[Starts Abruptly] 00:07 Joining me our Spenser Skates, CEO and Co-Founder of Amplitude; and Hoang Vuong, the company's Chief Financial Officer. During today's call, management will make forward-looking statements, including statements regarding our financial outlook for the fourth quarter and full-year twenty twenty one, the expected performance of our products, our expected quarterly and long-term growth, accelerated investments and our overall future prospects. 00:32 These forward looking statements are based on current information, assumptions, and expectations and are subject to risks and uncertainties some of which are beyond our control that could cause actual results to differ materially from those described in these statements. Further information on the risks that could cause actual results to differ is included in our filings with the Security and Exchange Commission, you are cautioned not to place undue reliance on these forward looking statements, and we assume no obligation to update these statements after today's call except as required by law. Certain financial measures used on today's call are expressed on a non-GAAP basis. 01:07 We use these non-GAAP financial measures internally to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. These non-GAAP financial measures have limitations and should not be used in isolation from or as a substitute for financial information prepared in accordance with GAAP. A reconciliation between these GAAP and non-GAAP financial measures is included in our earnings press release, which can be found on our Investor Relations website at investors.amplitude.com. 01:35 With that, I'll hand the call over to Spenser.

01:39 Awesome, thank you, Jason, and good afternoon, everyone. Thank you all for joining us on our first earnings call since our direct listing in September. I'm really excited to give everyone here the latest updates since we went public. We're proud of the business that we built and I'm really looking forward to the conversation. So, I'm going to start today's discussion with an overview of our Q3 financial performance, and then I'll also have a refresher on our business model, market opportunity and Digital Optimization System. 02:07 I'm also going to review the traction that we saw with customers in a quarter. I'm really excited to share some stories there as they use Amplitude to drive their product strategy, growth, and business overall. I'll conclude with an update on some new initiatives that we're doing this quarter, including a partnership and integration with Snowflake, the launch of our first annual product report, and the opening of our EU data center. I'll then turn it over to our CFO Vuong, who's going to walk through our financials in detail on provide guidance for Q4 and the full year twenty twenty two. 02:37 Alright. Let's go ahead and get into it. Amplitude had a good third quarter, reflecting the rapid acceleration of the digital world and great execution by our team, revenue grew seventy two percent year on year to forty five point five million, stronger than expected and showcasing the strength and customer adoption of digital optimization. We have several new notable customer wins, which I'll go into in a little bit. 02:59 Existing customer demand for Amplitude was also strong with expanding customer usage and solid traction with our new products recommend an experiment. This was further demonstrated by a dollar base net retention rate of one hundred…

15:16 Thanks, Spencer, and thanks again to everyone joining us today. We had a solid third quarter with accelerated revenue growth, customer count, and higher net retention rates. Q3 revenue came in at forty five point five million, representing seventy two percent annual growth and continuing the momentum we are seeing in digital optimization. As we mentioned our last call, we had some large expansion in Q2 twenty one, while with easier year over year comp, due to the impact of COVID that are contributing to our growth rate. 15:45 We ended Q3 twenty one with one thousand four hundred and seventeen paying customers, an increase of fifty four percent year over year versus fifty one percent last quarter continuing the acceleration of customer growth. 15:57 Overall, our team continues to execute well on our land and expand strategy, improving our dollar base net retention rate, NRR, to one hundred and twenty one percent and up two hundred basis points both sequentially and year over year. 16:11 As a reminder, this metric is calculated on a trailing twelve month basis. From a geographic standpoint, Q3 revenue from the U.S. increased seventy five percent year over year to twenty nine point six million and international revenue increased sixty eight percent to fifteen point nine million. The U.S. was sixty five percent and international thirty five percent of reported revenue versus sixty four percent and thirty six percent in the prior year. 16:36 Turning to remaining performance obligations, or RPO. In Q3, total RPO increased to one hundred and fifty two million, up seventy nine percent year over year. Current RPO increased one hundred and twenty five point nine million, up sixty six percent year over year, and represents about eighty three percent of total RPO, providing additional visibility into expected revenue…

22:24 Okay. Thanks, Vuong. We will now begin the Q and A portion of our webcast with sell-side analysts and our first question will come from Elizabeth Elliott from Morgan Stanley, followed by Rob Oliver at Rob Oliver at R.W. Baird. Elizabeth?

22:46 Elizabeth, if you will go ahead and unmute yourself and turn on your camera please.

22:53 Hi can you hear me now?

22:58 Yes.

23:10 Sound any better?

23:09 No. Why done we [Multiple Speakers] we will go to the next question Elizabeth, we’ll try to pull you. I’m not sure what’s going on there. So, we'll go with Rob Oliver at R.W. Baird.

23:23 Rob, if you'll go ahead and unmute yourself turn your camera on please.

23:40 Great. Yes, sorry. It kicked me out and brought me back in. So, thanks very much. Appreciate it. And thanks for taking my question. Spenser, just one for you, clearly strong momentum in the core product, but you guys are also seeing uptick now from recommend and experimenting, indeed you cited some specific customer wins, which were pretty telling, and so it seems like you've gotten a lot of traction in a pretty short time with those products. We'd love to hear some color around the used cases and what's driving those engagements and what else you're potentially seeing within your customer base in terms of potential engagement with recommended experiment and that I had a quick follow-up for Vuong?

24:32 Yes. So, to be clear, it's still very early for those recommended experiments. This is the first, Q3 is the first full quarter that they've been launched products. And so, yes, still very, very early. I think we're going to, I'm excited to see what sort of impact we're going to have in twenty twenty two and beyond. I'll start up with experiment, and then I'll talk about recommend. With experiment, that one's really exciting to me. I think you talked to – that's been one that's been requested by our customer base for many, many years at this point. 25:03 The feedback that we've gotten is that AV testing and analytics really should be together in the same system. And so, so many customers have developed workarounds for it tried using third party tools, develop their own in-house tooling to work with Amplitude. And what's exciting to me for this one is that we've just seen tons of examples of companies saying that, hey, let's go ahead and use the experimentation platform. 25:31 And because the – first in terms of just where to test, so knowing, okay, here are the different places that I should look for. Things that I can test. Second, in terms of wanting to integrating the results back in your analytics platform, and thirdly being able to target and cohort your users, so being able to say, hey, I want to target users only in this geo or fall under this thing. And so, there's just a lot of natural synergies between AV testing and analytics, and so definitely really excited about that. 26:02 I think we're seeing the earliest traction happen in the commercial business because they're able to change their experimentation, a lot more quickly. We're seeing enterprise wins as well…

27:19 Yes, it's exciting. Jason, thanks for allowing me a very quick follow-up. Just, you know the NRR long broke out, you guys have been operating that in a fairly tight range and it's broken out nicely here and obviously trailing metric, but I assume that that's more about just volume increases and analytics and cross sell there – upsell there than it is on cross-sell on the products, but now that we are starting to see it again, it's early, but now that we are starting to see that cross-sell motion work, is that a trend we can expect to perhaps continue in terms of that NRR? Thanks, guys.

27:59 Yeah, Rob, I think as we look at the, kind of medium long term, we see opportunity to grow net retention rate, both not differently as you mentioned with both volume upsell, but what we consider a horizontal upsell where you're selling two different use cases or additional business unit and product line inside of the company, and then obviously the additional recommend and experiment you just mentioned that just gives us additional firepower to go after existing base. 28:21 And so, the combination of those strength that we're seeing along with you, we mentioned in Q2, we have some really great expansion and then you are coming off of some quarter that had, let's say, less – you know more churn coming from SMB and other from COVID is why we're seeing the increase in net retention rate and we're – our goal was to try and maintain that and keep that well above one twenty.

28:43 Thanks again.

28:45 Great, Okay. We're actually going to try and go back to Elizabeth Elliott with Morgan Stanley, and then we'll circle – go next to Taylor McGinnis and UBS afterwards. So, Elizabeth hopefully you're out there and better sound quality?

28:57 Right. Can you guys hear me now a little bit better?

29:00 Yes, We can. Great.

29:01 Great. Thanks so much. So, it's great to kind of see the Snowflake integration, can you just provide a little color on how does this expand this dataset that you guys can ingest into Amplitude? And what's the opportunity for it to accelerate kind of the new customers coming into the platforms?

29:16 Yes. I think getting data into Amplitude is the biggest challenge from a customer standpoint today. You need dedicated resources, you need engineers to build out that data pipeline, you need categorize in the taxonomy. So, we have a whole process that we help companies do that with. The exciting thing about Snowflake integration is it makes that process a lot faster for customers who already have their data in Snowflake. 29:41 One of the really interesting things we've seen in the Snowflake is, the most predominant used case is actually to put product data into Snowflake. And so, given how widespread usage of Snowflake is, it's a huge opportunity for us to tap into that data stream as opposed to having to instrument that from scratch. So, anyway, so we’ve developed an integration that makes it much more simple so you don't have to do a lot ton of custom engineering work to actually get that data piped into Amplitude. 30:13 We're kind of agnostic to the source. We're not, you can send it to us directly from your servers, you can use a CDP, you can now with Snowflake integration, you can send it for something like Snowflake and so it just unlocks a whole another set of data in a place customers were already trying to collect it and manage it already for Amplitude. 30:31 So, it's early, so we still have, you know we're only, have just started having a few customers in data testing it out, but really excited about that and just, I think it's one of the biggest places from a product data standpoint that has been unlocked because of because of this integration. And so, we'll continue to doing more stuff like that. And the idea is just to make it easier and easier to get set up and starting around Amplitude.

30:58 Great. And then just as a follow-up, you know one of the things you guys are investing a lot in direct listing is just the go to market strategy. So, can have an update on, kind of how sales is rising its hiring and are you seeing any sort of impact from a tight labor market?

31:12 Yeah. I think we're doing actually well there as I think Matt remind you during investor day, I think we feel really great about kind of, first, getting the story that we're able to tell both in the market and to customers, and this is that's what we're actually having in terms of winning new customer and expanding customers. 31:25 I think all those actually bodes well as you're trying to compete like you said in a tight labor market, and we’re continuing to see that we're able to grow our ourselves capacity at this point. So, greater number we're growing on the revenue side and that's intentional given deposit we took last year prudently and so, we're looking forward to next year and continue to build-out capacity at this point.

31:48 Thank you.

31:49 Thanks, Elizabeth. Okay. Our next question will come Taylor McGinnis at UBS. And then we will be going to Michael Turits at Keybanc next. So, Taylor hopefully you are out there?

32:00 Yes. I am. Hi guys, congrats on the quarter. So just looking at the 4Q guide, you only raised it slightly and it implies a quarter over quarter growth in the low single digits, which is materially below the strong double digit sequential growth you guys have reported in the last several quarters. So, can you maybe just talk about some of the assumptions that are embedded in the 4Qguide? How the guidance philosophy might be similar or different to what we saw last quarter? And just if there is anything like one-time or how we should think about that 4Q guide?

32:36 Yes. Thanks for the question. I think obviously we're, as kind of a new public company, we want to be pretty prudent about how we're thinking about the next quarter guide. I would say that the one difference is that when we gave last quarter guidance, we gave that towards the end of September right before we went direct, our direct listing. And so, we obviously have a lot more of visibility into that and into what we're doing over the next few weeks, whereas obviously now we're a little bit earlier. And so, I think that we think about that additional time frame, you wanted to be a little bit more prudently conservative about where you're looking when you're guiding for the year.

33:11 That makes kind of sense. And then last one for me is just on dollar based on expansion rates, that obviously continues to trend up nicely, but I guess if you look at your expansion rate, it is lower like relative to some other usage based companies. So, can you just maybe talk about like what's driving some of that difference like how your model might be different or as we look ahead? How you guys expect that to evolve going forward?

33:36 Yes. I think the biggest difference is that because what we're doing with this organization, I think the base of our customer early on was more call it in the commercial SMB space in technology and more companies. And so, you do have that mix versus companies that are more strictly on the enterprise side. As we think, we mentioned prior and we'll give an update when we do our annual fiscal year earnings in February. 33:36 We'll continue to see great momentum in customers over one hundred k and over one million, and as we kind of shift that business, add in additional products, and do those things, I think that we're expecting to, kind of maintain a very healthy net retention rate and keep our goal above one hundred and twenty.

34:15 Awesome, great. Thank you.

34:17 Thanks, Taylor. Okay. Our next question will come from Michael Turits at Keybanc. And then he'll be followed by Koji Ikeda at Bank of America. Michael, you are out there?

34:27 Yeah. I’m unmuted. I just run videoing, but video but in that case, I think you can hear me. So…

34:40 Hey, Michael, sorry, you’re just cutting out right there.

34:47 Sorry, Michael, you should be able to start your – great. Thank you so much.

34:50 There we go. There we go. Great. Thanks. One for you Spenser, and for Vuong also. So, Spenser, one of the things that really fascinates me is that the product analyst seems to meet the intersection of a lot of other different areas of product focus. There's custom companies that are focusing on product management more broadly, some that are doing digital adoption, the companies that are approaching us from the perspective, even like experienced management guys have product management and the product experience. So, I'd like to know what you guys really focusing on the analytics space in broadening up from there. How you see that expanding strategically and how you think you'll be competing relative to some of these other companies in other areas that are coming at product from those perspectives?

35:50 Yeah. Yeah, yeah, yeah, for sure. Yeah. I think you see a lot of companies converging on a similar-ish value prop, because there is so much value out there in terms of people wanting to use data to leverage that in their product and drive revenue and growth for the business. So, I think that for sure is happening. 36:12 From our standpoint, it comes back to the differentiators I mentioned earlier. So, first in terms of we've architected for the ground up from product data, product data is fundamentally different from different types of data, from other types of data like marketing data or CRM data or long data. And so, it requires a unique type of architecture and approach. And so, we've done that when you want to answer questions about, okay, what has the most positive impact on the user journey? What do my best users have in common? You're coming back. You need certain ways of looking at a product data to make that successful. 36:45 We've also been developing Amplitude for nine years now, and so have really robust built-out SaaS platform that allows people to understand and access that product data and then, so, you've seen that with Amplitude, we’re number one in the product analytic space and then it's about taking product analytics and then leveraging our success there into these other categories. 37:11 Probably the best analogy I've seen is, if you look at what Omniture and now part of Adobe has done in the marketing cloud, they leverage their strength with their catalyst analytics product for marketing, and then translated that to a success in the whole marketing cloud. And so, we're taking the same approach with the product buyer.

37:33 Great. Thanks, Spenser. And Vuong, to come back to the guide question and I thought it’s interesting and helpful response from you on visibility and when you reported this time versus last time, maybe a good opportunity to walk through the degree of visibility that you have on call it the next quarter basis, how much is coming off the balance sheet? How much do you have in terms of linearity that you feel that you can see at this point, because again, I think that low single digit is very different than what you put up this quarter?

38:04 Yes. I think again, you know, if you look at kind of what we kind of reported for RPO CRPO, I think we do actually have pretty good visibility from that standpoint. I think the exact revenue timing is this again, if you think about last quarter, we reported our – talked about it with about a week less in the quarter. So, for us, we knew we already had most of it there, and we want to make sure that we're correct about that here. 38:22 We still have pretty much have about two months less and so it's probably more about the timing risk and how much is still left in the quarter and trying to make sure that we're being prudent about that. And so, I think as we kind of get into a tangible, we report more regularly this time, and we'll use that same kind of consistency, but I do think there was a little bit of a uniqueness given the timing of the direct listing and how close it was to the end of our last quarter. And so, we didn't want to get so – it just didn’t make sense at a point when we had a weak left and what we are new at that point in time.

38:59 Okay. Thanks, Vuong.

39:01 Thanks, Michael. And our next question will come from Koji Ikeda at Bank of America. And then we'll go to Arjun Bhatia at William Blair.

39:11 Hey, guys. Thanks for taking my questions. Apologies having a little bit of issues on my video here. So, got a question on the new customer as in the quarter. Really, really nice there was the one hundred and thirty seven, is that a company record? I think that's quite a bit, both on absolute net adds compared to last quarter and last year too? So, is there anything we should be thinking about in the third quarter that would drive such a nice net new ad number?

39:37 No. I think like, we mentioned we did have an acceleration in total new customers. So, your math is right. I think, that it is just showing that we're in that early stage of that market. We're beginning to both the awareness and if you are understanding both the power of what we do in this optimization and how they can leverage that as they move away from and get passed I should say, in the digital transformation period. 40:00 We're seeing that uptake and we'll continue to look forward to adding those new customers and kind of the growth that they will bring. So, I think you saw that last quarter and we continued it this quarter.

40:10 Got it. Thanks, Vuong. And maybe a question for you or for Spenser, on the competitive front, we are beginning to hear more and more about other digital product analytics vendors out there. Maybe can you give us an update on the competitor front? And who if any are you seeing during your sales cycles out there?

40:28 Yes. So, I think candidly, I am curious to hear you who you've seen, Koji, but we haven't seen a ton in product analytics. Within our kind of core target buyer, which is in the enterprise. I think like any SaaS company, you see a bunch of folks at the low end in SMB and commercial, that’s something that we're always watching carefully to make sure that we're always maintaining our number one position and continuing to build on it. I think, in terms of I'd say, it was in the enterprise, biggest competition is other ways of solving the same problem. 41:04 So, either teams building it in-house through ABI tool or something like that or trying to force fit marketing analytics. So, we're actually not seeing – there's not been that much that's changed at least from our standpoint in terms of – on a deal basis and with customers in terms of what they are choosing for product analytics in the enterprise?

41:22 Got it. Thanks so much, guys. Thanks. Appreciate it.

41:25 Thanks, Koji. Our next question will come from Arjun at William Blair and then we'll wrap up with Tyler Radke at Citi. Arjun?

41:33 Awesome. Thanks guys. Thanks Jason. Spenser maybe one for you. I want to follow-up on Michael Turits question about this just broader kind of customer experience space. And I want maybe get your perspective on what role if any you think qualitative customer feedback from a product perspective, what role that plays in kind of Amplitude’s future vision if any and if there's any plan that you have to maybe incorporate that into your roadmap over time?

42:07 Yes. We don't have any plans when it comes to qualitative feedback. I think qualitative feedback is an important signal or channel for product leaders to be able to understand their customers. We're very much focused on the quantitative, if it has to do with the user journey and product data related to it. That's what we want to be best in class with. And so, being the system of record for that and everything. Obviously, it's an overlapping buyer. And so, if it could be a future where that’s interesting to us, but right now, we're very focused on everything within digital optimization and kind of a core of product data.

42:46 Okay. Understood. And then just as you think about the product roadmap over time, I think you've laid out maybe a goal of launching one to two new products a year. So, two questions on that, maybe first, if you think about in broad strokes, if there's any kind of sense that you can give us that we intend to focus those product investments over the next year or so? And then two, when you think about monetization, should we pursue that to be directly – those new products to be directly monetized upfront or would you wait until there's a critical massive adoption until you start focusing on monetization?

43:27 Yes. So, it depends a lot on the product. I think one of the areas that we've been spending a lot of time is on the data front. So, we acquired iteratively a data management company earlier this year and we're looking to do a whole bunch more there, both through internally and through potentially acquisitions if the right opportunity comes along for us. And so, we'll be doing a whole bunch more there, you know Snowflake integration is part of that as well. 43:54 From a monetization standpoint, it really does depend on the product, experiment and recommend are two products that have kind of a very direct monetization path where it's like hey, you getting more value, you unlock, these workflows that you weren't able to do before, and so we're able to charge for them directly. 44:09 There are other, again, it depends on the product and like for more data centric products though, for example, that's something that we'd be looking more to give away to our customer base to help them get set up and properly use Amplitude, because the ROI on that, it's like we'd rather just them have it for free than they give as a charge point, but it varies per product. 44:30 It varies in the perceived value. I think the end goal is less on like, hey, you know we're going to upsell twenty percent from this product and fifty percent from this product and more, hey, we have the full answer in terms of a complete suite that we're able to say hey, we solved the product data problem for you and everything associated with it. And then that's when you can get a real premium on what we're able to charge our customers because you're no longer just self-solving a piece of it, you're saying, you go to the product leader and say, hey, we're solving everything end to end when it comes to managing your digital business.

45:05 Perfect. That makes sense. Thank you very much and congrats on the quarter.

45:09 Thanks Arjun.

45:10 Thanks Arjun. And our final question will come from Tyler Radke at Citi. Hey, Tyler?

45:16 Hey, good afternoon guys. Thanks for taking my question. I wanted to ask you going back to the Snowflake question, I guess first, was this something that you really saw strong demand for from your customers, and Spenser, you mentioned that it sounds like kind of in the final state of the product, customers on Snowflake will kind of be able to deploy Amplitude pretty quickly? So, I'm just curious how you're thinking about that kind of accelerating the pace of new customer acquisitions longer term? Thank you.

45:47 Yeah. We're not forecasting any particular, hey it's going to be this much or that much. I think it's kind of more of arrow in the quiver, where it's like helps remove a blocker to getting on board with Amplitude and one that I'm pretty excited about just because it's like, we can there's whole new class of customers that really didn't have the opportunity to be Amplitude customers before, but now do, and so – so it definitely is one of the things that will help drive that, but it's not like magic bullet in itself to say, oh, all of a sudden our customer acquisition rate is going double. And so, we'll continue doing things like that in order to make it more frictionless for people to get set up with Amplitude.

46:32 Great. And then you mentioned in one of the, I think customer examples in the annual your prepared remarks just around the displacing an Adobe solution and I'm just wondering kind of what you're seeing in terms of the mix of rip and replacements versus greenfield just where that is staying and how you expect that to evolve? Thank you.

46:50 So, to be clear, I think that's an exciting example because I think that is a huge long term potential for Amplitude as to become particularly as we see the product and marketing functions converge over time. I think in the vast majority of cases though, we'll be coming in alongside in the Adobe or Google analytics or marketing, you know in most organizations, the product in the marketing organizations are quite distinct. So, we'll sell into the product and they'll continue using whatever MarTech tools they have. 47:24 And so, I think that's probably more of an exception at this point than it is the before. But in terms of the datasets, overlapping, potentially combining over the long term, it absolutely is a trend there. And so, it's, I think it's a really interesting case, which is why I was excited to share it today.

47:42 Thanks so much.

47:44 Great. Thanks a lot Tyler. Okay. And with that, we'll conclude today's discussion. Thanks for being on our webcast today. We look forward to seeing many of you virtually this quarter and hopefully in person next year. Take care.

47:55 Thank you all. Good-bye.