Amplitude (NASDAQ:AMPL) CFO Andrew Casey said the company’s recent growth acceleration has been driven primarily by an expanded product platform and a greater focus on enterprise customers, with artificial intelligence initiatives adding further potential revenue opportunities.
Speaking at the 27th Annual KeyBank Capital Markets Technology Leadership Forum, Casey said Amplitude had been focused on two major priorities when he joined the company about two years ago: building applications around its core product analytics offering and increasing its sales to enterprise clients.
Enterprise mix and growth
Casey said enterprise customers represented about 60% of Amplitude’s annual recurring revenue when he joined, compared with 69% currently. He attributed much of that shift to selling a broader set of capabilities to larger organizations.
Amplitude was growing at roughly 6% when Casey arrived, he said. In the most recent quarter, the company’s ARR grew 22% including Statsig, the experimentation-focused business Amplitude acquired. Casey said the company’s underlying growth strategy was progressing even apart from its AI initiatives.
“Even if you took out all the things that Amplitude’s doing today in AI and said, ‘Would you still be growing?’ I’d say we are, we would,” Casey said, citing the company’s platform and enterprise-sales efforts.
Pricing overhaul aims to increase adoption
Casey highlighted pricing and packaging changes as a major contributor to recent progress. He said Amplitude’s prior model had been designed around individual products, each with separate usage meters, price curves and value propositions. That structure created friction for sales teams and customers seeking to adopt additional modules, he said.
Under the revised system, Amplitude retained event volume and data ingested into the platform as its primary meter, noting that 86% of its installed base already used that model. The company added standardized volume-based discounting and made it easier for customers to try modules before purchasing them.
Customers can add core modules through an uplift to their existing spending rather than navigating separate meters and pricing structures, Casey said. He added that approximately 70% of transactions in the second quarter used the new pricing and packaging.
The company has also adjusted sales incentives to support a more balanced mix of new customer wins and expansions. Casey said Amplitude had moved from a mix of roughly 30% new-logo business and 70% expansions to about 40% new logos and 60% expansions, with a longer-term goal of reaching a more even balance.
AI strategy and monetization
Amplitude initially emphasized AI features as a way to make its platform easier to use and broaden adoption rather than immediately charging for all AI functionality, Casey said. Global Chat and Model Context Protocol, or MCP, capabilities are designed to provide a natural-language interface for users and expose the platform’s different modules.
While those capabilities have increased inference costs, Casey said they are helping introduce customers to other products. The company expects to charge incrementally for offerings including AI Feedback, Agentic Analytics and Wave, which it demonstrated during its latest earnings call.
Casey said a customer using the core platform and subsequently adding all core modules could see spending increase from “$100” to “upwards of 250” in his illustrative example. Customers using the Global Agent would need to become paying users of underlying modules after introductory trials, he said.
Casey also said Amplitude’s remaining performance obligations have grown more than 30% for six consecutive quarters, which he described as a foundation for future revenue growth. He said he was “pretty confident” in the company’s 21% growth guidance because of that contracted business and the company’s visibility into demand.
Margins, data usage and long-term vision
Addressing profitability, Casey said higher data-ingestion volumes have pressured margins because ingestion is a significant cost component. He said the issue is volume rather than rising per-unit ingestion costs, and added that customers are using more than 80% of their contracted entitlements, compared with levels in the 60% range when he joined.
Casey said increased usage should ultimately support monetization, though there can be a lag between higher data ingestion and revenue. He also said the company expects to benefit over time from improved economics in its Amazon Web Services contract, which he renegotiated about a year ago.
Looking ahead, Casey said Amplitude’s vision extends beyond product analytics. He described the company as seeking to become an “observability instrumentation layer” for software experiences, including products, websites, mobile applications, kiosks and agentic interactions. He compared the concept broadly with observability platforms’ monitoring of infrastructure and applications, while emphasizing that Amplitude is focused on the application and digital-engagement layer.
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.
