On November 7, 2024, Amplitude Inc (AMPL, Financial) released its 8-K filing detailing its financial performance for the third quarter of 2024. Amplitude Inc, a leading software company specializing in digital analytics platforms, reported a revenue of $75.2 million, exceeding analyst estimates of $74.12 million. The company, which primarily generates revenue through subscriptions to its SaaS platform, continues to expand its customer base and enhance its product offerings.
Performance and Challenges
Amplitude Inc reported a 6% year-over-year increase in revenue, reaching $75.2 million for the third quarter of 2024. This growth is significant as it demonstrates the company's ability to expand its market presence and attract more customers. However, the company faces challenges, including a decrease in free cash flow margin by 5 percentage points year-over-year, which could impact its liquidity and investment capabilities.
Financial Achievements
The company achieved an annual recurring revenue (ARR) of $298 million, marking a 9% increase from the previous year. This metric is crucial for software companies like Amplitude Inc, as it indicates the stability and predictability of future revenue streams. The growth in ARR reflects the company's success in retaining and expanding its customer base.
Key Financial Metrics
Amplitude Inc's GAAP net loss per share improved slightly to $0.14 from $0.15 in the same quarter last year. Non-GAAP net income per share was reported at $0.03, down from $0.05 in the previous year. The company also reported a cash flow from operations of $6.2 million, a decrease of $1.8 million year-over-year, and a free cash flow of $4.5 million, down by $3.0 million from the previous year.
We are on the path to reaccelerating growth," said Spenser Skates, CEO and co-founder of Amplitude. "Product innovation is the biggest driver of long-term value for Amplitude. Our platform continues to evolve to serve more users, more workflows, and more outcomes."
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Annual Recurring Revenue | $298 million | $273 million | 9% |
| Revenue | $75.2 million | $70.6 million | 6% |
| GAAP Loss from Operations | $(20.0) million | $(20.9) million | $0.9 million |
| Non-GAAP Income from Operations | $1.6 million | $2.8 million | $(1.2) million |
| Free Cash Flow | $4.5 million | $7.5 million | $(3.0) million |
Analysis and Outlook
Amplitude Inc's performance in the third quarter of 2024 highlights its ability to grow revenue and ARR despite challenges in cash flow. The company's strategic initiatives, such as the launch of "Amplitude Made Easy" and its partnership with HubSpot, are expected to drive future growth. However, the decrease in free cash flow margin and ongoing GAAP losses indicate areas where the company needs to focus on improving operational efficiency and cost management.
Overall, Amplitude Inc's financial results demonstrate resilience and potential for growth in the competitive software industry. Investors will be keen to see how the company leverages its recent product innovations and strategic partnerships to enhance its market position and financial performance in the coming quarters.
Explore the complete 8-K earnings release (here) from Amplitude Inc for further details.
