Amplitude Reports $79.95 Million Revenue in Q1 2025, Faces Profitability Challenges

Amplitude, Inc. reported a revenue of $79.95 million for the first quarter of 2025, marking a 10% increase from $72.62 million in the same period last year. Despite this growth, the company continues to face challenges with profitability, posting a net loss of $22.23 million, slightly higher than the $21.46 million loss recorded in the prior year. The increase in revenue was primarily attributed to an expanding customer base, although the company noted that churn among existing customers partially offset this growth.

In terms of operational metrics, Amplitude's customer count has shown significant progress, with 617 customers generating over $100,000 in annual recurring revenue (ARR) as of March 31, 2025, compared to 521 in the previous year, representing an 18% year-over-year increase. The company's dollar-based net retention rate for the trailing twelve months was 98%, down from 99% a year earlier, indicating a slight decline in customer retention and expansion. The company also reported that 39% of its revenue for the quarter came from international markets, highlighting its ongoing geographic expansion efforts.

Strategically, Amplitude has been active in enhancing its product offerings and capabilities. The company recently launched several new features, including "Amplitude Made Easy" and "Warehouse Native," aimed at improving user experience and data insights. Additionally, the acquisition of CommandAI has allowed Amplitude to integrate AI-powered user assistance into its platform, further enhancing its competitive edge. The company plans to continue investing in research and development to maintain its market leadership and expand its product suite.

Financially, Amplitude's total assets stood at $445.79 million as of March 31, 2025, with cash and cash equivalents of $131.17 million, down from $171.68 million at the end of 2024. The company also reported an increase in deferred revenue, which rose to $117 million, indicating a solid pipeline of future revenue. However, the company continues to grapple with high operating expenses, which totaled $83.95 million for the quarter, up from $78.44 million a year earlier, driven by increased investments in sales and marketing as well as research and development.

Looking ahead, Amplitude remains focused on expanding its customer base and enhancing its product offerings. The company anticipates continued investment in its sales and marketing efforts, particularly targeting larger organizations, which may lead to increased variability in its sales cycles. While the company is optimistic about its growth trajectory, it acknowledges the potential impact of macroeconomic conditions and competitive pressures on its future performance.