Financials. We closed with $61.6 million in revenue, up 35% year over year. This was above the high end of our guidance. Dollar-based net retention was 123% and we have 1900 customers. It was our best land bookings quarter in Amplitude’s history. New Amplitude customers include Zillow, Fox Broadcasting, Volkswagen, Volaris Airlines, Shell, and Ably. This quarter was more challenging with regards to expansion and churn.
A good mantra. “We outship and out-innovate everyone in the space, and we are fanatical about being responsive to customer needs. We released more than 30 new features in Q3.”
Don’t be scared of big name competitors. “It is also worth mentioning that more than a quarter of our land in Q3 had Google Analytics as the incumbent solution.”
Stealing those customers is about getting the offering right, not changing the product. “I think one of the big things, as I talked about, is like pricing and packaging to make sure that we have more options and opportunities for those people to come on to Amplitude”
And products are being re-evaluated. One customer is going “through spending reevaluation internally in their company.”
Vendor consolidation is happening, benefitting the platforms. “in a macroenvironment like this, you’re getting a bunch of spend consolidation where you’re trying to eliminate multiple vendor spend and come to us”
Implementation success is critical for churn control. “the biggest reasons are either companies or business units getting shutdown or going out of business, or lack of ability to secure implementation resources. We almost never see someone kind of go backward in the maturity journey. It’s not like folks are going to Google Analytics or just saying, “Hey, I’m going to go try to build this in-house after having not been successful with Amplitude.” And so that never happens. And so, I think for us, it’s about making sure customers get implemented, customers get set up. I think the large enterprise customer, the only time they really do churn is that they really have not kind of adopted into our solution.”
S-1 Prospectus from 2021 IPO
Upselling is done by expanding use cases. “Our customers typically look to use our platform for an initial business use case they have identified, such as analytics on a digital product. As our customers experience the value of our platform in helping to drive business outcomes in that initial use case, they frequently expand that initial use case, expand into new use cases, and expand into additional products.”
One year subscriptions, but payments are flexible. “Substantially all of our customer contracts have a subscription period of one year or longer. In 2020, we billed a majority of these contracts annually in advance with the remainder billed monthly, quarterly, or semi-annually.”
Land and expand is key to the business. “Our land-and-expand business model is powered by the ease of use, rapid time to value, and broad applicability of our platform to provide actionable insights in real time to numerous teams across an organization.”
International markets matter. “For the year ended December 31, 2020 and six months ended June 30, 2021, 36% of our revenue was generated outside the United States.”
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