AmplitudeE, Inc. (NASDAQ: AMPL) experienced a sharp decline of 17.58% in after-hours trading on Wednesday, following the release of its first-quarter financial results.
The company reported adjusted earnings per share of $(0.02), missing the analyst consensus estimate of $(0.01) by 100%. While revenue of $93.492 million slightly exceeded expectations, representing a 16.93% year-over-year increase, investors focused on the profitability shortfall and deteriorating cash flow. Free cash flow for the quarter was negative $13.2 million, a $4.0 million decrease from the same period last year.
Amplitude's operating loss held nearly flat at $24.1 million. The company highlighted growth in annual recurring revenue, which rose 17% to $374 million, and an increase in large customers. However, the market reaction suggests disappointment with the bottom-line results and cash burn.
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