Amplitude (NASDAQ:AMPL) Reports Q1 In Line With Expectations, Next Quarter's Growth Looks Optimistic

Radek Strnad /
2024/05/09 4:33 pm EDT

Data analytics software provider Amplitude (NASDAQ:AMPL) reported results in line with analysts' expectations in Q1 CY2024, with revenue up 9.2% year on year to $72.62 million. The company expects next quarter's revenue to be around $72 million, in line with analysts' estimates. It made a non-GAAP profit of $0.01 per share, improving from its loss of $0.04 per share in the same quarter last year.

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Amplitude (AMPL) Q1 CY2024 Highlights:

  • Revenue: $72.62 million vs analyst estimates of $72.25 million (small beat)
  • EPS (non-GAAP): $0.01 vs analyst estimates of $0 ($0.01 beat)
  • Revenue Guidance for Q2 CY2024 is $72 million at the midpoint, roughly in line with what analysts were expecting
  • The company reconfirmed its revenue guidance for the full year of $294 million at the midpoint
  • Gross Margin (GAAP): 74%, up from 71.1% in the same quarter last year
  • Free Cash Flow was -$1.14 million, down from $1.48 million in the previous quarter
  • Net Revenue Retention Rate: 99%, in line with the previous quarter
  • Customers: 2,970, up from 2,723 in the previous quarter
  • Market Capitalization: $1.15 billion

"We’re still at the beginning of a generational shift in how businesses use customer and product data," 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.

Data Analytics

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 siloed data.

Sales Growth

As you can see below, Amplitude's revenue growth has been very strong over the last three years, growing from $33.11 million in Q1 2021 to $72.62 million this quarter.

Amplitude Total Revenue

Amplitude's quarterly revenue was only up 9.2% year on year, which might disappoint some shareholders. However, we can see that the company's revenue grew by $1.22 million quarter on quarter, accelerating from $766,000 in Q4 CY2023.

Next quarter's guidance suggests that Amplitude is expecting revenue to grow 6.2% year on year to $72 million, slowing down from the 16.6% year-on-year increase it recorded in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 5.7% over the next 12 months before the earnings results announcement.

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Customer Growth

Amplitude reported 2,970 customers at the end of the quarter, an increase of 247 from the previous quarter. That's roughly the same customer growth as we observed last quarter and quite a bit above what we've typically seen over the last year, confirming that the company is sustaining a good sales pace.

Amplitude Customers

Key Takeaways from Amplitude's Q1 Results

It was encouraging to see Amplitude slightly beat analysts' revenue guidance expectations. Next quarter's revenue guidance was in line and full year revenue guidance was maintained, meaning there are no major surprises with regards to demand trends. A minor negative was that its net revenue retention declined. Zooming out, we think this was still a decent, albeit mixed, quarter, showing that the company is staying on track. The stock is up 1.8% after reporting and currently trades at $9.45 per share.

So should you invest in Amplitude right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.