Yahoo Finance Amplitude Inc (AMPL) Q1 2024 Earnings: Aligns with Revenue Projections, Narrows Losses
Annual Recurring Revenue (ARR): Reached $285 million, marking a 9% increase year-over-year.
Quarterly Revenue: Reported at $72.6 million, up 9% from the previous year, slightly surpassing the estimate of $72.28 million.
Net Loss Per Share: GAAP net loss per share improved to $(0.18) from $(0.23) year-over-year; Non-GAAP net income per share was $0.01, exceeding estimates of $0.00.
Free Cash Flow: Improved by $4.7 million year-over-year, though still negative at $(1.1) million.
Customer Growth: Number of paying customers increased by 37% year-over-year to 2,970.
Major Customer Accounts: Customers contributing over $100,000 in ARR grew by 6% year-over-year to 521.
Operational Cash Flow: Cash Flow from Operations improved significantly, though still negative at $(0.05) million, up from $(5.1) million the previous year.
On May 9, 2024, Amplitude Inc (NASDAQ:AMPL) disclosed its first-quarter financial results for the year, indicating a steady performance with revenue and earnings aligning closely with analyst expectations. The company's detailed financial outcomes were released in its 8-K filing.
Company Overview
Amplitude Inc is a prominent software company specializing in digital analytics platforms. It provides a subscription-based service that helps businesses analyze customer behavior within digital products. The company primarily generates revenue through subscription sales and is heavily reliant on the U.S. market.
First Quarter Financial Performance
Amplitude reported a first-quarter revenue of $72.6 million, marking a 9% increase year-over-year and slightly above the estimated $72.28 million. This growth is attributed to an increase in annual recurring revenue (ARR), which reached $285 million, up by 9% from the previous year. The company's GAAP loss from operations improved, decreasing to $24.7 million from $29.2 million in the same quarter last year. Notably, the non-GAAP income from operations also saw significant improvement, coming in at a loss of $2.1 million compared to a loss of $7.9 million in Q1 2023.
Despite these positives, Amplitude experienced a GAAP net loss per share of $0.18, which, while an improvement from the previous year's $0.23 loss per share, indicates ongoing challenges in achieving profitability. The non-GAAP net income per share was $0.01, reflecting a modest recovery from a loss of $0.04 per share year-over-year.
Operational and Cash Flow Highlights
The company's operational efficiency showed signs of improvement with a significant reduction in cash used in operations, which was just $(0.05) million compared to $(5.1) million in the prior year. Free cash flow was also less negative at $(1.1) million compared to $(5.8) million, signaling better cash management.
Customer Growth and Market Expansion
Amplitude's customer base grew by 37% year-over-year, totaling 2,970 paying customers. The number of significant customers, contributing over $100,000 in ARR, increased by 6% to 521. This growth underscores Amplitude's strengthening position in the digital analytics market.
Financial Outlook
Looking ahead, Amplitude provided guidance for Q2 and the full year of 2024. The company expects Q2 revenue to be between $71.7 million and $72.3 million and forecasts full-year revenue to range from $292.5 million to $295.5 million. Non-GAAP operating income is anticipated to be between a loss of $4.4 million and $3.8 million for Q2, with a full-year projection ranging from a loss of $1.0 million to a gain of $2.0 million.
In conclusion, Amplitude Inc's Q1 2024 performance demonstrates a company in transition, making significant strides in revenue growth and operational efficiency but still facing challenges in achieving consistent profitability. The company's focus on expanding its customer base and improving its service offerings is likely to support its growth trajectory in the competitive digital analytics sector.
For further details, please refer to the full earnings report and financial statements available on Amplitude's investor relations website.
Explore the complete 8-K earnings release (here) from Amplitude Inc for further details.
This article first appeared on GuruFocus.
