Q1 2025 Amplitude Inc Earnings Call

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John Streppa: Good afternoon, everyone, and welcome to Amplitude's first quarter 2025 earnings conference call. I'm John Streppa, Head of Investor Relations. And joining me today are Spenser Skates, CEO and co-founder of Amplitude, and Andrew Casey, Chief Financial Officer.

John: Good afternoon, everyone and welcome to amplitudes first quarter 2025 earnings Conference call I'm, John <unk> head of Investor Relations and joining me today are Spencer skates, CEO and co founder of amplitude and Andrew Casey Chief Financial Officer.

John Streppa: During today's call, management will make forward looking statements, including statements regarding our financial outlook for the second quarter and full year 2025, the expected performance of our products, our expected quarterly and long term growth, investments, and our overall future prospects. These forward-looking statements are based on current information, assumptions, and expectations, and are subject to risks and uncertainties, some of which are beyond our control. That could cause actual results to differ materially from those described in these statements.

John: During today's call management will make forward looking statements, including statements regarding our financial outlook for the second quarter and full year 2025, the expected performance of our products, our expected quarterly and long term growth investments and our overall future prospects.

John: 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.

John Streppa: Further information on the risks that could cause actual results to differ is included in our filings with the Securities and Exchange 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.

John: Other information on the risks that could cause actual results to differ including and are included in our filings with the Securities and Exchange Commission you are cautioned not to place undue reliance on these forward looking statements and we assume no obligation to update these statements after today's call except as required by law.

John Streppa: Certain financial measures used on today's call are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. These non-GAAP financial measures have limitations and should not be used in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

John: Certain financial measures used on today's call are expressed on a non-GAAP basis. We use these non-GAAP financial measures internally sulfate analysis of our financial and business trends and for internal planning and forecasting purposes.

John: These non-GAAP financial measures have limitations and should not be used in isolation from or as a substitute for financial information prepared in accordance with GAAP additional information.

John Streppa: Additional information regarding these non-GAAP financial measures and a reconciliation between these GAAP and non-GAAP financial measures are included in our earnings press release and the supplemental financial information, which can be found on our investor relations website at investors.amplitude.com.

John: Information regarding these non-GAAP financial measures and a reconciliation between these GAAP and non-GAAP financial measures are included in our earnings press release, and the supplemental financial information, which can be found on our investor relations website at investors that amplitude dot com with that I'll hand, the call over to Spencer.

John Streppa: With that, I'll hand the call over to Spenser. Thanks, John.

John: Okay.

Spencer: Thanks, John.

Spenser Skates: Good afternoon, everyone, and welcome to Amplitude's first quarter 2025 earnings call. Today, I'll go through three key areas. First, our Q1 results and the reacceleration of our business. Second, our platform strategy and how we are winning the enterprise. And last, product innovation and customer story. Let's start with our Q1 results. We exceeded the midpoint of our revenue and operating loss guidance. Our first quarter revenue was $80 million, up 10% year over year. Annual recurring revenue was $320 million, up 12% year-over-year and up $8 million from last quarter. Non-GAAP operating loss was $2.1 million. Customers with more than 100k in ARR grew to 617, an increase of 18% year over year.

Speaker Change: Good afternoon, everyone and welcome to amplitudes first quarter 2025 earnings call.

Spencer: Today I'll go through three key areas.

Spencer: First our Q1 results and the Reacceleration of our business.

Spencer: Our platform strategy and how we are winning the enterprise and last product innovation and customer stories.

Spencer: Let's start with our Q1 results.

Spencer: We exceeded the midpoint of our revenue and operating loss guidance.

Spencer: Our first quarter revenue was $80 million up 10% year over year.

Spencer: Annual recurring revenue was $320 million up 12% year over year and up $8 million from last quarter.

Spencer: non-GAAP operating loss was $2 1 million.

Spencer: Customers with more than 100 K in AOR grew to 617, an increase of 18% year over year.

Spenser Skates: We are re-accelerating the business. We are growing through platform deals and focus on the enterprise. We are also continuing to improve churn.

We are re accelerating the business.

Spencer: We are growing through platform deals and focus on the enterprise. We are also continuing to improve churn.

Spencer: 2025 is the year of the platform.

Spenser Skates: 2025 is the year of the platform. Every company needs data they can trust, an understanding of their customers, and ways to take action. During Q1, we saw more enterprise customers embracing our full digital analytics platform, leading to stronger multi-product attachment. More multi-year deals and wider usage across Multiproduct customers now make up 30% of our install base and 64% of our total ARR. We are seeing strong enterprise momentum overall. We landed new customers like Hertz and The Economist Group, and almost two-thirds of our ARR base comes from enterprise customers. These deals are bigger and more likely to expand in the future.

Spencer: Every company needs data, they can trust and understanding of their customers in ways to take action.

Spencer: During Q1, we saw more enterprise customers embracing our full digital analytics platform, leading to stronger multi product attach rates more multiyear deals and wider usage across teams multi product customers now make up 30% of our installed base and 64% of our total <unk>.

Spencer: Sure.

Spencer: We are seeing strong enterprise momentum overall.

Spencer: We landed new customers like Hertz, and the economist group and almost two thirds of our AOR base comes from enterprise customers. These deals are bigger and more likely to expand in the future.

Spenser Skates: We have also created a new strategic enterprise accounts team to focus on our top 30 customers and top 30 processes. That effort is already paying off in Q1 with stronger executive relationships and more multiproduct. We are making steady progress on Churn and are past the worst of Our dollar-based net retention reached 101% in Q1, up five points from its lowest level in Q2 of last year.

Spencer: We have also created a new strategic enterprise accounts team to focus on our top 30 customers and top 30 prospects.

Spencer: That effort is already paying off in Q1 with stronger executive relationships and more multi product wins.

Spencer: We are making steady progress on churn and are past the worst of it.

Spencer: Our dollar based net retention reached 101% in Q1 up five points from its lowest level in Q2 of last year.

Spenser Skates: As the macro remains challenging, our priority is helping customers derive value from the Amplitude platform as quickly as possible.

Spencer: At the macro means challenging our priority is helping customers derive value from the amplitude platform as quickly as possible.

Spenser Skates: Moving on to product innovation. When we spoke during Q4 earnings, we had just launched our newest product, Guides and Surveys. Guides and Surveys helps customers deliver in-product guidance and feedback that is deeply personalized, a far cry from static pop-ups. It is built on our analytics foundation and is a prime example of how to move from insights to action quickly. Since then, there has been a phenomenal response. We have seen faster adoption and more incremental ARR in the first quarter than for any other new product to date, including Experiment and Session Replay, which were very successful in their own right.

Spencer: Moving.

Spencer: On to product innovation.

Spencer: When we spoke during Q4 earnings we had just launched our newest product guidance surveys.

Spencer: Guidance surveys helps customers deliver in product guidance and feedback that is deeply personalized a far cry from static pop ups. It is built on our analytics Foundation and is a Prime example of how to move from insights to action quickly.

Spencer: Since then there has been a phenomenal response, we have seen faster adoption and more incremental air or in the first quarter than for any other new product to date, including experiment in session replay, which were very successful in their own right.

Spenser Skates: We've already displaced a number of point solutions and legacy tools with guides and surveys, and it is becoming a core element of our platform story. We are getting better at adding to the Amplitude platform. In Q1, we also shipped self-serve data deletion, heatmaps, session replay for mobile, and session replay everywhere. Now, session replay is embedded across the entire Amplitude platform, including analytics, experiments, and guides and surveys.

Spencer: We have already displaced a number of point solutions and legacy tools with guidance surveys and it is becoming a core element of our platform story, we are getting better at adding to the amplitude platform.

Spencer: In Q1, we also shipped self serve data deletion heat maps session replay for mobile and session replay everywhere now session replay is embedded across the entire amplitude platform, including analytics experiments and guys and surveys.

Spenser Skates: Last year, we saw the increased influence that marketing leaders had on enterprise deals. To be successful, marketers need to look at the same user data, evaluate the end-to-end customer journey, and leverage capabilities outside of analytics in the same platform. Legacy Marketing Solutions are not set up to do that.

Spencer: Last year, we saw the increased influence that marketing leaders had on enterprise deals to be successful marketers need to look at the same user data evaluate the end to end customer journey and leverage capabilities outside of analytics in the same platform.

Spencer: Legacy marketing solutions are not set up to do that.

Spenser Skates: We are making two announcements next week specifically for marketing. First, on Wednesday, May 14th, we are launching a series of platform updates that enable marketers to understand conversion, product adoption, and customer lifetime value and retention. Our goal is to eliminate the blind spots created by traditional marketing analytics.

Spencer: We are making two announcements next week specifically for marketers.

Spencer: First on Wednesday may 14th we are launching a series of platform updates that enable marketers to understand conversion product adoption and customer lifetime value and retention. Our goal is to eliminate the blind spots created by traditional marketing analytics tools.

Spenser Skates: Second, we are joining Twilio at Signal, their annual user conference, also on Wednesday, to announce that Amplitude is now Segment's recommended analytics platform. To give you a better idea of what we're releasing, I'd like to show you our latest marketing updates and actions. For this demo, I'm an e-commerce marketer looking to increase customer purchase. This screen shows my advertising performance. There are pre-built metrics on the screen from impressions to customer acquisition costs and return on ad spend, so I can best understand my best and worst performance channels. I also see a problem. I'm getting thousands of visitors, but less than 5% of customers make purchases.

Spencer: Second we are joining twilio at signal their annual user conference also on Wednesday to announce that amplitude is now segments recommended analytics platform.

Spencer: To give you a better idea of what we're releasing and like to show you our latest marketing updates in action.

Spencer: For this demo and then e-commerce marketer looking to increase customer purchases.

Spencer: This screen shows my advertising performance there are prebuilt metrics on the screen for impressions to customer acquisition cost and return on AD spend so I can best understand my my best and worst performing channels.

Spencer: I also see a problem I'm getting thousands of visitors, but less than 5% of customers make purchases why is that.

Spenser Skates: Why is that? Instead of guessing or needing to switch to another point solution, I can use Amplitude's heat maps to find out more. This visual shows my website with hotspots representing customer activity. I can understand where users are engaging and where they're getting stuck. I just found out that this top banner here gets a ton of clicks. I'd like to experiment with new messaging to see if that will drive more purchase. can do this all on the same screen in Amplitude. I highlight and click the banner and then I can launch an experiment. What you see now is the visual editor.

Spencer: Instead of guessing or needing to switch to another point solution I can use amplitudes heat maps to find out more.

Spencer: This visual shows my website with hotspots, representing customer activity I can understand where users are engaging and where theyre getting stuck.

Spencer: I just found out that this top banner here gets a ton of clicks I'd like to experiment with new messaging to see if that will drive more purchases can.

Spencer: Can do this all on the same screen and amplitude.

Spencer: I highlight and click the banner and then I can launch an experiment.

Spencer: What you see now as the visual editor I can select elements like the banner update the copy with the new promo code.

Spenser Skates: I can select elements like the banner, update the copy with a new promo code and go ahead and deploy that experiment. Finally, still within Amplitude, I see my experiment results. Users who see the new banner messaging are converting at a higher rate. What you just saw is not possible with any other tool out there, only Amplitude.

Spencer: And go ahead and deploy that experiment.

Spencer: Finally still within amplitude I see my experiment results users, who see the new banner messaging are converting at a higher rate.

Spencer: What you just saw is not possible with any other tool out there only amplitude.

Spenser Skates: We want Amplitude to be the default platform for marketers every At Investor Day, we shared our vision for Amplitude AI agents. Our agents turn Amplitude into a team of experts you lead. These agents are monitoring your data, looking for changes, doing a root cause analysis, watching sessions, forming a hypothesis, suggesting experiments, taking your feedback, shipping changes, monitoring the impact, and then repeating the cycle over again.

Spencer: We want amplitude to be the default platform for marketers everywhere.

Spencer: At Investor Day, we shared our vision for amplitude AI agents or agents turn amplitude into a team of experts you lead.

Spencer: These agents are monitoring your data looking for changes doing a root cause analysis watching sessions, forming heighten our hypothesis, suggesting experiments taking your feedback shipping changes monitoring the impact and then repeating the cycle over again.

Spenser Skates: On June 10th, we're hosting an event in San Francisco where we'll announce the closed beta of HCI. We will welcome other leading AI companies on stage with us and show some product demos of what Amplitude agents can do, including agents that automatically and iteratively use analytics and session replays for deep analysis to find the root cause of issue. Agents that automatically create hundreds of variants of the same website to see which performs the best. agents that automatically create user guides to walk customers through your product. This is the first agent in the data space that is doing anything meaningful beyond code and SQL generation.

Spencer: On June 10th we're hosting an event in San Francisco, where we'll announce the closed beta of agents.

Spencer: We welcome other leading AI companies on stage with Us and show some product demos of what amplitude agents can do including agents that automatically and iteratively use analytics insertion replace for deep analysis to find the root cause of issues.

Spencer: Agents that automatically create hundreds of variance of the same website to see which performs the best.

Spencer: <unk> agents that automatically create user guides to walk customers through your product.

Spencer: This is the first agent in the data space that is doing anything meaningful beyond code and sequel generation.

Spenser Skates: Our customers are excited about it, too. Agents was the top voted new product at multiple of our customer advisory board.

Spencer: Our customers are excited about it too agents was the top voted new product at multiple of our customer advisory boards. This year.

Spenser Skates: Let us know if you'd like an invitation to the June 10th event.

Spencer: Let us know if you'd like an invitation to the June 10th event I'd Love to see you there.

Spenser Skates: I'd love to see you.

Spenser Skates: We had a great quarter for new and expansion deals with enterprise customers, including The Economist Group, Hertz, Atlassian, Joe and the Juice, First Horizon Bank, Whoop, 1Password, Away, LeMond, Syngenta, ZocDoc, and AppFire.

Spencer: We had a great quarter for new and expansion deals with enterprise customers, including the economist group Hertz Atlassian, Joe in the juice first Horizon Bank Woop, one password away Lamond, Syngenta Zoch dock and App fire I want to talk about.

Spenser Skates: I want to talk about three of them in more detail. The Economist Group chose Amplitude as its full platform solution to power its digital analytics and experimentation strategy. Like many media organizations, the Economist Group was navigating a complex shift from print to digital and struggling with disconnected tools and low data adoption. It's teams for stitching together insights across analytics providers, warehouses, and other point solutions. This made answering even the most basic customer journey questions time-consuming and inconsiderate. The Economist Group adopted Analytics, Experiment, Session Replay, and Guides and Surveys to bring insights and actions together in one place.

Spencer: Three of them in more detail.

Spencer: The economist group chose amplitude as its full platform solution to power its digital analytics and experimentation strategy.

Spencer: Like many media organizations. The economist group was navigating a complex shift from print to digital and struggling with disconnected tools and low data adoption.

Spencer: It's teams, we're stitching together insights across analytics providers warehouses and other point solutions.

Spencer: This made answering even the most basic customer journey questions time consuming and inconsistent.

Spencer: The economist group adopted analytics experiment session replay and the guidance surveys to bring insights and actions together in one place and now have a single platform to understand how users engage across all its digital properties as teams can analyze what drive subscriptions past experiences in real time in Belgium.

Spenser Skates: It now has a single platform to understand how users engage across all its digital properties. Teams can analyze what drives subscriptions, test experiences in real time, and build smarter engagement.

Spencer: Marter engagement flows.

Spenser Skates: Syngenta is a global ag tech company that helps millions of farmers grow food. Their applications help farmers understand when and how to plant different foods in their local geography to produce better Syngenta adopted Amplitude in 2020. Today, almost 300 employees use our platform to understand how users defer across regions so they can tailor the experience. In Q1, Syngenta added guides and surveys. Now its team will be able to gather user feedback through NPS and promote key events in a timely, targeted way. This will help its team improve user engagement and increase feature adoption.

Speaker Change: Syngenta is a global AD Tech company that helps millions of farmers grow food. There are applications help farmers understand when and how to plant different foods in their local geographies to produce better yields syngenta adopted amplitude in 2020 one today.

Speaker Change: Today, almost 300 employees use our platform to understand how users differ across the regions. So they can tailor the experience in Q1 Syngenta added guidance surveys now its team will be able to gather user feedback for N. P. S and promote key events in a timely targeted way this will help us team improve user engagement.

Speaker Change: And increased feature adoption.

Spenser Skates: Joe and the Juice, the international juice bar and coffee shop chain, was facing rising demand. The team turned to digital channels and Amplitude to help grow same store sales. Joe and the Juice realized that his app could be a key tool for driving orders and improving the customer experience at pickup. The team added experiment and activation to its existing Amplitude stack and was able to optimize their customer journey. Joe and the Juice can now personalize the ordering and picking up experience for each individual customer. Having all of this data in one place allows the team to move fast, iterate quickly, and increase order size.

Speaker Change: Joe in the juice, the international juice bar and coffee shop chain was facing rising demand.

Speaker Change: Team turned to digital channels and amplitude to help grow same store sales showing the juice realized that as at could be a key tool for driving orders and improving the customer experience that pickup the team added experiment and activation to its existing amplitude stack and was able to optimize their customer journey joined the juice can now personalize the ordering and picking up experience for.

Speaker Change: Each individual customer having all of this data in one place allows the team to move fast iterate quickly and increase order sizes.

Spenser Skates: Before I hand it over to Andrew, I want to reiterate our continued progress in growing Amplitude. We have successfully returned to double-digit revenue growth. We are the complete end-to-end digital analytics platform for the enterprise. Customers can now use Amplitude to replace any point solution on the market. And we continue to expand the platform's features and functionalities at scale. We have also deepened our customer relationships, improved our operational efficiency, and created a sustainable growth business. I am proud of the Amplitude team for their focus and dedication in Q1. While there is always more for us to do, we will continue to execute regardless of any changes in the macro.

Speaker Change: Before I hand, it over to Andrew I want to reiterate our continued progress in growing amplitude.

Speaker Change: We have successfully returned to double digit revenue growth.

Andrew: We are the complete end to end digital analytics platform for the enterprise.

Andrew: Customers can now use amplitude to replace any point solution on the market and we continue to expand the platform's features and functionalities at scale.

Andrew: We've also deepened our customer relationships improved our operational efficiency and created a sustainable growth business.

Andrew: I am proud of the amplitude team for their focus and dedication in Q1, while there is always more for us to do we will continue to execute regardless of any changes in the macro environment.

Spenser Skates: Thank you for your interest in Amplitude.

Andrew: Thank you for your interest in amplitude I'll now hand, it over to Andrew to walk through our financial results.

Andrew Casey: I'll now hand it over to Andrew to walk through our financial results. Thank you, Spenser, and good afternoon, everyone. I'm pleased with our execution in the first quarter, setting the stage for a strong year as we set out to expand our enterprise customer base and extend the reach of our platform. During our last earnings call, we shared our plans to accelerate the growth of our business and that growth would come with greater leverage. Our first quarter results are another proof point of the improved execution of our teams are exhibiting as both revenue growth and operating income outperformed expectations.

Andrew: Thank you Spencer and good afternoon, everyone.

Andrew: I'm pleased with our execution in the first quarter setting the stage for a strong year as we set out to expand our enterprise customer base and extend the reach of our platform.

Andrew: During our last earnings call, we shared our plans to accelerate the growth of our business and that growth would come with greater leverage.

Andrew: Our first quarter results are another proof point of the improved execution of our teams are exhibiting as both revenue growth and operating income outperformed expectations.

Andrew Casey: The first quarter also showed that we are becoming more strategic partners with our enterprise customers. with total RPO accelerating to 30% growth year over year and long term RPO accelerating to 72% growth. We are confident in our strategy as a platform of choice for customers looking to consolidate spend across vendors and believe that we can accelerate our growth without meaningful improvement or clarity in the macro environment.

Andrew: The first quarter also showed that we are becoming more strategic partners with our enterprise customers.

Andrew: With total RVO accelerating to 30% growth year over year, and long term RVO accelerating to 72% growth year over year.

Andrew: We are confident in our strategy as a platform of choice for customers looking to consolidate spend across vendors and believe that we can accelerate our growth without meaningful improvement or clarity in the macro environment.

Andrew Casey: As we explained in our investor We are focused on two levers to accelerate growth and get more leverage out of our business. First, our sellers are focused on the enterprise customer, which we define as customers with greater than 1,000 employees or over $100 million in revenue. Here we had a great quarter from both landing new accounts as well as expanding additional. As Spenser highlighted in his remarks, our push to extend into the marketing persona is directly related to this goal. Enterprises are looking across teams to drive additional growth and improve their customer journey. Our platform can give marketers and product owners a single view into that customer journey and offer differentiated data that can help product owners optimize their in-product experience.

Andrew: As we explained in our Investor day.

Andrew: We are focused on two levers to accelerate growth and get more leverage out of our business.

Andrew: First our sellers are focused on at the enterprise customer, which we define as customers with greater than 1000 employees or over $100 million in revenue.

Andrew: Here, we had a great quarter from both landing new accounts as well as expanding additional accounts.

Andrew: And Spencer highlighted in his remarks, our push to extend into the marketing persona is directly related to the school.

Andrew: Enterprises are looking across teams to drive additional growth and improve their customer journey our.

Andrew: Our platform can give marketers and product owners, a single view into that customer journey and offer differentiated data that can help product owners optimize their in product experience.

Andrew Casey: This gives the marketers unique insights into the behavioral aspects of their customers. They've never been able to activate.

Andrew: This gives the marketers unique insights into behavioral aspects of their customers they've never been able to activate for.

Andrew Casey: The second growth lever is to extend the reach of our platform into all of our customers. Again, this quarter was strong with 30% of our customers being on multiproduct compared to 21% last year. Our platform works better together, and we will continue to sell the platform across both our current customer base, as well as new land. In the first quarter, 42% of our new enterprise customers landed as multiproduct, which is great. As we increase our enterprise customer base and expand the adoption of our platform, we are becoming more strategic partners with our customers. Contract duration is a key focus for us, as it represents customers commitments to our roadmap and the value they receive.

Andrew: The second growth lever is to extend the reach of our platform into all of our customers.

Andrew: Again, this quarter was strong with 30% of our customers being on multi product compared to 21% last year.

Andrew: Our platform works better together and we will continue to sell the platform across both our current customer base as well as new lands.

Andrew: In the first quarter, 42% of our new enterprise customers landed as multi product, which is great progress.

Andrew: As we increase our enterprise customer base and expand the adoption of our platform, we are becoming more strategic partners with our customers.

Andrew: Contract duration is a key focus for us as it represents customers commitments to our roadmap and the value they receive.

Andrew Casey: As we extend the duration of our contracts, we give ourselves greater opportunity to deliver value before renewal. This also provides us greater time to earn the opportunity to expand with customers through sales of additional products. We had a strong renewal quarter and we managed to extend our average contract duration and many of these renewals.

Andrew: As we extend the duration of our contracts, we gave ourselves greater opportunity to deliver value before renewal there's also.

Andrew: It provides us greater time to earn the opportunity to expand with customers through sales of additional products.

Andrew: We had a strong renewal quarter and we manage to extend our average contract duration and many of these renewals.

Andrew Casey: Lastly, I want to touch on our ability to drive greater leverage within our business. I'm pleased with our outperformance in the first quarter from our initial expectation and we will continue to look for additional opportunities to create greater efficiency. We are focused on a profitable business model and will continue to make incremental improvements each quarter.

Andrew: Lastly, I wanted to touch on our ability to drive greater leverage within our business I.

Andrew: I'm pleased with our outperformance in the first quarter from our initial expectation and we will continue to look for additional opportunities to create greater efficiencies.

Andrew: We are focused on our profitable business model and we'll continue to make incremental improvements each quarter.

Andrew Casey: Turning to our first quarter results. As a reminder, all financial results that I will be discussing, with the exception of revenue, are non-GAAP. Our GAAP financial results, along with a reconciliation between GAAP and non-GAAP results, can be found in our earnings press release and the supplemental financials on our IR website. First quarter revenue was $80 million, up 10% year over year and 2% quarter over quarter. Total ARR increased to $320 million exiting the first quarter, an increase of 12% year-over-year and $8 million sequentially. Here are more details on the key elements. We had a strong new customer core reflecting balance with expansions.

Andrew: Turning to our first quarter results.

Andrew: As a reminder, all financial results that I'll be discussing with the exception of revenue our non-GAAP.

Andrew: Our GAAP financial results, along with a reconciliation between GAAP and non-GAAP results can be found in our earnings press release, and the supplemental financials on our IR website.

Andrew: First quarter revenue was $80 million up 10% year over year, and 2% quarter over quarter.

Andrew: Total <unk> increased to $320 million exiting the first quarter, an increase of 12% year over year and 8 million sequentially.

Andrew: There are more details on the key elements of our.

Andrew: We had a strong new customer quarter, reflecting balance with expansions. However, macro uncertainty will continue to make every new logo challenging.

Andrew Casey: However, macro uncertainty will continue to make every new logo challenging. The number of customers representing 100,000 or more of ARR and Q1 grew to 617, an increase of 18% year over year. In period NRR was 101%, a one point increase sequentially. NRR on a trailing 12-month basis was 98%. We continue to make progress on improvements in retention and continue to expect NRR will increase throughout 2025 as we drive greater expansions opportunities. Gross margin was 77% for the first quarter, in line with the last. Sales and marketing expenses were 45% of revenue, a slight decrease year-over-year, but up slightly sequentially as we had some one-time events in the first quarter to prepare for the year, such as our sales kickoff.

Andrew: The number of customers, representing 100000 or more of <unk> in Q1 grew to 617, an increase of 18% year over year.

Andrew: In period, an IRR was 101% a one point increase sequentially and are on a trailing 12 month basis was 98%.

Andrew: We continue to make progress on improvements in retention and continue to expect <unk> will increase throughout 2025, we drive greater expansion opportunity.

Andrew: Gross margin was 77% from the first quarter in line with Alaska.

Andrew: Sales and marketing expenses were 45% of revenue a slight decrease year over year, but up slightly sequentially as we had some onetime events in the first quarter to prepare for the year such as our sales kickoff.

Andrew Casey: We continue to focus on improving sales efficiencies, driving improvements through changes in our processes, coverage, and expansion of the enterprise customer. G&A was 15% of revenue in line with first quarter 2024. GNA will continue to be optimized to improve as a percentage of revenue over time. R&D was 19% of revenue, up 1 percentage point sequentially, primarily due to the acquisition of Command AI. Total operating expenses were $63 million, 79% of revenue, up 2 percentage points sequentially, primarily due to the aforementioned increases in sales and marketing and our acquisition of Command AI. Operating loss was a negative 2.1 million or 2.6% of revenue, which was approximately 2.4 million better than the midpoint of our guidance.

Andrew: We continue to focus on improving sales efficiencies driving improvements through our changes in our processes coverage and expansion of the enterprise customers.

Andrew: G&A was 15% of revenue.

Andrew: In line with first quarter 'twenty 'twenty four.

Andrew: G&A will continue to be optimized to improve as a percentage of revenue over time.

Andrew: R&D was 19% of revenue up one percentage point sequentially, primarily due to the acquisition of command AI.

Andrew: Total operating expenses were 63 million, 79% of revenue up two percentage points sequentially, primarily due to the aforementioned increases in sales and marketing and our acquisition of command AI.

Andrew: Operating loss was a negative $2 $1 million or 2.6% of revenue, which was approximately $2 4 million better than the midpoint of our guidance.

Andrew Casey: Net loss per share was zero based on 129.7 million basic shares compared to net income per share of one cent with 130.9 million diluted shares a year ago. Free cash flow in the quarter was negative $9.2 million, or 12% of revenue, compared to a negative $1.1 million, or 2% of revenue a year ago. This was largely driven by our annual bonus payout, which we expected during the quarter.

Andrew: Net loss per share was zero based on $129 7 million basic shares compared to net income per share of <unk> with $130 9 million diluted shares a year ago.

Andrew: Free cash flow in the quarter was negative $9 2 million or 12% of revenue compared to a negative $1 1 million or 2% of revenue a year ago.

Andrew: This was largely driven by our annual bonus payout, which we expected during the quarter.

Andrew Casey: Going forward, we will shift to a semi-annual payment framework under which the first payment is expected to occur in the third quarter of 2020.

Andrew: Going forward, we will shift to a semiannual payment framework under which the first payment is expected to occur in the third quarter of 2025.

Andrew Casey: Now turning to our We have built our business to be more resilient. Through both our product positioning as a platform of choice when customers are looking to consolidate spend and by focusing on operational excellence, we have oriented the business for positive free cash flow and non-gap profitability. We continue to operate our business with a focus on investing in areas that we see real return with ROI for our customers. We are not assuming a positive inflection in the macro environment and believe it will continue to be challenging in the near future. However, we are encouraged by the proof points we are seeing from the strategic changes we've made to our business.

Andrew: Now turning to our outlook.

Andrew: We have built our business to be more resilient through both our.

Andrew: Our product positioning as a platform of choice when customers are looking to consolidate spend and by focusing on operational excellence, we have oriented the business.

Andrew: Free cash flow and non-GAAP profitability.

Andrew: We continue to operate our business with a focus on investing in areas that we see real return with ROI for our customers.

Andrew: We are not assuming a positive inflection in the macro environment and believe it will continue to be challenging in the near future.

Andrew: However.

Andrew: We are encouraged by the proof points, we are seeing from the strategic changes we've made to our business.

Andrew Casey: We expect that every new logo will continue to be tough and buyer scrutiny has not shifted positive over the past six months. As we get through the larger levels of churn, we continue to address structural issues in our go-to-market motion to influence greater retention and deep adoption of our platform. However, the digital channel remains an important investment as ever with companies trying to get deeper connections with their customers.

Andrew: We expect that every new logo will continue to be tough and buyer scrutiny has has not shifted positive over the past six months.

Andrew: As we get through the larger levels of churn we continue to address structural issues in our go to market motion to influence greater retention and then deep adoption of our platform.

Andrew: However, the digital channel remains an important investment as ever with companies.

Andrew: Trying to get deeper connections with our customers.

Andrew Casey: We are building a durable enterprise SaaS business that is enabling us to drive growth as we deliver increasing value to our For the second quarter of 2025, we expect revenues to be between $80.3 and $82.3 million, representing an annual growth rate of 11% at the mid- We expect non-GAAP operating loss to be between negative 2.9 and negative 0.9 million, and we expect non-GAAP net income per share to be between negative one cent and positive one cent, assuming basic weighted average shares outstanding of approximately 132 million, and diluted weighted average shares outstanding 139 million, respectively. For the full year 2025, we are raising our revenue expectation due to the outperformance in the first quarter to be between $329 and $333 million, an annual growth rate of 10.5% at the mid We are also increasing our outlook for non-GAAP operating income to be between zero and positive five million, reflecting our focus on growth with leverage.

Andrew: We are building a durable enterprise SaaS business that is enabling us to drive growth as we deliver increasing value to our customers.

Andrew: For the second quarter of 2025, we expect revenues to be between 83, and $82 3 million, representing an annual growth rate of 11% at the midpoint.

Andrew: We expect non-GAAP operating loss to be between negative 2.9, and negative <unk> 9 million and we expect non-GAAP net income per share to be between negative one and positive one cent assuming basic weighted average shares outstanding of approximately 132 million and diluted weighted average shares outstanding $139 million.

Andrew: Actively.

Andrew: For the full year 2025, we are raising our revenue expectation due to the outperformance in the first quarter to be between 329 and $333 million and annual growth rate of 10, 5% at the midpoint.

Andrew: We are also increasing our outlook for non-GAAP operating income to be between zero and positive $5 million, reflecting our focus on growth with leverage.

Andrew Casey: We expect non-GAAP net income per share to be between $0.05 and $0.10, assuming weighted average shares upstanding of approximately $141 million, as measured on a fully diluted basis.

Andrew: We expect non-GAAP net income per share to be between five and 10 cents, assuming weighted average shares outstanding of approximately $141 million as measured on a fully diluted basis.

Andrew Casey: In addition, today we announced that our Board of Directors has approved a $50 million share repurchase program that we will use to take advantage of dislocations in our stock price, as well as to help manage future delusions. In my second full quarter as the CFO, I am pleased with the early progress we've made. I'm confident in our ability to build a durable growth model by aligning to the right customers, driving the right types of contracts, investing in greater innovation and building out value for our customers. Our long-term opportunity remains incredibly compelling. With increased discipline and execution, I believe we will be in a great position to capture it.

Andrew: In addition, today, we announced that our board of directors has approved a $50 million share repurchase program and we will use to take advantage of dislocations in our stock price as well as to help manage future dilution.

Speaker Change: And my second full quarter as the CFO I am pleased with the early progress we've made I'm confident in our ability to build a durable growth model by aligning to the right customers driving the right types of contracts investing greater innovation and building out value for our customers.

Speaker Change: Our long term opportunity remains incredibly compelling with increased discipline and execution I won't be believe we will be in a great position to capture it.

Unknown Executive: With that, we'll open it up for Q&A. Over to you, Jeff.

Speaker Change: That will open it up for Q&A over to you John.

Unknown Executive: Thank you, Andrew. We will now turn to Q&A. For the sake of time, please limit yourself to one question and one follow-up.

John: Thank you Andrew.

John: We will now turn to Q&A for the sake of time, please limit yourself to one question and one follow up.

Scott Berg: Our first question will come from Scott Berg at Needham, followed by Arjun Bhatia at William Blair. Scott, your line is open. Hi, everyone. Really nice quarter here and thanks for taking my questions. I wanted to follow up on the net new ARR metric in the quarter. It was up $8 million quarter over quarter and up 100% year over year, especially in a seasonally weak quarter. Can you help us understand the outperformance a little bit from the new sales side? It sounds like your new customer acquisition was pretty good in the quarter, but retention is better as well, and even your cross-sell opportunity is better.

Speaker Change: Our first question will come from Scott Berg of Needham followed by Arjun Bhatia at William Blair Scott Your line is open.

Speaker Change: Hi, everyone really nice quarter here and thanks for taking my questions.

Speaker Change: I wanted to follow up on the net new a metric in the quarter was up $8 million quarter over quarter and up 100% year over year.

Speaker Change: Especially in a seasonally weak quarter, you'll killed us understand the outperformance a little bit.

Speaker Change: From the new sales side it sounds like your new customer acquisition was pretty good in the quarter, but retention is better as well and even your cross sell opportunity is better it sounds like everything is kind of clicking together, but relative to your expectations, maybe 90 days ago, what exactly kind of maybe drove the upside there.

Spenser Skates: Sounds like everything's kind of clicking together, but relative to your expectations maybe 90 days ago, what exactly kind of maybe drove the upside there? I think the comparison to last year, last year we had a lot of overbuys and larger contract churns that we're still working through from 2021 and 2022. Now that we're in 2025, we're really past almost all of that. And so now it's more of kind of the run rate you'd expect on the churn side. So that was frankly the biggest driver. In addition to that, there's some good enterprise wins and focus and execution there, as well as a broader platform.

Speaker Change: I think the comparison to last year last year, we had a lot of over.

Speaker Change: Over buys and a larger contract churns that we're still working through from 2021 2022 now that we're in 2025, we're really past almost all of that and so now it's more of kind of the run rate you would expect on insurance side. So that was frankly the biggest driver. In addition to that there are some good enterprise wins in.

Speaker Change: Focus and execution, there as well as a broader platform now we have session replay and guidance surveys that we didn't have at the same time next year and so we're seeing a lot of customer interest in those two and so those helped on the margin I also want to be clear like $8 million and net error or it's good progress, but it's very very far from where we want to be a few years.

Scott Berg: Now we have session replaying guides and surveys that we didn't have at the same time next year. And so we're seeing a lot of customer interest in those too. And so those helped on the margin. I also want to be clear, like 8 million in net ARR, it's good progress, but it's very, very far from where we want to be a few years from now. helpful. Thanks, Spencer.

Speaker Change: For now.

Speaker Change: That's helpful. Thank you Spencer and then.

Scott Berg: And then, Spencer, you'd commented on initial traction of I think it was surveys and guides, which was above expectations, or at least above trends on other new products you've launched over the last couple years. You know, we've conducted a number of customer surveys, you know, over the last quarter, and try to help better understand how well this platform, new, you know, kind of newer strategies resonating with them. And we were actually kind of surprised to hear that a couple customers, even one that was a repaid buyer wasn't as familiar with these other opportunities there. It's kind of an interesting difference relative to the strength that you had in the quarter there.

Speaker Change: Spencer you had commented on initial traction of I think it was surveys and our guidance, which was above expectations or at least above trends on another new products you've launched over the last couple of years, we've conducted a number of customer surveys over the last quarter and tried to help better understand how well this platform.

Speaker Change: You know kind of newer strategy is resonating with them and we were actually kind of surprised to hear that a couple of customers. Even one that was a repeat buyer wasn't as familiar with these other opportunities. There it's kind of an interesting difference relative to the strike that you had in the quarter there, but how do you improve that market awareness around what you all are doing on the product side today.

Spenser Skates: But how do you improve that market awareness around what you all are doing on the product side today to even try further success in those expansion strategies? Yeah, I mean, Scott, that's a great that you call out that problem, because for the last 10 years, we have been known as an analytics company. And so that is why we've made the point in saying this is the year where we go from analytics to entire platform. And so there's there's not any magic to it other than continuing to beat the drum and get the word out there.

Speaker Change: To even drive further success in those expansion strategies.

Speaker Change: Scott that's a great that you call out that problem because for the last 10 years, we have been known as an analytics company and so that is why we've made the point in saying this is the year, where we go from analytics to entire platform.

Speaker Change: And so there's there's not any magic to it other than continuing to beat the drum and get the word out there.

Spenser Skates: I think the progress we've seen is on new lands, most of most enterprise new lands will have a component outside of analytics. So that's great. The place where we still have a lot of work to do, which sounds like was consistent with what you heard was on our existing customer base, where a lot of them, you know, they're used to viewing us in the analytics box. So the easy move is just to renew every year on analytics and you know, not worry about it and continue to grow as they grow their their data volume. And so that requires some intentional work on our part to educate them to help them understand, hey, we have experiment, hey, we have session replay, hey, we have guidance surveys.

Speaker Change: I think the progress we've seen is on new lands most of most enterprise new lands will have a component outside of analytics. So that's great.

Speaker Change: Place, where we still have a lot of work to do which sounds like was that consistent with what you heard was on our existing customer waste, where a lot of them you know they're used to viewing us in the analytics box. So the easy move is just a renew every year on analytics and not worry about it and continue to grow as they grow their their data volume.

Speaker Change: And so that requires some intentional work on our part to educate them to help them understand hey, we have experiment hey, we assertion replay hey, we have guidance surveys.

Scott Berg: When we do that universally, like I can't think of a single customer conversation I've had where someone is not interested in those. It's just a question of timing. So we still have a bunch of work with our existing customer base to both educate them as well as get them on. And, you know, that will happen as we go through this year. Excellent. Really nice quarter. Thanks. Thank you, Scott.

Speaker Change: We do that.

Speaker Change: Universally like I can't think of a single customer conversation I've had where someone is not interested in those it's just a question of timing.

Speaker Change: So we still have a bunch of work with our existing customer base to both educate them as well as get them on and that will happen as we go through this year.

Speaker Change: Excellent really nice quarter. Thanks again.

Speaker Change: Thank you Scott. Our next question is from Arjun Bhatia from William Blair, followed by Brent Brent bracelet from Piper Sandler go ahead Arjun.

Arjun Bhatia: Our next question is from Arjun Bhatia from William Blair, followed by Brent Bracelin from Piper Sandler. Go ahead, Arjun. Perfect. Thank you, guys. And congrats on the nice start here. I was encouraged, I guess, and pretty excited to hear about some of the marketing products, Spenser, that you guys are, are launching. It sounds like that's maybe to come in a ramp in the back of the year.

Arjun Bhatia: Perfect and thanks, guys and congrats on the nice start here.

Arjun Bhatia: I was encouraged I guess, then I'm pretty excited to hear about some of the marketing products.

Arjun Bhatia: Once you're there you guys are are launching.

Arjun Bhatia: It sounds like that's maybe to come.

Arjun Bhatia: And a ramp in the back half of the year, but as you're thinking of expanding to this new persona.

Spenser Skates: But as you're thinking of expanding to this new persona, and targeting enterprise buyers, can you maybe just compare and contrast What's different now versus, you know, some of the CDP related products that that you guys had tried to push maybe to the marketing buyer over the last couple years? And how are you kind of, you know, how will you measure progress in this? Is this A land product? Is this an expanded product? How do you think about that piece? Yeah, marketing analytics, it's the same set of core capabilities in that you're tracking data from users over time, it's just through a marketing lens versus through a product lens.

Arjun Bhatia: And targeting enterprise buyers.

Arjun Bhatia: Maybe just compare and contrast.

Arjun Bhatia: What's different now versus you know.

Arjun Bhatia: Some of the CDP related products that you guys had.

Arjun Bhatia: Two question, maybe to the marketing buyer over the last couple of years and how are you kind of you know.

Arjun Bhatia: How will you measure progress in that business.

Arjun Bhatia: Our land product it doesn't expand product how do you think about that piece, yeah marketing analytics. It's the same set of core capabilities in that you're tracking data from users over time, it's just through a marketing lens versus through a product lens to some of the questions you're asking are different.

Spenser Skates: So some of the questions you're asking are different. I think what we see now, so analytics is definitely a land product. And what we see now is that There are now a critical mass of customers who are willing to switch either from Google Analytics or from an enterprise legacy marketing analytics to Amplitude full on versus doing it incrementally over time and running both. And so what we've started up, one example is we have a Google Analytics advisory council that I actually met with a few weeks ago. And they're like, cool, we've made the switch over.

Arjun Bhatia: What we see now so analytics is definitely land product and what we see now is that.

Arjun Bhatia:

Arjun Bhatia: There are now a critical mass of customers who are willing to switch.

Arjun Bhatia: Either from Google analytics or from you know an enterprise legacy marketing analytics to amplitude forlorn versus doing it incrementally over time and running both.

Arjun Bhatia: And so what we started out we one example is we have a Google analytics Advisory Council that I actually met with a few weeks ago and Theyre like cool we've made the switchover and technically you guys can do everything that I can Google analytics, but it's not as easy because I don't get E. Commerce reports out of the box or us doing some of the ROI spending.

Spenser Skates: And technically, you guys can do everything that I can in Google Analytics, but it's not as easy because I don't get e-commerce reports out of the box or doing some of the ROI spending calculation and looking at cost of customer acquisition isn't that straightforward. So can you just provide those out of the box in the same way Google Analytics did? And so those are some of the things that we're coming out with this quarter and next to make that easier. So I'd say in prior years, we didn't have enough capability set to say, hey, I'm willing to bet my business on Amplitude as a system of record for running my marketing campaigns.

Arjun Bhatia: Calculation and looking at customer cost cost cost of customer acquisition isn't that straightforward. So can you just provide those out of the box in the same way Google analytics dead and so those are some of the things that we're coming out with this quarter and next to make that easier. So I'd say in prior years, we didn't have.

Arjun Bhatia: Enough capability set to say, hey, I'm willing to bet my business on amplitude as a system of record for running my marketing campaigns now, we actually do and we're seeing some early traction on that and so now it's just scaling it and making it easier as a more and more people are willing to make that switch. So it's not just product people coming onto amplitude. It's it's the.

Spenser Skates: Now we actually do, and we're seeing some early traction on it. And so now it's just scaling it and making it easier. So more and more people are willing to make that switch. So it's not just product people coming on to Amplitude. It's marketing folks that are using Google Analytics or other solutions as well. Perfect. That's super helpful.

Arjun Bhatia: Marketing folks that are using Google analytics or other solutions as well.

Arjun Bhatia: Perfect.

Andrew Casey: And then maybe the next question, it's a little bit more on the financials, but I'm curious, just the operating leverage in the back half of the year, I'm curious what the main drivers of that are, because it looks like based on your Q2 guidance, we're modeling maybe roughly 4 million in operating loss for the first half. That seems to flip for the full year to a positive up to 5 million in income. So is that gross margin? Are there some of those M&A costs that are rolling off? What should we think about as the main drivers there?

Arjun Bhatia: That's super helpful and then.

Arjun Bhatia: The next question.

Arjun Bhatia: It's more a little bit more on the financials, but I am curious just the operating leverage in the back half of the year I'm curious what the main drivers of that are because it looks like based on your Q2 guidance. We're modeling maybe roughly four 4 million in operating loss.

Arjun Bhatia: <unk> for the first half that seems to flip for the full year to a positive up to 5 million.

Arjun Bhatia: Income so is that gross margin or are there some of those M&A costs that are rolling off what should we think about it as the main drivers there.

Arjun Bhatia: Really across the board Arden I mean, when we put our plan together we plan for optimizations on every aspect, whether it's through gross margins and the engineering team continually enhancing our platform runs within our hosting environments to the sales team, adding more and more capabilities.

Arjun Bhatia: And learning how to sell the platform more effectively so more new logos more expansions sales productivity typically falls from Q4 to Q1, but then starts to ramp up through the year as they have most of the sales reps get adjusted to the new territories understand how to sell the new products. So the sales and marketing line will seeing continual efficiencies around and then.

Andrew Casey: territories, understand how to sell the new products. So the sales and marketing line, we'll see continual efficiencies around. And then G&A, I would say it's just a factor of, you know, we're getting greater leverage out of a constant or pretty well constant level of spend within it. R&D is the one area where we'll continue to invest and receive opportunities. And so I'll tell you, we've targeted 18 to 20% of R&D spend as percentage of revenue, and I expect we'll be within that All right. Perfect. Thank you, guys.

Arjun Bhatia: G&A I would say, it's just a factor of we are getting greater leverage out of our constant or pretty well constant level of spend within it are these the one area. We will continue to invest where we see opportunities and so will tell you we targeted 18% to 20% of R&D spend as a percentage of revenue and I expect we'll be within that range.

Arjun Bhatia: Okay perfect. Thank you guys.

Unknown Executive: Thank you, Arjun.

Speaker Change: Thank you Art design. Our next question is from Brent bracelet from Piper Sandler followed by Jackson Ader from Keybanc, Brian go ahead.

Brent Bracelin: Our next question is from Brent Bracelin from Piper Sandler, followed by Jackson Ader from KeyBank. Brent, go ahead. Thank you. Good afternoon. Great to see three quarters here of accelerating ARR growth. The new product strategy seems to be working here. Maybe, Andrew, starting with you, CRPO accelerated it to look like 19% growth this year, this quarter. It's the highest in almost two years. You flagged enterprise being almost now two-thirds of ARR. Is that the big driver of the CRPO? I'd love to have any color on what drove that metric. It looked like that stood out to me as an anomaly.

Speaker Change: You are good afternoon, great to see three quarters here of accelerating our growth new products strategy seems to be working here on maybe Andrew starting with U C. R. P O accelerated it to look like 19% growth this year or this quarter is the highest in almost two years.

Speaker Change: You flagged enterprise being got almost now two thirds of a or is that the big driver of the CRP I would love to have any color on what drove that metric. It looked like that stood out to me as an anomaly. So walk me through what drove that certainly the vote was on enterprise is one that is helping to drive longer term contract duration with a client.

Andrew Casey: So, walk me through what drove that. Certainly, the focus on enterprise is one that's helping to drive longer-term contract duration with our clients as they come up for either renewal or selling new products in the clients. And it's especially profound with those customers who have multi-product because they think about implementing a multi-product over not just a 12-month period, but over a multi-year period to really get the advantages of scale and efficiency that they often purchase Amplitude to go do. So, it's certainly one of greater focus on the enterprise customer. But I'd also tell you that we made shifts in our go-to-market where most of our enterprise account executives have full responsibility for all the commercial transactions within their territories.

Speaker Change: As they come up for either renewal or we're selling new new products and our clients.

Speaker Change: Especially profound with those customers, who have multi product because they think about implementing a multi product over not just a 12 month period, but over a multiyear period to really get the advantages of scale and efficiency that they often purchase amplitude to go do so it's it's certainly want a greater focus on the enterprise customer, but I would also tell you that we made shifts in our go to market where more.

Speaker Change: <unk> of our enterprise account executives have full responsibility for all the commercial transactions within their territories and that means that we put incentive frameworks together and get them focused on driving those multi year agreements.

Andrew Casey: And that means that we put incentive frameworks together and get them focused on driving those multi-year agreements. Oftentimes, when they have conversations with clients, especially enterprise clients, they'll want cost predictability over that project period, and they're willing to agree to a longer-term contract duration, which, as you know, gives us that growth in RPO, gives us greater revenue predictability. And frankly, it'll help us drive greater sales efficiencies because we're not having to renew all those contracts every year.

Speaker Change: They oftentimes when they have conversations with clients.

Clients, especially enterprise clients they'll want cost predictability over the project period, and they're willing to agree to a longer term contract duration, which as you know gives us that growth in our P. O gives us greater revenue predictability and frankly, it'll help us drive greater sales efficiencies, because we're not having to renew all of those contracts every year.

Andrew Casey: Makes sense.

Spencer: Makes sense and then Spencer.

Spenser Skates: And then Spencer, guides and surveys. Sounds like you're off to a strong start. My question here for you is, is really on what's resonating and motivating these customers to switch from a competitor? Or are they even switching? Is this a price lever, a feature lever, just trying to better understand why you're seeing such strong adoption early on guides and surveys? So let me do the comparison of guides and surveys to prior products. And then I'll talk about what's resonating on it specifically. It's a more mature product. Obviously, before the acquisition, the command team had spent tons of, you know, many years building this out.

Speaker Change: Guy can surveys.

Speaker Change: Sounds like you're off to a strong start my question here for you is is really on what's resonating and motivating these customers to switch from a competitor or are they even switching is this.

Speaker Change: Price lever a feature lever just trying to better understand why you're seeing such strong adoption early on guidance surveys.

Speaker Change: So let me do the comparison of guidance surveys to prior products and then I'll talk about what's resonating on it specifically, it's a more mature product obviously before the acquisition of command team and spent tons of many years building this out.

Spenser Skates: And so we weren't starting from zero, it was just a question of porting the existing product to the platform. And we did that in four months and got it out there. And we pretty much have every almost everything. Someone on a competitive point solution would want. The one exception is mobile guides and surveys, but we're literally going to be coming out with that this quarter. And then there's there's kind of no really real reason to use a competitor. Whereas session replay and experimentation, those were both built in house. And so, you know, the maturity takes a little longer to get to the same level.

Speaker Change: And so we werent starting from zero is just a question of porting the existing product to the platform and we did that in four months and got it out there and we've pretty much have everything almost everything.

Speaker Change: Someone on a competitive.

Speaker Change: Point solution would want.

Speaker Change: The one exception is mobile guidance surveys, but are literally going to be coming out with that this quarter and then there's kind of no really throw reason to use a competitor, whereas session replay and experimentation those were both built in house and so the maturity. It takes a little longer to get to the same level. So that's I think the biggest thing. It's also at the suite product. If you got my dental last time, so that all.

Spenser Skates: So that's, I think the biggest thing. It's also a sweet product, if you caught my demo last time, so that always helps too. In terms of the displacement, so it is largely competitive displacements. There's a number of things that are attractive. I think first, obviously, the consolidated price is a big deal in that, you know, yeah, you can pay us much less by coming on to that than you can pay someone else. And, you know, it's a win-win for all sides. But the other part of it that's not to be underrated is being able to do the guides and surveys in analytics from your analytics platform and having that data connect matters a lot.

Speaker Change: This helps too.

Speaker Change: In terms of the displacement. So it is a largely competitive displacements.

Speaker Change: There's a number of things that are attractive I think first obviously the consolidated prices is a big deal in that yeah. You can yeah, you can pay us much less by coming onto that then you can pay someone else and you know it's a win win for all sides.

Speaker Change: But the other part of it that's not to be underrated is being able to do the guidance surveys in analytics.

Speaker Change: From your analytics platform and having that data connect is matters a lot. So last time I showed a demo of us.

Spenser Skates: So last time I showed a demo of us detecting user confusion, and we can do that because we track a bunch of analytics data that another point solution and guidance surveys can't have. So it allows you to have all these kind of bells and whistles and advanced functionality that is quite valuable, and that you don't have if you're just going with something standalone.

Speaker Change: As detecting user confusion and we can do that because we track a bunch of analytics data that another point solution and guidance surveys can have so it allows you to have all these kind of bells and whistles and advanced functionality that is.

Speaker Change: Quite valuable.

Speaker Change: And that you don't have if youre, just going with something standalone.

Brent Bracelin: Makes sense. Thank you. Thank you, Brent.

Speaker Change: Makes sense. Thank you.

Speaker Change: Thank you Brian our.

Jackson Ader: Our next question is from Jackson Ader from KeyBank, followed by Koji Ikeda from Bank of America. Go ahead, Jackson. Thanks, John. Hey guys, thanks for taking our question.

Speaker Change: Our next question is from Jackson Ader from Keybanc, followed by Koji Akita from Bank of America go ahead Jackson.

Jackson Ader: Hey, guys. Thanks for taking our question.

Jackson Ader: Let's see, I think Spenser, probably first for you on the marketing side and specifically the partnership that you signed with Twilio. What makes Twilio the right partner for this to be, you know, the relationship going forward. I think our strategy, well, so let me talk about our strategy and then I'll answer your question. Our strategy as a whole is we're agnostic to wherever your data sets. So if it's in the CDP, whether it's segment or something else, if it's in a, you know, your own system or your own data warehouse, if you're sending us directly, like we're agnostic and we'll work with wherever your data is.

Speaker Change: Let's see I think it does are probably first for you on the marketing side and specifically the partnership that you signed with with Twilio, what makes Twilio right.

Jackson Ader: Gartner for this to be you know.

Speaker Change: The relationship going forward.

Speaker Change: I think our strength well so so let me talk about our strategy and then I'll answer your question our strategy as a whole is work gnostic to wherever your datasets. So if it's in the CDP, whether its segment or something else. If it's in a your own system or your own data warehouse, if you're sending us directly like we're agnostic and we'll work with wherever your data sets in terms of Twilio.

Spenser Skates: In terms of Twilio and Segment in particular, I think they've just had the greatest overlap with us in terms of number of customers. Just very candidly, I think for a number of years, we were a little more competitive than we were collaborative, because we had come out with a CDP that some of the same functionalities. But then we changed that messaging this year and been really clear, hey, look, our goal is not to go on the CDP space. We want you guys to go be successful there. And we'd much rather partner. And we think of ourselves as the applications on top of that.

Speaker Change: Oh and segment in particular.

Speaker Change: I think they've just had the greatest overlap with us in terms of number of customers. There's very candidly I think for a number of years, we were a little more competitive than we were a collaborative because we had come out with a CDP that some of the same functionality.

Speaker Change: But then we changed that messaging this year have been really clear Hey look our goal is not to go on the CDP space. We want you guys to go be successful there and we'd much rather partner and we think of ourselves as the applications on top of that.

Spenser Skates: And so it was a great opportunity. We had already done a lot of work with Segment and the Twilio team in the past. And in terms of CDPs, they have the most overlap with our buyer set. So technology companies, more enterprise-y, similar product or market or buying profile.

Speaker Change: And so as a great opportunity, we had already done a lot of work with segment and the Twilio team in the past.

Speaker Change: And you know in terms of CDP is they have the most overlap with our buyer set so technology companies more enterprise the.

Speaker Change: Similar product or market or buying profile and so it just it made a ton of sense to announce a more formalized partnership that we're doing next week.

Spenser Skates: And so it just made a ton of sense to announce a more formalized partnership that we're doing.

Spenser Skates: Okay, um, and then quick follow up on on Geo seems like the rest of the world. Lagging, right? Like just kind of, so I'm curious what you guys are seeing there. Is it more macro pressure outside the U.S. or is there something, you know, what can you do to kind of get that segment to be like, you know, an engine, a growth driver rather than I want to be clear, you'll see variation quarter to quarter, but everywhere it's early and everywhere it's growing. U.S. is, you know, the most mature, but we're still in, you know, ending one or two of nine in this market.

Speaker Change: Okay.

Speaker Change: And then quick follow up on on Geo seems like rest of world.

Speaker Change: Lagging right just kind of curious what you guys are seeing or is it more macro pressure outside the U S or is there something you know what can you do to kind of get that.

Speaker Change: Segment to be like an engine of growth driver rather than a laggard.

Speaker Change: I want to be clear, you'll you'll see variation quarter to quarter, but everywhere. It's early and everywhere. It's growing U S is the most mature, but we're still in you know, adding one or two of nine and this market I'd say within a P J where.

Spenser Skates: I'd say within APJ, we're more concentrated in, like, tech and startups and SMBs. In Europe, it's kind of in between the two.

Speaker Change: We're more concentrated in.

Speaker Change: Like tech and startups and Smbs in Europe, it's kind of in between the two I'm actually going to be going out to Australia, and Korea and doing a tour on some of our a P. J customers and we're just starting to break in the enterprise and in a bunch of places there and so that's that's good to see but its just earlier, so youll see variance quarter to quarter, and it's I wouldn't read anything into it.

Spenser Skates: I'm actually going to be going out to Australia and Korea and doing a tour on some of our APJ customers, and we're just starting to break in the enterprise in a bunch of places there. So that's good to see, but it's just earlier. So you'll see variance quarter to quarter, and it's, you know, I wouldn't read anything into it.

Unknown Executive: All right. Thank you. Thank you, Jackson.

Speaker Change: Alright, thank you.

Speaker Change: Thank you Jackson.

George: Our next question comes from the line of Koji Ikeda from Bank of America, followed by Taylor McGinnis from UBS. Hey, this is George on for Koji. Appreciate it. Appreciate you taking our questions here.

Speaker Change: Our next question comes from the line of Koji Ikeda from Bank of America, followed by Taylor Mcginnis from UBS go ahead.

George: Hey, this is George on for Kochi. Appreciate it appreciate you taking our questions here.

Unknown Executive: I kind of had one, just as it relates to, you know, the buyback announcement, and kind of how you think of capital allocation, whether it be buybacks, or, you know, comparing that to internal investments, and kind of what what the philosophy is there, if you could, you know, kind of touch on that. Sure. So one of the things that I've done since arriving at the CFO is really take a look at our core processes and, and how we were managing amplitude. And we're really updating ourselves to for scale. And this is just one of those tools that we thought we lacked, in order to manage both dilution effectively and to take advantage of dislocations in the market that may be happening.

Speaker Change: I kind of had one just as it relates to you know.

Speaker Change: The buyback announcement and kind of how you think of capital allocation, whether it be buybacks or <unk>.

Speaker Change: Comparing that to our internal investments and kind of what what the philosophy is there if you could.

Speaker Change: You know kind of touch on that sure. So one of the things that I've done since arriving at the CFO was really take a look at our core processes and in how we were managing amplitude and we're really updating ourselves for scale and this is just one of those tools that we thought we lacked are in.

Speaker Change: In order to manage both dilution effectively and to take advantage of dislocations in the market that may be happening and it's certainly been the case over the last few weeks that we've seen those types of of volatile movements that at those low low prices made a lot of sense for us to invest in our own stock now having said that theres nothing here marked its pretty its pretty broad.

Unknown Executive: And it's certainly been the case over the last few weeks that we've seen those types of volatile movements that at those low, low prices made a lot of sense for us to to invest in our own stock. Now, having said that, there's nothing earmarked, it's pretty, it's a pretty broad program. And so I look at it just as a tool for us to use as we go forward when those when those times occur. Thank you. Thanks, George.

Speaker Change: Rod program.

Speaker Change: And so I look at it just as a tool for us to use as we go forward windows when those times occur.

Speaker Change: Thank you.

Speaker Change: Thanks, George our next.

Taylor McGinnis: Our next question comes from the line of Taylor McGinnis at UBS, followed by Clark Wright at DA Davidson. Taylor, the floor is yours. Yeah, hey guys, thanks so much for the time this evening and congrats on the results. Maybe I'm first one, so Spenser, there's a lot of concerns out there on the macro and to the extent that we could see a deterioration. So I'd love, you know, for you to just comment on, you know, what you're hearing from your customers. And as a follow-up to that question, when we think about how Amplitude and its customer base might differ today versus the last slowdown in 2022, I guess our customer is leaner today.

Speaker Change: <unk> comes from the line of Taylor Mcginnis at UBS, followed by Clark right at D. A Davidson tailor the floor is yours.

Speaker Change: Yeah, Hey, guys. Thanks, so much for the time this evening and congrats on the results maybe first one for Spencer, there's a lot of concerns out there on the macro and to the extent that we could see a deterioration. So I'd love for you to just comment on what Youre hearing from your customers.

Speaker Change: As a follow up to that question when we think about how amplitude and its customer base might differ today versus the last slowdown in 2022, I guess, our customers leaner today, there's been a lot of right sizing and optimization over the last couple of years. So is it possible that risk could be last and how are you guys I guess better equipped.

Spenser Skates: There's been a lot of right sizing and optimization over the last couple of years.

Spenser Skates: So is it possible that risk could be less and, you know, how are you guys, I guess, better equipped to handle any potential headwinds we could see? Yeah, I think what made 2022 so damaging for us in particular was just there's a lot of over-exuberance in 2021. Now, you know, if I look at the last few years, there hasn't been that. So I think we've just been in a harder, honestly, not even that hard compared to historicals, but a harder macro on a relative basis. I think. From in terms of the tariff specific impact, we haven't candidly, we haven't seen any or it's been very minimal, it hasn't changed any of the buying patterns that we've seen from our customers at all.

Speaker Change: Handle any potential headwind we could see.

Speaker Change: Yeah, I think what made 2022, so damaging for us in particular was just theres a lot of over exuberance in 2020. One now if I look at the last few years there hasn't been that so I think we just been in a in a harder honestly not even bad heart compared to historical is but a harder macro on a relative basis.

Speaker Change: I think.

Speaker Change: From in terms of the tariffs specific impact we haven't candidly, we haven't seen any or its been very minimal it hasnt changed any of the buying patterns that we've seen from our customers at all we're obviously watching it really carefully because we want to make sure that we're set up.

Spenser Skates: We're obviously watching it really carefully, because we want to make sure that we're set up. I kind of say two things about it, in terms of what we're doing. One, it's like We've been talking a lot about operating with leverage no matter the environment and setting up with amplitude to accelerate. And so, you know, good, bad, ugly, you know, whatever on the macro, like, we're gonna, we All of that is within our control from all of the stuff to both accelerate the business and drive leverages within our control. So we're going to focus on that.

Speaker Change: I kind of think two things about it in terms of what we're doing one is like.

Speaker Change: We've been talking a lot about operating with leverage no matter, the environment and setting up with amplitude to accelerate.

Speaker Change: And so you know good bad ugly.

Speaker Change: Whatever on the macro like we're going to we.

Speaker Change: <unk>.

Speaker Change: All of that is within our control from all of this the stop to both accelerate the business and drive leverage is within our control.

Speaker Change: So we're going to focus on that the second thing I'd say is that.

Spenser Skates: The second thing I'd say is that Even in the worst times, being able to make your digital channel successful and having a great foundation of data is a top priority of the executives that I talk to. And so even if, you know, let's say AI bubble pops or people cut back on spend even more or what have you, we think we're very well positioned in that.

Speaker Change: Even in the worst times being able to make your digital channel successful and having a great Foundation of data has is a top priority of the executives that I talked to and so even if let's say pay I bubble pops when people cut back on spend even more or what have you like where you know where we think we're very well pause.

Speaker Change: <unk> in.

Speaker Change: And that.

Andrew Casey: Perfect. And then, Andrew, maybe on just a similar note and a similar topic, it seems like you guys are on a great path to, you know, accelerate closer to mid-teens in the future. So, I guess when we think about the potential to see incremental headwinds, is there enough low-hanging fruit type growth drivers that give you comfort that we could even see that acceleration support in, like, to the extent, like, the macro gets worse? Or are you kind of thinking about those different scenarios and the levers that you guys have? So, great question. And I would tell you, we spent a lot of time, as we were building out our guidance, looking forward into our pipelines, how well our sales team is setting up customers for future expansions, you know, the level of interest we're seeing from our new products.

Speaker Change: Perfect and then Andrew maybe on just the similar note on a similar topic. It seems like you guys are on a great path to accelerate closer to mid teens in the future. So I guess, when we think about the potential to see incremental headwinds is there enough low hanging fruit type growth drivers that give you comfort.

Speaker Change: That we could even see that acceleration support and like I said it to the extent like the macro gets worse or are you kind of thinking about those different scenarios and the levers that you guys have.

Speaker Change: So great question and I would tell you we spend a lot of time as we were building out our guidance looking forward into our pipelines, how well our sales team is setting up customers for future expansions near the level of interest we're seeing from from our new products and so those are the things that expense was really referring to we feel very confident in the levers we're pulling to go real add real value to clients.

Andrew Casey: And so, those are the things that Spenser was really referring to. We feel very confident in the levers we're pulling to add real value to clients. Even in a period where there's difficult trade-offs and there's more macro pressure, we think we can offer our customers a value-for-the-money solution that really drives greater value for them through consolidation of existing point products, and open their eyes up into how they can drive greater cost efficiency of some of our new products that are coming out very soon. So, certainly, there's a little trepidation with the level of uncertainty in the market.

Speaker Change: Even in a period, where there is difficult.

Speaker Change: Tradeoffs and Theres more macro pressure, we think we can offer our customers a value for the money solution that really drives greater value for them through consolidation of existing point products and open their eyes up into how they can drive greater cost efficiencies. Some of them are new new products that are coming out very soon so certainly theres, a little trepidation with the level of uncertainty in the market.

Andrew Casey: And if uncertainty reigns, then invariably, that will have a negative impact on the broader macroeconomic scenario. But we want to use the lens of execution when we set up our guidance. And we feel very confident the things that we're doing are resonating with customers and that we can continue to drive that.

Speaker Change: And if if uncertainty reigns and variably that will have a negative impact on the broader macroeconomic scenario, but we want to use the lens of execution. When we set up our guidance and we feel very confident that things that were doing are resonating with customers and that we can continue to drive that growth.

Unknown Executive: Awesome, thank you guys so much.

Speaker Change: Awesome. Thank you so much.

Unknown Executive: Great, thank you, Taylor.

Speaker Change: Alright. Thank you Taylor. Our next question comes from the line of Arc right from D. A Davidson followed by Elizabeth border from Morgan Stanley Clark go ahead.

Clark Wright: Our next question comes from the line of Clark Wright from DA Davidson, followed by Elizabeth Porter from Morgan Stanley. Clark, go ahead. Awesome. Thank you.

Speaker Change: Awesome. Thank you can you maybe talk about.

Andrew Casey: Can you maybe talk about, I guess this is geared towards Andrew, can you talk about the budget scrutiny comments that you mentioned, where you're potentially seeing the source of funds to unlock some of the cross-selling opportunities that you guys have definitely been seeing some positive benefits from this quarter? You know, the pure CFOs that I speak to every day, especially in the larger deals that we get involved with, they're all asking the basic premise of what is the return on investment that I'm going to get from the investment in Amplitude? And that's a logical question for them to ask.

Yes, the difference.

Speaker Change: Andrew can you talk about the budget scrutiny comments that you mentioned, where you're essentially seeing the source of funds to unlock some of the cross selling opportunities that you guys have.

Speaker Change: Definitely been been seeing some positive benefits from this quarter.

Speaker Change: The.

Speaker Change: Peer cfos that I speak to every day, especially in the larger deals that we get involved where they're all asking the basic premise of what is the return on investment that I'm going to get from the investment in amplitude and that's a logical question for them to asking and typically what we go through is both and where can we help them reduce license expenses and operating expenses associate with a broad set of technologies that have implemented it.

Andrew Casey: And typically what we go through is both, where can we help them reduce license expenses and operating expenses associated with a broad set of technologies they've implemented to solve this problem? And then how can we show them through better leverage of Amplitude that they can gain even greater efficiencies and drive greater revenue? So that scrutiny, I think, just gets harder and harder the more that companies are taxed in ways that like through tariffs or higher interest rates or any time when there are increasing expenses, CFOs, CIOs, chief product officers, chief digital officers, they're all asking the question, how can I get more or less?

Speaker Change: All of this problem and then how can we show them through better leverage of amplitude that they can gain even greater efficiencies and drive greater revenue. So that that scrutiny I think just gets harder and harder the more that companies are taxed in ways that like through tariffs or higher interest rates or any time when there are increasing expenses.

Speaker Change: CFO CIO chief product officers two pivotal options are all asking the question, how can I get more or less and I think we're offering a great solution to do that so our sales team is getting better and better at selling the platform the platform itself shows great.

Andrew Casey: And I think we're offering a great solution to do that. So our sales team is getting better and better at selling the platform. The platform itself shows great ability to drive efficiencies within companies. And so that's where that comment comes from is that we just never take our eye off the fact that driving customer value is the most important thing.

Speaker Change: Our ability to drive efficiencies within within companies and so that's where that comment come from is that we just never take our eye off the fact that driving customer value is the most important thing and I expect that it is going to continue to challenge us.

Andrew Casey: And I expect that it's going to continue to challenge us. The reality is that some of these smaller point product solutions, they start gaining speed and losing altitude, and they're going to get desperate. So we have to be on our game showing customer value.

Speaker Change: The reality is that some of these smaller point product solutions, they start gaining speed and losing altitude and theyre going to get desperate. So we have to be on our game showing customer value.

Unknown Executive: I appreciate that clarity.

Speaker Change: I appreciate that clarity and then in terms of <unk> during the Investor Day, you guys mentioned that some of the expansion of recent quarters really hasn't been driven by higher data volumes was that the case in this quarter and are you assuming no uplift than from from data volumes and what that could mean, an IRR going forward through year end.

Andrew Casey: And then in terms of NRR, during the investor day, you guys mentioned that some of the expansion in recent quarters really has been driven by higher data volumes. Was that the case in this quarter? And are you assuming no uplift then from data volumes and what that could mean on NRR going forward through year end? One of the most important things that we've alluded to both in investor day and as we've introduced new products is the importance of us trying to create a framework under which the marginal incremental cost of data goes down. And that comes from customers increasingly using a broader set of the platform.

Speaker Change: One of the most important things that we've alluded to both in the Investor day, and as we've introduced new products as the importance of us trying to create a framework under which the marginal incremental cost of data goes down and that comes from customers increasingly using a broader set of the platform. So youre going to increasingly see us focus more on.

Andrew Casey: So you're going to increasingly see us focus more on selling additional capabilities within the platform and really going after new enterprise customers. In Q1, I would tell you it was really balanced. We had a great new logo quarter, and we had a good expansion quarter as well, but you didn't see the big multimillion dollar expansions. And the progression that you'll see in both our ARs, the percentage of enterprise customers, as well as that NRR percentage comes when you see those big expansions. And so we certainly think that we can go drive those. We certainly believe that churn, it's down to the lowest level in two years.

Speaker Change: On selling additional capabilities within the platform and really going after new enterprise customers in Q1, I would tell you. It was really balanced we haven't had a great new logo quarter, and we had a good expansion quarter as well, but you didn't see the big multimillion dollar expansions and the.

Speaker Change: Russia and that you'll see in both our <unk> as a percentage of of enterprise customers as well as that enter our percentage comes when you see those big expansions and so we certainly think that we can go drive those we certainly believe that our churn.

Speaker Change: It's down to the lowest level in two years and we think that we can continue to drive the strategic changes.

Andrew Casey: We think that we can continue to drive the strategic changes and that will result in a progressive improvement in NRR.

Speaker Change: And that will result in a progressive improvement in an R. R.

Unknown Executive: Awesome. Thank you. Thank you, Clark.

Speaker Change: Awesome. Thank you.

Clark: Thank you Clark.

Elizabeth Porter: Our next question comes from the line of Elizabeth Porter from Morgan Stanley, followed by Nick Altman from Scotiabank. Go ahead, Elizabeth. Great, thank you very much. I think in the past we've talked about MarTech stacks kind of coming up to replacement faster and kind of what that opportunity means for Amplitude. And just given some of the macro uncertainty, sometimes we think that businesses are less likely to do big moves, just give it the trepidation. But on the other hand, there's a big opportunity to save costs. So, just curious how you think that this current cycle kind of may play out and what that means for kind of a faster replacement and opportunity to look at Amplitude.

Speaker Change: Our next question comes from the line of Elizabeth Porter from Morgan Stanley followed by Nick Altman from Scotiabank go ahead Elizabeth Great. Thank you very much I think in the past you've talked about an Mar tech stacks kind of coming up to replacement faster than kind of what that opportunity means for ampligen and just given some of the macro uncertainty sometimes do you think.

Speaker Change: Businesses are less likely to do big move just given the trepidation, but on the other hand, there is a big opportunity to say Paul.

Speaker Change: Just curious how you think that this part of the cycle kind of May play out.

Speaker Change: That means that when I put it a faster replacement and an opportunity to look at it again.

Spenser Skates: I think what I'm seeing just candidly, at least in the accounts I'm in, is they're actually more willing to do big moves in order to do spend replacement. So, you know, great example, I was talking with the head of data at Atlassian last quarter, and they were very, very interested in, one, how do we make our costs on the data side scale way better than they have been? And then, two, is there an opportunity to consolidate down a whole bunch of the other vendors and get that within, you know, the single platform because it's cheaper and it's more effective on a whole bunch of fronts.

Speaker Change: I think what I am seeing just candidly at least in the account Simon is they are actually more willing to do big moves in order to do spend replacement. So Great example, I was talking with the head of data at Atlassian last quarter Ed.

Speaker Change: And they.

Speaker Change: They were very very interested in one how do we make.

Our costs on the data side scale way better than they have been and then two is there an opportunity to consolidate down a whole bunch of the other vendors and get that within the.

Speaker Change: A single platform, because it's cheaper and more effective on a whole bunch of fronts and so when we had that conversation that changed that that changed their mentality from one of like Okay. Let me just reduce spend overall to hey, I'm willing to make a move and consolidated a bunch of other items onto amplitude.

Spenser Skates: And so, when we had that conversation, that changed their mentality from one of like, okay, let me just reduce spend overall to, hey, I'm willing to make a move and consolidate a bunch of other items onto Amplitude.

Andrew Casey: Great.

Speaker Change: Great and then as a follow up on the <unk> side, great to see that additional improvement sounds like gross retention has been improving for awhile, just given kind of the optical Trinity with cross sell upsell with consolidation.

Andrew Casey: And then as a follow up on the NRR side, great to see that additional improvement sounds like growth retention has been improving for a while. Just given kind of the opportunity with cross sell upsell consolidation. When can we when do you expect to see some of that layer into the NRR and maybe some of the puts and takes that keep that balance? I think we're going to see a progressive improvement quarter to quarter. I think that's what our plan was. And as you may recall, we talked about that the first quarter of our fiscal 25 is one that would reflect the lowest from a linearity perspective in NRR.

Speaker Change: When can we when do you expect to see some of that layer on to the NR and maybe some of the puts and takes that keep that balanced.

Speaker Change: I think there was going to see progressive improvement quarter to quarter I think that's what our plan was and and as you may recall, we talked about the first quarter of our fiscal 'twenty. Five is one that would reflect the lowest from a linearity perspective in and in our Orange. So you continue to see that as our sales team ramps, you'll see more and more.

Andrew Casey: And so you continue to see that as our sales team ramps, you'll see more and more new NRR. We're doing a better and better job of reducing both contraction and logo churn. In fact, I would tell you that the big improvement year over year was in contraction. Recall that churn, we had a lot of churn that was related to overcapacity buying or customers contracting for more than they could use. Well, as we right-size those contracts, the base becomes smaller and smaller, and thus contraction becomes smaller and smaller. So all those factors are working towards driving, improving NRR and GRR.

Speaker Change: New IRR, we're doing a better and better job of reducing both contraction and logo churn in fact, I would tell you that the big improvement year over year was in contraction recall that turn and we had a lot of trends related to overcapacity buying or our customers.

Speaker Change: Contracting for more than they could use well as we rightsize those contracts the base becomes smaller and smaller and thus contraction becomes smaller and smaller so.

Speaker Change: So all those factors are working towards driving improving MLR, and Gerard and but I think the big movements as I mentioned earlier will be it will come when you see those big multimillion expansions in the enterprise space, that's when you'll see the interim more dramatically.

Andrew Casey: But I think the big movements, as I mentioned earlier, will come when you see those big multimillion expansions in the enterprise space. That's when you see the NRR move more dramatically.

Unknown Executive: Great, thank you.

Speaker Change: Great. Thank you.

Unknown Executive: Thank you, Elizabeth.

Elizabeth Porter: Thank you Elizabeth.

Nick Altman: Our next question will come from Nick Altman at Scotiabank, followed by the from the line of Tyler Radke at Citi. Go ahead, Nick. Awesome. Thank you so much.

Speaker Change: Our next question will come from Nick Altmann at Scotiabank.

Speaker Change: Led by the from the line of Tyler Radke Citi Go ahead Nick.

Speaker Change: Awesome.

Speaker Change: So much Andrew.

Andrew Casey: Andrew, can you just comment on the contribution from Command AI to both ARR and revenue? And then historically, you guys have kind of talked about aspirations to reaccelerate that business. And and now that you're, you know, two quarters, I guess, removed from from doing that acquisition, can you kind of give some updated thoughts there on on the path to, you know, kind of organically reaccelerating Command AI? I think that we're very, very pleased with how well customers have adopted our product. I think it's, as Spencer mentioned earlier, there's a testimony to the product itself and how well the team's integrated so rapidly.

Speaker Change: Andrew can you just comment on the contribution from command AI to both <unk> and revenue and then historically you guys have kind of talked about aspirations to reaccelerate that business in and now that you're.

Speaker Change: Two quarters, I guess removed from from doing that acquisition can you can kind of give some updated thoughts there on on the path to.

Speaker Change: Kind of organically, we're accelerating our Q&A I I.

Speaker Change: I think that we're very very pleased with how well customers have adopted our product I think it's sentiments or at least a testimony to the product itself and how well the teams integrated to rapidly.

Andrew Casey: Our our sales team picking up the value proposition very quickly in an integrated environment. And so you should you should think that the amount of ARR we're generating now from the guidance service well eclipsed what the company had done on its own. And we're certainly expecting that we have a lot of opportunity going forward for that product. And then it's great to see these longer term commitments from your customers that's showing up nicely in RPO.

Speaker Change: Our sales team picking up the value proposition very quickly in an integrated environment and so you should use and things that the the amount of ore were generating now from our guys in service well eclipsed what the company had done on its own and we're certainly expecting that we have a lot of opportunity going forward for that product.

Speaker Change: And then it it's great to see you know these longer term commitments from your customers, that's showing up nicely and in our P. O I I guess can you maybe just talk about <unk>.

Andrew Casey: I guess, can you maybe just talk about, since you guys have started leaning into these longer term commitments, longer duration contracts with your customers, how have sales cycles changed? And I guess the reason I ask is we're in a dynamic macro. It seems like it could maybe add some variability in the mix is maybe there's a little bit more hesitancy on doing multi-year commitments. So first question, maybe just comment on how the sales cycles have trended as you guys have leaned into that strategy. And then on the flip side of the equation, if we do get into a choppier macro, do you guys revert to more annual deals?

Speaker Change: You guys had started leaning into these longer term commitments longer duration contracts with your customers. How are sales cycles change and I guess the reason I ask is we're in a dynamic macro it seems like it could maybe add some variability in the mix as you know maybe theres a little bit more hesitancy on I'm doing multi year.

Speaker Change: Commitments. So first question, maybe just kind of comment on how the sales cycles have trended as you guys have leaned into that strategy and then on the flip side of the equation. If we kind of do you get into a chop. Your macro do you guys sort of revert to kind of more annual deals just just maybe kind of touch on the longer duration focus here.

Andrew Casey: Just maybe touch on the longer duration focus here. I think the first thing was it's somewhat grounded in selling to the enterprise and what the enterprise really values. And they've got enterprise values, cost predictability more than trying to stack up their unit economics that you might find in S&B, mid-market or digital native. The other thing that happens is it kind of depends on the type of customer engagement you have, whether it's a new logo or that's an expansion. And in logos, what is usually you're finding is trepidation associated with really getting in to understand and get value from the full extent of the platform.

Speaker Change: I think the first thing is it's somewhat grounded in selling to the enterprise and with the enterprise really values in the enterprise values cost predictability more than trying to stack up their unit economics that you might find in SMB Midmarket are digital native the other thing that happens is where it kind of depends on the type of customer engagement, how whether it's a new logo.

Speaker Change: Or that's an expansion and new logos is usually you're finding as trepidation associated with really getting into understand and get value from the full extent of the platform. There's not that clear understanding. So we've been able to work with the sales team not only educate them about how best to run construct with multiyear in mind, but also to really drive almost a mile.

Andrew Casey: There's not that clear understanding. So we've been able to work with the sales team, not only educating them about how best to run constructs with multi-year in mind, but also to really drive almost a milestone understanding of how the customer is going to get value and has the perception that they're getting that value in advance of what they're paying for. And so deal constructs really matter. And that was an area where sales is increasingly adopting some of the core frameworks that most of us who've worked in enterprise selling have adopted and used over many, many years.

Speaker Change: Stone understanding of how the customer is going to get value and has the perception that they are getting that value and in advance of what they are paying for and so deal cost structure really matter and that was an area where sales is increasingly adopting some of the core frameworks that most of US who've worked in an enterprise selling have adopted and used over many many years with existing customers and an.

Unknown Executive: With existing customers and an expansion, that's another option that the customer often views as an ability to execute on a long-term roadmap as they're implementing multiple aspects of your platform. And so that cost predictability really matters to them, and they have the perception they're going to be able to excise extreme value over what they're paying for. So it kind of depends on the situation, but it doesn't work unless your sales team understands and grounds on customer value and your customer has the perception. That they're getting that value in advance of what. Great. Thanks, guys. Thanks, Nick.

Speaker Change: <unk>, that's another option that the customer often views as as an ability to execute on our long term roadmap as they're implementing multiple aspects of your platform and so that cost predictability really matters to them and they have the perception and they're gonna be able to exercise extreme value over what they're paying for it so it kind of depends on the situation but.

Speaker Change: It doesn't work unless your sales team understands and grounds on customer value and your customer has the perception that they are getting that value in advance of what they are paying.

Speaker Change: Great. Thanks, guys.

Speaker Change: Thanks, Nick and our last question for the call will come from the line of Tyler Radke from Citi I believe Ashley Kim is an Ashley. Please go ahead.

Unknown Executive: And our last question for the call will come from the line of Tyler Radke from Citi.

Ashley Kim: I believe Ashley Kim is on. Ashley, please go ahead. Hey Spencer and Andrew, thank you for the time. I just want to say that it was like a very strong quarter for the 100K AR customer ads, but in terms of the total customer ads, it looked a little bit softer. So just wanted to ask if you're seeing any changes in the top of the funnel or trends among different customer segments you'd call out, just given the more uncertain macro environment. Part of the reason we highlight the 100K customer ads is because the total customer ads is a little deceptive.

Speaker Change: Spencer and under thank you for the time I just want to say that it was like a very strong quarter for the hundred K a customer ads, but in terms of the total customer adds it looked a little bit soft there. So just wanted to ask if you're seeing any changes in the top of funnel or trends among different customer segments.

Speaker Change: Called out just given the more uncertain macro environment right.

Speaker Change: Part of the reason, we highlight the 100 K customer ads is because the total customer adds little deceptive. It includes plus customers and so it's not really that great of a representation.

Spenser Skates: It includes plus customers. And so it's not really that great of a representation. And so we're obviously building this business around our enterprise segment. And that's what we expect to grow to, you know, a billion plus over time. And so we're not, you know, yeah, we're just we still report it because we have in the past, but we're not we're not particularly focused on it.

Speaker Change: And so we're obviously building this business around our enterprise segment.

Speaker Change: And that's what we expect to grow to 1 billion plus over time.

Speaker Change: And so we're not you know yeah. We're just we still report it because we have in the past, but we're not we're not particularly focused on it.

Spenser Skates: Got it. Thank you. Thank you, Ashley.

Speaker Change: Got it thank you.

Speaker Change: Thank you Ashley that will conclude our first quarter earnings call. Thank you for your time and interest we are looking forward to connecting with you live over the next couple of weeks at conferences hosted by Needham Bank of America, Baird and D. A Davidson.

Unknown Executive: That will conclude our first quarter earnings call. Thank you for your time and interest. We are looking forward to connecting with you live over the next couple of weeks at conferences hosted by Needham, Bank of America, Baird, and D.A. Davidson. Thank you for your interest and take care.

Speaker Change: Thank you for your interest and take care.

Unknown Executive: Goodbye.

Speaker Change: Goodbye.