[HN Gopher] Amplitude (YC W12) IPO S1
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       Amplitude (YC W12) IPO S1
        
       Author : alonmower
       Score  : 85 points
       Date   : 2021-08-31 16:32 UTC (17 hours ago)
        
 (HTM) web link (www.sec.gov)
 (TXT) w3m dump (www.sec.gov)
        
       | tin7in wrote:
       | Amplitude has 1280 paying customers (22 with >1m ARR, 311 with
       | >100k ARR). I would have thought they have much more than this.
        
         | joegahona wrote:
         | I would have too, but as a customer who (happily) gives them
         | $100K/year, that adds up...
        
       | Giorgi wrote:
       | I visited their website, could not understand what it does or
       | solves, left. Looks like bloated soft.
        
       | blader wrote:
       | It's so crazy to see this. I still remember meeting Spenser and
       | Curtis for the first time when they were just like half a dozen
       | people. Even then it was clear this solved a huge pain. Surreal
       | to see. Congratulations Spenser, Curtis, and Jeff!
        
       | rgbrgb wrote:
       | Happy Amplitude customer here. Congrats to Spenser and the team!
       | 
       | We got on for the generous free plan, stayed for the simple UX.
       | Amplitude has been the only analytics product that we've gotten
       | the whole team using (operators, engineers, designers, product).
        
       | node-bayarea wrote:
       | Amplitude is NOT a great product when you actually try to
       | implement it. I have seen at least 3 companies pay for them based
       | on how good it looks and all the promises but only to realize
       | that the integration is actually very hard, and the data in
       | Amplitude is often wrong! Also they dont do a good job in sending
       | data back to things like SFDC and what not.
       | 
       | Telling it from real experience.
        
       | dzonga wrote:
       | these guys, look like they've a great product. but damn, why are
       | they cash flow negative. if financing dries up, the business goes
       | kaboom. I feel like at the revenue they had maybe they shouldn't
       | have taken vc money. $50m revenue, with a lean team team turn
       | profit. now things can look up, if they get acquired by a PE firm
       | that trims the fat.
        
       | alberth wrote:
       | Summary:
       | 
       | * 2019 Revenue: $68M with a net loss of $33M
       | 
       | * 2020 Revenue: $102M (50% YoY growth) with a net loss of $24M
       | 
       | * 2021 (Jan-Jun) Revenue: $72M (up 56% vs $46M same period 2020)
        
         | reducesuffering wrote:
         | Market price for a pre-profit software co is primarily hinging
         | on revenue and growth, so I'm expecting about a ~5b valuation.
        
       | lynnetye wrote:
       | This is a very un-HN-like comment, but...
       | 
       | In 2014, I was working at Homejoy (RIP), and started hanging out
       | w/ this guy I sorta knew from college. We were reintroduced at
       | Mission Cliffs, started climbing together ~5-6x a week, and
       | talked a lot about startups since I was a newcomer who was just
       | learning about the space. Oliver co-founded an analytics company
       | (Sensor Tower) and eventually invited me over to visit their
       | office which they were sharing w/ another analytics company
       | started by two guys from college that I also kinda knew: Spenser
       | and Curtis.
       | 
       | They were sharing an office in the same building as Dropbox (ooo
       | fancy) and each had one, mayyybe two employees. At the time, they
       | were both still figuring out how to increase their self-serve
       | revenue in hopes of eventually selling to businesses.
       | (Hilariously, I remember thinking how boring B2B SaaS businesses
       | were compared to... on-demand home cleaning startups??!? Oh how
       | young and naive I was back then, haha)
       | 
       | Anyway, fast forward seven years... Oliver and I got married, had
       | a baby, and now Spenser and Curtis' "baby," Amplitude, is _all
       | grown up_! [insert crying emoji]
       | 
       | I cannot overstate how proud I am of them and happy for the
       | success of Amplitude. Spenser is one of the hardest working and
       | most down-to-earth CEOs I know, too, so this monumental milestone
       | is beyond deserved. What's more, Amplitude is one of my customers
       | on Key Values, and I am also a very satisfied Amplitude user
       | myself. I mean, these are the SV stories we all dream of (using
       | each other's products, being each other's customers, and building
       | a company that goes public!) and they're coming true, y'all!
       | 
       | The biggest congrats to Spenser, Curtis, and the rest of the
       | Amplitude team! YOU DID IT!
        
         | santiagobasulto wrote:
         | This is a great story! I love hearing about startups when they
         | were tiny and growing (YC does a great job with this; Segment
         | comes to mind).
         | 
         | My story about meeting someone "famous" when they were tiny is:
         | I met @muneeb (a well known guy in the bitcoin-universe) in a 2
         | person office in a wework in NYC back in '14/'15. They were
         | doing an identity/crypto sort of thing that I didn't
         | understand.
        
         | irtefa wrote:
         | this is beautiful
        
       | ajaymehta wrote:
       | Congrats to Spenser, Curtis, and the whole team. From a YC pivot
       | to a Nasdaq-listed company, bravo! Couldn't have happened to a
       | more genuinely awesome group.
        
         | random123450987 wrote:
         | What was the original startup project ?
        
           | martythemaniak wrote:
           | https://techcrunch.com/2014/02/20/real-time-mobile-
           | analytics...
        
       | ram_rar wrote:
       | > In October 2019, we entered into a 36-month contract with AWS
       | for hosting-related services. Pursuant to the terms of the
       | contract, we are required to spend a minimum of $15 million
       | within each contract year for three years. As of December 31,
       | 2020, we had $17 million remaining on the commitment.
       | 
       | Seems like there are managing their opex fairly well. But, I
       | wonder for every customer dollar spent on Amplitude, how many
       | cents directly goes to Amazon?
        
         | ctvo wrote:
         | > But, I wonder for every customer dollar spent on Amplitude,
         | how many cents directly goes to Amazon?
         | 
         | What would this tell you?
        
         | alberth wrote:
         | > "Seems like there are managing their opex fairly well."
         | 
         | Are they?
         | 
         | They signed a $45M TCV (which equates to $1.25M per month). In
         | a span of 14 months (Oct'19 - Dec'20) they spent $28M ($45M -
         | $17M remaining), which equates to $2M/month in AWS spend.
        
         | carlineng wrote:
         | Gross Margin for Calendar Year 2020 was around 71%, so no more
         | than 29c.
        
       | enahs-sf wrote:
       | The analytics space did not work out the way I expected. I
       | remember the dark ages of google analytics where you couldn't
       | granularly segment your data.
       | 
       | Then came Mixpanel with a product that worked well but had a
       | critical flaw around tying back user profile data into event
       | segmentation. That spawned off a number of competitors:
       | amplitude, heap, etc.
       | 
       | Also the rollup product, Segment which basically put the fear of
       | god in these companies' sales teams because switching costs were
       | essentially negligible.
       | 
       | where Mixpanel began as the clear market leader, amplitude caught
       | up. So began a race to the bottom for lowering the cost per event
       | tracked as well as an arms race of features. Oddly enough, all of
       | these companies are YC backed, and yet in competition with one
       | another.
       | 
       | This space in general has changed the way we build products to be
       | more rigorous and analytical about the features we create and
       | meticulous in our execution with respect to our users. Congrats
       | to the Amplitude team on their work up to this point and their
       | execution that has lead to this IPO.
        
         | indigochill wrote:
         | > Oddly enough, all of these companies are YC backed, and yet
         | in competition with one another.
         | 
         | Doesn't seem that strange to me. If you're spending 1x on
         | backing each startup, you're expecting most of them will fail
         | and one of them will return 50x. It's mostly just a numbers
         | game.
        
           | debarshri wrote:
           | It is unfair from a startup perspective because you are also
           | backing the competitor. Question becomes whom do you
           | prioritize? How do you prioritize help?
        
             | lastofthemojito wrote:
             | Feels like a micro version of Matt Levine's Stock Market
             | Inc model of competitors who share the same owners and thus
             | occasionally are directed to work towards a common good.
             | 
             | https://www.bloomberg.com/news/newsletters/2021-02-24/money
             | -...
        
             | ngokevin wrote:
             | There's no prioritization for help. It's not like YC is
             | running the businesses or anything is zero-sum because they
             | both have the same and equal resources and access for
             | guidance.
        
         | soneca wrote:
         | I think it's KissMetrics that began as clear market leader,
         | before losing to Mixpanel.
         | 
         | KissMetrics had great content marketing, its blog was educating
         | a generation of startup founders on how to use analytics.
         | 
         | There is a post-mortem from the founder somewhere explaining
         | how they lost that initial advantage. IIRC, basically worse
         | vision/execution than Mixpanel (as they were basically the same
         | product).
        
         | sh_001_z wrote:
         | Race to the bottom? Amplitude charges 30k per year...
        
           | enahs-sf wrote:
           | At one point our mixpanel bill was more than our AWS one. No
           | one said enlightenment would be cheap. Amplitude went after
           | Mixpanel on pricing first. They basically offered 10M events
           | free for startups.
        
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       (page generated 2021-09-01 10:02 UTC)