investors.amplitude.com<\/a>. A replay will be available in the same location a few hours after the conclusion of the live webcast.<\/p>\nForward-Looking Statements:<\/b><\/p>\n
\nThis 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\u2019s financial outlook for the fourth quarter and full year 2026, the opportunity for the use of AI to drive value for the Company going forward, the Company\u2019s growth strategy and business aspirations and the Company’s market position and market opportunity. These statements are often, but not always, made through the use of words or phrases such as \u201cmay,\u201d \u201cshould,\u201d \u201ccould,\u201d \u201cpredict,\u201d \u201cpotential,\u201d \u201cbelieve,\u201d \u201cexpect,\u201d \u201ccontinue,\u201d \u201cwill,\u201d \u201canticipate,\u201d \u201cseek,\u201d \u201cestimate,\u201d \u201cintend,\u201d \u201cplan,\u201d \u201cprojection,\u201d \u201cwould,\u201d and \u201coutlook,\u201d 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\u2019s industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company\u2019s 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\u2019s limited operating history and rapid growth over the last several years, which makes it difficult to forecast the Company\u2019s future results of operations; the Company\u2019s history of losses; any decline in the Company\u2019s customer retention or expansion of its commercial relationships with existing customers or an inability to attract new customers; expected fluctuations in the Company\u2019s financial results, making it difficult to project future results; the highly competitive market in which the Company operates and developments in technology, including the deployment of AI in the Company\u2019s products; the Company\u2019s focus on sales to larger organizations and potentially increased dependency on those relationships, which may increase the variability of the Company\u2019s sales cycles and results of operations; downturns or upturns in new sales, which may not be immediately reflected in the Company\u2019s results of operations and may be difficult to discern; unfavorable conditions in the Company\u2019s industry or the global economy, including as a result of the imposition of tariffs or other trade protection measures, or reductions in information technology spending, which could limit the Company\u2019s ability to grow its business; the market for SaaS applications, which may develop more slowly than the Company expects or decline; the Company\u2019s 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; and the impact of sanctions related to Russia on the Company\u2019s ability to collect receivables. 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 Securities and Exchange Commission from time to time, including the Company\u2019s Quarterly Report on Form 10-Q being filed at or around the date hereof. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.<\/p>\n
Non-GAAP Financial Measures:<\/b><\/p>\n
\nThis 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\u2019s 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\u2019s 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\u2019s 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\u2019s future contractual commitments and the total increase or decrease of its cash balance for a given period.<\/p>\n
\nNon-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\u2019s 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.<\/p>\n
Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income (Loss) from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income (Loss), and Non-GAAP Net Income (Loss) per Share:<\/b><\/p>\n
\nThe Company defines these non-GAAP financial measures as their respective GAAP measures, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, acquisition related cost, and non-recurring costs such as impairment of capitalized software and restructuring and other related charges. The Company excludes stock-based compensation expense, which is a non-cash expense, from certain of its non-GAAP financial measures because it believes that the exclusion provides meaningful supplemental information regarding operational performance. The Company excludes employer payroll tax expenses related to stock-based compensation, which are cash expenses, from certain of its non-GAAP financial measures because such expenses depend on the price of the Company\u2019s common stock and other factors beyond the Company’s control and do not correlate to the operation of the Company’s business. The Company excludes amortization of acquired intangible assets, which is a non-cash expense, associated with business combinations from certain of its non-GAAP financial measures because such expenses have no direct correlation to the operation of the Company\u2019s business. The Company excludes acquisition-related costs because they are directly attributable to the acquisition, are not reflective of the Company’s ongoing cost structure, and are inconsistent in amount and frequency with the operation of its 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\u2019s revenue generation. The Company excludes impairment charges related to capitalized internal-use software, which are non-cash expenses and are not indicative of the Company\u2019s ongoing operating performance. 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\u2019s business.<\/p>\n
\nThe Company uses non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), and non-GAAP net income (loss) per share in conjunction with its traditional GAAP measures to evaluate the Company\u2019s financial performance. The Company believes that these measures provide its management and investors consistency and comparability with its past financial performance and facilitate period-to-period comparisons of operations.<\/p>\n
Free Cash Flow and Free Cash Flow Margin:<\/b><\/p>\n
\nThe Company defines free cash flow as net cash provided by (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 provide its management and investors insight into the Company\u2019s 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.<\/p>\n
Definitions of Business Metrics:<\/b><\/p>\n
Annual Recurring Revenue<\/i><\/p>\n
\nThe Company defines Annual Recurring Revenue (\u201cARR\u201d) as the annual recurring revenue of subscription agreements at a point in time based on the terms of customers\u2019 contracts, including certain premium services that are subject to contractual subscription terms and Plus customers that it expects to recur. ARR should be viewed independently of revenue, and does not represent the Company\u2019s 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 also not intended to be a forecast of revenue.<\/p>\n
Dollar-Based Net Retention Rate<\/i><\/p>\n
\nThe Company calculates dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period-end (the \u201cPrior Period ARR\u201d). The Company then calculates the ARR from these same customers as of the current period-end (the \u201cCurrent Period ARR\u201d). 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 dollar-based net retention rate (\u201cNRR\u201d). The Company then calculates the average of the trailing 12-month dollar-based net retention rates, to arrive at the dollar-based net retention rate (\u201cNRR (TTM)\u201d).<\/p>\n
Pro Forma Dollar-Based Net Retention Rate<\/i><\/p>\n
\nThe Company also calculates a supplemental measure, Pro Forma Dollar-Based Net Retention Rate (\u201cPro Forma NRR\u201d), which includes ARR from customers acquired through business combinations or asset acquisitions in both Current Period ARR and Prior Period ARR, as though the acquisition had occurred at the beginning of the prior period. The Company believes this supplemental measure provides useful information about the combined retention and expansion trends across the business. Pro Forma NRR and Pro Forma NRR (TTM) should not be considered in isolation from, or as a substitute for, the dollar-based net retention rate described above.<\/p>\n
About Amplitude:<\/b><\/p>\n
\nAmplitude is a leading AI-powered platform, helping over 5,100 paying customers\u2014including Atlassian, Replit, The Economist and Square\u2014build better products and digital experiences. With powerful AI Agents embedded across our platform, teams can analyze, test, and optimize user experiences faster than ever. Ranked #1 in Product Analytics for 24 consecutive quarters in G2’s Summer 2026 Report, Amplitude is the best-in-class solution for product, data, and marketing teams.Learn more at amplitude.com<\/a>.<\/p>\n
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