Amplitude (NASDAQ:AMPL) Chief Financial Officer Andrew Casey outlined the company’s platform strategy, its agreement involving Statsig assets and customers, and its push into AI-enabled product development during a Needham fireside chat hosted by senior analyst Scott Berg.
Casey said Amplitude was founded around the idea that software applications, websites and mobile apps need an “instrumentation layer” to show how products are being used. That includes tracking how users adopt new features, engage with promotions and interact with digital products at a detailed event level.
Over the past three years, Casey said Amplitude has moved to combine adjacent capabilities—including experimentation, session replay, guides and surveys, and web analytics—into a single platform. He said the goal is to replace a collection of point solutions from competitors and make it easier for customers to analyze user behavior and act on those insights without moving data between separate systems.
Statsig Agreement Expands Data Warehouse and Experimentation Capabilities
Casey said the company’s agreement involving Statsig gives Amplitude access to Statsig’s customer base, technology and brand. He described Statsig as particularly strong in data warehouse-based experimentation and feature flagging, areas where Amplitude had not been as strong.
“They’re really, really good at that data warehouse architecture and driving the experimentation that’s in the analysis in a data warehouse application,” Casey said.
Casey said the agreement helps Amplitude address enterprises that are increasingly centralizing data in warehouses such as Databricks or Snowflake. He said Amplitude had been more focused on cloud-based environments and had a “very, very nascent” experimentation product for data warehouse use cases.
He also said Statsig’s technology is used by AI-focused companies, citing OpenAI’s use of Statsig internally for feedback on user interactions with ChatGPT. Casey framed the broader opportunity as Amplitude becoming an observability and instrumentation layer for software and digital customer engagement.
Casey said Amplitude is assuming 320 new customers through the agreement and sees “hundreds of millions of dollars” of opportunity within that assumed customer base. He also noted that Amplitude currently has only 162 Global 2000 customers under contract, which he described as underpenetration.
Financial Impact Includes Deferred Revenue Write-Down
Berg asked about the financial impact of the Statsig-related agreement, noting Amplitude had discussed bringing over $16 million in annual recurring revenue and expecting $5 million to $7 million of revenue this year from the agreement.
Casey said Amplitude applies more rigor to ARR definitions than Statsig had, including excluding certain monthly contracts, contracts with less than six months remaining, termination-for-convenience clauses and contracts viewed as likely to churn.
Casey said the agreement was treated for accounting purposes as an asset acquisition rather than a business combination. As a result, Amplitude had to apply purchase accounting rules and assess the fair value of deferred revenue, which reduced the amount of revenue recognized from the contracts in the period.
“If I didn’t have to go run that purchase accounting assessment, the fair value assessment on the deferred revenue balance, we’d already be accretive,” Casey said.
Casey also said there is operational work involved in transitioning the environment, including Statsig’s use of Google Cloud while Amplitude uses AWS. He said Amplitude believes the transition work can be completed in a 30- to 60-day period and that the company had already begun staffing engineering resources during diligence.
Amplitude Pushes Multi-Product Platform Strategy
Casey said Amplitude’s acquisitions and product expansion are designed to bring more capabilities onto the company’s platform rather than leave them as separate applications. He cited Command AI as an example of a smaller acquisition where Amplitude re-platformed the product over about four months and has since expanded its ARR through Amplitude’s distribution channels.
The CFO said Amplitude is increasingly selling beyond product teams and into marketing organizations, particularly as digital engagement becomes more important for loyalty programs, online promotions and subscription models. He said marketing and product teams are becoming more aligned as companies use digital products to drive revenue.
Casey also compared Amplitude’s broader ambition to his prior experience at ServiceNow, where an IT service management platform evolved toward a broader enterprise service architecture. He said Amplitude similarly believes it can become a more important observability layer across software.
AI Agents Become a Product and Sales Focus
Casey said AI agents represent another area of opportunity because agents are software that must be observed and measured like other applications. He said Amplitude’s platform includes foundational AI agents that allow users to ask questions through a command-line-style interface and generate insights from data.
He also described more specialized agents, including agents that can run continuous experiments or summarize large volumes of session replay data to save engineering time. Casey said these features can help customers discover the value of Amplitude’s broader platform, with some agentic capabilities available for a fee.
Casey said Amplitude also simplified pricing and packaging to reduce complexity for customers and sales teams. He said some new customers in the first quarter cited the new pricing and packaging as a reason for choosing Amplitude.
Growth Strategy Centers on Enterprises and Cross-Sell
Casey said Amplitude has accelerated ARR growth from about 6% when he joined to roughly 17% in the most recent quarter, driven by a greater focus on enterprise customers and execution of a multi-product strategy.
He said enterprise customers offer benefits including longer contract duration and higher net dollar retention compared with small and midsize customers. He also said Amplitude has largely moved past prior issues involving oversold capacity, which had created headwinds.
Casey said Amplitude monetizes through both increased data ingestion and additional products layered onto its analytics base. He said the company’s confidence in future growth is supported by new products, cross-sell opportunities and the customer base brought in through the Statsig agreement.
About Amplitude (NASDAQ:AMPL)
Amplitude, Inc is a software company specializing in digital analytics and product intelligence solutions for businesses seeking to optimize user engagement and drive growth. Its core offering, the Amplitude Analytics platform, enables customers to collect and analyze behavioral data from web and mobile applications in real time. The platform provides advanced segmentation, funnel analysis, retention tracking and pathfinding tools that help product, marketing and data teams understand user journeys, identify friction points and measure the impact of new features.
Founded in 2012 by Spenser Skates, Curtis Liu and Jeffrey Wang, Amplitude is headquartered in Redwood City, California, with additional offices spanning North America, Europe and Asia.
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