Amplitude reports 9% revenue growth in Q1 2024 financials

Amplitude, the digital analytics platform, has announced its financial results for the first quarter of 2024, revealing a growth rate of 9% year-over-year with an annual recurring revenue (ARR) of $285 million. Their first quarter revenue was an impressive $72.6 million. The company's year-over-year ARR increase of $4 million up from the fourth quarter of 2023 adds to their positive financial trajectory.

There were several other notable highlights in Amplitude's financial report. The number of paying customers, for example, has significantly increased – up 37% year-over-year to a total of 2,970. Also, their Cash Flow from Operations was listed as $(0.05) million, marking a $5.0 million rise from the previous year. Furthermore, the Free Cash Flow attained was $(1.1) million, revealing a $4.7 million increment year on year.

The swell in digital products adoption has sparked what Amplitude termed "a generational shift" in the understanding and use of customer and product data, proving favourable for the company's market opportunity. The unification of product, marketing, and digital experience budgets has forged a multibillion-dollar market. Amplitude's services help businesses gain accurate insights on what their customers are doing and how they behave across the whole customer journey. This understanding is cited as being more significant than what customers tell businesses about the products and services.

Proof of this is seen in the 37% increase in customers using Amplitude's services. The Q1 report showed that the number of customers contributing to $100,000 or more of ARR grew by 6% year over year. "We're still at the beginning of a generational shift in how businesses use customer and product data," stated Spenser Skates, CEO and co-founder of Amplitude. "Digital analytics is a multibillion-dollar opportunity, and we believe Amplitude is well-positioned to lead the market. Many of the largest and fastest-growing companies already view Amplitude as their first call."

Amplitude continues to drive growth through platform innovation and a broad approach. This strategy is bearing fruit, with 19% of annual contracted customers utilising multiple products from Amplitude's suite, a growth from 14% the previous year. Session Replay, a tool launched in Q1 2024 that captures customer interactions with an app or website, is gaining customer approval. The majority of customer wins for Session Replay were displacements of an existing points solution, supporting the value of a unified digital analytics platform.

In addition to these developments, Amplitude has also successfully landed and expanded with European clients such as Decathlon and Ticketswap, as well as globally recognised brands like Whoop and Calendly. These gains further note Amplitude's global influence within the digital analytics sphere.