Hello, everyone. Welcome to Amplitude's Third Quarter 2022 Earnings Conference Call. I'm Yaoxian Chew, Vice President of Investor Relations. Joining me are 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 2022, the expected performance of our products, our expected quarterly and long-term growth, investments and our overall future prospects. 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 Securities 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. 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. With that, I'll hand the call over to Spenser.

Thank you, Yao. Good afternoon, everyone tuning in for our Q3 2022 earnings call. Amplitude delivered a strong third quarter; we closed with $61.6 million in revenue, up 35% year-over-year. This was above the high end of our guidance. We are also delivering strong operating leverage and raising our margin outlook for the year, thanks to our disciplined investment approach. Our dollar-based net retention was 123%. We now have more than 1,900 customers. For those of you joining us for the first time, Amplitude helps companies build amazing products, drive growth, and win their categories. We are a digital analytics platform that gives self-service visibility into the entire customer journey. With Amplitude, teams can understand what product features are working, where users are getting stuck, and what actions lead to the right outcomes. Nothing is more critical to driving digital revenue growth. Our land performance in Q3 was exceptional. It was our best land bookings quarter in Amplitude's history. New Amplitude customers include Zillow, Fox Broadcasting, Volkswagen, Volaris Airlines, Shell, and Ably. We also had several large six-figure wins. Our customers tell us that Amplitude delivers better ROI than their existing solutions. We can provide insights that were not possible with other means and our self-service approach is more scalable. However, the macroeconomic environment has clearly shifted. This quarter was more challenging with regards to expansion and churn, and we expect these dynamics to persist through 2023. As our customers try to navigate the sudden whiplash from the pandemic to 2021 highs to current macroeconomic weakness, we want to work with them to ensure their success. Hoang will provide more details on how the environment will temper our growth expectations in the near-term. Against this, I'm confident that the need for digital analytics will drive long-term durable growth for Amplitude's business. Our unique approach to analytics at the behavior level resonates deeply with our customers. We continue to gain share in our early growing market. When it comes to product data, companies are in the first inning. I speak with data leaders all the time, and I consistently hear from them that they are only 5% or 10% of the way towards completing their vision for leveraging customer data at their companies. That includes some of the most sophisticated technology companies who are on Amplitude. We are helping shape an early category of software. We see some signs that we're even earlier in the category than we initially thought. Many of our new customers are digital natives who are already familiar with product-led growth. Yet they still need Amplitude to understand their customer journey and build better product experiences. Companies have spent a fortune for teams of data scientists and data engineers, stocked up in-house tools and frustrating legacy analytics solutions. The most common result is tedious data bottlenecks, where the entire organization is blocked on access to data by a few analysts. This means teams do not have an understanding of their customers, lack appropriate context for decisions, and are unable to build winning products. Amplitude's technology and self-served approach gives organizations data that's trustworthy and robust enough to run their business on and that everyone can use. This unique combination enables customers to run their business in a data-driven way at scale. BeReal, the social network app that went from 10,000 daily active users to tens of millions of daily active users in 18 months, expanded its work with Amplitude in Q3 in order to keep up with this rapid growth. Data is a central part of BeReal’s culture. Almost all of its employees are in Amplitude daily. Alexis, their CEO, told me he spends several hours in Amplitude every day. For fundraising, he shows an Amplitude dashboard instead of the standard presentation because it shows how engaging the product is. BeReal’s expanded use of Amplitude will help the team improve the product experience so more of their users create a daily habit. Companies don't just work with Amplitude because of where our product is today. They work with us because of how quickly our product gets better. We out-ship 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, all aimed at helping companies make more informed decisions faster. One of the features I'm most excited about is card analytics. Typically, a user's product behavior and their purchase behavior in different systems, Amplitude brings this together cohesively. This lets teams analyze performance down to the SKU level and discover opportunities for product combinations and cross-sells. We also launched starter templates to give users a better out-of-the-box dashboard experience. And new integrations with Slack and Miro bring key metrics to the collaboration tools that our users live in every day. These updates are all about making it easy for anyone to benefit from Amplitude. Data tables, which we talked about last quarter, have already become one of the most top five used features in Amplitude. This is a great example of us leading with first-to-market innovation. We're the only digital analytics vendor with this type of multidimensional analysis. Finally, we're also doubling down on our core and product analytics. First, we're investing in design and user experience to extend Amplitude's ease of use and accessibility. Our goal has always been to make Amplitude's number one ranked product analytics solution the essential platform for product, data, engineering, and growth leaders alike. These new investments will help every potential user regardless of technical know-how. We want everyone to be able to crawl, walk, and then run with our digital analytics platform. Second, we're making significant engineering investments to help customers track data more cost-effectively and extend our structural cost advantage over our peers. We hear our customers' concerns in a cost-conscious economic environment and their desire to track large volumes of data in a cost-effective manner. We are also investing in greater transparency to help our customers better track usage and drive confidence to scale. We believe this approach, combined with continued product innovation will make Amplitude even more valuable. Amplitude CDP, which went GA at the end of August, has well exceeded internal expectations. It's still too early to give you more specifics, but this is an important part of our platform value proposition and approach to innovation. CDP will make it easier to get up and running with Amplitude and remove duplicative spend for our customers. Experiment now includes support for low-latency use cases by local evaluation and real-time monitoring to improve test outcomes, leading to better performance for customers, which means more durations, more tests, and better results. We continue to see strong external validation for Amplitude's leading position in the market. We were mentioned in Gartner's Hype Cycle for Customer Experience Analytics Report, and Amplitude ranked number one in nine categories in the G2 Fall 2022 report, including number one in product analytics for the ninth quarter in a row and number one in mobile app analytics for the fourth quarter in a row. We also ranked number three in digital analytics for the seventh quarter in a row. Amplitude was also recognized as an insights and analytics category leader in Snowflake's inaugural modern marketing data stack report. We have hundreds of joint customers driving significant value in our Snowflake integrations, and we'll continue to focus on deepening this partnership. Our go-to-market evolution continues with new experienced leadership. As for this evolution, I am thrilled to welcome Tifenn Dano Kwan as our new Chief Marketing Officer. Tifenn was previously CMO at Collibra and Dropbox, and she held numerous marketing leadership roles at SAP, including CMO of SAP Ariba and SAP Fieldglass. We knew Tifenn was the right leader for Amplitude because she has an amazing track record for driving product-led growth, expanding pipeline, and building strong teams. I'm excited to have her on board. As we continue to add leadership, we're focused on improving our execution across go-to-market, including improved approaches to sales operating cadence, pipeline hygiene, accurate quarterly forecasting, better enablement, detailed inspections of top accounts with more engagement and accountability, and value-based selling. These are all muscles that we are building so that our go-to-market strategy and efforts can match a world-class product. I'm pleased with the progress the team is making and the results they delivered this quarter. While we have many of the ingredients in place, our path to greatness here will not be done overnight. We'll continue to invest in and grow our organization to get us there. Numerous deals this quarter were catalyzed by changes in Google Analytics. I think it's important to clarify why Amplitude is superior as more companies move over. At its core, Amplitude's focus is always on product and growth workflows. We give the most critical insights into the entire customer journey. This is different from Google Analytics, which only focuses on marketing workflows. Technologically, we felt the proprietary calling our database that allows us to perform complex distributed joins. This means we can deliver behavioral insights on what drives growth in ways that other systems can't. Our customer data infrastructure layer also ensures data easily comes in, unifies, and stays high quality. Our customers can then take action on these insights, making better product decisions through data-driven experimentation and audience activation. Customers who have moved also tell us we have a significant edge in collaboration and usability. Amplitude works better for casual data users and expert analysts alike. New business trends remain encouraging. While there is greater scrutiny on buying decisions, product analytics continues to be seen as a must-have. Data and analytics continue to rank high on the spectrum of IT prioritization. There's growing appreciation of Amplitude's unmatched ROI and a widening opportunity set for competitive replacements. In addition to some of the big wins I mentioned earlier, other Q3 lands include Teladoc, Holiday Inn Club Vacations, and H-E-B Grocery. We also had notable customer expansions in Q3, including NerdWallet, BeReal, Miro, MaxRewards, and AllTrails. I'm going to share a few customer stories from the third quarter that show what drove some of these wins. One of the Q3 wins I'm most excited about is Zillow, the most visited real estate website in the United States. After using a page-based analytics solution for years, the Zillow team decided to work with Amplitude to better report and measure the full online and offline customer journey. This sets up Zillow to achieve two big goals. First, to expand the data-driven culture that has been building for years. With Amplitude, over 200 product and marketing team members will be able to ask and answer critical questions without having to write SQL or without having to wait for a data scientist to get an answer for them. Second, Zillow wants a connector app and website for buying a home. They want to know what features a customer used that drove them to make a transaction. Amplitude will help the Zillow team surface trends, connect specific features to those outcomes, and continue to innovate. A part of the Volkswagen Group, Eli, is creating a holistic energy and charging experience for electric car drivers and dealers. Until now, the team has had little understanding of how customers were using its apps, what features were working, or where users were getting stuck. In Q3, Eli started working with Amplitude Analytics to establish a more data-driven product management strategy for its three white-label apps. With Amplitude, the Eli team will be able to track user conversion rates, validate user journey hypotheses, and ultimately increase app subscription rates. Brainly, the most popular education app in the world with more than 300 million users, started working with Amplitude last year. With a cross-platform view of its customer journey, Brainly discovered that people who use the instant answers feature at least five times are far more likely to buy a subscription. With this insight in mind, the Brainly team adjusted the product experience to make this feature more accessible and as a result, increased free-to-pay conversions. Now, Brainly is expanding its work with us to include Amplitude experiment. This team has always had a culture of experimentation, but now its non-technical teams will be able to set up product tests and analyze outcomes at a much faster pace. While it will be challenging for the near-term, I view this time as an incredible opportunity for Amplitude. Our digital analytics platform is getting better every day. We are even earlier than we thought in our markets. Our customers love us and want to do more with us over the long term, and we have the flexibility to play offense to set us up for long-term success. We have done a lot in the one year since becoming public. We've won more than 500 new customers and announced our biggest set of product launches in the company's history. We are investing in our people. We are building a world-class team and setting the foundation for sustainable, durable growth. At a recent company all-hands, I asked our team what is the most important determinant of long-term success. What I told them is that persistence trumps everything else. How long you stay at something day after day, month after month, year after year. While it has been an eventful year in the public lens, it's also been an eventful decade since our founding. We've been hard at work here at Amplitude since we started this company 10 years ago, and I expect to be hard at work for decades to come. Thank you for your interest in Amplitude. I'd now like to turn it over to Hoang to walk through the financial results.

Thanks, Spenser, and thanks again to everyone for joining us today. Third quarter revenue was $61.6 million, up 35% year-over-year. Customer count was also up 35% year-over-year to 1,913. Dollar-based net retention was 123%. In the third quarter, we reflect our superior product position and strong execution to deliver our best land booking quarters ever. We signed numerous large deals, thanks to our go-to-market and product teams. They did a tremendous job in highlighting competitive differentiation and showing how Amplitude helps our customers build amazing products, drive growth, and win their categories. It is also worth mentioning that more than one-quarter of our lands in Q3 had Google Analytics as an incumbent solution. We started 2022 with a goal of driving longer-term contracts and attacking new products. We're excited to see more large customers signing multiyear deals. We also crossed a significant milestone of $10 million in ARR from both experiment and our new products in just one year. This is strong validation and execution of our strategy, especially in this macro environment. We mentioned the potential headwinds in the economy during our last earnings call, and we saw the following specific impact in Q3. Expansion bookings were lighter than expected as some of our customer businesses slowed and budget scrutiny remained elevated. We saw higher churn from small businesses who were unable to pay and partial churn increase as customers rightsize due to budget or utilization. If we look past the near-term headwinds, our growth factors have not changed. We will work to continue to acquire new customers around the world, expand across our existing customer base, and extend our product leadership in an early and under-penetrated market. We are confident that we can continue to navigate this environment and come out even stronger. We’re seeing results from prior investments and managing the business for long-term sustainable growth. We've been in a great position to stay aggressive and win the digital analytics category. Geographically, revenue from the U.S. increased 26% year-over-year to $37.4 million in Q3 or 61% of total revenue. International revenue increased 52% to $24.2 million or 39% of total revenue. As a reminder, we invoice primarily in U.S. dollars, so the strength of the dollar does not have a foreign exchange impact on revenue, but it does have a negative impact on new business. Total RPO increased to $248.1 million, up 63% year-over-year. Current RPO also increased to $183.9 million, up 46% year-over-year, or approximately 74% of total RPO. Our strong growth in RPO benefited from a steady increase in multiyear deals. Next, I'll be discussing non-GAAP results for Q3 going forward. As a reminder, our GAAP financial results, along with reconciliation between GAAP and non-GAAP results can be found in our earnings press release and supplemental financials on our Investor Relations website. Gross margin was 74%, up more than 300 basis points year-over-year. We saw upside to gross margin this quarter with us achieving another credit from our hosting provider. We expect to continue to operate in the range of 71% to 74% in the near-term. Turning to operating expenses in the quarter. Sales and marketing expense was 45% of revenue, compared to 43% of revenue in Q3 2021. R&D expense was 23% of revenue, compared to 19% of revenue in Q3 2021. As planned, we continue to hire across all teams at a more measured pace than we had planned for. Our strong discipline delivered an operating loss of $4.9 million or negative 8%, beating our guidance of negative 16% to 17% and compared to a loss of $2.3 million or negative 5% in Q3 2021. The Net loss per share was $0.03 based on 112 million shares, compared to a loss of $0.05 with 39.3 million shares a year ago. Cash, cash equivalents, and marketable securities were $306.6 million at the end of Q3. This now includes $59.4 million in U.S. treasury bonds, classified as non-current. Free cash flow was negative $3.9 million or negative 6% of revenue, compared to negative $15.8 million or negative 35% of revenue in the year-ago period. As a reminder, last year cash flow included $10.9 million in direct listing expenses paid in the quarter. Now on to our outlook, as always, our guidance reflects the most recent customer conversations; spend environment and event volume trends. First, how we're thinking about some of the financial impacts to the model. High economic stress will cause more full and partial churn. We expect the impact on customer count to be larger than the impact on revenue, as we see more churn with smaller customers. As a reminder, more than 70% of our revenue comes from companies spending more than $100,000 a year. We are expecting lower event volume-based expansion as customer growth slows. Our base case is that higher churn and lower event volume-based expansion will persist through the first half of 2023. If the environment continues to deteriorate, the shape of the curve could be longer. Given the net retention rate is a trailing 12-month number, we expect it to decline. For the fourth quarter, we are expecting revenue between $62.5 million and $64.5 million, representing an annual growth rate of 28% at the midpoint. Non-GAAP operating margins of negative 10% to 11%, non-GAAP net loss per share could be between $0.03 and $0.04, assuming shares outstanding of approximately 113.3 million. For the full year 2022, we are raising our revenue guidance to between $235 million and $237 million with an annual growth rate of 40% to 42%. This is higher than our prior guidance of a range of $232 million to $236 million due to our Q3 wins. We expect non-GAAP operating margins to be between negative 11% to 12%, a marked improvement versus our prior guidance of negative 15% to 16%. And we expect non-GAAP net loss per share to be between $0.21 and $0.22, assuming shares outstanding of approximately 111.6 million. In summary, we delivered strong Q3 results amidst a challenging environment. We remain incredibly well positioned to win in digital analytics. We're in a position to invest as others are retreating. And as always, we're focused on long-term sustainable growth. With that, we look forward to your questions. Over to you. As a reminder, please limit yourself to one question and one follow-up in the interest of time. Unmute your mic and turn on your video when called upon. Our first question comes from Michael Turits at KeyBanc. Michael?

Hi. This is Michael Vidovic on for Michael Turits. Thanks for taking my question and congrats on the quarter, guys.

Thanks, Michael.

On the CDP side, you talked about exceeding expectations internally. And I know you're not giving specifics, but I'm curious if you could talk about what draws customers to your CDP versus the competitors? And then, are those customers generally replacing an existing CDP provider, or they didn't have one to begin with?

It's both aspects. In a macro environment like this, we are seeing a trend of customers consolidating their spending by eliminating multiple vendor costs and opting for solutions like Amplitude. Having a customer data platform and experimentation tools, along with various product and marketing analytics, greatly supports this transition. For instance, ATB grocery is a case where they came on board with Amplitude for the first time and opted to purchase the complete set of tools. They didn't have any previous systems in place; rather, they had new team members who had used Amplitude at other companies, leading them to fully commit to us from the outset. We are also observing situations where customers already utilizing our analytics are adding the CDP, whether to fill a gap or to replace an existing vendor. This trend is definitely occurring, and from my perspective, there are many strong indicators of traction in this area, along with the experimentation side.

Great. Thank you.

Great. Next question comes from Clarke Jeffries at Piper, followed by Elizabeth Porter. Clarke.

Thank you for the question. I wanted to ask about the record quarter for new land bookings in the company's history. What industry factors or drivers contributed to that? This quarter also marks the first time since 2020 that there were fewer than 100 net new customers. Despite that, you achieved a strong quarter for new land. Can you discuss how contract values were trending and what contributed to that strength?

Yes. So let me break that down for you. I think one of the big trends that we're seeing is that, I think, historically, it was only very sophisticated, more bleeding-edge technology companies that were big adopters of Amplitude. So this would be the DoorDash’s or the Atlassian’s or Intuit’s or the HubSpot’s of the world that have already embraced this way of building product, and we're kind of ready to go when they first met us. I think what we're seeing is more of the kind of average or majority technology company. I called out Zillow, which was a fantastic land in Q3. We had another record deal that was actually a six-figure deal for multiple years with a household tech company name. And so, that was exciting to see. So I think you see this change from early adopter tech companies to more of the majority tech companies. And that's something that's happening in a big way now. I think, in terms of total number of customer adds, I think it's definitely a more challenging environment for some of the long tail and smaller and earlier-stage startups, where the funding is not like it was in 2021. And so, because of that, a lot of them are cutting back on resources and spend decisions and things like that. And so, that's how I net those two things out.

Hey, Clarke. I just want to make a correction to, I think, Spenser mentioned there was a six-plus figure deal, was not an eight-figure deal. So I don't want to be overreacting to that. I do think that the only thing I would add to that is, what we're seeing in terms of the acquisition of new customers, both last quarter and this quarter, you're starting to see some companies you naturally think of as digitally native. So that's why we're saying we're so early in this market. Finding a company that you would think they've already been doing product analytics and digital analytics for a long time, going, 'Hey, wow, maybe this isn't the best way', whether it's their in-house solution or they were using some existing marketing solution, going, 'Hey, is there something better', as they evaluate and they discover Amplitude and they're moving over to us. And, obviously, those digital companies have a lot more event volume. They already have an existing digital business. And so, that's helping our land value. And as you pointed out, our new add did decrease relative to the prior quarter, but a big chunk of that also had to do with churn from smaller businesses, as I mentioned, they’re unable to pay.

Great. And just one follow-up, Hoang. Another quarter of 48% CRPO growth, could you walk us through the divergence between revenue growth and CRPO growth and ultimately, would you expect them to converge over the near term?

Yes. So I would ask you to focus on the revenue growth. I mean, obviously, as I mentioned on the CRPO is benefiting from the multiyear and so as you kind of reach some kind of plateau in a multiyear are that you may actually see a flip between revenue and CRPO. And so, I would focus on the revenue growth.

All right, perfect. Thanks very much.

Great. Next question from Elizabeth Porter, followed by Arjun Bhatia.

Thank you so much. I wanted to ask on the NOI. So we did see that bigger decline and just because it is a 12-month rolling number. We don't usually see that much kind of quarter-to-quarter change. So just helping to provide, you called out a couple of headwinds, but just a little bit more color on where you're seeing kind of more of that pressure: the churn versus the upsell? And any sort of qualifiers on what we should think about for the floor? Is there a risk that that number goes kind of below what we saw in the first half of 2021? Thanks.

Thanks. It's a great question. I think as Spenser mentioned this in his prepared comments in terms of the churn. I think what you're seeing is in 2021, we had some customers who really drove a massive expansion as their business grew and came back from COVID and post-COVID. I think what we're seeing actually in 2022 is actually a combination of two things. One is expansion kind of being a lot less from that existing customer base and at the same time, you've also seen churn. We obviously mentioned in Q1, we had some high churn both with Twitter and also us deciding not to do business with Russia and Ukraine. I think what you start seeing is you've got really high expansion that drove a lot of growth in 2021, and then you've got lower expansion combined with higher churn as counterplay by the current macroeconomic and some of the things that happened in Q1, that's kind of playing into that net retention rate.

I would like to add that, from my perspective, our goal is to do what’s best for our customers in the long run. Some customers might have overly optimistic growth expectations for 2021, and many of them are requesting to adjust their spending accordingly. However, I don't believe we are seeing significant churn in that group. Our aim is to foster their confidence in increasing their long-term spending with Amplitude. We are implementing various strategies to support them, such as helping them better track the return on investment from their spending by showing what data is being utilized and who is using it, offering additional products if they aren't fully utilizing certain tools, or in some cases, reducing the amount they are spending with Amplitude.

I think to make a good point there, we did the same thing in early 2020 when COVID first hit us, and you guys probably saw when we obviously went public, we pulled out a net retention rate of like 116, I believe, at that time. And I think the right thing is always to do the right thing for the customer because ultimately, you're going to expand into other business units, other product lines; they're going to go and buy experiment and audience CDP. And so we love the future of where it is, and we're going to do the right thing for the customer in today's environment.

Got you. And I think it makes a lot of sense. And my second question, I just wanted to ask on the operating margins; really nice expansion that you drove in the quarter. Is the pulling back on any of those expenses? Is that more of a reaction to the macro or something more structurally in part? And also, just a little bit more color on what were some of the biggest areas of improvement that drove that leverage?

Yes. I'll kind of talk through a few things actually because at the end of the day for us, we've always operated very efficiently. I mean if you look at our operating margin from last year, and we're actually spending more; we're actually increasing our investment in product development. We were at 19%, we're now at 23%. And so we're actually investing in the increase in expenditures actually for this particular year since around investment priority development some stuff, obviously post-COVID return into office and also doing events like Amplify. So we're actually investing and spending. Some of the cutback that you're seeing is actually as a result of us kind of bringing in new leadership and them saying, 'Hey, let's take a pause on things we know are not working, so that I can actually redeploy and use them on new bets and new things that I think are working even better.' And we never want for spend just to spend. That just seems silly. And so I think our ability to turn on operating margins, a, obviously, our gross margin is at a very solid number of 74% compared to where we were before, so that's gaining us three points. And then, us also being much more prudent around our investment plan to make sure that we put more into things that are working and then taking off of things that are not.

Great. Thank you.

Great, Arjun from Blair, you're up, followed by Koji Ikeda from Bank of America. Arjun, please.

Awesome. Thank you. Spenser, and maybe this one for Vuong, actually. Just want to clarify one thing. On churn, are you seeing churn in larger customers outside of Twitter? And is it true churn, or is it down sell? And then just last one on this topic. As customers do churn, whether it's SMB or enterprise, what are they going to? Are they just saying we don't need anything, they're going back to their in-house system, going to GA, what's the replacement for Amplitude that they do decide to shut it down?

Let me provide an overview, and then Vuong can offer more details. The main reasons for churn are typically companies or business units being closed or failing, or difficulties in obtaining implementation resources. We rarely see customers regress in their maturity journey; it's uncommon for them to revert to Google Analytics or decide to build in-house after not succeeding with Amplitude. Our focus is ensuring that customers get implemented and set up correctly, which is a priority for Thomas, Lambert, and the team. Additionally, our customers, even those downsizing, expect to continue growing with us long-term. I recently spoke with a major customer who mentioned they are being cautious with spending over the next year due to internal budget reevaluations, but they anticipate growth with us in 2024 and beyond, just as they have over the past five years. Competitive-wise, we feel well-positioned; we continually lead with innovative products and advanced capabilities.

I can add that, as you've noted, we are experiencing churn from small businesses that are struggling to make payments. With larger enterprise customers, they typically only churn if they haven't fully integrated our solution. If they leave, it’s usually because they are going out of business or not getting their questions answered. For our good customers, the current macro environment has led to tighter budgets, prompting them to reassess the data they are sending in and seek optimization. We are approaching this differently by offering assistance. As Spenser mentioned earlier, we want to provide more visibility to data owners to help them understand how they are using their data and identify what has high value. This will benefit them in the long run. In the short term, they may be looking for savings, which can create some challenges. However, I believe the overall health of our relationships will remain strong in the long run.

Yeah, absolutely. That makes a lot of sense. And then just when we – when you think about the coming quarters and even going into next year, the Google Analytics opportunity, are you expecting that to ramp-up, or is what you're seeing now in terms of the impact on new customers and the migrations that are taking place? Is that kind of a steady state that you expect to contribute over the next few quarters?

I'd say – I don't know, I mean, a third of our new customers coming from Google Analytics is already pretty significant. And so I think we'll expect to continue to see that over the next few quarters. I mean, Google just announced that they're extending the sun-setting date for Universal Analytics, because a lot of their customers are unhappy. And so I think that will continue. Our focus there in terms of being the bridge from previous generation tool to Amplitude, we'll continue to bear fruit and be successful. That's a huge part of why we built out a whole bunch of marketing analytics that we talked about on last quarter's earnings call. And so I expect to see lands. Now, will it grow even more? I certainly hope so, and we're investing in that way in the business.

Awesome. Thank you very much.

Thanks, Arjun.

Great. Next question from Koji Ikeda, followed by Nick Altmann from Scotia. Koji, please.

Hey, guys. Thanks for taking the questions. Great to see you, Spenser and Hoang. I wanted to ask you a question on billings.

Same to you, Koji.

Hey, guys. Wanted to ask you a question on billings. So I recall back in the second quarter, there was kind of a $10 million pull forward and that would help back quarter but affect this third quarter. So – but I guess even after adding back that $10 million, the third quarter billings would still be – I mean, we calculate roughly 23%. So a pretty big deceleration from what we've seen in the past. And then when you look at that compared to the billings growth of 60%, and Hoang, I do realize that you just had focus on revenue, but billings has been really topical out there and this big but delta. I just want to make sure we're understanding any sort of volatility or what could be causing volatility in the billings and how it could potentially affect the forward growth trajectory?

Thanks. First of all, as we said last time, our billings in Q2 actually grew 57% quarter-to-quarter. And so actually, that was a very strong billing quarter. And a big piece of that was obviously that you mentioned, the $10 million that we obviously moved to the renewal base. But we actually had a really large expansion happen in the month of April in Q2. And some of those customers are actually supposed to renew in Q3. And so yes, from a billing standpoint, we grew 4% year-over-year for Q3, referring the fact that a big portion of that renewal base moved over Q2, we're actually – that billings was actually a little bit higher than we were expecting.

Okay. Okay. So –

And the last thing I would – one last piece just to remember on our billings, we tend to – just as a reminder, we build the following month, right? So we don't build in the same month. So then we actually obviously have bookings that actually happened in the month of, let's say, September, they're going to be built in October, or if your contracts get started in October, you're not going to go down into October. And so that's another factor to catch in into where the billing is going to come in. So our billing will be pretty lumpy when you look at quarter-over-quarter and something like that.

Got it. Okay. Understood. And then I wanted to ask you a question on international just really thinking about 40% of revenue for you guys is coming international and Hoang you mentioned you priced in USD. So presumably, it's getting harder for international customers to buy the product. So just taking forward, if FX persists at these kinds of levels, how are you thinking about packaging pricing internationally to help alleviate any sort of FX headwinds, international sales cycles?

This is not only focused on international customers but on our entire customer base. A significant opportunity for us in 2023 is to emphasize a product-led growth approach, which will include self-service options and various features that enable customers to start at lower price points or more easily engage with Amplitude as we move into next year. This strategy will allow customers to begin small, demonstrate some ROI, and then scale with us over time, which will be a key factor in our plans for next year.

Got it. Thanks, guys. Thanks for taking the questions.

Yes, sure.

Nick Altmann from Scotia, followed by Claire Guido from UBS.

Yes. Great. Thanks, guys. I'm curious if you've seen sort of any change from customers, either on the net new side of the equation or at renewal, just in terms of their event volume commitments, right? Like just given the macro environment, I'm curious just from a customer perspective, are they taking a little bit more of a conservative approach to their event volume commitments and so perhaps, maybe there's going to be more overages in the future, or have you guys not really seen more of sort of scrutiny on upfront commitments at renewal or even on the net new side?

Yes. It tends not to happen as much with new customers. The pressure really comes from the renewal side, where some customers are quite demanding about their event volume. That's why I mentioned we will be enhancing our tools to provide better transparency into the value and to identify additional ways we can deliver that value. For event volume, a significant concern for customers is the assurance that as they grow with us, we will grow with them. Therefore, a major area of investment for 2023 will be focused on supporting large volume customers by tracking more data; the more data we can gather, the more value we can offer.

Overdues have trended as of late and whether those have been sort of impacted given the macro? And as a follow-up, I guess, is it sort of pertains to your guidance philosophy, do you typically embed a certain level of overdues in your guidance, or is that typically the driver of upside?

Yes, I'll address that. Overdues represent a very small fraction of our revenue, around 2% or less. Typically, when customers are overdue, they tend to renew and expand their contracts. For example, in Q2, we experienced significant expansion early in April, primarily from customers who were already overdue. Our top priority is to partner with customers, and while having the correct contracts aids in planning and execution, we haven’t noticed any significant changes in the overdues—it's been quite consistent. In fact, it may have decreased slightly as some of our large customers expanded in April. After such expansions, overdues tend to dip a little before gradually building up again, but overall, it remains a small percentage.

Got it. Yes. Thank you.

Next question from Claire Guido from UBS, followed by Tyler Radke from Citi. Claire, please.

Great. Thanks for taking the question. So sorry to go back and harp on billings a little bit. But is the softening the more a reflection of invoice timing or is it related to the more flexible payment terms, maybe or changes in duration given the macro? And then, as a second part as well, if billings on an adjusted basis for the pull forward, it's kind of in the low 20s. Should we think of that as a leading indicator going forward to potential revenue growth next year or?

Yes. There are a couple of points regarding billing. The timing of our billing is not crucial for us, which means the timing of bookings is important. In Q2, our linear area bookings were more front-end loaded in the quarter, while in Q3, our bookings shifted to the back-end. This back-end loading is more typical for us. That's why, although we guided on billing, I previously mentioned that our drilling was somewhat higher than expected. The timing of these bookings heavily influences our results, and since they occur at the end of the quarter, they will be reflected in the following quarter.

Okay. Great. Thank you. And maybe you don't want to touch on the low 20s comment, but could that be used as kind of a leading indicator for revenue growth, or since it's going to be so variable quarter-to-quarter, not something to focus on too much?

Yes. I mean I would point you to what we guided for Q4 in terms of our guidance for that quarter. I think we're guiding to a midpoint like 20% and as far as the fiscal year 2023, obviously, we'll wait until the early part of next year to provide guidance on that as we continue to monitor the environment.

Okay. Thank you.

Great. Next question from Tyler Radke.

Yes, good afternoon. Thank you for the question. I wanted to discuss the go-to-market strategy. With the recent changes in sales leadership, I'm curious about your thoughts on these adjustments for next year as you plan. This could relate to overall messaging or your approach to organizing and compensating the sales team. Additionally, could you share your insights on your visibility for next year? I understand that remaining performance obligations are growing faster than current obligations, indicating you're securing multiyear contracts. Please give us an idea of how your visibility has improved and what we should expect for next year. Thank you.

Yes. So first, I'm really excited that Thomas is here. I mean, he's already driven a lot of changes within the organization, upleveling leadership that we have across the board. So Tifenn, our new CMO, who I mentioned, very excited that he brought her in, multiple hires across sales ops leadership, sales leadership, enablement, and a few other areas. And we'll continue to evolve the team. I think the way I think about setting it up is we're building out the leadership team to take us from here to $1 billion in revenue, and that's a new kind of stage for us as a company. Obviously, we've done a great job of kind of getting us here, but now it's about how do we build the machine that executes for the next few years. In terms of the different areas, I mean, from sales comp, we always love compensating great salespeople rolling, so if you want to make a lot of money, come join us here at Amplitude. And so that's an area that we're always evaluating how to reward great sellers and great sales performance, and we want to make sure to set people up well there. I think there's a lot just generally on the execution that we're focused on improving. So I mentioned a whole bunch of areas during the prepared remarks, forecasting pipeline growth, enablement, inspection on top accounts, and things like that. And so I think while I'm seeing a lot of great improvement there, Thomas has only been here for a few months, and so there's still quite a ways for that to play out as we go forward over the next few quarters.

To address your question on visibility, it's a bit of a mixed situation. We're excited to have more multiyear contracts, which is reflected in our RPO, and we're seeing great traction on the land side. However, the macroeconomic pressures are impacting both partial and full churn within our customer base, which creates some uncertainty. It often feels like we're tackling one issue only for another to arise. Earlier in the year, we felt optimistic about many aspects, particularly regarding land, and were curious about how that would develop. As we've focused our efforts on that area, we're beginning to see positive outcomes. Nonetheless, the macro environment is presenting some unexpected challenges, but we're committed to navigating them effectively.

Great. And then if I could just ask a follow-up on competition. So obviously, you touched on Google Analytics earlier, but just as we think about the reduced VC funding environment and obviously less capital formation. How are you seeing that change the competitive position with some of the privates out there, if there's anything to call out? Thank you.

Yes. We are maintaining a strong competitive position and continue to attract many top-growing companies. BeReal is a prime example of this on the consumer side, as they have experienced significant growth and are valuable customers of Amplitude. Our focus remains on winning over these companies. A key aspect of our strategy, as I mentioned, is enhancing our pricing and packaging to provide more options and opportunities for potential clients to join Amplitude. The value we derive from these companies extends beyond revenue; they are at the forefront of innovative data usage and product development. We aim to succeed with them, which is why we are actively refining our pricing and packaging strategies to specifically target high-growth companies. Many larger organizations, both in the tech sector and beyond, look to these startups for guidance on establishing a data-driven, product-first culture. Therefore, it is crucial for us to succeed in this area, and it remains a top priority for us.

Thank you very much.

Great. And with that, I'm seeing no further questions in queue. We will be at the UBS Global TMT Conference in December. Details will be posted to the Investor Relations page on Amplitude’s website at investors.amplitude.com. Thank you very much for attending our Q3 earnings conference call. You may now disconnect.

Thank you, everyone.

Thank you, guys.