Amplitude, Inc. (AMPL) Earnings Call Transcript & Summary

During today's presentation, management will be making forward-looking statements, including statements regarding our financial outlook for 2025, our long-term goals, 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 SEC. 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 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. Reconciliation between these GAAP and non-GAAP financial measures is included in our press release, which -- and on our Investor Relations website at investor.amplitude.com. All right. You'd be surprised how much practice that took. All right. Great. All right. So now for the afternoon, we've got planned. First, we'll start with Spenser, who's going to share a little bit about where we've come from and where we're going. Then Francois will share about our platform, some demos and some discussion of the future of our platform. After him, Thomas will come up and discuss the transformation of our go-to-market organization and how we're going after the enterprise. And then he'll be joined by a great customer of ours from the NBA to discuss their digital journey with Amplitude. Last, Andrew will get up here and bring it all together to share some thoughts on our growth algorithm and business model as we build a durable growth model. Some quick housekeeping. We will have time for Q&A at the end of the day. So for those in the room, please save your questions for the end. [Operator Instructions] All right. Thank you for bearing with me. Now for the real show, please welcome the Co-Founder and CEO of Amplitude, Spenser Skates.

Thank you, John. Okay. Very, very excited to be here and do this. So for the -- oh, talking a little loudly here. For those of you who have seen us before, a big part of the reason why we wanted to do this today was because a lot has changed since we last did a deep dive with the public markets back in 2021 as part of our listing. So it's a completely different management team. We've gone from an analytics company to a platform company. And there's been the rise of AI. And so quite a lot about how I think about Amplitude's opportunity going forward and how we're set up to execute on it has changed and improved. And so this -- we thought this -- Andrew and I were talking about, and we thought this was a perfect time to reintroduce ourselves to the public markets, to a lot of you and everyone else out there. Okay. So I'm going to start us off today by going through the vision and how I think about where Amplitude fits in the world and the massive opportunity which sits in front of us. Before I get into that, there's 4 key takeaways I want everyone here to have from today. The first is that we have an incredibly large market opportunity. I think one of the biggest misunderstandings in looking at Amplitude, we're $300 million in ARR business, we're growing just around 10% today, is how early we are in our category. We are a concentrated bet on digital. And as digital products proliferate, as data to support those product proliferates, we directly benefit from that. So we're going to -- so that's kind of the macro thesis as I think about what's the big wave that we're betting Amplitude on. The second is we are very aggressively innovating and have big opportunities with AI. I always say that innovation is the largest driver of long-term growth for Amplitude, and so we're going to share a bunch on that today. The third is that we are an enterprise-focused business. I think this is -- particularly, those of you who may have known us for a while, is maybe misunderstood as we've made a big, concentrated effort over the last few years to shift from technology companies, SMBs, start-ups, to traditional enterprises. And so we'll go through a bunch of that shift today. And then the last is that people always ask us about the macro, but we want to set up Amplitude to be durable growth regardless of the macro. So good, bad, whatever the opportunities may be, we're setting ourselves up for some great growth as we are early in a large market. Great. All right. I want to introduce you quickly to who you will be meeting today. So I'm Spenser Skates, CEO and Co-Founder of the business, been with Amplitude, I started the business 13 years ago with my 2 co-founders. But the management team has changed since our public listing. So I wanted to make sure everyone here got an opportunity to meet them today. So first up, we got Thomas Hansen, our President. Thomas, if you just want to wave. He runs all of go-to-market, so that's sales, marketing, customer success and revenue ops. Next, we have Andrew, our CFO; KJ, CHRO; Wade, our Chief Engineering Officer; and Francois, our Chief Product Officer. He's -- Francois is actually going to be giving a live demo on stage. So a little bit dangerous. He always plays it close to the edge, which I appreciate. So -- but in all seriousness, we've got a fantastic team to scale Amplitude. The thing I want to call out here is I have been very, very deliberate about how we've built this team over the last 3 years. There's been a lot of change internally. There's been a lot of change in the market, and I wanted to make sure to create a team that would set us up from here to $500 million, to $1 billion and beyond it. And so very, very excited to be working with this phenomenal group of folks. All right. Let's get into the Amplitude story. So the Amplitude story, so I actually wanted to kind of paint the arc of the company so that you have better context about where we came from and that informs a lot about where we're going. So the Amplitude story actually starts before Amplitude back in 2012. So this is me on stage with my co-founder, Curtis, pitching a company called Sonalight at Y Combinator's Demo Day. So for those of you who don't know, Sonalight was a voice recognition app that helped you talk to your phone and send and receive text messages. So you could have a phone in your pocket and have a conversation with it. And this is before Siri and Alexa, the whole rise of a lot of the voice products that came -- that had come out. One of the biggest problems we had at Sonalight was we really wanted to understand our customers and what they valued. So we wanted to know what kept them coming back to the product. We wanted to know where they got stuck. We wanted to know what they liked to engage with. We wanted to know what they didn't like and what was friction. And it was obvious to us that the best way to do this was by looking at data. So it was obvious to us, okay, you have all these customers going through your application, by looking at the data of what they're doing, that's the best signal by far, even more so than what they tell you. The problem was that user behavior was a black box to us. And so there's a lot of -- it might sound obvious, okay, look at the data. But this was actually a really, really hard problem for us to solve and figure out at Sonalight. And there's kind of 2 aspects to that problem I want to share with you. The first is that the average surface area of products is actually very large. Average product has thousands of different touch points. So that's thousands of different things your users could do, and you have to figure out how they all connect together. The second aspect of the problem is that each user takes a completely different journey through the application. So it's not like I have the same journey through an app as Andrew has the same journey as all of you. It's more like a random walk. Each of us is doing totally, completely different things. And so if the data has those aspects of complexity to it, how can you start answering the questions that I talked about earlier? So if you want to figure out what generates revenue, if you want to figure out how to improve your trial conversion, if you want to figure out what users are doing before they leave your application, these are actually really -- might sound like simple questions, but they're actually really difficult problems to solve. And so we took a step back and we said, okay, why is this? Why is there no -- why is this problem hard? And why is there no off-the-shelf tools to do this? And this is the reason. So digital over the -- had undergone a shift from a marketing channel to the product and value delivery itself. And so what do I mean by that? And why does that mean it's hard to understand and look at the data? Well, all the existing infrastructure tooling and data tooling for digital applications had been built with digital as a marketing channel. So if you're Google Analytics, if you're Adobe, if you're any part of the martech ecosystem, this is what you're trying to help optimize, right? And so if you're NBC, you're looking at -- if you were NBC and you kind of go back a decade or 2, digital was just another marketing channel for you. It was just another way to advertise your product to end-users, to help them understand the different shows you had, when they can watch it, where they can watch it, things like that. You weren't actually getting any value beyond that. And this was not just true for NBC. This was true for all of media. And it's not just true for all of media, this is true for every single company. They view digital as a marketing channel. And so you have this whole generation of infrastructure and data tooling behind it that is optimized for helping you understand digital as a marketing channel. But what it had changed with Sonalight and what it had changed when we started Amplitude as a company was digital had transformed into the product and value delivery itself. And so now, instead of just users coming to your site and leaving, they're spending hours in your product. They're doing thousands of different actions. They're getting value in all sorts of different ways. And this is actually the growth driver business, right? So if you're a media company, you see all your legacy TV cable channels shrinking. And it's actually digital is the growth driver. And you have -- because of that, now as a company, you have all sorts of new questions about your users, like I talked about before. How do you optimize your free trial conversion? How do you get people engaged with it? And the infrastructure tooling in the market didn't work. So this is what led us to start Amplitude, because we saw this gap. We saw thousands of other companies with this gap. We saw a lot of folks in the ecosystem, we said, "Hey, there's an opportunity to build something better." So I want to talk a little -- take you through a little bit of the history of the data ecosystem just so you can understand kind of the qualitative differences and what it means of these -- for these different generations of analytics. So the first set of analytics, you all may be familiar with the BI space that started in the 1990s with companies like Business Objects, that were trying to understand single points in time. So you had user transactions about, hey, I bought this many products at this store in this geo, and you'd slice and dice those products in tons of different ways. And that was your -- the extent of your understanding of your customer from a digital standpoint. Fast forward 15 years from then and digital evolved to a marketing channel where now, all of a sudden, you can interact with your customers on the web. You can actually get a bunch of information about them. You can see how they're hearing about you. And this leads to the rise of Omniture, which was acquired by Adobe and the whole martech ecosystem. Fast forward to today and what you have is now you have a much, much broader digital experience where you're actually delivering value to your customers where they're spending hours, days, weeks, years in your digital products, and you -- that requires a whole new set of analytics to go with it. And so at Amplitude, we saw ourselves as kind of the evolution of -- from transactional data to kind of linear funnel digital marketing, to now what we think of as digital as the product and value delivery itself. And this is, again, a very, very, very different piece of infrastructure. So this is kind of the fundamental -- the founding thesis in how we think about the opportunity for us long term. All right. I want to break that down for you just a little more concretely to show you how one of our customers uses behavioral data in this way. So just to quickly introduce you, DoorDash, who you probably all know, founded in 2013, they ended up creating -- entering the food delivery business, which was an incredibly competitive category. And there were tons of other companies in it, so Postmates, UberEats, Grubhub, Caviar, lots and lots of others that were trying to do the exact same thing. And DoorDash wanted to figure out what edge they could create over the other businesses. And so they looked at the data to try to figure that out. One of their competitors at the time, UberEats, actually focused their whole business around fast delivery time. So they wanted to deliver your order, if you had made an order from a restaurant, in 30 minutes or less. But DoorDash said, "Okay, we think we can figure out something that's actually the user cares more about than fast delivery, let's look at the data to try to find out what that is." So quick quiz for the audience here. Does anyone know -- so DoorDash looked at it and they looked at what was the #1 thing that had to happen in the first delivery in order for you to do a repeat delivery? Any guesses from the room? What was that? Accuracy of what? What do you mean? Make sure you get the right food. Okay, good guess. Other guesses? Get it on time. Okay, very good. So #1 thing was accurate delivery estimates. So making sure -- this was actually the big problem in food delivery. And so if you didn't get your food on time, you were much less likely to come back. Whereas if you did, you would have -- whereas if -- yes, whereas if you didn't -- sorry, if you didn't get your food on time, you were less likely to come back. If you did, you were much more likely to come back. And it makes sense. If you didn't get your food, you'd be grumpy and hungry and angry and all of that. It may sound very obvious me saying this to all of you now, but it wasn't. It wasn't obvious to UberEats, who was focused on fast delivery time. It wasn't obvious to Caviar or Postmates or any of the other companies in the space. And so what did DoorDash do? Well, they optimized around this. They worked a lot on having accurate delivery estimates. They worked a lot of incentivizing drivers to be on time. They worked a lot on proactive reach-outs if they knew your food was going to be late. Fast forward today, what happened? DoorDash is now the leading product by far. They own a majority of the food delivery market in the United States. And this all came back to that insight on behavioral data about their customers. So because they understood their customers better, they were able to create a better overall experience, and now they're the winner in the space. And you've heard of tons of companies who have done this, Facebook, Netflix, lots of others. And so our thing is how can we bring this same value to everyone else in the ecosystem. Everyone wants the same insights that DoorDash had and that we had at Sonalight. So I'm going to walk you through the platform really quickly, you'll be seeing this a lot today, just to talk to you about what is here. Because as I mentioned, one of the biggest changes over the last few years is we've gone from an analytics company to a platform company. So it all starts at the bottom with data. So you need to have great data. This is table stakes, but a lot of companies fail to get this right. If you don't get the right data in, you're going to get garbage out in terms of what you can understand about your customers. One of our things is we work with any -- we've made a point of expanding to lots of different data sources, from warehouses to CDPs, to tons of others. Then you go to insights. This is what we've started the company around. This is what we do better than anyone else in the world. And then finally, and this is what we've been focused on the last few years, is you need -- you can translate those insights to action. So how can you, on the basis of your insights, create an intervention in the product, whether that be through an experiment, whether that be through a guide, whether that be through targeting a group of users. The other thing I want to call out here is this is not just our vision. This is something our customers are pulling us aggressively to. Thomas and I have talked to hundreds of executives in the last year. Every single one wants something beyond the analytics from us. Every single one. I was surprised to see that. I knew we'd get some pull. Their big thing is they want to consolidate onto a single stack. It makes sense, not just from a cost reduction standpoint, but also because that these products worked a lot better together. From the insights you get, you can measure experiments better, from -- you can trigger a guide at the right time and so on. And so these are all -- the capabilities are interwoven. And that's something that we're not just pushing. It's actually we're being kind of pulled to the market and they're saying, "Hey, how fast can you come out with this? How fast?" We launched Guides and Surveys a few weeks ago, very first question is, "Hey, how fast can you guys have it for mobile?" So a lot of opportunity here for us to take our lead in analytics and use it to consolidate the market. Great. So today, quickly, fast forward, we don't just have DoorDash. We have tons of companies across many, many different verticals. We have companies in retail. We have companies in media. We have companies in software where we started. We have companies in financial services. We have consumer. We have wellness, industrial and so on. You're going to be hearing from one of them later today as well. But the point is very, very -- everyone needs the software. Every company is becoming a digital product company, and we're the infrastructure to support them. All right. So that's where Amplitude is today. I want to talk about where this category is going next. So I've been teasing and previewing AI, and now is the time for us to finally talk about what our AI strategy is at Amplitude. I think a lot of companies will slap AI on their category and call it a day, but it actually goes very, very deep in our space. AI is incredible at finding patterns in massive amounts of data, and that is exactly what we have with Amplitude. And so there's a huge number of leverage points in it, and it's going to fundamentally change how digital analytics is done in companies. Later this year, we are going to be launching an Amplitude Agent. Agents are going to completely change how companies use digital analytics. Right now, the biggest issue is, even though we have Amplitude and even though it's much easier to get insights, you're still bottlenecked on humans going into the system, right? So you have to make a query on a dashboard. You have to know what you're looking for. You have to know which of the thousands of events you want to sift through. You want to know how you aggregate your millions of users. And it's hard. It's still hard for companies to do that successfully, even though we focused on ease of use since day 1. The leverage with AI is now you have automated agents that can be going over those billions of data points all the time for you. It's like every single user of Amplitude have -- having hundreds of analysts themselves that they can send out to look at different tasks and do different things within the product to extract those insights like I talked about earlier with DoorDash. The second thing that's actually really exciting on the AI Agent front is, because we have hooks into the product with the action layer, so with the Guides and Surveys, with Experimentation, it's not just we can automate tons of insights, but we can actually channel those insights into a pipeline for action, so we can change your product experience proactively in ways that we know you'll like that a human might not even have thought of. And so that's an incredibly exciting thing as well. So last part, I'll say, I made a point of how much we hate hype on the AI stuff here at Amplitude, and so we're actually going to show you a demo of a bunch of this stuff shortly after this with Francois. All right. I want to talk about why we are uniquely positioned to solve these problems at Amplitude, because I think this is kind of an underrated piece of it, of the AI question when it comes to data analytics. And there are 3 big factors. The first is we have the largest repository of behavioral data in the world. The second is we have an action layer that allows you to actually interface and change parts of the product. And the third is we have an open ecosystem of integrations. I want to walk you through them. So the first is I want to give you guys a quick sense of the scale of the data set we have. And I want to use ChatGPT as a kind of easy contrast to it, who you guys are familiar with. So ChatGPT 3.5 was trained on about 570 gigabytes of open source Internet text, right? So crawling tons of websites, trying to figure out patterns in the text there, synthesizing them up back into a product. In comparison, the data set that we have at Amplitude is 10,000x larger. So we have a 5-petabyte repository of events. And it's continuing to grow. Data just continues to grow exponentially. The second big attribute of our data set is that it is -- there's no open source equivalent, right? There's no one -- you can't just go crawl on the web for this. There's only a handful of companies that even have something close to comparable. And so there's only a few companies that could even have the data. So if you're starting a new company today, it's actually very, very difficult to replicate that. And as you all know, the ability of models to learn scales with the size of data inputted into them, and so there's tremendous opportunity for us to extract insight of this data and share -- reshare that with our customers to help them build better products. The second thing, which I hinted at earlier, is that we are not just about creating insights. And this is actually, I think, one of the biggest customer misunderstandings that we have today, is that we have the ability to act on that. And so there are tons -- so it's one thing to just generate a ton of insights and to kind of be buried in the sea of data, but if you can slice and dice very finely your user base and what they want and what they like, you can actually create very specific interventions in the product. So you can create different variations of websites, test them to see what works better. You can create a guide to help you get your users through the most critical onboarding flows. You can intervene when you see your users confused or needing help in your product. And so this is also -- right? So even though there are companies with this data, it doesn't help if they can't translate that data into action. So this is -- this unification between insights and action is the core part of the Amplitude value proposition. All right. I want to bring it all together for you to give you a taste of where we're going. So in this end-state -- so again, we're going to be launching this year. But in this end-state, our customers are going to have agents that are continually extracting insights from your product all the time. So you're going to surface, hey, these users, there's a problem with this part of the flow, or these users have this preference. And then from that, we can then take action on the basis of this data. So think about the examples that I have up here. We can immediately detect if there's a bug in a critical workflow. So I'll give you guys a quick story around this. About a year ago, one of our big -- largest customers, Coinbase had a critical bug in their onboarding flow that they didn't detect with their existing infrastructure tooling. And this bug was causing them to lose millions of dollars a day in terms of sign-ups and people using the platform. And so what they found in Amplitude, because Amplitude had triggered an alert for them that told them, for their Android segment of users, there was a massive decrease in conversion that was unexpected. That alerted the rest of the team. They could rally the team, make a fix and then recover from that bug. So massive, massive savings to their company. The problem with that is that required someone to be monitoring. They're lucky they were monitoring their charts all the time. Instead, imagine if Amplitude is just doing that for you and we can detect changes in critical conversion flows and surface them, and then from there, not to surface them but say, "Hey, well, let's trigger a rollback," or "Let's trigger a change in this particular part of the product experience." Another great example. We can run tons of experiments all the time across our customer base. The biggest bottleneck to trying out different variations of your product today is the engineering team creating those different variations. And so it's actually a lot -- if you talk to any company, it's a huge amount of work to spin up an experimentation practice. What if, instead of having to spin up that experimentation practice, you hit a few switches in Amplitude, and we are now just constantly running variations on your websites and different experiments for you automatically. Now all of a sudden, you have a much better experience. Last is like personalization. AI is phenomenal at identifying micro segments of your customer base that respond well to particular interventions. And so as a product manager or a marketer, there's only -- you might think of you have 3 personas, but what if you really have hundreds of different personas that are all interested in their own particular content, in their own particular category? Again, this is where there's huge leverage from AI Agents. And so now you're in this world where the product is autonomously getting better all the time based on the data that your users are using it with. And you're dynamically creating changes and reacting to users, so I get a different product experience as Francois, get a different one from Andrew, get a different one from all of you, because we have products that are personalized. You're now in this world, where you no longer have to have every single change go through a product manager or engineer, now you're in this world where the product is getting better by itself all the time. And that is massively valuable. So we call this vision of Amplitude the vision of self-improving products because we think this is where the world is going to go, and our goal is to build the platform that gets customers there. Last thing I want to leave you with is our mission. So we built Amplitude to help companies build better products. Again, we are very, very early on that journey. We're excited that a lot of you are already part of that and if we fulfill that -- the business is orders of magnitude larger than what it is today if we execute that right. So with that, I'm going to go hand it off to Francois to actually show you the product and road map and some awesome demos. Francois, please come on the stage.

All right. Thank you, Spenser, and good afternoon, everyone. It is so great to be here with all of you to share our product strategy and product direction and how we're innovating to deliver even more value for customers. As I talk about the product strategy, it's really important that you'll see how we are consolidating use cases on Amplitude, how we're consolidating personas on Amplitude and how we're accelerating the speed of outcomes for customers using Amplitude. And we're doing all this for the mission statement, right? We help companies build better products. And this really matters because today every company is a digital company. Every company needs access to customer data to improve their experiences because success and failure is the difference on how you serve your customers and doing that effectively. And if you look at the opportunity, it is growing exponentially. There are more applications being generated every year that generate more data than ever before. The number of websites that need to be analyzed continue to grow exponentially. And now in the AI era, the number of AI applications are growing exponentially as well. Each and every one of these solutions generate data about their customers, and each and every one of them need access to digital analytics to help them build great applications that delight their customers and drive business outcomes. And this is really what we're trying to do at Amplitude. However, there are some large challenges that our customers face today. First is that the tools available to product and marketing teams are just separate. They're different siloed solutions, and we see that teams need to converge together. It's no longer product or marketing. There is a convergence happening in the marketplace where they need a single application that brings together the entire customer journey. In addition, with the increasing number of customer touch points, it makes it really hard for customers to understand their own customers. You have data from all these different places that need to be -- come together to get a single view of their customers. In addition, security, compliance and regulations are continuing to increase, which is putting even more pressure on customers to make sure that they're managing their customer data effectively. And unfortunately, most of the tools available at their disposal are slow, inflexible and expensive. But what customers want is they're trying to improve customer acquisition. They're trying to get more customers using their products. They're trying to increase engagement in their products. They're trying to improve retention, reduce errors and improve the visibility into their applications. This is fundamental to get the return on investment on all of their digital footprint. They need access to this data, and Amplitude is the solution that bridges that divide, by providing a self-service analytics platform that anyone can use regardless of their skill sets. This is really important. Time and time again, customers are choosing Amplitude for self-service, for our ease of use, for the flexibility that we deliver. Not only that, the speed of insight is unparalleled in the industry. Being able to get answers at the speed of thought about their customers and taking that into action is critical to our differentiators. And we built a platform that is integrated. As we'll talk more of the platform, it's not just about having the different capabilities bundled together. It's about working better together and having one platform that simplifies our customers' technology estate, reduces their costs and accelerates the value. And importantly, we are also building an open and flexible platform where we integrate with our customers' technology, where we can leverage the investments that they've made and enable them to go even further. And so Amplitude really becomes the hub of knowledge for customer data to enable them to drive outcomes effectively. And this is why we have built the broadest and deepest digital analytics platform on the market. And we have been accelerating our pace of innovation. I think many of you have seen that through the past year, delivering new products such as Session Replay, Web Experimentation, revamping our experience with Amplitude Made Easy. In fact, last year, we delivered more than 230 new capabilities to this platform. This is 1 new capability every single business day of last year, and we are accelerating that pace even further. But when you look at this platform, we started with just product analytics. That was the core of Amplitude initially. But we expanded to marketing analytics, we're expanding the whole platform. But it all starts with data, as Spenser mentioned. Data is the oxygen that powers all of Amplitude. In many instances, we are the system of record of behavioral data, and we also leverage data from other systems. We have built the world's leading digital analytics solution, but we are now also a system of insight for our customers, combining quantitative analytics with qualitative analytics. So you can see not only what happened, but why did it happen, in one integrated solution. But increasingly, we're now becoming the system of action, enabling people to turn those insights into action that drive those outcomes. With Activation to bring that behavioral data to different systems, Experimentation to ensure you're driving the right outcomes, and our latest capability around Guides and Surveys to be able to connect to customers and understand right at the point of usage what is going on in that application. This is a unique platform. This is the market-leading platform. We are bringing all of these things together, again, in a complete and integrated platform that delivers self-service at scale with the speed of insight that customers expect. And this is key. And not only that usage of our platform has grown exponentially as well. The amount of data that we're ingesting has been increasing over 30% year-over-year. The number of experiments run on our platform has grown almost 100% year-over-year. And the number of questions that are being answered by Amplitude is growing exponentially as well. So we're seeing not only this trend of data and digital applications where we're seeing customers using our platform so much more than ever before, which is a great testament of the value that we deliver and the outcomes that we generate. But as I mentioned, this is an integrated platform. We want the whole to be greater than the sum of the parts. Internally, we kind of joke around and we say that it's not 1 plus 1 is 3. It's 1 plus 1 is 11. It should be amplifying each capability on top of each other. And we want this platform to be better together. Because not do only we bring the use cases and consolidating them on Amplitude, we're also consolidating personas on Amplitude as well. And if you look at what customers are trying to do, whether on the product team trying to drive user adoption, or in the growth team trying to increase monetization, or if you're marketing trying to create personalized experiences, they all need the full power of Amplitude to deliver that value. So take, for instance, a product manager looking to improve their onboarding journey. While they're going to use our analytics to understand their funnels, they're going to use Session Replay to see where users are frustrated and stumbling down. They're going to connect with their users using Surveys right at that point of engagement. And we've seen customers like [ homebase ] increase the adoption of their key features by over 54%. Now take for instance the growth teams, classic growth team driving monetization. They need our cohorting capabilities to segment their users. They're going to guide them to ensure they drive the right outcomes. They're going to do a lot of experimentation to ensure that they're improving the results they have. And of course, they're going to be analyzing the qualitative side of the platform to see where the users are struggling. And customers like MySwimPro have been using Amplitude to improve their average revenue per user because they have a better understanding of their customers. And of course, marketers need Amplitude to deliver personalized experiences. This is even more important today as you look at getting a return on marketing investment. They're able to use our heat-mapping capabilities to see where users are engaging, Web Experimentation to do different tests to see what actually drives conversion. Our cohorting capabilities to segment the users. And, of course, activating it across different marketing platforms that they have in their ecosystem. And we've seen customers like Evaneos really increase their click-through rate and really getting more value out of the platform. And so this is how we're bringing these different personas together, because when you look at the customer journey, the customer journey isn't owned by one team and a customer. It is owned by the entire company and the teams need to come together. As I personally met with hundreds of customers over the last few months, I've seen it firsthand where product and marketing are coming together at the table for the first time ever, brought together by Amplitude. This is a power to really seeing the whole journey come together at once. And what's really, really powerful is that, when you think about the alternative, without Amplitude, customers would have to integrate over 40 different point solutions in every single one of these categories. Those different disconnected solutions that are poorly integrated, that don't work together, and create more cost, more frustration for customers. Amplitude is consolidating this entire market. We are saving our customers' money, simplifying their technology stack and delivering more value through our platform. This is the opportunity that we are creating for our customers and for the market. And so this platform is what we are talking about with our customers every single day. This platform is our differentiator. And this platform really comes together in a very unique way that no other vendor is able to do. And so what I thought I'd do is, instead of continuing in slides, I thought I'd show live, real running products. You guys ready for live demos? All right. No, this is real code, demoed by a Chief Executive. So who knows what will happen. But it actually shows you the ease of use of our platform if you can be an executive using Amplitude. All right. So all of you guys are going to be power users by the end of this session. [Presentation]

So I just wanted to give you that view of really the power of Amplitude and how our capabilities are coming together to solve more and more customer challenges. Let's go back to slides, please. Thank you. Spenser liked that. Thank you very much. But what I showed you isn't just a demo. This is what's going on every day in our customers. These are the capabilities that they're bringing together to drive value and to drive outcomes. And Amplitude with our pace of innovation is bringing that all together in one simple yet powerful environment that delivers more. But now let's talk about AI. As Spenser mentioned, we see AI as a tremendous opportunity to deliver even more value faster for our customers. And when you think about where we are trying to go, prior to Amplitude, the world was more of these printed maps. You could get a map and, ahead of time, try to figure out where you wanted to go. But Amplitude really ushered in a new world. It's kind of like bringing Google Maps to every business, where you can help navigate your application to help avoid traffic patterns or reduce congestion, tolls, right? We help our customers figure out where they need to go by understanding the world around them. Well, the future of Amplitude is much more like a self-service -- self-driving car. It is like the Waymo that drives itself. It is powered by our behavioral data using our actions capability to help customers go further faster. And we have been investing in AI for years. We started with predictive analytics, providing capabilities such as anomaly detection or behavioral clustering. In fact, our customers are using this already today, looking at our anomaly detection, being able to using machine learning algorithms, figuring out where the data patterns are changing, or using behavioral clustering to automatically create those clusters that we did earlier, we can actually use AI to build those dynamically. Or behavioral predictions to know not just what customers are doing today, but what the predictions and the forecast might be in the future to help them plan more effectively. Now 2 years ago, with the rise of generative AI and ChatGPT, we've been adding generated AI capabilities to our platform. Ask Amplitude and Data Assistant. The Data Assistant is a core part of Amplitude that's actually really important to improve data quality and data trust. And we've brought generative AI, deeply integrated into the platform to improve quality, automatically suggest descriptions, automatically group the data. That is improving the data quality and increasing user success. And Ask Amplitude is our natural language query capability to be able to interact with Amplitude in a very natural way. You don't even have to use the simple dropdowns I had. You can just ask the question and get a visual response. And usage of Ask Amplitude has increased 600% in the last year alone, which means more users getting more value into our platform. But we are now entering the agentic AI era where we are on the path to delivering self-improving products. As Spenser mentioned, later on this year, we'll be delivering Amplitude agents, to deliver a new kind of value to our customers. And it is -- we are uniquely positioned to win in this market because of our behavioral data, a very unique data set that's optimized for this set of use cases, our action capabilities that enable our agents to not only just tell you what's going on, but actually to do something about it and drive those outcomes automatically. And with our ecosystem, our agents can work not only with Amplitude data, but all of the data and all the applications that our customers are expecting to work with. And it's these 3 capabilities that are extremely unique to Amplitude, but it's empowering the next generation of Amplitude agents. And so Amplitude agents will be coming later this year. We're going to be starting pilots with customers very soon. And they're really exciting because it helps our customers go further and solve new kinds of problems automatically. And what I thought I'd do is actually show you an early preview of how these agents will work for our customers. And you'll see not only agents being deployed, but also configuring an agent together to see the kind of power and flexibility that it'll bring for customers. So let's go back to the demo machine. Did I do okay for demo 1? All right. Check out demo 2. [Presentation]

Remember that this is bringing together our data capabilities, our insight capabilities, our action capabilities. And we see customers will be deploying lots and lots of these agents performing a number of different tasks to optimize different parts of the website. Every product manager, every marketer may have their own agent helping them do their jobs. You may have corporate agents that run different jobs to optimize the experience. But these are the Amplitude agents. Let's go back to slides, please. And so this -- the agents are really building on our vision of creating self-improving products. Spenser mentioned it, but we really see the future where Amplitude is not only telling you what's going on in your product, but continuously monitoring and optimizing your product to drive better outcomes. And we are building the broadest and deepest analytics solution in the market. We are accelerating innovation to solve more customer use cases, consolidating them on Amplitude, consolidating personas and accelerating the impact. So hopefully, that gave you a good sense of how we're innovating, how we're thinking about the product strategy and how we're thinking about the opportunity. The next step is to talk about how we're going to bring this to market and help more and more customers get value for that. And for that, I'd like to bring up my good friend, Thomas Hansen.

All right, everyone, good afternoon. What a killer demo. So Francois and I, we get to travel quite a bit together. And we have just returned from Europe last week where we ran our Customer Advisory Board, our Executive Advisory Board, the same also in New York a month ago and in San Francisco. The customer response to what we're sharing is incredible. As a matter of fact, it's not one of these situations where as a go-to market leader, Francois and I, we are out selling. The customers are actually asking for exactly what we're delivering, which is an integrated platform. It's a very, very different situation to be in, compared to what we did 3 years ago as a pure product analytics company. So good afternoon, everyone. It's great to see some familiar faces here from prior similar days that I've been at UiPath and Carbon Black where I had the opportunity to scale those businesses from hundreds of millions to billions. And that's exactly what we want to do here. We have one North Star for go-to-market for Amplitude, and that is how do we take the current business from $300 million roughly to $1 billion and beyond. Now the opportunity is very exciting. We think there's 3 core areas to focus on for the business. Number one, focus on the enterprise segment. As Spenser outlined earlier on, historically, we are focused on startups, orphan digital natives, smaller businesses. We did a re-pivot around about 2.5 years ago. We are now hardcore focusing in to the enterprise. That is where the spend is at and that is where the opportunity is at. Number two, we believe that there is a significant opportunity to work with our customers and to do exactly what they're asking us for, that is to help them to consolidate into one platform, one pane of glass, instead of the, what was it? 40, Francois? 40 point solutions out there, of which many customers have handfuls that they're on today. So we see a significant platform consolidation opportunity. And then, of course, it is about the customer. It's about value for the customer. So we believe as we continue to scale the business, that this is where we, through the ongoing demonstration of not just fast time to value but high ROI, we can make a real difference in that market. Now to get all of this done here, of course, you need a team. So not only since I joined Amplitude 2.5 years ago, have I partnered with Spenser in building the new C-level team that you see here already today, but we also introduced a brand-new team to the go-to-market organization in Amplitude. I am very confident in the leaders we have on board. They've actually all been on board for around about 2, 2.5 years. They come from top companies with scale experiences. So what we have in place now today is a set of leaders that not only are stage-appropriate, can run the business as it is today, but also have a set of experiences and capabilities to take it to $1 billion and beyond. Now when you drive change at top level and you really try to do something transformational, typically, you also see that change going further down an organization. And there's no surprise, when you look at our sales leadership throughout our entire global organization as well as all VPs across the go-to-market organization, around about 75% of the leaders are either new to the company or have been promoted in the last couple of years. So a significant transformation in flight as we've been growing this company. In terms of how we go to market, we've also transformed our approach. First of all, it's been around focus. Where do we invest? So first, from a country perspective, we have zoomed in on 9 geographies, 9 countries. This is where we deploy the bulk of our resources, we do the bulk of our marketing, we really engage. Those 9 countries that are illustrated in the lighter blue on this slide represent roughly 80% of our top line revenue and ARR today. Now if you move on to the next tier of countries, which is 14 countries that's represented by the darker blue on the slide, that represents around about 15% of our total ARR. The difference between the first 9 countries and the next section of 14-ers, and the first 9, we have direct presence, we engage direct with customers. In the second-tier countries, we have lighter coverage. We work more with partners to lower cost of sales and to get more scale in a lower-cost fashion. And then finally, for the rest of the world, which constitutes roughly 5% of our business, this is exclusively partner-led. We don't invest into marketing. We have no people on the ground. We don't fly in to close a deal. It's about focus and being disciplined in how we deploy and allocate our resources. Secondly, as Spenser mentioned earlier on, we started out with a heavy focus on digital-native start-ups, smaller companies. We still service start-ups and SMBs and small teams in larger companies. But we're allowing that to be automated. We allow that to be run by PLG, by a product-led growth engine, a classic self-serve engine. Having that in place now for almost 1.5 years with success has allowed us to take very, frankly, expensive resources, move them up market and really focus the people in the business on where the opportunity is, where the TAM and where the SAM is at, and that is in enterprise. So that is where the bulk of our investments are going today, both in terms of people sales, but also in terms of marketing. Now finally, from a core persona perspective, in the earlier days, I would say, frankly, until 3, 4 years ago, the core focus from a persona perspective was on the product team, the product leader. What we're seeing now is the convergence of marketing and product. And as a consequence, those are the groups of folks, of leaders, that we work with from a go-to-market perspective. Focus is a key word here. And we have been setting the business up for reacceleration. And we have identified that there are 3 core levers that will allow us to accelerate the business further. No surprise, it's enterprise, it's platform and consolidation. And then it's around efficiency and sales productivity. So let me talk you through each of these 3 areas in a little bit more detail. Number one, as we look at our enterprise business over the past year, and we have focused our resources and investments in here far deeper, we have seen a year-over-year growth in net ARR of 88% in enterprise. That is correct, lucky 8, by the way. But -- and just to clarify, net ARR is new, minus churn equals net ARR, in case there was any confusion. Now how we have accomplished that is, as I mentioned earlier on, significant reallocation of our resources into the enterprise segment. We now have 2/3 of our ARR base is coming from enterprise customers. That compares to 60% a year ago. We are seeing significantly larger deals in enterprise. The ACV is typically 6x higher than non-enterprise. We're continuing to land logos at a strong pace. We now have more than 750 enterprise customers, of which we've landed alone in the past year 159. And when you look at our customer count all up, we talk about it every quarter, we -- last quarter, we announced almost 600 customers about $100,000 and 42 customers above $1 million. So real good progress made. Now all these learnings that we've seen over the past year has given us confidence and conviction that we are on the right path in terms of investing into enterprise. So this year, in January, we have also formed another strategic investment into our strategic enterprise segment. This is a small team of top end-sellers, sales engineers, value engineers focused on the top 60 customers and prospects in Americas. This is a segment that today constitutes roughly 30% of our ARR as a business, and a segment we believe we have significant opportunity to go and grow even further. So we're very excited about that. We brought in a very strong leader to run that business for us. Moving on to the platform consolidation. Now again, the last year has seen a significant difference in terms of the shape of our business. In the past year, roughly -- in the past half year, roughly 50% of our new ARR is coming from non-product analytics products. So Session Replay, Experimentation, Activation, formerly known as CDP, and so forth. So significant progress with our customers. They're not only seeing the vision, but they are buying into the vision. We've also learned that, not only is this a very good thing for our customers, that's what counts, but it's also good for the Amplitude business. So multiproduct deals are significantly larger, typically 6x larger than the average single-product deal only. The renewal rate is 10 points, not percent, 10 points higher for customers that are on 2-plus products, versus customers just on analytics. We're also finding that platform customers are more likely to sign multiyear contracts. So significant data points towards this being the right direction. Now we have made a lot of progress. More than 50% -- actually 57% of our top 600 customers are today buying more than more than 1 item on our platform. But not necessarily our full platform. So we have significant opportunity to expand with those that are already on the platform with more than 1 product. But there's also 43% of our 600 largest customers that today are only on product analytics. So we have opportunity, significant opportunity for growth. What you'll see from my friend, Andrew, in a few minutes is how that alone puts us strongly to the path of, first, $0.5 billion, and then $1 billion. Now we, of course, also have to have a very close eye on our sales and marketing efficiency. And that's a journey that we're on. Just in the past year, we've seen year-over-year a 37% increase in sales productivity. That's happened through a couple of key focus areas. One, we have taken a very hard look at the accounts we are managing through our enterprise segment. We actually cut that in half, really zoomed in on those with higher propensity to come with us. We've also become far better in terms of the technology we're leveraging within Amplitude, within the go-to-market organization. Of course, we are leveraging AI, there's no surprise there. But we've also been -- become far better in consolidating the products we ourselves use internally to reduce the time that our sellers and sales engineers spend internally, freeing them up to focus externally. I would think it comes as no surprise that we've also aligned our sales incentives around the few things that really matter, which, of course, is selling into the enterprise, landing the enterprise logos and platform growth. As a consequence, we are now on par with benchmarks for the industry at roughly $1.1 million net ARR per enterprise seller. Of course, that is at a point in time, we're not satisfied, and we'll continue to push on that to go higher, to drive higher levels of efficiency and productivity. Now it is, of course, all about the customer. We have roughly 2,500 customers globally, excluding our PLG Plus plan customers. And of those 2,500, roughly 750 are enterprise clients. They are across all industries, all verticals, all geos, but with concentration, as you heard earlier on, into our Tier 1 9 countries. What's so interesting about it is we're seeing even the more traditional larger, older perhaps, enterprise companies such as JPMorgan Chase, Walmart, Ford Motor Company come with us at significant volume. So the market is -- as long as we're still early in the category, the market is coming with us. Very encouraging signs. So I'd like to share with you a few customer stories. And I want to start with perhaps a more recent one, a more modern version of how you perhaps go about landing customers. So this is a classic from free through PLG into PLS, product-led sales. This is the Browser Company. Went very fast through the maturity cycle of working with us. Through the community, they identified that they wanted to leverage our solution to go and test their product market fit back in 2020. As they got to PMF, the product market fit, and launched their Arc Internet browser in '23, they upgraded to our entry-level growth plan. We detected through our propensity analysis, usage patterns through our sales ops team that there was an opportunity here to do something bigger, to do something bolder. So we engaged from a sales perspective -- from a presales perspective. We showcased the power of the platform. And a month later, moved the client that, just a few months earlier, was paying 0, into paying mid-6 figures on an annual basis. So significant opportunity through this PLG motion, not just to serve start-ups and SMBs and small teams in large companies, but also to go and do really fast, significant business for the company. Now I'm going to move on to 3 more examples, but I want to just thematically call out a theme you're going to see throughout the next 3 slides, the next 3 customer examples. What you'll see here is all 3 are an example of how we as Amplitude have moved from, let's call it, the initial volume upsell-based sales motion that we leveraged in the earlier days and throughout the early years of COVID, and how that has transitioned into full platform solution value-orientated sale. So let's have a look at the first one. Francois, they have chicken sandwiches, I think you're all familiar with the RBI, Restaurant Brands International. We're very proud of the work we've done with them over the years. We did an initial small land with them for the back then brand-new Burger King app. That went pretty well. That allows us very fast to expand into Tim Hortons and Popeyes. Then as the world went into lockdown and COVID, we saw a very fast upsell into additional units. And then gradually, we got into talking to all the key stakeholders, not just in the brands I mentioned, but additional brands and expanded into more than 10 geographies the world. And that affords us the opportunity to go and talk the consolidation platform play. And today we are at a place where, with them across the world, they're leveraging our Activation, CDP solution as well as Session Replay, and are also doing some early tests with our warehouse-native analytics offering. Now we have more work to do with them. It's a global distributed company, so there's a lot of work ahead of us. But we're really proud of the progress we've made with them and the feedback we are getting from them. So a pretty good, straightforward stock standard example of land-expand platform. Another good example there is the work we've done with FanDuel. Wonderful customer. That, of course, has gone through incredible scale as the categories that they work in has gone through amazing growth. What really stands out here in terms of our learnings with them is the partnership they've taken with us and really leaning in and providing us feedback on both products that they have and products that they are piloting. So truly an amazing partnership where we're learning from their input, what we're building for them, and together ensuring that so many other customers are going to see the value from our platform in a much broader way. And finally, on to a very interesting example, let's call it company 4, in the entertainment industry. What is so interesting about this company is we have tested here some of our new thinking, myself, Andrew, Francois, our new thinking on pricing, packaging and licensing. So this is really about leveraging best practices from leading industry companies that you're all familiar with, like ServiceNow and Microsoft, how can we get an enterprise agreement structure in place that provides our customers with flexibility and a vehicle that provides them full access to our entire platform in a cost-efficient, value-centric manner. That's exactly where we landed with this customer here, where they today essentially have full access to all our current and all our future products during the term of the contract. It's a formula we are excited about. We're testing with more customers. Andrew and I and others are working more on other ideas around our pricing, packaging and licensing that we believe will allow us to grow even faster in the enterprise. Now talking about great customers, this is where I want to move off slides and invite my good friend Chris Benyarko, the EVP from NBA, on to the stage. Chris, come and join us. Do you want to sit down? I think we're going to sit down, right? All right. So Chris...

We should sit actually. Standing next to you...

I know. Just standing on this stage, I don't need the extra foot here as well. But great to see you here. Thanks for joining us. So perhaps start by telling us a little bit about yourself. How long have you been with the NBA? What do you do there?

Yes. So I've been with the NBA, this is my 21st season. My first season was also LeBron's first season. I started about a week before his first game, but his NBA career is probably going better than mine is at this point. And so when I first started, I was a back-end engineer, worked on content management systems, and the web, this was before mobile web and mobile apps and kind of transitioned naturally as the space transitioned, and we've always had a culture of being focused on innovation. So I naturally was able to progress into working on the mobile web, mobile app, direct-to-consumer, social media. So kind of picked all those things up. And so fast forward now, oversee a team for our direct-to-consumer products, our NBA app, NBA.com, network of sites, our membership program, NBA ID, direct-to-consumer. And then we do quite a bit of distribution of media too, so an extensive broadcast technology and operations team. So a little busy.

Very, very. Whenever I see you, you're always on one or another phone, and there's something going on with the broadcast on an event. It's pretty exciting. So in terms of your fan base, how has the work with your fan base evolved and driving loyalty engagement? What are you learning there?

The biggest thing we kind of made a decision a few years back, that we had all these fans across the globe, 1 billion-plus followers on social media, tons of people watching us on TV, but then we took a step back and said, how many of these actual fans do we know? If you think about all the people that actually go to an NBA game, I'm sure all of you have been to a game, and someone gave you a ticket or you got a ticket to go to a suite or whatever the case may be, so between the league and the teams, the actual -- how much we knew about our fans was actually limited. And so we made an effort to say, let's really invest in our digital properties, go direct-to-consumer, not only in terms of selling content but also providing content directly there, and really built out a platform and then built a suite of digital products that sit on top of it. And to this date, we -- since we launched that platform in 2022, we've had 100 million digital transactions go through that. And so we have a lot of first-party data, a lot of implicit and explicit information we know about our customers, and it allows us to serve them better.

Yes. Fantastic. Let's talk a little bit about Amplitude. So what kind of insights did you initially gained from Amplitude? What did you learn?

I mean a broad set of things. I would say one of the key things that was important about Amplitude as a tool compared to a lot of other tools, a lot of analytics tools very much were just counters, almost bean counters. So 2 people came to this page, 3 people came to that page, but really understanding the complete journey is what we started to understand that how people consume content first thing in the morning and where they go and how they increase their engagement was very different than before the game. And so we started learning a lot about that does not only change through all of the typical factors you account in terms of where someone lives or how old they may be, but also different fans follow teams in different ways. And so we were able to kind of grab those insights. And then other fans, we were able to move them along their journey by encouraging them to take actions that we saw were successful with others.

Fantastic. So we've been working together for a number of years. So talk us a little bit more through the journey. So you started with product analytics, then what happened after that?

So when we first started, we started with analytics, we actually started in just our international version of our app. And then we were really just blown away by all the insights that we were able to get and said, "We really got to take this and expand out to other applications." So we moved then to some of our other leagues, to our teams. And one of the biggest things that we grabbed from that, and we said we -- really is important to like motivate going through, is that we will show people examples. And I remember one of the first times Amplitude came in, I realized that you actually use your own product to gain a lot of insights and things that are going on. Because it's really hard, especially in my background coming as an engineer, you approach someone and the first thing you say is like, "I want to rip out this piece of code and I want to put in this new piece of code, and they all kind of have that fatigue -- here. It's only one line of code and one day, you will be up live." And so you always have that aspect you're trying to manage through. And so the ability that we had Amplitude in and very quickly, we could show the value that we were getting, and we also had other leagues excited about it, and made getting it into other applications a lot easier.

Right, right. And then you moved beyond just analytics. Now you're also leveraging Experimentation and Session Replay. What have you learned from that? What are the takeaways from that?

Well, I got to admit, I was in here a little early, so I saw the multiproducts, definitely a multiproduct customer. And I think integrated solutions are very important in allowing you to be innovative, allow you to move fast, allow you to be also efficient. And so as we transferred from analytics and also added in experiments, that allowed us to say, "Okay, now that we see what's actually happening, let's put an experiment in the marketplace to see if we can actually change that behavior." And really good experimentation usually means most of them fail, right? And so what it allows you to do is to say, "Okay, I can do a test here, do a test here, find one when that works, and then just really not even double down but triple down on it." And then activate it with marketing, start to talk about that feature on social. And so it allows everyone to give very pointed direction and then it drives results. And then every time we're experimenting after that. And so obviously, we're going to be transitioning to also including Guides and Surveys. So that whole approach of the customer journey and making it easier. I think it's important to have that integrated solution.

Did you just say that you're also going to come with us on Guides and Surveys?

Yes, I am.

That's news, by the way. That's good news. I like -- that's very good. Do you have a survey product today?

No, we don't. And one thing even as important about -- or I'm excited about using the survey product in this solution, it's not only the survey about digital consumption and behavior. As some of you might be aware, we had a trade that was quite talked about in the news and covered from there. Now that we know a lot about the fans that are coming through our products, we actually can service the broader set of the company and actually do surveys to things that may not be directly about the NBA app but more about how they're feeling about fandom and kind of driving that business across the board, even though that's not directly direct to consumer in terms of selling a streaming service, but it may be very beneficial to our NBA teams and tickets and merchant and other things they may be selling.

Very good. Very good. And so initially, the website, international, we've now expanded onto many more properties of the NBA. What's the plan here?

Well, the plan is that we are -- across all of our digital properties, we have Analytics. Some of them on Experiment and the plan to get fully kind of across the board with everyone kind of using the solutions moving forward.

Fantastic. Very, very good. Now I saved the most important question for last. And I do know -- I have to disclose, I do know the answer, but I think you might find this interesting. So looking at the WNBA and the NBA, who are your 2 favorite teams?

So first, knowing some of your background, I would have expected maybe to get a question about a Seattle franchise. But you didn't give me that one. I do get the question a lot, and I love them all. There's no difference in between. And I would say I was born in Toronto. I grew up in New York. My wife is from San Diego. And so that'll give you some hint as to kind of what my household may be like. But in general, I root for all the teams the same.

Fantastic. Fantastic. Well, Chris, thank you so much for joining us. It's a pleasure working with you, and thanks for sharing your insights with the team here. So with that, thank you.

Thank you, Thomas. Thank you.

And I am going to hand over now to the brain and the beauty of this operation, to our CFO, to Andrew. So Andrew? There you go.

Thank you, Thomas. All right. I get the auspicious role of closing out our Investor Day. And what I'd like to do is share a little bit about some financial information with you all to help you understand how we're building a durable growth business. So first and foremost, you should understand, we're focused on 3 basic priorities for our financials. First and foremost is growing our net new ARR. Now if you don't know, 99% of our business is from our subscription, okay? And our subscription ARR is the precursor to our revenue growth. So if we drive net new ARR, obviously, we're going to drive our growth. Now you heard Francois and Spenser and even Thomas talk about the investment in the platform. I can tell you that the platform is increasingly enabling us to reach a broader set of customers. It's enabled us to drive greater efficiencies in our model. And it's enabling us to provide greater and greater value for our clients. So this is an area -- you might say it's more of a product related, but I will tell you this cascades down into the financials as well. And last, if you've heard me on any of the earnings calls, you'll know that all this focus on growth and investment, we're still trying to be very disciplined about making sure that, that growth results in increasing amounts of leverage, okay? Now I want you to know we have multiple growth drivers in our business. First and foremost is the investment in our platform. It is the source through which we are generating value for our clients, and it's the way in which we're driving convergence in the markets that Francois talked about earlier. We see this market conversions happening between product, marketing and customer analytics. Really, it's all about trying to understand how our businesses -- our customers' business are better interfacing with our clients. Because of the progress we've made, we're increasingly appealing to a broader set of enterprises, and that's allowing us to acquire new customers. And I'll talk a little bit more about that. But when we land quickly with those customers and we prove out value, we earn the right to go show them how we can drive that consolidation story. We earn the right to offer a broader set of capabilities. That drives our expansions, okay? And that's opening up a whole set of new use cases for us. We're able to go after a whole set of areas that we didn't even anticipate before. And that's opening up to greater personas and greater industries. Thomas talked about it earlier. It's not just the digital natives anymore. It's also classic enterprise businesses that are trying to figure out how to better digitally engage with their clients. Now longer term, when you think about our growth areas and where we're investing, we'll continue to invest in greater coverage, expanding internationally. And ultimately, we'll start developing a broader set of partners that can help us reach out to a broader set of industries and prove out more and more cases of automation and efficiencies, right? Now I want to hit on this again because I think it's really important to understand a little bit of the history because we -- through our innovation, we're actually driving this market consolidation. And in a period where we've had difficult macro backdrops, our sales team has actually been able to come and showcase to clients how they can get a value for the money for investing in Amplitude. Many times we can go into a client. We can actually show them, hey, you can consolidate multiple different technologies on us. We can save you in licensing. We can drive greater efficiencies. But guess what? We're leaning into that value proposition. So you have the perception that you're getting value as you're deploying. So it's really, really important. The fact is that we're not just going after the long tail of technologies that have been out there, have been created around the analytics story. We're actually going up right against the very historical installed bases of Google and Adobe. Okay. Thomas mentioned, about 2 years ago, he started changing the way in which we were interacting and targeting our clients. He changed the customer segmentation. He changed the coverage model. He started changing the sales processes. Now at that same time, we were building out multiple other capabilities that were attractive to our enterprise clients. Well, that's enabled us to drive greater acquisition of enterprise clients. We're seeing it that they have 2.5x higher lands than we do with non-enterprise clients. This became a new cohort that we're starting to disclose, and you'll see us talk about this more and more and more. And for us, in particular, we drew the line at companies who have 1,000 employees or more or have over $100 million in revenue. Now why do we have an [ aura ] on that? Well, we're in that category. And we're increasingly selling to companies that have aspirations to drive their digital engagement and growth. So this is an easy way for us to segment both traditional and nontraditional enterprise clients. So they're landing at 2.5x higher. Now the great thing is we're increasingly showing greater value as they adopt. And the integration that we drove at the -- last year with our Amp Easy showcased that all our products are not different things that you have to install, but rather they are one integrated environment where customers can show great value. And they are rewarding us with 4x higher expansion rates. So the enterprise class is buoying our growth. If you think about it over the last couple of quarters, an acceleration of our ARR, it's because we're adding more enterprise clients and they're seeing value in it. It's helped to offset, frankly, some of the churn we've had from COVID-related and 0 interest rate periods where people overbought, right? Now I want to give you another data point. When we're appealing to enterprises, they're increasingly adopting a broader set of the platform. They have 2x higher rates of adoption than the non-enterprise clients when they originally started. In fact, we're starting to see more and more customers land the full product suite, not just a normal journey that Thomas was showing where they land with Analytics and they move on sequentially. But rather they see the broadness of the portfolio, and they're landing with their desire to have access to all the products. Now when that happens, we see that the enterprises are deploying at a 6x higher rate on ARR. So you can imagine that our focus is on driving more and more enterprise clients and driving more and more of those enterprise clients to adopt the full platform of Amplitude, okay? Now over the last year, we made all these changes. And we made this focus. We reconstituted how we're thinking about enterprise, and we actually saw an increase in the amount that we're seeing from enterprise clients, away from 60% of our ARR to 65% of ARR, okay? And we expect, as we're on our journey, to go $500 million and $1 billion, that, that percentage is going to continue to increase. We changed where our sales resources are focused. They're focused on the enterprise. Our marketing is focused on the enterprise. Our products are increasingly appealing to the enterprise. And that's the underpinnings of our growth and our improvement in our net dollar retention rate. We went from 96% in Q2 to 98% in Q3 to 100% in Q4. And we're intending to increasingly drive greater acquisition of enterprise clients and expand with those clients to improve our net dollar retention rate as well, okay? All right. So our growth algorithm is really not that hard. I mean we're a classic enterprise land-expand-retain model. Over the next few years, as we start driving our business growth to that $500 million ARR point, we're going to add new enterprise logos at a compound annual growth rate of about 12%. If you look at the way that Thomas' team is driving greater and greater sales efficiency, the way they're targeting customers, this is a very reasonable goal for us to go after. And we saw the most enterprise clients land with us in the last quarter. So we're starting to see the benefits of the investments that we've been making in our coverage and our product come to fruition through greater acquisitions of enterprise clients. Now if you look at the base of enterprise clients we have today, about 750 of them, you'll notice that they have about an average of $270,000 average ARR. And over the next few years, we expect that we can add additional value to each of those existing customers as well as new customers and grow the average, okay? Now I talked about many times on the call that we're not expecting a major improvement in macro to go drive our business. And the fact of the matter is we have had difficulties around SMB and mid-market churn over the last few years. So the non-enterprise segment, although it's going to grow, it's not going to grow at the same rate. And you might still see a classic SMB, mid-market churn rate within it. But two, we believe that we can add greater and greater value for that cohort and increase their average dollar, not a tremendous amount, but enough that actually will drive our path to that greater than $500 million. Okay. Now the reality is, even in our existing customer base, we see that our largest customers are adopting a multiproduct platform approach than the smaller ones. We see that 57% of our largest customers are adopting multiproduct. And when they do, they are -- it's resulting in 4x higher average ARR. So Thomas mentioned it earlier. We still have a great opportunity to just go sell our existing set of products and capabilities into our existing customer base to the tune of at least $160 million in ARR. So the motion that you're seeing is starting to result in the acceleration of our growth, and it's doing it in a material way. In fact, some of the things that we did in the latter part of last year is we are really honing on our enterprise message. We started pulling other levers and making changes to our incentive program to really align our strategic objectives and what the sales motion was putting in place. That has enabled us to expand our contract duration. Our contract duration, when you have multiproduct, you're leaning to a customer's value proposition, really, really good. It puts a very strong durable framework around even when you have macro issues. So our RPO has increased by 29% year-over-year. And our long-term RPO has increased by 67%. And here's a little secret. When you drive greater contract durations, the amount that you have to renew each year falls. When you have to renew less of your contract base every year, guess what? It shows up in greater productivity for the sales team because they can increasingly focus on driving greater value for their clients and showcasing all our new products and driving expansions. So if you do the math, our churn is going to go down because we're driving the right type of durable engagement with our clients, providing value, increasingly driving the consolidation story, and it's resulting in the right frameworks and contract duration. Now I want to talk a little bit about -- we're talking a lot about growth and all the things that are behind our growth, but I want to actually share with you, too, the mechanisms and levers you're pulling to drive leverage. Now over the last year, we've done a lot of work to increasingly instrument and drive process changes to improve how our business is operating. We're improving our gross margin, and you could see that in the estimates that I gave at the last earnings call. We're improving gross margin. We're improving sales efficiency. We're driving greater efficiencies in the G&A line. On R&D, I will tell you. I looked at it. We were a little bit underinvested as a percentage of revenue. And as part of the Command AI acquisition, we brought a team over, and that's helped to get up to 18%. But I still think we're a bit light there as far as driving growth in our future business. But as we map to $500 million and $1 billion, we're going to continue to drive greater and greater actions to drive efficiencies. On the gross margin line, it's about driving increasing optimization associated with how we're delivering our subscription service. You heard Francois talk about the enormous amount of data that's being presented and all the different ways in which customers are engaging clients in different mechanisms. Whether that's on kiosks or variables or applications or websites, that's increasing amounts of data. And the time that people are spending in those environments is increasing. So all that data pressure is coming down on us. So we have to continue to drive optimizations to make sure that our gross margins are continuing to improve. Now over the short term, as I've said a couple of different times on our earnings call, as we invest in the enterprise, we're going to have to invest in services capabilities because even if our products are perfect, customers are not. And sometimes they need a helping hand to really understand how best to integrate within their environment and drive the right types of outcomes. And we're going to be investing to go create that partner ecosystem that, frankly, can do the delivery for us so we don't have to invest as much, right? But the thing that we found, too, is as we add more products to customers' capabilities, the actual marginal incremental cost associated with investing data drops, which is a great thing. So we have all these things working for us toward that $500 million ARR range. We can get above 80%. And as we drive to $1 billion, we even think we can go further than that. All right. On the sales and marketing side, look, this is about hardcore enterprise coverage improvement, sales processes. Thomas was talking about -- earlier about pricing and packaging, how we do deal constructs. It is about really scaling the capability for the team to sell the broad value that we have and making sure that we're increasingly generating the right focus on our demand gen, so they're focusing on the right customers, that the demand gen is resulting in the right campaigns to do conversions. All this is how a company scales, okay? And we're increasingly believing that as we get to $500 million, we can drive that down to 38% to 41%. And even beyond that, as you go to building to $1 billion ARR, that 30% range -- 30% to 32% range. On R&D, actually, we're going to try and keep it in that range of 18% to 21% between $500 million and $1 billion. That means both inorganic and organic growth and making sure that we're investing in the future products that our customers will need. On the G&A side, this isn't rocket science. This is coming in. It's renegotiating contracts. It's getting vendor consolidation. It's driving down facilities costs. It's about not investing in G&A as fast as your revenue growth, driving efficiencies more and more. And as we go closer to $500 million, that will get closer to 10% to 12% of revenue. And as we get closer to $1 billion, we want to get that below 10%. So that's 8% to 10% range. Now here's the crux. As we drive greater efficiencies, that obviously shows up in improvements in operating margin. In my guidance in 2025, you probably noticed we're moving from unprofitable full year to profitable. Well, as we drive forward, we want to make sure that as we grow, we're driving a profitable result for that, so we can increasingly drive towards that Rule of 40 picture. Okay. In closing, I just want you guys to understand that we are investing and focusing on driving customers -- driving value for our customers. And we believe there's a huge market opportunity for us to do that. It's incredibly important that this -- we understand that this market is early, but there's so much going on that's driving that convergence. We're rapidly innovating our products. We're introducing cutting-edge AI into the capabilities to drive efficiencies and optimizations for our enterprise customers. And the enterprise focus we have with our go-to-market team is very, very aligned with what -- the products we're creating. And there's a -- there is strong feedback loop as we start working with our customers and they're giving us feedback on what we could do better, that we're constantly ingesting that and focusing on the future. And hopefully, you understand that because we're focusing on enterprises, they have higher gross retention rates. They have higher net retention rates. They have higher lifetime values. And they typically contract us for longer durations. In fact, the customers that are both enterprise and multiproduct, the average contract duration is already up at 25 months. Now we're pushing for closer and closer to 30. But as we get there, it becomes more and more durable, right? So with that, we can move to question-and-answer.

All right. We're going to have the entire leadership team join us and get ready for questions. As we get the mics out, I'll throw one out there. Our first question came in online, and then our second question will go to Jackson in the back over there. So maybe for Francois or Spenser, we shipped over 230 different features and products last year. That's pretty incredible pace. And you're talking about reaccelerating -- continuing to accelerate that pace of innovation this year. I'm sure we're going to get some questions on AI in the room. But outside of the AI products that we're shipping later this year, what are we focused on? How are we thinking about the opportunity from the product road map for this year?

Yes. So I think first to understand, now with the addition of Guides and Surveys, that represents the core platform. So there's kind of -- there's not really a point solution out there that you need to use aside from Amplitude. And so we're able to offer consolidation for our customers among all of those different pieces. Now we're not slowing down on it. I think within each of those products, there's a lot to do. So like for example, on Guides and Surveys, I called out we need to launch a mobile version. So that's coming in Q2. On Analytics, there's a bunch of marketing analytics capabilities who are focused on building to take out a lot of the legacy players who are moving their entire system of record on digital from marketing analytic solutions to Amplitude. There's a whole bunch more in Session Replay. So there's a lot -- there's still a lot to do like -- and be aggressive about on the core platform. I think outside of that, the big bet is AI agents that you saw. So that's what -- where you have our top people within Amplitude focused on. Actually, a bunch of folks from -- my co-founder's working on that. A bunch of folks on the Command team are working on that. We're continuing to invest behind there. And then I think there's incredible opportunity on a number of different places in terms of automating insights and automating actions. So one of the things that we're actually looking at beyond that is like what we call Copilot, which helps you -- which is like a Q&A help bot, for example. So there's a lot of adjacencies where it's like, okay, we have this repository behavioral data and then how can you activate it in different places. So we'll be coming out with quite a bit more on that.

What I'll add is, I mean, you've all seen the pace of innovation, like really pushing for a breathtaking pace of innovation because innovation is our lifeblood. It is how we're going to differentiate for customers. But the way that I think about where the road map is coming together, supporting what Spenser said is, first, is we're accelerating the platform strategy, adding more capabilities, the richness of the platform. That is really, really critical to the success of our customers. Second, as Spenser mentioned, it's about accelerating the marketing consolidation opportunity as well. Customers are frustrated with Google and Adobe, the lack of innovation in their platforms, the lack of flexibility, the rigidity. And we are making Amplitude the best place for all those customers to migrate to. And we're seeing that happening quickly. And so we're innovating to address as many of the opportunities on that front. And the third is really around the enterprise. As we invest more in the enterprise go-to-market, we're continuing to work closely with our customers to ensure we have the right capabilities to be able to scale with them, have the right security, compliance and automation capabilities to enable you to go there. And of course, all of that will then power our agentic AI capabilities, which we're really excited about. But they build on the whole platform, and all the innovation is really propelling the opportunity for our customers to drive more success.

Great. Thank you. All right. We'll go to Jackson, and then we'll come down here to Liz.

I'm not sure if this is on or not. Okay. It sounds like it is. Jackson Ader, KeyBanc Capital Markets. A quick clarifying question, Andrew. How quickly did enterprise ARR grow last year in 2024?

So we talked about -- Thomas talked about in his slides that the focus on the enterprise and new efficient was growing 88% year-over-year.

80% net new. But like ARR less churn, but like that overall business, the ARR growth rate, do we have that number back to 80%?

I don't have off the top of my head, but I'll get it to you.

I mean you guys can do the math. 60% to 65%. 60% to 65% of the base. So...

I only -- the reason that I asked to clarify is simply because the -- it seems like the implication for, call it, the next 4 years or so is like mid-teens growth for the enterprise, just doing some same kind of back-of-the-envelope math, right? And it sounds kind of more exciting than that, right? Like I'll be honest. So what is the governor on the enterprise growth rate in the next 3 to 4 years?

The governor is really just us getting more and more the sales team understanding and selling the platform story to a broader set of enterprise customers, and frankly, getting over some of, I think, the broader market malaise within the application space. So if we're able to showcase even with that, that there's extreme value by consolidating on Amplitude, then certainly, we think that we can accelerate the growth of the enterprise segment.

Got it. Okay. One more real quick one. The -- gosh, what was it? The top 60 customers that make up like 30% of the ARR?

30 customers, 30 prospects.

Got it. Okay. Great. What is the -- what's like the total wallet for just if you think about those customers? What would be the TAM of like just those 60 customers that you could seemingly go after and tackle in the next couple of years?

Just look at those current 30 customers. We have to follow up with precision with you, but its order of magnitude is 3 to 4x current ARR current revenue. So there's a significant opportunity. And that means selling the entire platform. It means expanding into all those companies, divisions, groups, geographies and so forth. But there's significant opportunity.

The vast majority of the logos you see in the traditional enterprise, we are very early. Like NBA is kind of an exception in that they've kind of deployed us wall to wall. But 95% plus, it's like we're only on a portion of their company. And there's a lot more, as Thomas said.

Thank you. All right. We'll come up here to Liz, and then we'll go to Scott Berg after that.

Great. Elizabeth Porter from Morgan Stanley. So Spenser, first question for you is, could you just talk a little bit how the market has evolved as it relates to people's willingness to essentially turn over the reins a little bit for the data-driven approach as opposed to the gut-based instinct that was really what product developers would use, especially as it relates to going to this always-on AI to drive that decision? And then as a second maybe for Andrew, once this rolls out, like what does it look like? Is it more consumption versus tiered subscription? And how do you balance the -- kind of a price to get customers willing to try out this new approach versus maximizing the value for the company?

So I think historically, you've seen product teams, to your point, beat gold around shift the road map. Did you get this release out? Did you get this feature by this date? I think what we're seeing a change in the most sophisticated teams, starting in tech but increasing in nontech, like I was just talking with Chris from NBA about this, is they are now focused on how do I drive better customer engagement. So their top line goal is not to get this release out. It's, hey, I need to grow my retention by 10% this year. I need to grow my conversion rate this much, and that translates to hundreds of millions or billions in revenue for the company. And in order to get their arms around that, that's what drives the need for Amplitude because it's like, okay, well, how can you possibly do that if you don't understand how those -- how that data breaks down and what's going on in the user journey. And so I think we're still, frankly -- it may be surprising to hear this, but we're still early in this transition. And that's part of why I talk we're early in the market. Because most product teams, they're still thinking about this way. The best have started to go from this kind of shift the road map approach to the quantitative, let's actually focus on driving user engagement and conversion, retention and the revenue of the business. But it's still very early for that. I think the best -- we talk a lot about kind of the previous generation. The same thing happened in marketing a decade or 2 ago, where if you were a CMO, I mean, literally, this is like what the show Mad Men is based off of, right? It's about, hey, you create a marketing campaign that zips and connects with someone. Now it's like if you're a CMO, you're expected to show up with metrics on your campaigns. Hey, what's my breakdown of ROI per channel? Where am I getting most engaged from your users? Like you're expected to be operational and very quantitative. It's like a given. Like a CMO wouldn't dream of showing up to an executive team meeting without those -- without that data. And so we're seeing that same transition happening for kind of the rest of the digital experience, not just marketing as a channel. Now it's like, hey, as your digital product team, you're expected to understand the same thing, too.

So on pricing and packaging, first, I think I'd tell you that the vast majority of our customers are -- have a pricing meter that's based on the number of events they ingest within the platform. So we think about it in terms of -- that was our early foray to truly align a customer, how they thought about the value proposition that Analytics provides with the variable rate in which they were actually using it. As we introduce more products, that became more complex because there are a lot of other products that have different meters. And it really led us to understand that this is a little bit too much of a burden for customers to go through as they're adopting new products and the complexity associated with license administration. So the interesting thing is that as we go forward and we're adding more capabilities around it, customers are not telling us that events aren't the right meter. In fact, it may be the best proxy of selling value, but that value proposition changes dramatically because they're able to use more and more capabilities. You heard Francois talk about -- earlier about how customers are increasingly driving experimentations on -- using our Analytics. And the usage of that is certainly driving greater value, but the proxy on that may be still the data that they actually ingested. So we're going to be introducing new pricing and packaging that makes the journey for enterprise customers less frictionless, that incents adoption. And as we add agentic to it, it's certainly an additional aspect to that value proposition. But what I've seen a lot of companies do so far is they talk about it in terms of it's some additional volumetric. I'm not so sure that the value proposition has changed, but rather we're adding more to the value proposition. So think about it in terms of if we were charging $100 before, maybe that same set of services with a broader set of applications is actually worth $200, right? So this is an area where you'll see us talk about more and more throughout the rest of the year, but know that it's certainly not our objective to make the adoption path full of friction. We want to do the opposite. We want to create as much adoption as we can because the more customers use our platform, the greater value they get. The greater value they get, the more they're going to be willing to engage with us.

Great. Thank you. We'll go to Scott and then Taylor.

All right. I guess I've got 2 here. I'm going to continue on the theme around, I guess, agents and whatnot. How much of the platform does the customer have to consume to implement your agent strategy? 2024 is kind of -- or I guess it's 2025 now. It's kind of a year of agents and application software, right? So how much of the platform do they really have to use? And then second question is on a financial question, $500 million of ARR. It's obviously higher than what you guys are today. But what growth rate assumptions are underpinning that model? Because 10%, while it's a nice number, I guess how does that move or ebb and flow at a higher or slower maybe revenue growth rate than what you're thinking?

So I'll start on the question about agents. As Thomas and I have been meeting with customers and sharing the road map, literally 100% of our customers are saying, we want to engage with you on agents. What's interesting about it is that when you look at our platform, think of every one of the words in the platform as new skills that the agent has access to. So there are more capabilities. Yes, analytics is a foundation. But as you add other platform elements, the agents become more functional. They have more capabilities to solve more problems. And so a lot of these customers were really thinking about it less in terms of the platform capabilities, but really, if we bring all this together, oh, my God, we can actually solve new problems in new ways. So they can start with just Analytics, as we saw from the analytics agent, but the agents get better, smarter and more capable the more their platform they have access to.

And on that, just one key point to emphasize. If you think about it, what underpins everything here is data. We just have to ingest the event data once, not 5x for 5 different point solutions, which many enterprises are dealing with today from 5 different vendors. So our opportunity here lies in our fundamental COGS is onetime event ingestion. So for us to go aggressively into the market and outprice our competition, all the point solutions, bring the customers onto our platform in a very advantageous manner for the customers, it works. It's a very strong story. And then you automate it with the agentic approach.

So on a -- on the growth side, Scott, we've been slowly but surely progressing our sales productivity. We've been adding more capabilities for customers. So it's expanding the ability for us to drive ARR higher on engagements. I'd tell you, we're still overcoming some of the past associated with the period of overcapacity sales as a result of COVID and from 0 interest period. So that's kind of dampened down our growth. If we hadn't had some of those self-inflicted wounds, if you will, we'd already be mid-teens. So when we think about getting to that $500 million ARR, it's certainly one that we're expecting to continue to accelerate our growth. But there are some things we have to continue to do. We still have to execute. We still have to go after customers. We still have to make sure those customers understand the value. And we have to increasingly appeal to that value for the money story in a period where there's a difficult macro. So all those things are kind of underpinning it. Do we believe we can go do it? Absolutely. Otherwise, we wouldn't put up those numbers. Now you're just asking like, when can we do it? Well, that's the real story, right?

Great. Thank you. All right. We'll go with Taylor. Then we'll come up here.

Taylor McGinnis with UBS. So 2-part question. The first one would be, I want to touch on the usage metrics because I thought that was very interesting. I think you talked about event volume growth, growing 30%, which is obviously a lot higher than revenue growth and where our NRR is today. So when you just think about the opportunities to monetize that, maybe it's a function of some of the cross-sell opportunities today. Could you maybe elaborate a little bit more there? Might be monetization as it relates to AI agents. So I'd love to get your initial thoughts on what that could look like. And then, Andrew, for you. When you think about the bridge to get to NRR of 110% to 115%, could you just break that down for us? So I don't know if you can give us what enterprise and non-enterprise NRR is today, how much of that is mix, how much of that is churn, volume growth, cross-sell. Just any color there, I think, would be really helpful.

So on data volume growth, 30% year-on-year, amazing revenue growth, a good deal less than that. I think actually you've heard a really good metaphor for this last week, which is kind of like bandwidth, which is bandwidth is increasing 30% year-on-year, but unit economics are dropping by 20%. So the overall market for that is increasing 10%. And so I think there's a very similar dynamic here where, to Francois' point, the amount of data -- so the amount of applications are increasing. The amount of time people are spending in those applications are increasing more than that, and the amount of data of those applications has kind of been increasing even more than the time spent. And so the more data to us, the more value we can generate in all sorts of ways, whether through insights or the agentic or interventions we can do or what have you. And so we think a lot about, okay, we're continually reducing the cost of incremental data to be sent to us. So that way -- because the more data that gets sent, the more value that's generated. And then the value metric, to Thomas' point earlier on COGS, it's like once that's in, there's tons of ways and tons of applications to activate that data. So the Insight and the Analytics product are one. But you have Session Replay. You have Experiment you can run them on. You can have Guides. You can have other interventions where you activate it through messaging products. And so we have this thing, which is like, yes, don't bet against the growth of data. We're betting for it. We want to reduce the cost on, so there's more of an incentive for customers to send more of it. And then that will enable more and more use cases, which will allow us to -- the aggregate to grow and for us to charge more.

Yes, maybe just to add. I mean as I mentioned during the talk, the reality is we're adding more applications. We don't necessarily have the same marginal incremental costs associated with data ingestion. So the more we're able to add to value, then you get those higher ARR values. So it goes without saying, enterprises are higher, right, on NRR. And if you think about it over the last year, you've seen us increase our NRR every quarter. Vast majority of that is not related to volumetric expansions. That's related to our ability to actually expand with existing clients. So throughout 2024, we had very -- especially Q1 through Q3, there was not nearly as many new logos as there were expansions. In fact, in Q3, you saw us talk about that our quarter was buoyed by a number of multimillion-dollar expansions. Well, that's the potential. But in Q4, we saw many more new logos actually land, enterprise new logos, giving us better balance. So as we think about it over a period of time, if we're able to continue to drive that better balance, new logos and expansions, gives us confidence we can continuously drive the overall customer base, including enterprise and non-enterprise, to that 115-plus. And it's just a reflection of that increasing value that we're driving, the increasing ARR associated with every multiproduct implementation.

Great. Thank you. All right. We'll come up here to Brent, and then we'll go to Koji after that.

Wade, I'd be curious. You've been a consultant for the company for a long time. You joined full time in October. Why now? And what are your 1 or 2 top priorities? And then, Francois, if you could follow up, we're moving from human-driven product analytics to agent-driven analytics. I'm just trying to understand. Do you think that changes the volume characteristics of what people do from small cohort analysis and small experimentation to managing everything? Or is the agent strategy all about cross-sell and getting everybody on all the products? And one quick follow-up for Andrew.

Yes. For me personally, the volume of data that's coming through and the ability for people to make more intelligent decisions with all of that data in the current landscape of where AI is a big challenge for most, that's just a huge opportunity. And if you look around, I felt like we were prepared to actually go and provide better products, platforms and services and even engines that can help actually prepare that -- propel that moving forward because when I saw the size of the opportunity, and I knew the team, it was just a no-brainer for me to go focus on this personally moving forward. From the things that I am trying to affect early on, it is really about making sure that we've built leverage into our products and services that we can continue to leverage and make sure that we have the right teams focused on the biggest initiatives internally. Nothing more complicated than that.

And you've been an amazing partner since joining, so really excited to be working with you on innovation. Talk about agentic. It's interesting because as we talk to customers and they think about the opportunity, they really think about it in 2 ways. Number one is, can they get more essentially virtual FTEs? What would it look like if I could augment my team by 100 people, where somebody is doing work 24/7, it's always on and doing more analysis than before? And so they're looking at essentially getting more value out of the data that they have in Amplitude. But second is the kinds of jobs that they do will be multifaceted. Some of them are actually small jobs where you have to do it consistently 24/7, right? Website optimization, user onboarding. It's a thing that has to happen at all times. Whether it's the middle of the night or on the weekends, you have to work through it. And so we see that the agents will really play 3 roles. One is to be the assistant to help you increase the leverage you have on the data. Second is to do work on your behalf so that the people become smarter or focused on more strategic projects. And then the third is really more of the operational monitoring set of use cases where the agents always have your back and they're running that work. Ultimately, what we focus -- what we're trying to focus on is what are the right metrics that each agent will go and work on and how do they continuously improve to move those metrics forward. So really connecting the data we have in Amplitude with the outcomes that customers are trying to drive. The agents actually will make that opportunity flourish.

Helpful color there. And then save the tough one for you, Andrew. Great presentation around the future direction where you're going. Totally get the North Star on enterprise. But we're in an environment that's pretty challenging. We got tariff wars. We have recessionary fears. What are you seeing on the ground right now? Are larger deals getting tougher to actually close or not? Just give us a quick snapshot of what you're seeing in the field from a demand perspective this quarter.

So one of the things we talked about a couple of times on our earnings calls has been that we're not depending on the fact that macro gets better. In fact, you even saw in our broad build to the $500 million in ARR, we're not expecting that the non-enterprise group necessarily grows that dramatically. In fact, I think that we're expecting, even with the latest changes in tariffs and other things that are in the marketplace, that you're right, it could get a bit more difficult from a macro perspective. And that just means that we need to lean harder on really providing that value for the money proposition for our sellers as they go out and showcase how every CFO, every CIO, every CMO, that if they standardize on Amplitude, they actually save in licensing. They can actually save on the number of people they need, the total cost of ownership, how they're managing their data. This is about automation. It's about automation in your business practices and how you're engaging with your customers. So yes, it's difficult sometimes to make investment decisions and make changes to your technology. And I'm not denying that sometimes enterprises can look at that as maybe this isn't the right time. But if it's really underpinning the benefit of their long-term business and we can show that they can actually save money over the short term, then that's a sales method that we're going to continue to flex.

What's been interesting is it still is a company priority. I mean you look at the one channel that's growing for all these companies, it's digital, and everyone's very clear that this is going to be data driven. Now the question is, how -- who do we go with? What does that look like? And so that's where we're excited about the case that we put together as the platform consolidator for that.

Never waste a good crisis. And look, I mean, there's never been a better time for companies that are looking to save money to actually consolidate all 4, 5, 6 point solutions into one platform. So in some ways, not always, but in some ways, this does help us.

Great. Thank you. All right. Our next question will come from Koji, and then we'll go to Arjun over here.

Koji Ikeda from Bank of America. Maybe this question is a follow-up to what Brent just asked, kind of thinking about 2 growth drivers that I kind of see with the business. One, currently with the consolidation opportunity, which sounds nice, but that's more of consolidation of current deployments out there and current workflows. Maybe what's a little bit more exciting is the future, the products that you have and the potential to change the way that companies think about digital analytics. And so what does it look like in the future for digital analytics? And how does the end market maybe change the way that they're thinking about digital analytics using agentic AI and balancing maybe the consolidation as a growth driver versus agentic AI in the future to get you to that $1 billion goal in ARR? What does it look like?

I think if you look at the history of data, and I kind of alluded to this in my opening section, it's -- what you've seen is that data is getting to more places and more functions. So historically, it's only been the purview of like central data teams. Those are the ones that use data and analytics. Then you see additional marketing teams that are expecting to be data driven. Now it's like -- while product teams are leading the charge, it's almost every single function in an organization has some touch point with digital. And in order to better understand how to optimize that touch point, you're going to need to look at data. So whether you're -- so we talked obviously about product, marketing and growth. But we even see, say, customer support teams that are leveraging Amplitude to see what is it that someone did before they hit a ticket. Or you see sales and customer success team seeing, okay, how is someone actually using the product so that we can create product-qualified leads when they hit this trigger point? Because no matter what function you are, you're touching some part of the digital journey, and you need data for that. Now the opportunity with AI is I think one of the missteps I see some companies in their approach is that they are saying, hey, well, I have all these data problems, give it to a data leader. Like they figure it out, and their job is to just provide insights for the rest of the company. What we found in working with our customers is that doesn't work. You need to scale it so that product managers, marketers, growth teams, all these folks are self-serving because the number of people who know how to write, say, a SQL query in a company, tiny, tiny percentage, whereas the number of people that need access to the data, massive. And so what you want to do is, okay, how can you find ways to easily enable it for them. I think what's exciting about -- so we went from, okay, SQL queries on this data to now Amplitude kind of the point-and-click interface Francois showed you in the demo, to now with the agentic stuff, you have a chat interface to say, okay, what are different methods I can use to drive conversion? Or where are people getting stuff on my product and how it may make changes? And then we do the work of sifting through those thousands of data points across millions of users and coming back to you with ideas. And that enables -- it's kind of like that's kind of the last frontier, right? So you're going from, hey, you've got to know SQL, to, hey, you need to know the data taxonomy to you don't need to know anything about it. You just need to work with this agent, and it's going to give you the leverage.

I'll add maybe an analogy. As I was describing earlier, the path that we've been on, Amplitude -- prior to Amplitude being physical maps to then Amplitude being the GPS that's with you at all times to self-driving cars, I mean, think about the world that we've been in, right? GPSs haven't been in your pockets until the last decade. Now each and every one of us has that power. It's in our cars. It's on our phones. It's everywhere. That's the same potential that we want to drive. And we want to bring that same power to any builder, any person that is trying to improve the customer experience. Now that's a nice analogy in a different category. But I come from 2 different places prior to Amplitude. I was at Microsoft on the Excel team. I was at Tableau in transforming the BI industry. In both of those cases, the technology has dramatically democratized access to data. Excel was for finance people. It became for everyone. BI was for IT. It became for all business users. Amplitude is trying to democratize it and bring it everywhere. So the patterns have existed, and we're going down that same journey. But as Spenser mentioned, we're early in the category. We have to continue to democratize it and make it easy and accessible for every single person that needs access to customer data. And the acceleration with AI actually will propel that, I think, 100x because the complexity decreases dramatically.

Great. Thank you. All right. Our next question will come from Arjun, and then our last one will come from Nick.

All right. Perfect. Maybe one for Spenser. I think the consolidation vision is quite compelling, especially given how fragmented the market is. But can you maybe just touch on why is Amplitude the right place to consolidate? And why is Analytics the right place to consolidate on versus all those other vendors, I think, in experimentation, in CDP, and Session Replay also want to consolidate and also want agentic? But what's the edge that you have? And Thomas, I'd be curious to hear kind of what customers are saying in terms of how difficult is it to actually rip out some of their existing tooling that they have implemented in some of those areas.

So the reason we started with Analytics is because Analytics is the system of record for the customer journey. And if you have that data in place, it is much easier to leverage that for all the other use cases, whether that be experimentation, the Guides, Session Replay, targeting, more. And so what we've seen in the market -- and so that was kind of a founding thesis and why we started in this. Because we saw this infrastructure needs to be built where we start on Analytics because that's the system of record. What we've seen -- Thomas will talk about it a little bit, but what we've seen in practice is it is much easier to move off of those other tools than to move your analytics data. Your analytics data is large. It's complex. It's cumbersome. It's like the rules in big data. The bigger your data, the harder it is to move around. And so by starting there, whereas a feature experimentation platform or Session Replay or some of these other things that attach on to that, those are much easier to change out. We're never seeing anyone consolidate away from our Analytics onto, let's say, an Experimentation platform analytics, whereas we see tons of moves the other way. The last thing I'll offer on this is that I think we studied Omniture and Adobe quite closely in order to understand how this market would play out, and they did the exact same play. I mean their first acquisition -- their first acquisition was Omniture. Then they added test and target. Then they added a whole suite of messaging on associated products with it. And so -- and that's because -- it's because of the exact same dynamics in the martech ecosystem. And so yes, we're -- biggest thing I'd say, Arjun, is talk to the customers about what they find hardest to move, and you'll consistently hear that move to analytics. And so -- and the reason I'm excited about that is because like, yes, okay, we have an early lead in digital analytics for the enterprise that can convert into lead for the entire category.

To build on that, Arjun, the more complex customer move is when you move them off an existing product analytics vendor like, say, Adobe or GA. We have worked very hard both with our own professional services organization but also with partners across the world to optimize that experience. So it's now an experience where, for the average customer, it's a 2 to 3-month period until they go live, and they are seeing value. As a matter of fact, we can do it much quicker. It's just a question of availability of resources at the customer side. Typically, that holds us back. When you then go forward and look at the other modules, the other products on the platform, whether it's experimentation or Session Replay, by and large, a much lighter lift. Some of those solutions, specifically experimentation, is a little bit towards the heavier end. We have built a number of migration tools to ease that migration and to speed it up. But typically, the core challenge is on the core product analytics. And there, we made a ton of progress.

Can I ask one follow-up to Andrew? Just on the long term -- medium-term, long-term targets, was there a kind of a timeline that we should think about $500 million and $1 billion in ARR? Or is it...

In the future, Arjun.

To be clear, we want to be growing a lot faster than we are today. We've said that before. I think 20 is kind of the minimum percent year-on-year is the minimum. Like that's the bare minimum for the space. And really, we want to set up to a place where a few years from now we're growing 30%.

Thank you. And our last question?

All right. Nick Altmann from Scotiabank. Spenser, you guys have been public for a handful of years now. That's come with some success as well as some challenges from the ZIRP cohort in the low end. And it's good to see you guys are focusing on the enterprise side a little bit more going forward. When you think about 3 to 5 years, we'll call it the medium term, right? You guys have kind of like invented this category in a way of product analytics. We understand that the world is going to be more digital. There's going to be more applications focusing on user acquisition, user retention. But what can you give us that can give us confidence that, in 3 to 5 years' time, this space categorically will be more important, that the TAM will be bigger than it is today, that you'll be able to garner a larger portion of marketing budgets, product budgets, et cetera? Like what can you tell us that can give us confidence that, categorically speaking, product analytics in 3 to 5 years is going to be a much different TAM, so to speak, or end market?

Yes. I mean this is where I didn't even say don't look at me. This is where you look at the customers. So like to your point, yes, like digital, that's been -- everyone gets that, 10 years old at this point. I think the key change we've seen in the last 5 years is that every C-level exec, they want -- they know data is a fundamental pillar of a successful digital strategy. That is like very, very clear to them. Now the part that's an open question is how will that manifest in the market. And that's where there's a lot of different point solutions. There's a lot of folks building in-house. There's a lot of different ways that this can happen. Now we believe we have the best approach for that where we have a vertically integrated end-to-end platform to do it. I think what you'll see is while a lot of companies, say, in the technology business may opt to build this in-house, and even then a lot of those are our current customers of Amplitude as we went through, I think it's very, very clear to me and if -- more importantly, if you all talk to the customers, that they realize they got to buy some off-the-shelf software to do this. Now we're early in this. I think one of the challenges is, to your point, the crazy spike in 2021 where you have crazy spend and 0 interest rate and we're 60% year-on-year growth. And honestly, a lot of it was fake in retrospect, and we're kind of getting to the tail end of that now.

To be clear, it was real revenue.

It wasn't sustainable. It wasn't sustainable growth rates and sustainable value. It was more like a sugar high, so to speak. And the unfortunate thing is that's masked the underlying trend of -- we kind of shared it on the enterprise growth in a number of different slices, whether you look at the ARR, whether you look at logos, whether you look at expansion rates, whether you look at the platform attach. So all of that is happening. Now part of the goal today was to kind of communicate some of those metrics to all of you so you could understand and model the businesses. But again, I'd kind of go back to the customers and seeing, okay, like every single one, but even noncustomers of Amplitude, they're clear that data is a fundamental part of their digital strategy. Now what the market is deciding is where that's going to consolidate to. And that's -- again, we believe we're the best positioned as a vertically integrated platform that started in analytics, and it's branching out onto these other things to do it. There's alternative ways that people are trying to solve it out there. But I think if you look at both historically as well as, hey, how do you think this is all going to consolidate down, we feel best set up by far.

I think the other thing we mentioned was that increase -- there is an installed base of legacy applications that have formed their way into -- we essentially call marketing analytics. You can determine what level of TAM you want to assign to that, but there are big companies out there. And increasingly, we're appealing to them, and they're starting to use Amplitude versus those legacy technologies. So even if that market didn't grow at all, which we certainly believe it will, there's a healthy installed base that we can go after.

Yes. I mean the question I frankly ask is like, okay, it's clear there's spend on this thing between analytics, experimentation, much of these other functionality. Where does that consolidate down to as the market matures? That would be the question I would ask.

Great. Thank you. And that is all the time we have for Q&A. I'll pass it to Spenser for any closing remarks.

I just wanted to say thank you all so much for taking the time to come meet us, meet the team. Very, very appreciative of those who are current holders of Amplitude. Very interested in continuing to build our relationships with you and with potential new holders. We will -- yes, thank you again.

Great. Thank you.

Sorry. There's a reception for the next hour back there. So if you would like to meet myself or other folks on the team and talk to us, we're happy -- we'll stick around for the next hour. Thank you guys.