SEC Filing | Amplitude

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

View:

Download DOC

Download PDF

Download XLS

Download XBRL

10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40817

AMPLITUDE, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware	45-3937349
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
201 Third Street, Suite 200 San Francisco, California	94103
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (415) 231-2353

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.00001 par value per share

AMPL

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 4, 2023, there were 82,408,327 shares of the registrant's Class A common stock and 35,557,976 shares of the registrant's Class B common stock, each with a $0.00001 par value per share, outstanding.

Table of Contents


		Page
PART I.	FINANCIAL INFORMATION	6
Item 1.	Financial Statements (Unaudited)	6
	Condensed Consolidated Balance Sheets	6
	Condensed Consolidated Statements of Operations and Comprehensive Loss	7
	Condensed Consolidated Statements of Stockholders’ Equity	8
	Condensed Consolidated Statements of Cash Flows	10
	Notes to Condensed Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	40
PART II.	OTHER INFORMATION	42
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71
Item 3.	Defaults Upon Senior Securities	71
Item 4.	Mine Safety Disclosures	71
Item 5.	Other Information	71
Item 6.	Exhibits	72
Signatures		73

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential,” or “continue,” or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to statements about:

•

our expectations regarding our revenue, expenses, and other operating results;

•

our ability to acquire new customers;

•

our ability to increase usage of our Digital Analytics Platform and upsell and cross-sell additional products;

•

our ability to achieve or sustain profitability;

•

future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements;

•

the costs and success of our sales and marketing efforts, including our ability to grow and maintain our channel partners, and our ability to promote our brand;

•

the effects of public health crises and other global events, such as the ongoing war in Ukraine, on our business and the global economy generally;

•

our reliance on key personnel and our ability to identify, recruit, and retain skilled personnel;

•

anticipated savings or operational efficiencies and charges in connection with our recently announced restructuring plan;

•

our ability to effectively manage our growth, including any international expansion;

•

our ability to protect our intellectual property rights and any costs associated therewith;

•

our ability to compete effectively with existing competitors and new market entrants; and

•

the expenses associated with being a public company.

We caution you that the foregoing list does not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations, estimates, forecasts, and projections about future events and trends that we believe may affect our business, results of operations, financial condition, and prospects. Although we believe that we have a reasonable basis for each forward-looking statement contained in this Quarterly Report on Form 10-Q, we cannot guarantee that the future results, levels of activity, performance, events, and circumstances reflected in the forward-looking statements will be achieved or occur at all. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors discussed in Part I, Item 2, “Management's Discussion and Analysis of Financial Condition and Results of Operations” and Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q as well as other documents that may be filed by us from time to time with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made available. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and you are cautioned not to unduly rely upon these statements.

You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed as exhibits to our most recent Annual Report on Form 10-K and this Quarterly Report on Form 10-Q, completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of the forward-looking statements in this Quarterly Report on Form 10-Q by these cautionary statements.

SUMMARY OF RISK FACTORS

Our business is subject to numerous risks and uncertainties, including those described in Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q. The following is a summary of principal risks and uncertainties that could materially adversely affect our business, financial condition, and results of operations. This summary should be read in conjunction with the “Risk Factors” section and should not be relied upon as an exhaustive summary of the material risks and uncertainties facing our business.

•

We have a limited operating history and have been growing rapidly over the last several years, which makes it difficult to forecast our future results of operations and increases the risk of your investment.

•

We have a history of losses. As our costs increase, we may not be able to generate sufficient revenue to achieve and sustain profitability.

•

Our business depends on our existing customers renewing their subscriptions and purchasing additional subscriptions from us as well as attracting new customers. Any decline in our customer retention or expansion of our commercial relationships with existing customers or an inability to attract new customers would materially adversely affect our business, financial condition, and results of operations.

•

We expect fluctuations in our financial results and key metrics, making it difficult to project future results. If we fail to meet the expectations of securities analysts or investors with respect to our results of operations, the trading price of our Class A common stock could decline.

•

We expect to continue to focus on sales to larger organizations and may become more dependent on those relationships, which may increase the variability of our sales cycle and our results of operations.

•

We recognize revenue over the term of our customer contracts. Consequently, downturns or upturns in new sales may not be immediately reflected in our results of operations and may be difficult to discern.

•

Unfavorable conditions in our industry or the global economy, or reductions in software spending, could limit our ability to grow our business and materially adversely affect our business, financial condition, and results of operations.

•

Our recent restructuring plan may not result in anticipated savings or operational efficiencies and could result in total costs and expenses that are greater than expected, which could materially adversely affect our business, financial condition and results of operations.

•

If the market for SaaS applications develops more slowly than we expect or declines, our business would be adversely affected.

•

Our intellectual property rights may not protect our business or provide us with a competitive advantage, which could have a material adverse effect on our business, financial condition, and results of operations.

•

We are subject to government regulation, including import, export control, economic sanctions, trade sanctions, and anti-corruption laws and regulations, which may expose us to liability and increase our costs.

•

Complying with evolving privacy and other data-related laws as well as contractual and other requirements, may be expensive and force us to make adverse changes to our business, and the failure or perceived failure to comply with such laws, contracts, and other requirements could result in adverse reputational and brand damage and significant fines and liability or otherwise materially adversely affect our business and growth prospects.

•

The trading price of our Class A common stock has been, and in the future, may be, volatile, and could decline significantly and rapidly.

•

Our principal stockholders have the ability to influence the outcome of director elections and other matters requiring stockholder approval.

•

The dual class structure of our common stock has the effect of concentrating voting control with our existing stockholders, executive officers, and directors and their affiliates, which limits your ability to influence the outcome of important transactions and to influence corporate governance matters, such as electing directors, and to approve material mergers, acquisitions, or other business combination transactions that may not be aligned with your interests.

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

AMPLITUDE, INC.

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

(unaudited)


	As of June 30, 2023			As of December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	234,363		$	218,494
Marketable securities, current		56,001			11,971
Accounts receivable, net of allowance for doubtful accounts of $705 and $690 as of June 30, 2023 and December 31, 2022, respectively		34,148			22,716
Prepaid expenses and other current assets		16,260			20,335
Deferred commissions, current		11,917			10,918
Total current assets		352,689			284,434
Marketable securities, noncurrent		28,391			71,217
Property and equipment, net		9,965			9,408
Intangible assets, net		1,243			2,022
Goodwill		4,073			4,073
Restricted cash, noncurrent		862			855
Deferred commissions, noncurrent		25,614			25,799
Operating lease right-of-use assets		7,791			9,593
Other noncurrent assets		3,989			6,354
Total assets	$	434,617		$	413,755
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	809		$	490
Accrued expenses		23,687			18,699
Deferred revenue		113,491			89,993
Total current liabilities		137,987			109,182
Operating lease liabilities, noncurrent		5,205			7,093
Noncurrent liabilities		2,575			2,511
Total liabilities		145,767			118,786
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.00001 par value per share; 20,000 shares authorized as of June 30, 2023 and December 31, 2022; zero shares issued and outstanding as of June 30, 2023 and December 31, 2022		—			—
Class A common stock, $0.00001 par value per share; 600,000 shares authorized as of June 30, 2023 and December 31, 2022, 81,932 and 76,351 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		1			1
Class B common stock, $0.00001 par value per share; 600,000 shares authorized as of June 30, 2023 and December 31, 2022; 35,558 and 37,848 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		—			—
Additional paid-in capital		616,953			568,889
Accumulated other comprehensive loss		(864	)		(754	)
Accumulated deficit		(327,240	)		(273,167	)
Total stockholders’ equity		288,850			294,969
Total liabilities and stockholders’ equity	$	434,617		$	413,755

See accompanying notes to condensed consolidated financial statements.

AMPLITUDE, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share amounts)

(unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022

Revenue	$	67,767		$	58,130		$	134,244		$	111,195
Cost of revenue		17,180			17,060			36,367			33,123
Gross profit		50,587			41,070			97,877			78,072
Operating expenses:
Research and development		22,435			20,306			46,143			36,807
Sales and marketing		38,326			34,135			77,459			62,265
General and administrative		12,519			11,212			26,141			25,574
Restructuring and other related charges		8,194			—			8,194			—
Total operating expenses		81,474			65,653			157,937			124,646
Other income (expense), net		3,307			293			6,445			379
Loss before provision for (benefit from) income taxes		(27,580	)		(24,290	)		(53,615	)		(46,195	)
Provision for (benefit from) income taxes		178			278			458			593
Net loss	$	(27,758	)	$	(24,568	)	$	(54,073	)	$	(46,788	)
Net loss per share attributable to Class A and Class B common stockholders:
Basic and diluted	$	(0.24	)	$	(0.22	)	$	(0.47	)	$	(0.42	)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders:
Basic and diluted		116,174			111,036			115,277			110,297

Other comprehensive loss
Net unrealized gains (losses) on marketable securities	$	(382	)	$	—		$	(110	)	$	—
Comprehensive loss	$	(28,140	)	$	(24,568	)	$	(54,183	)	$	(46,788	)

See accompanying notes to condensed consolidated financial statements.

AMPLITUDE, INC.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)

(unaudited)


	Class A and Class B common stock							Additional paid-in			Accumulated other comprehensive				Accumulated				Total stockholders’
	Shares				Amount			capital			loss				deficit				equity
Balance at December 31, 2022		114,199		$		1	$		568,889	$		(754	)	$		(273,167	)	$		294,969
Stock-based compensation expense		—				—			20,409			—				—				20,409
Exercise of stock options		554				—			1,687			—				—				1,687
Vesting of early exercised stock options		—				—			198			—				—				198
Vesting of restricted stock units		875				—			—			—				—				—
Repurchase of unvested stock options		(46	)			—			—			—				—				—
Net loss		—				—			—			—				(26,315	)			(26,315	)
Other comprehensive income (loss), net		—				—			—			272				—				272
Balance at March 31, 2023		115,582		$		1	$		591,183	$		(482	)	$		(299,482	)	$		291,220
Stock-based compensation expense		—				—			22,300			—				—				22,300
Exercise of stock options		228				—			699			—				—				699
Issuance of common stock under employee stock purchase plan		302				—			2,564			—				—				2,564
Vesting of early exercised stock options		—				—			207			—				—				207
Vesting of restricted stock units		1,378				—			—			—				—				—
Net loss		—				—			—			—				(27,758	)			(27,758	)
Other comprehensive income (loss), net		—				—			—			(382	)			—				(382	)
Balance at June 30, 2023		117,490		$		1	$		616,953	$		(864	)	$		(327,240	)	$		288,850

AMPLITUDE, INC.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)

(unaudited)


	Class A and Class B common stock							Additional paid-in			Accumulated other comprehensive			Accumulated				Total stockholders’
	Shares				Amount			capital			loss			deficit				equity
Balance at December 31, 2021		109,876		$		1	$		486,354	$		—	$		(179,807	)	$		306,548
Stock-based compensation expense		—				—			13,785			—			—				13,785
Exercise of stock options		1,603				—			3,977			—			—				3,977
Vesting of early exercised stock options		—				—			743			—			—				743
Vesting of restricted stock units		31				—			—			—			—				—
Repurchase of unvested stock options		(3	)			—			—			—			—				—
Cumulative impact of Topic 842 adoption		—				—			—			—			17				17
Net loss		—				—			—			—			(22,220	)			(22,220	)
Balance at March 31, 2022		111,507		$		1	$		504,859	$		—	$		(202,011	)	$		302,849
Stock-based compensation expense		—				—			15,155			—			—				15,155
Exercise of stock options		329				—			1,176			—			—				1,176
Issuance of common stock under employee stock purchase plan		176				—			2,553			—			—				2,553
Vesting of early exercised stock options		—				—			889			—			—				889
Vesting of restricted stock units		286