Amplitude Announces First Quarter 2022 Financial Results
Amplitude, Inc. (Nasdaq: AMPL) reported a robust revenue of $53.1 million for Q1 2022, reflecting a 60% increase year-over-year. Remaining Performance Obligations rose 62% to $149.6 million. Despite the growth, the company reported a GAAP loss from operations of $(22.0) million. The customer base surged 49% year-over-year, reaching 1,701 paying customers. The Dollar-based net retention rate improved to 126%. Amplitude’s future outlook remains optimistic amid ongoing investment in its Digital Optimization System.
- Revenue increased by 60% year-over-year to $53.1 million.
- Remaining Performance Obligations rose by 62% to $149.6 million.
- Number of paying customers grew by 49% year-over-year.
- Dollar-based net retention rate improved to 126%.
- GAAP loss from operations increased to $(22.0) million.
- Free cash flow decreased significantly to $(9.6) million.
-
Revenue of
$53.1 million 60% year-over-year -
Current Remaining Performance Obligations of
$149.6 million 62% year over year
"Digital products are becoming the central driver for how businesses operate, go to market and generate revenue,” said
First Quarter 2022 Financial Highlights:
(in millions, except per share and percentage amounts) |
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First Quarter 2022 |
First Quarter 2021 |
Y/Y Change |
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Revenue |
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Remaining Performance Obligations |
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Current Remaining Performance Obligations |
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GAAP Loss from Operations |
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Non-GAAP Loss from Operations |
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GAAP Net Loss Per Share |
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Non-GAAP Net Loss Per Share |
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Free Cash Flow |
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Non-GAAP loss from operations and non-GAAP net loss per share exclude expenses related to stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, and non-recurring costs, such as direct listing costs. Stock-based compensation expense and employer related payroll taxes were
First Quarter and Recent Business Highlights:
-
Number of paying customers grew
49% year-over-year to 1,701. -
Dollar-based net retention rate at the end of
March 31, 2022 , was126% compared to118% at the end ofMarch 31, 2021 . -
Amplitude hired
Lambert Walsh as the company’s first Chief Customer Officer. -
Amplitude was named by
Fast Company as #3 in the top most innovative enterprise companies. -
Amplitude’s Digital Optimization System launched in
AWS Marketplace . - The G2 Spring 2022 Report ranked Amplitude as the #1 Product Analytics solution for the seventh quarter in a row and #1 in Mobile Analytics.
Financial Outlook:
The second quarter and full year 2022 outlook information provided below is based on Amplitude’s current estimates and is not a guarantee of future performance. These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause Amplitude’s actual results to differ materially from these forward-looking statements.
For the second quarter and full year 2022, the Company expects:
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Second Quarter 2022 |
Full Year 2022 |
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Revenue |
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Non-GAAP Operating Margin |
( |
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( |
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Non-GAAP Net Loss Per Share |
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Weighted Average Shares Outstanding |
111.6 million |
|
112.6 million |
An outlook for GAAP loss from operations, GAAP operating margin, and GAAP net loss per share and a reconciliation of expected non-GAAP loss from operations to GAAP loss from operations, expected non-GAAP operating margin to GAAP operating margin, and expected non-GAAP net loss per share to GAAP net loss per share have not been provided as the quantification of certain items included in the calculation of GAAP loss from operations, GAAP operating margin, and GAAP net loss per share cannot be reasonably calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as the number and value of awards granted that are not currently ascertainable, and the non-GAAP adjustment for amortization of acquired intangible assets depends on the timing and value of intangible assets acquired that cannot be accurately forecasted.
Conference Call Information:
Amplitude will host a live video webcast to discuss its financial results for the first quarter ended
Forward-Looking Statements:
This press release contains express and implied "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s financial outlook for the second quarter of 2022 and full year 2022, the Company’s growth strategy and business aspirations and its market position and market opportunity. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words or phrases or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not statements of historical fact, and are based on current expectations, estimates, and projections about the Company’s industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. These statements are subject to numerous uncertainties and risks that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including risks related to: the Company’s limited operating history and rapid growth over the last several years, which makes it difficult to forecast the Company’s future results of operations; the Company’s history of losses; any decline in the Company’s customer retention or expansion of its commercial relationships with existing customers or an inability to attract new customers; expected fluctuations in the Company’s financial results, making it difficult to project future results; the Company’s focus on sales to larger organizations and potentially increased dependency on those relationships, which may increase the variability of the Company’s sales cycles and results of operations; downturns or upturns in new sales, which may not be immediately reflected in the Company’s results of operations and may be difficult to discern; unfavorable conditions in the Company’s industry or the global economy, or reductions in information technology spending, which could limit the Company’s ability to grow its business; the market for SaaS applications, which may develop more slowly than the Company expects or decline; the Company’s intellectual property rights, which may not protect its business or provide the Company with a competitive advantage; and evolving privacy and other data-related laws. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are or will be included under the caption "Risk Factors" and elsewhere in the reports and other documents that the Company files with the
Non-GAAP Financial Measures:
This press release includes financial information that has not been prepared in accordance with GAAP. The Company uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company’s ongoing operational performance. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial results with other companies in the industry, many of which present similar non-GAAP financial measures to investors. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in the Company’s industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. In addition, free cash flow does not reflect the Company’s future contractual commitments and the total increase or decrease of its cash balance for a given period.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures below.
Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss, and Non-GAAP Net Loss per Share.
The Company defines these non-GAAP financial measures as their respective GAAP measures, excluding expenses related to stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, and non-recurring costs, such as direct listing costs. The Company excludes stock-based compensation expense and related employer payroll taxes, which is a non-cash expense, from certain of its non-GAAP financial measures because it believes that excluding this item provides meaningful supplemental information regarding operational performance. The Company excludes amortization of intangible assets, which is a non-cash expense, related to business combinations from certain of its non-GAAP financial measures because such expenses are related to business combinations and have no direct correlation to the operation of the Company’s business. Although the Company excludes these expenses from certain non-GAAP financial measures, the revenue from acquired companies subsequent to the date of acquisition is reflected in these measures and the acquired intangible assets contribute to the Company’s revenue generation. The Company excludes non-recurring costs from certain of its non-GAAP financial measures because such expenses do not repeat period over period and are not reflective of the ongoing operation of the Company’s business.
The Company uses non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss and non-GAAP net loss per share in conjunction with its traditional GAAP measures to evaluate the Company’s financial performance. The Company believes that these measures provide its management, board of directors, and investors consistency and comparability with its past financial performance and facilitates period-to-period comparisons of operations.
Free Cash Flow and Margin. The Company defines free cash flow as net cash used in operating activities, less cash used for purchases of property and equipment and capitalized internal-use software costs. Free cash flow margin is calculated as free cash flow divided by total revenue. The Company believes that free cash flow and free cash flow margin are useful indicators of liquidity that provides its management, board of directors, and investors with information about its future ability to generate or use cash to enhance the strength of its balance sheet and further invest in its business and pursue potential strategic initiatives.
Definitions of Business Metrics
Dollar-based net retention rate
The Company calculates dollar-based net retention rate as of a period end by starting with the Annual Recurring Revenue (“ARR”) from the cohort of all customers as of 12 months prior to such period-end (the “Prior Period ARR”). The Company then calculates the ARR from these same customers as of the current period-end (the “Current Period ARR”). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but excludes ARR from new customers as well as any overage charges in the current period. The Company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. The Company then calculates the weighted-average of the trailing 12-month point-in-time dollar-based net retention rates, to arrive at the dollar-based net retention rate.
The Company defines ARR as the annual recurring revenue of subscription agreements at a point in time based on the terms of customers’ contracts. ARR should be viewed independently of revenue, and does not represent the Company’s GAAP revenue on an annualized basis, as it is an operating metric that can be impacted by contract start and end dates and renewal rates. ARR is not intended to be a replacement for or forecast of revenue.
About Amplitude
Amplitude is the pioneer in digital optimization software. More than 1,700 customers, including Atlassian, Instacart, NBCUniversal, Shopify, and Under Armour rely on Amplitude to help them innovate faster and smarter by answering the strategic question: "How do our digital products drive our business?" The Amplitude Digital Optimization System makes critical data accessible and actionable to every team — unifying product, marketing, developers, and executive teams around a new depth of customer understanding and common visibility into what drives business outcomes. Amplitude is the best-in-class product analytics solution, ranked #1 in G2’s 2022 Spring Report. Learn how to optimize your digital products and business at amplitude.com.
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
300,422 |
|
$ |
307,445 |
|
||
| Accounts receivable, net |
|
23,273 |
|
|
20,444 |
|
||
| Prepaid expenses and other current assets |
|
21,577 |
|
|
19,116 |
|
||
| Deferred commissions, current |
|
8,876 |
|
|
8,112 |
|
||
| Total current assets |
|
354,148 |
|
|
355,117 |
|
||
| Property and equipment, net |
|
6,235 |
|
|
4,832 |
|
||
| Intangible assets, net |
|
3,065 |
|
|
3,554 |
|
||
|
4,073 |
|
|
4,073 |
|
|||
| Restricted cash, noncurrent |
|
850 |
|
|
850 |
|
||
| Deferred commissions, noncurrent |
|
22,199 |
|
|
20,573 |
|
||
| Operating lease right-of-use assets |
|
11,398 |
|
|
— |
|
||
| Other noncurrent assets |
|
12,225 |
|
|
11,389 |
|
||
| Total assets | $ |
414,193 |
|
$ |
400,388 |
|
||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
2,035 |
|
$ |
3,363 |
|
||
| Accrued expenses |
|
22,697 |
|
|
17,936 |
|
||
| Deferred revenue |
|
75,137 |
|
|
69,294 |
|
||
| Total current liabilities |
|
99,869 |
|
|
90,593 |
|
||
| Operating lease liabilities, noncurrent |
|
9,632 |
|
|
— |
|
||
| Noncurrent liabilities |
|
1,843 |
|
|
3,247 |
|
||
| Total liabilities |
|
111,344 |
|
|
93,840 |
|
||
| Stockholders’ equity: | ||||||||
| Common stock |
|
1 |
|
|
1 |
|
||
| Additional paid-in capital |
|
504,859 |
|
|
486,354 |
|
||
| Accumulated deficit |
|
(202,011 |
) |
|
(179,807 |
) |
||
| Total stockholders’ equity |
|
302,849 |
|
|
306,548 |
|
||
| Total liabilities and stockholders’ equity | $ |
414,193 |
|
$ |
400,388 |
|
||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (In thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended |
||||||||
2022 |
2021 |
|||||||
| Revenue | $ |
53,065 |
|
$ |
33,110 |
|
||
| Cost of revenue (1) |
|
16,063 |
|
|
10,255 |
|
||
| Gross profit |
|
37,002 |
|
|
22,855 |
|
||
| Operating expenses: | ||||||||
| Research and development (1) |
|
16,501 |
|
|
6,985 |
|
||
| Sales and marketing (1) |
|
28,130 |
|
|
16,770 |
|
||
| General and administrative (1) |
|
14,362 |
|
|
5,249 |
|
||
| Total operating expenses |
|
58,993 |
|
|
29,004 |
|
||
| Loss from operations |
|
(21,991 |
) |
|
(6,149 |
) |
||
| Other income (expense), net |
|
86 |
|
|
(12 |
) |
||
| Loss before provision for income taxes |
|
(21,905 |
) |
|
(6,161 |
) |
||
| Provision for income taxes |
|
315 |
|
|
278 |
|
||
| Net loss | $ |
(22,220 |
) |
$ |
(6,439 |
) |
||
| Net loss per share | ||||||||
| Basic and diluted | $ |
(0.20 |
) |
$ |
(0.23 |
) |
||
| Weighted-average shares used in calculating net loss per share: | ||||||||
| Basic and diluted |
|
109,553 |
|
|
27,926 |
|
||
| (1) Amounts include stock-based compensation expense as follows: | ||||||||
| Three Months Ended |
||||||||
2022 |
2021 |
|||||||
| Cost of revenue | $ |
922 |
|
$ |
236 |
|
||
| Research and development |
|
4,284 |
|
|
910 |
|
||
| Sales and marketing |
|
3,240 |
|
|
823 |
|
||
| General and administrative |
|
5,057 |
|
|
608 |
|
||
| Total stock-based compensation expense | $ |
13,503 |
|
$ |
2,577 |
|
||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended |
||||||||
2022 |
2021 |
|||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ |
(22,220 |
) |
$ |
(6,439 |
) |
||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
| Depreciation and amortization |
|
901 |
|
|
541 |
|
||
| Stock-based compensation expense |
|
13,503 |
|
|
2,577 |
|
||
| Other |
|
118 |
|
|
231 |
|
||
| Non-cash operating lease costs |
|
809 |
|
|
— |
|
||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable |
|
(2,905 |
) |
|
2,126 |
|
||
| Prepaid expenses and other current assets |
|
(2,460 |
) |
|
(2,251 |
) |
||
| Deferred commissions |
|
(2,391 |
) |
|
(1,269 |
) |
||
| Other noncurrent assets |
|
(836 |
) |
|
(1,316 |
) |
||
| Accounts payable |
|
(1,328 |
) |
|
(1,555 |
) |
||
| Accrued expenses |
|
2,946 |
|
|
(737 |
) |
||
| Deferred revenue |
|
5,843 |
|
|
7,630 |
|
||
| Operating lease liabilities |
|
(269 |
) |
|
- |
|
||
| Net cash used in operating activities |
|
(8,289 |
) |
|
(462 |
) |
||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment |
|
(713 |
) |
|
(250 |
) |
||
| Capitalization of internal-use software costs |
|
(594 |
) |
|
(381 |
) |
||
| Net cash used in investing activities |
|
(1,307 |
) |
|
(631 |
) |
||
| Cash flows from financing activities: | ||||||||
| Proceeds from the exercise of stock options |
|
3,989 |
|
|
2,018 |
|
||
| Cash received for tax withholding obligations on equity award settlements |
|
7,342 |
|
|
287 |
|
||
| Cash paid for tax withholding obligations on equity award settlements |
|
(8,758 |
) |
|
(287 |
) |
||
| Net cash provided by financing activities |
|
2,573 |
|
|
2,018 |
|
||
| Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(7,023 |
) |
|
925 |
|
||
| Cash, cash equivalents, and restricted cash at beginning of the period |
|
308,295 |
|
|
118,863 |
|
||
| Cash, cash equivalents, and restricted cash at end of the period | $ |
301,272 |
|
$ |
119,788 |
|
||
| Reconciliation of GAAP to Non-GAAP Data | ||||||||
| (In thousands, except percentages and per share amounts) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended |
||||||||
2022 |
2021 |
|||||||
| Reconciliation of gross profit and gross margin | ||||||||
| GAAP gross profit | $ |
37,002 |
|
$ |
22,855 |
|
||
| Plus: stock-based compensation expense and related employer payroll taxes |
|
922 |
|
|
236 |
|
||
| Plus: amortization of acquired intangible assets |
|
489 |
|
|
222 |
|
||
| Non-GAAP gross profit | $ |
38,413 |
|
$ |
23,313 |
|
||
| GAAP gross margin |
|
69.7 |
% |
|
69.0 |
% |
||
| Non-GAAP adjustments |
|
2.7 |
% |
|
1.4 |
% |
||
| Non-GAAP gross margin |
|
72.4 |
% |
|
70.4 |
% |
||
| Reconciliation of operating expenses | ||||||||
| GAAP research and development | $ |
16,501 |
|
$ |
6,985 |
|
||
| Less: stock-based compensation expense and related employer payroll taxes |
|
(4,482 |
) |
|
(933 |
) |
||
| Non-GAAP research and development | $ |
12,019 |
|
$ |
6,052 |
|
||
| GAAP research and development as percentage of revenue |
|
31.1 |
% |
|
21.1 |
% |
||
| Non-GAAP research and development as percentage of revenue |
|
22.6 |
% |
|
18.3 |
% |
||
| GAAP sales and marketing | $ |
28,130 |
|
$ |
16,770 |
|
||
| Less: stock-based compensation expense and related employer payroll taxes |
|
(3,233 |
) |
|
(839 |
) |
||
| Non-GAAP sales and marketing | $ |
24,897 |
|
$ |
15,931 |
|
||
| GAAP sales and marketing as percentage of revenue |
|
53.0 |
% |
|
50.6 |
% |
||
| Non-GAAP sales and marketing as percentage of revenue |
|
46.9 |
% |
|
48.1 |
% |
||
| GAAP general and administrative | $ |
14,362 |
|
$ |
5,249 |
|
||
| Less: stock-based compensation expense and related employer payroll taxes |
|
(5,140 |
) |
|
(620 |
) |
||
| Less: direct listing expenses |
|
— |
|
|
(53 |
) |
||
| Non-GAAP general and administrative | $ |
9,222 |
|
$ |
4,576 |
|
||
| GAAP general and administrative as percentage of revenue |
|
27.1 |
% |
|
15.9 |
% |
||
| Non-GAAP general and administrative as percentage of revenue |
|
17.4 |
% |
|
13.8 |
% |
||
| Reconciliation of operating loss and operating margin | ||||||||
| GAAP loss from operations | $ |
(21,991 |
) |
$ |
(6,149 |
) |
||
| Plus: stock-based compensation expense and related employer payroll taxes |
|
13,776 |
|
|
2,628 |
|
||
| Plus: amortization of acquired intangible assets |
|
489 |
|
|
222 |
|
||
| Plus: direct listing expenses |
|
— |
|
|
53 |
|
||
| Non-GAAP loss from operations | $ |
(7,726 |
) |
$ |
(3,246 |
) |
||
| GAAP operating margin |
|
(41.4 |
%) |
|
(18.6 |
%) |
||
| Non-GAAP adjustments |
|
26.9 |
% |
|
8.8 |
% |
||
| Non-GAAP operating margin |
|
(14.6 |
%) |
|
(9.8 |
%) |
||
| Reconciliation of net loss | ||||||||
| GAAP net loss | $ |
(22,220 |
) |
$ |
(6,439 |
) |
||
| Plus: stock-based compensation expense and related employer payroll taxes |
|
13,776 |
|
|
2,628 |
|
||
| Plus: amortization of acquired intangible assets |
|
489 |
|
|
222 |
|
||
| Plus: direct listing expenses |
|
— |
|
|
53 |
|
||
| Non-GAAP net loss | $ |
(7,955 |
) |
$ |
(3,536 |
) |
||
| Reconciliation of net loss per share | ||||||||
| GAAP net loss per share, basic and diluted | $ |
(0.20 |
) |
$ |
(0.23 |
) |
||
| Non-GAAP adjustments to net loss |
|
0.13 |
|
|
0.10 |
|
||
| Non-GAAP net loss per share, basic and diluted | $ |
(0.07 |
) |
$ |
(0.13 |
) |
||
| Weighted-average shares used in GAAP and non-GAAP per share calculation, basic and diluted |
|
109,553 |
|
|
27,926 |
|
||
| Note: Certain figures may not sum due to rounding | ||||||||
| Reconciliation of GAAP Cash Flows from Operations to Free Cash Flows | ||||||||
| (In thousands, except for percentages) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended |
||||||||
2022 |
2021 |
|||||||
| Net cash used in operating activities | $ |
(8,289 |
) |
$ |
(462 |
) |
||
| Less: | ||||||||
| Purchases of property and equipment |
|
(713 |
) |
|
(250 |
) |
||
| Capitalization of internal-use software costs |
|
(594 |
) |
|
(381 |
) |
||
| Free cash flow | $ |
(9,596 |
) |
$ |
(1,093 |
) |
||
| Net cash used in operating activities margin |
|
(15.6 |
%) |
|
(1.4 |
%) |
||
| Non-GAAP adjustments |
|
(2.5 |
%) |
|
(1.9 |
%) |
||
| Free cash flow margin |
|
(18.1 |
%) |
|
(3.3 |
%) |
||
| Note: Certain figures may not sum due to rounding | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220503006408/en/
Investor Relations
ir@amplitude.com
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