Amplitude (NASDAQ:AMPL) Exceeds Q1 Expectations, Stock Soars

Adam Hejl /
2022/05/04 4:22 pm EDT
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Data analytics software provider Amplitude (NASDAQ:AMPL) reported Q1 FY2022 results that beat analyst expectations, with revenue up 46.6% year on year to $53 million. However, guidance for the next quarter was less impressive, coming in at $55 million at the midpoint, being slightly below analyst estimates. Amplitude made a GAAP loss of $22.2 million, down on its loss of $8.26 million, in the same quarter last year.

Is now the time to buy Amplitude? Access our full analysis of the earnings results here, it's free.

Amplitude (AMPL) Q1 FY2022 Highlights:

  • Revenue: $53 million vs analyst estimates of $50.8 million (4.36% beat)
  • EPS (non-GAAP): -$0.07 vs analyst estimates of -$0.10
  • Revenue guidance for Q2 2022 is $55 million at the midpoint, 0.24% below analyst estimates
  • The company reconfirmed revenue guidance for the full year, at $232 million at the midpoint
  • Free cash flow was negative $9.59 million, compared to negative free cash flow of $12.2 million in previous quarter
  • Net Revenue Retention Rate: 126%, up from 123% previous quarter
  • Customers: 1,701, up from 1,597 in previous quarter
  • Gross Margin (GAAP): 69.7%, in line with same quarter last year

"Digital products are becoming the central driver for how businesses operate, go to market and generate revenue,” said Spenser Skates, CEO and co-founder of Amplitude.

Born out of a failed voice recognition startup by founder Spenser Skates, Amplitude (NASDAQ:AMPL) is data analytics software helping companies improve and optimize their digital products.

Organizations generate a lot of data that is stored in silos, often in incompatible formats, making it slow and costly to extract actionable insights, which in turn drives demand for modern cloud-based data analysis platforms that can efficiently analyze the silo-ed data.

Sales Growth

As you can see below, Amplitude's revenue growth has been incredible over the last year, growing from quarterly revenue of $36.1 million, to $53 million.

Amplitude Total Revenue

And unsurprisingly, this was another great quarter for Amplitude with revenue up 46.6% year on year. Quarter on quarter the revenue increased by $3.64 million in Q1, which was in line with Q4 2021. This steady quarter-on-quarter growth shows the company is able to maintain a strong growth trajectory.

Guidance for the next quarter indicates Amplitude is expecting revenue to grow 40.1% year on year to $55 million, slowing down from the 65.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Ahead of the earnings results the analysts covering the company were estimating sales to grow 33.8% over the next twelve months.

There are others doing even better than Amplitude. Founded by ex-Google engineers, a small company making software for banks has been growing revenue 90% year on year and is already up more than 150% since the IPO last December. You can find it on our platform for free.

Customer Growth

You can see below that Amplitude reported 1,701 customers at the end of the quarter, an increase of 104 on last quarter. That is a fair bit slower customer growth than what we are used to seeing lately, suggesting that the customer acquisition momentum is slowing a little bit.

Amplitude Customers

Key Takeaways from Amplitude's Q1 Results

Since it has still been burning cash over the last twelve months it is worth keeping an eye on Amplitude’s balance sheet, but we note that with a market capitalization of $1.86 billion and more than $300.4 million in cash, the company has the capacity to continue to prioritise growth over profitability.

We were impressed by the exceptional revenue growth Amplitude delivered this quarter. And we were also excited to see that it outperformed Wall St’s revenue expectations. On the other hand, it was unfortunate to see that the revenue guidance for the next quarter missed analysts' expectations. Overall, this quarter's results seemed pretty positive and shareholders can feel optimistic. The company is up 6.2% on the results and currently trades at $17.98 per share.

Should you invest in Amplitude right now? It is important that you take into account its valuation and business qualities, as well as what happened in the latest quarter. We look at that in our actionable report which you can read here, it's free.

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The author has no position in any of the stocks mentioned.