Amplitude (AMPL) Q2 FY26 earnings call: guidance and Q&A

How might Wave, as a broader AI-native product development platform, shift the buyer persona and budget from bespoke agents, and what is the potential market impact?

Spenser explained that Wave operates at a higher level, synthesizing data from various sources to suggest product improvements. He sees a convergence of engineers, product managers, and designers into an 'AI builder' persona, automating more of the product development process. The core problem remains helping build better products, but the method changes, potentially expanding the addressable market by automating tasks previously requiring distinct roles.

“I think what we're seeing is a convergence between engineers, product managers and designers into this AI builder persona. It's not really like you have engineers who are thinking about what to build and you have product managers who are also just chipping code.”

asked by Mark Cash · answered by Spenser Skates

What are the key drivers behind the raised revenue and operating income guidance, and how will Amplitude manage margin leverage given COGS pressure from AI inference costs?

Andrew attributed the raised guidance to strong RPO balances, better predictability from longer-duration customer commitments, and positive customer response to new products and pricing. Regarding margins, he noted the focus on optimizing Statsig's hosting environment (currently low-50s gross margin) to improve it over time, and continued efforts to drive efficiencies in sales & marketing and G&A to offset COGS pressure and achieve operating leverage.

“When you've got commitments from customers for a longer-term duration, you start to have better and better predictability about your future revenue. So, that's the first thing. It's one of the reasons why we emphasize that metric so much.”

asked by Mark Cash · answered by Andrew Casey

Given the strong organic ARR acceleration, how will the pursuit of greater operating leverage impact the organic growth number, if at all?

Andrew stated that revenue growth, driven by Amplitude's strong product suite and large total addressable market, will be the predominance of increasing operating income. He expects gross margins to improve over time, and continued reductions in sales & marketing and G&A as a percentage of revenue. He also anticipates greater efficiencies in the R&D organization as they adopt more AI capabilities, suggesting that leverage can be achieved without sacrificing organic growth.

“Revenue growth will be the predominance where we'll see increasing operating income. As far as leverage as a percentage of what that would be a percentage of operating income, I do expect over time that we'll be able to drive better and better gross -- cost to start revenue and increase gross margins over time.”

asked by Jackson Ader · answered by Andrew Casey

Customers seem unaware of Amplitude's new modules and innovations like Statsig and Wave. What is the company's progress in sales enablement and educating customers?

Spenser acknowledged the challenge, stating that many customers still primarily view Amplitude as an analytics company and are unaware of Statsig or Wave. He emphasized the ongoing work to educate the sales force and customers, including recent kickoffs. However, he noted that customers are keen to work with a company at the 'bleeding edge' of AI, which helps drive initial engagement even if full adoption takes time.

“I think a lot of people still bucket us in the analytics company, and it drives me absolutely crazy. Honestly, just sharing, hey, we have Statsig now, and this is bleeding edge feature experimentation. And you can use it too, and this is the same infrastructure. OpenAI runs internally, like awesome. A lot of customers don't even know that.”

asked by Scott Berg · answered by Spenser Skates

Given that only 80 of 400 Statsig customers were also Amplitude customers, how should investors think about the cross-sell opportunity, particularly for Amplitude into Statsig customers or vice versa?

Spenser clarified that the much bigger opportunity is bringing Statsig to existing Amplitude customers. He explained that Statsig customers tend to be more AI-native and bleeding-edge, representing where all organizations aspire to be. As traditional Amplitude customers seek to integrate AI into their software development, Statsig becomes a natural fit, whereas the reverse cross-sell, while present, is a smaller opportunity.

“I think probably the much bigger opportunity is to take Statsig to Amplitude customers. I think Statsig customers, as I mentioned earlier, tend to be much more bleeding edge from an AI innovation standpoint.”

asked by William Fitzsimmons · answered by Spenser Skates

If Wave is successful in its vision, could it eventually make other Amplitude products like Statsig and product analytics redundant?

Spenser explained that Wave is architecturally designed to integrate data from various sources, including Amplitude's analytics and Statsig's experimentation data. He stated that Wave needs these data collection points to function effectively, making them complementary rather than redundant. He also highlighted Amplitude's unique advantage of having massive, proprietary datasets to train Wave, enabling it to provide higher quality and more insightful recommendations than competitors.

“What Wave does is it takes data from lots of different data sources. So it takes analytics data from Amplitude, experiment data from Statsig... So, you still need a place to get that data.”

asked by Koji Ikeda · answered by Spenser Skates

How are conversations going with customers regarding Wave driving broader platform adoption, and how will Wave be monetized in the near term?

Spenser confirmed that Wave is indeed driving broader platform adoption, with customers signing up for products like Session Replay and AI Feedback because they feed into Wave. He stated that Wave will absolutely be charged for, emphasizing the immense value it creates by automating product improvement and driving better customer experiences and revenue. While still in alpha, the company is confident in its monetization potential.

“So you're exactly right, which is the more data sources you feed to this thing, the better. And so we've already -- I've already seen multiple customers who have gotten on Session Replay as well as one that signed up for AI Feedback specifically because, hey, the stuff fed to Wave makes it a lot better.”

asked by Nicholas Altmann · answered by Spenser Skates

What unique customer problems does Agent Analytics solve that current observability platforms cannot, and what is the market opportunity for this solution?

Spenser highlighted that Agent Analytics uniquely connects individual AI agent interactions to their long-term business impact, allowing customers to understand if successful bot answers lead to increased spending or subscriptions, or if frustrations lead to negative outcomes. This end-to-end journey connection differentiates it from standalone engineering observability products. He sees this as a significant TAM expansion opportunity, potentially as large as or larger than traditional UI analytics.

“What we offer, which I shared a little bit in the customer story about Economist is that you can connect what's individually happening within a session to the long-term impact to your business.”

asked by Yitchuin Wong · answered by Spenser Skates