphasize it quite as much.

Elizabeth Porter: We're seeing a lot more engagement from new customers on session replay and on experimentation. That's been a real positive as well. My expectation is this will lead to us getting more customers as well as having the customers that do come in be more likely to be successful in activating kind of get through the whole funnel. It is our first salvo at this. We're going to continue iterate and beat the drum past September 10th on this because we want to be the leaders here so there's no reason to choose anyone else over amplitude.

Mike Dean: I'm excited to see and report in the results once we get to the other side of the launch. Great. Just as a follow-up quickly on NRR, it was not a contraption because I was expected. We would just love to unpack some of the drivers between Axelwood Churn, Downsell and Upsell kind of any areas that you call out that actually saw a little bit of better improvement and what we've done a little bit worse.

Mike Dean: Yeah, so we said that we're going to trough in the mid 90s this year and that's where we are right now. The big impact is obviously the optimizations for the multi-year contracts that happened and then we're going to have a headwind in Q3 with Russia as well. Absent that, we believe we're in a fundamentally different place to re-accelerate growth and that's well within our reach. Thank you.

Unknown Executive: Awesome.

Clark Wright: Last question, Clark Wright, Davidson, go ahead, please. Thank you. So we can take the course.

Unknown Executive: Sorry, Clark. We can't wait to get in on the audio. Oh, much better. Much better.

Clark Wright: Okay, Clark Wright. So we have seen consecutive groups accelerating customer count growth and would love to understand where these companies are starting at and how do you plan to drive these new logos to your 50k plus cohort, whether it's through incremental product adoption or seed ads. Yeah, so it would be clear in customer count. We continue to disclose that because we have historically, but it lumps in the plus customers as well, which only started at the end of last year.

Clark Wright: So it's the year on your comparisons are not apples to apples. And so part of the reason why we disclose the 100k customer plus is because those are like, you know, you can think of those as real or large or enterprise customers. And so I'd focus more on that. With that said, you know, you do see, it is great to see so many companies coming on the plus for the first time and those are great feeding ground to where those companies will upgrade to larger plans, use more of amplitude over time.

Clark Wright: You know, they're starting to be a small revenue contribution to the quarter as well. So it's all good. But yeah, it's not quite an apples to apples comparison with, you know, if you were to look a year ago, so we don't emphasize it quite as as much.

Spenser Skates: Awesome, great. Thank you for that.

Unknown Executive: Last question. With that, I'm seeing no further questions in Q. We will be at the City Group Global Tech Conference and Piper Sandler's Growth Frontier's Conference in September. Details will be posted on our IR website.

Unknown Executive: Thank you very much for attending a two-cube earnings conference call. You may now disconnect. Thank you, everyone. Thank you.

Unknown Executive: Good bye.