Naughty and Nice Chapter 3: AMPL

Investing Strategies Abandoned Arctic Outpost #13
1

Amplitude - Customer Behavior Software/Digital OptimizationRevenue of $53.1 million, up 60% year-over-year

https://amplitude.com/

AMPL was a recent High Growth Diaper Dandy (New IPO) that was a distinct group darling until it suddenly wasn’t.

The company reported Q1 2022 on May 4.

https://seekingalpha.com/pr/18778616-amplitude-announces-fir…

  • Revenue of $53.1 million, up 60% year-over-year: OH POOP!

Second QTR in a row with slowing Revenue Growth

  • We also added more than 100 paying customers, which was up 49% annually and totaling just over 1,700: ATTA BOY

  • This was further demonstrated by a dollar-based net retention rate of 126%, which increased by 800 basis points year-over-year: ATTA BOY

  • I want to discuss a large customer churn in Q1, Twitter, because of their massive user activity and monetization of those activities, decided it made sense to build a tailored internal solution, combined with the fact that they acquired in Tirana, a product analytics company in 2020, we believe this is an isolated case: Oh POOP!

  • As a result of the action we took related to the Ukraine conflict combined with churn due to associated collection risks, we estimate about a $1 million in quarter revenue impact beginning in Q2 and a decrease in FY ‘22 customer count by about 2% to 3%: Oh POOP!

  • Turning to remaining performance obligation, or RPO, in Q1, total RPO increased to $194.4 million, up 84% year-over-year. Current RPO also increased $149.6 million, up 62% year-over-year, representing approximately 77% of total RPO: ATTA BOY

  • Operating margin was negative 15% compared to negative 10% in the same period last year. Net loss was $8 million compared to $3.5 million in the first quarter of 2021. Net loss per share was $0.07 based on 109.6 million shares compared to a loss of $0.13 in the first quarter of 2021 with $27.9 million shares: OH POOP!

  • Turning to free cash flow, free cash flow was negative $9.6 million or negative 18% of revenue compared to negative $1.1 million or negative 3% of revenue in the first quarter of 2021: OH POOP!

  • Moving to guidance, for the second quarter of 2022, we expect revenue to be between $54.5 million and $55.5 million representing an annual growth rate of 40% at the midpoint: OH POOP!

  • Market Reaction to Report: Major Indifference = Oh POOP!
    …

AMPL ER Score: ATTA BOYs 3/Oh Poops 7

List and Ranking: AMPL shoots to the top of the Naughty List coming in at Naughty List #1

All The Best,