Amplitude, Inc. — FY2021 Form 10-K
Reporting period: Fiscal year ended December 31, 2021. This annual filing reports full-year results, not standalone Q4 results. Amplitude provides subscription-based software for product analytics, personalization, and experimentation. Its Class A shares began trading on Nasdaq in September 2021 through a direct listing.
Key financial and operating metrics
| Metric | FY2021 | FY2020 |
|---|---|---|
| Revenue | $167.3 million | $102.5 million |
| Gross profit / gross margin | $115.5 million / 69% | $72.0 million / 70% |
| Operating loss / margin | $74.1 million / 44% | $24.0 million / 23% |
| Net loss | $75.0 million | $24.6 million |
| Net cash used in operating activities | $31.7 million | $10.4 million |
| Free cash flow (non-GAAP) | $(34.9) million | $(12.6) million |
- Revenue grew 63% year over year; subscriptions accounted for 97% of FY2021 revenue.
- Non-GAAP gross margin was 71% in both years. Non-GAAP operating loss was $14.6 million in FY2021 versus $6.6 million in FY2020.
- Cash and cash equivalents were $307.4 million at year-end, with $0.9 million of restricted cash. Current assets were $355.1 million and current liabilities were $90.6 million. The filing reports no borrowings in the balance sheet; it does not provide a separate debt metric.
- Deferred revenue was $69.3 million. Remaining performance obligations were $170.1 million, up 78% year over year; $137.3 million was expected to be recognized within 12 months.
- Paying customers increased 54% to 1,597. Dollar-based net retention rose to 123% from 119%. Customers with more than $100,000 of ARR grew to 385 from 262; customers above $1 million of ARR increased to 29 from 15.
Material changes and unusual items
- Operating expenses rose 98% to $189.6 million. General and administrative expense more than tripled, including $18.2 million in direct-listing expenses; stock-based compensation was $34.4 million, versus $16.6 million in FY2020.
- Cost of revenue increased 70%, principally due to higher cloud-hosting costs and staffing. Gross margin declined one percentage point.
- Financing cash flow was $222.6 million, primarily reflecting $199.8 million in net Series F preferred-stock proceeds and $21.8 million from option exercises. Preferred stock converted to Class B common stock in connection with the direct listing.
- The company acquired Iteratively in 2021 for $9.5 million, including $7.4 million in equity consideration. Amplitude also released Recommend and Experiment during 2021, but says it expects to continue deriving substantially all revenue from Analytics.
Outlook, risks, and contingencies
- Management expects operating expenses to continue increasing in dollars and anticipates near-term increases in research and development and sales and marketing expenses as it invests in product innovation and growth. The filing provides no specific revenue or earnings guidance.
- Management said available cash should fund working capital and capital expenditure needs for at least the next 12 months. The company has a history of losses and expects continued investment; sustained profitability is not assured.
- A significant contractual commitment is the AWS hosting agreement: a five-year contract entered in August 2021 requiring at least $267 million of spend, with $250 million remaining at year-end. Total purchase commitments were $252.5 million.
- Principal risks include customer renewal and expansion, competition, dependence on Analytics, cloud-provider reliance and service performance, cybersecurity and privacy regulation, international operations, and the potential effects of COVID-19. The filing says the pandemic had generally supported digital demand to date but could also weaken customer demand or lengthen sales cycles.
- No legal proceedings were reported as expected to have a material adverse effect. The filing identifies no material indemnification claims. The company’s dual-class structure gives Class B shares five votes per share; public Class A shares have one vote per share. No contractual lock-up restrictions applied to stockholders.
Important facts for investors to verify
- Whether customer growth and retention continue to support revenue growth, particularly given reliance on subscription renewals and Analytics.
- Whether higher operating costs, stock-based compensation, and public-company expenses can be contained while improving margins and cash burn.
- The expected utilization and economic impact of the substantial AWS minimum-spend commitment.
- Potential dilution from outstanding options, RSUs, and future equity awards, as well as the implications of concentrated voting control.
- Exposure to security incidents, evolving privacy requirements, and any changes in customer demand or sales cycles.
The financial statements received an unqualified audit opinion from KPMG LLP.