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Amplitude CEO: Customers are asking, what happens after digital transformation? | ZDNet

Amplitude, the product analytics company that went on the public market in September, reported its third quarter financial results on Tuesday, delivering revenue growth of 72% year-over-year. 

The company has had solid year-over-year comparisons due to the pandemic — as its customers accelerated their digital transformations, they looked to products like Amplitude to help them make product investments that would drive results. At the end of last year, CEO and co-founder Spenser Skates told ZDNet, Amplitude had a record number of new companies come onto the platform for the first time. 

Now, Skates said, its customers are moving past that phase of digital modernization. 

“So many companies we work with are asking what happens after you transform your business? What do you do next?” he said. That’s why Amplitude is positioning itself as a digital optimization tool, he said. “Once you transform, then you optimize.” 

Amplitude reported a non-GAAP net loss per share of 5 cents on revenue of $45.5 million. Its current remaining performance obligations (RPOs) were $125.9 million, up 66% year-over-year. The company’s number of paying customers grew 54% year-over-year to 1,417.

Skates said Amplitude’s potential customers include “any company that has an app or website,” but one of its more dynamic verticals has been fintech. Amplitude counts Coinbase and Square as customers, among others. According to the company’s recently-released Product Report, the industry has seen a 337% increase in daily active users since January 2020. 

“People talk about Web3 and crypto, but it’s beyond that,” Skates said. “People want to be able to manage their money online.” Usage is also up, Skates said, since fintech companies “tend to  be more sophisticated in terms of their product team.”

For the fourth quarter, Amplitude expects revenue in the range of $46 million to $47 million.

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