Amplitude, Inc.
| Company type | Public |
|---|---|
| Industry | Software, Digital analytics |
| Founded | 2014 |
| Founder | Spenser Skates, Curtis Liu |
| Headquarters | United States |
Key people | Spenser Skates (CEO) |
| Products | Amplitude Analytics, Amplitude Recommend, Amplitude Experiment, Activation, Session Replay, Guides, Surveys |
Number of employees | 700+ (2021) |
| Website | https://amplitude.com |
Amplitude is a publicly listed American company that specializes in software for digital analytics. It became publicly traded on the Nasdaq exchange under the ticker AMPL on September 28, 2021.
History
Established in 2014 by Spenser Skates and Curtis Liu, Amplitude evolved from Sonalight, a startup launched in 2012 that created an Android voice-to-text messaging application. To understand user interactions within this app, the founders developed analytics tools that soon drew outside attention, leading them to pivot and concentrate exclusively on this technology under the newly formed company, Amplitude.
Amplitude’s primary offering, Amplitude Analytics, was ranked 22nd among software products in 2021 by G2 Crowd. The company broadened its product suite with Amplitude Recommend and Amplitude Experiment, collectively known as its Digital Optimization System. Key acquisitions include ClearBrain, a predictive analytics company acquired in March 2020, and Iteratively, a data pipeline provider purchased in May 2021. These strategic moves enhanced Amplitude’s proficiency in AI-driven targeting and data integration capabilities.
In September 2021, Amplitude opted for a direct listing on Nasdaq as part of its expansion strategy within the competitive landscape of analytics software.
Early IPO
Following several financing rounds, Amplitude raised $150 million in June 2021 during its final private funding round led by Sequoia Capital, which valued the firm at $4 billion. Despite this strong capital position, CEO Spenser Skates chose to go public, believing this step would fortify the company—paralleling the reasoning used by Facebook’s Mark Zuckerberg after his company’s IPO. This move diverged from the prevailing trend of tech companies remaining private longer, as Amplitude had the financial freedom to pursue either route.
Direct listing
Amplitude gained notice for selecting a direct public offering (DPO) instead of a conventional IPO. CEO Skates emphasized that DPOs help avoid the substantial expenses and typical underpricing associated with traditional IPOs. With $300 million in cash reserves, the company was able to proceed without needing to raise significant funds through the offering—a luxury not available to many firms. Their Nasdaq direct listing on September 28, 2021, was regarded as a pivotal event, with share value rising from a $5 billion to $7.1 billion valuation on opening day. Skates criticized traditional IPOs as "outdated" and "the craziest thing in the world." He also considered but ultimately dismissed a SPAC route, viewing SPACs as methods that bypass SEC oversight.
Company growth
Amplitude leveraged the increased demand for digital services during the COVID-19 pandemic to secure major clients including Ford Motor Company, Burger King, and Gap Inc. At the time of its public debut, the firm reported $72 million in revenue for the first half of 2021—a 56% increase compared to the previous year. The company employs more than 700 people across offices in the United States, Europe, and Asia and counts 26 Fortune 100 companies among its customers.
Products
The Digital Analytics Platform offered by Amplitude comprises Amplitude Analytics, Activation, Experiment, Session Replay, along with Guides and Surveys. Its core product, Amplitude Analytics, provides software developers with sophisticated statistical tools to analyze user behavior—earning it the nickname "Moneyball" for product development. Additional products facilitate A/B testing and customized in-app experiences aimed at enhancing user engagement and driving growth.