AMPL — Amplitude, Inc.

Summary of Amplitude's Q2 2026 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: $101 million, up 21% year-over-year.
• Annual Recurring Revenue (ARR): $410 million, up 22% year-over-year, with a $36 million increase from the previous quarter.
• Non-GAAP Operating Loss: $1.5 million.
• Customers with >$100k ARR: 824, a 30% increase year-over-year.
• Free Cash Flow: Record high of $23.7 million.
• Gross Margin: 71%, down approximately 4 points year-over-year and sequentially due to increased costs from AI adoption and Statsig integration.
• Net Dollar Retention: 105% on a pro forma basis.

2. Strategic Updates and Business Highlights:

• Amplitude is transitioning into an AI-focused company, enhancing its product offerings to include AI-driven analytics tools.
• The company has integrated Statsig, contributing $17 million to ARR, and is focusing on cross-selling opportunities between Statsig and Amplitude customers.
• New pricing and packaging strategies are gaining traction, with 70% of ARR closed in Q2 on the new model, up from 25% in Q1.
• Significant customer wins include Paramount, Jaguar Land Rover, and Domino's Pizza.
• The introduction of AI-driven products like Wade is aimed at self-improving product development, enhancing customer engagement and operational efficiency.

3. Forward Guidance and Outlook:

• Q3 2026 Revenue Guidance: Expected between $105.6 million and $108 million, representing a 21% growth rate at the midpoint.
• Full-Year 2026 Revenue Guidance: Revised to between $407.2 million and $411.2 million, a 19% growth rate at the midpoint.
• Non-GAAP Operating Income Guidance: For Q3, expected between $2.5 million and $4.5 million; for the full year, between $6.3 million and $9.3 million.

4. Bad News, Challenges, or Points of Concern:

• Gross Margin Pressure: Continued decline attributed to increased costs associated with AI capabilities and the integration of Statsig.
• Operating Loss: The company reported a small operating loss, indicating challenges in achieving profitability while investing in growth.
• Customer Awareness: Some existing customers are not fully aware of Amplitude's expanded product offerings, which could hinder cross-selling efforts.
• Seasonality in Revenue: Q4 guidance implies a potential slowdown, raising concerns about the sustainability of growth momentum.

5. Notable Q&A Insights:

• Wade's Role: Wade is expected to drive broader platform adoption by integrating various data sources, enhancing the overall value proposition for customers.
• Cross-Selling Opportunities: The potential for cross-selling Statsig to Amplitude customers is seen as significant, with a focus on AI-native companies.
• Hiring Needs: The company is actively transforming its workforce to align with its AI strategy, emphasizing the importance of hiring talent with AI expertise.
• Market Positioning: Amplitude aims to be at the forefront of the analytics and AI landscape, leveraging its unique datasets to provide superior insights and recommendations.

Overall, Amplitude's Q2 2026 results reflect strong growth and strategic transformation towards AI, although challenges in gross margins and customer awareness present potential hurdles for future performance.