A hit and a miss: Amplitude delivers earnings beat but misses on outlook

BIG DATA

Shares in behavior-tracking firm Amplitude Inc. were flat in after-hours trading today after the company delivered a quarterly earnings beat but predicted lower-than-expected revenue in the quarter and year ahead.

For the fourth quarter that ended Dec. 31, Amplitude reported a loss before costs such as stock compensation of three cents, a two-cent improvement over the same quarter of 2021. Revenue rose 32%, to $65.3 million. Analysts had expected an adjusted loss of four cents per share and revenue of $63.55 million.

As of the end of the quarter, Amplitude’s remaining performance obligations, an indicator of future revenue growth, rose 46%, to $248.2 million. Net cash used in operating activities in the quarter was $4.6 million and free cash flow was negative $5.9 million.

Highlights included the number of paying customers increasing 25%, to 1,994, including a 25% increase in customers paying more than $100,000 in annual recurring revenue, to 480. Amplitude’s dollar-based net retention rate was 119% as of the end of December, a sign that existing customers are buying more over time.

For its full fiscal year 2022, Amplitude reported an adjusted loss of 21 cents per share on revenue of $238.1 million, up 42% year-over-year.

“We had a strong finish to the year,” Spenser Skates, co-founder and chief executive officer of Amplitude, said in a statement. “By raising the bar for execution and investing in our product for the long term, we’ll be well-positioned to drive durable growth in a category where the opportunity is just beginning to unfold.”

For the quarter ahead, Amplitude expects an adjusted loss of six to eight cents a share on revenue of $64 million to $66 million. Analysts were expecting six cents and $66.46 million.

For the fiscal year 2023, the company expects an adjusted loss of 11 to 16 cents a share on revenue of $283 million to $291 million. Analysts had been predicting 20 cents and $292.9 million.

The revenue misses in outlook were not large and, balanced with Amplitude’s beat in the quarter, investors didn’t seem to mind either way. Amplitude shares didn’t move in late trading.

Along with the earnings report, Amplitude also announced that it had appointed former Forescout Technologies Inc. executive Christopher Harms as the company’s next chief financial officer. Harms will oversee Amplitude’s global Business Partners organization, which includes finance, accounting, operations, legal and information technology.

Photo: Amplitude