Playrix is moving to a multi-product strategy. Multiple teams, including product and marketing, needed to simplify the usage of their internal platform to shorten time to insights. Through a highly competitive process, Amplitude stood out as a winner based on both our ease of use and on our unmatched ability to deliver a unified view of their users across different games. We also won another large global sports organization this quarter. Over time, the organization had lost trust in the data provided by their large legacy MarTech provider. Users across data, analytics, marketing, and advertising desperately needed stronger support and more open integrations. With a seamless combination of Amplitude’s analytics and CDP, this customer will be able to recommend the best video and articles to their user base and drive engagement.
With a blueprint of their user behavior, they can improve their mobile app experience to maximize sponsor revenues and retention. Through this period of change, we are delivering unprofitable growth while balancing thoughtful investment. We are growing alongside our customers and extending our platform. I’m confident the challenges we are enduring in the short-term will set us up to be a stronger company in the longer term. With that, thank you for your interest in Amplitude. I’d now like to turn it over to Chris to walk through the financial results.
Christopher Harms: Thanks, Spenser, and thanks to everyone joining us today. I’m proud of our recent performance. We beat the midpoint of all guided metrics, as well as achieved our commitment of being free cash flow positive for two consecutive quarters. Inclusive, we beat the top end of the range of the revenue guide. And we are raising our Q4 revenue guidance from what was implied in our August guide. I’m energized by what lies ahead of us. We are well-positioned for an increasing portion of customer wallet share. This will become increasingly evident as the role of product increases and importance across different buyers. As legacy approaches break down and as siloed pools of spend continue to come together. Our operational execution is improving.
Our medium term visibility has improved from earlier in the year as it relates to both new ARR forecast predictability and ARR turn risk. We’re improving capital allocation. Our Plus plan will better serve the lower end of the market while our people led sales efforts will increasingly focus on accounts with higher potential of long term value. Now on to our third quarter results. As a reminder, all financial results that I will be discussing with the exception of revenue and balance sheet figures are non-GAAP. Our GAAP financial results along with the reconciliation between GAAP and non-GAAP results can be found in our earnings press release and supplemental financials on our IR website. Third quarter revenue was $70.6 million, up 15% year-over-year.
Total ARR exiting Q3 increased to $273 million, an increase of 12% year-over-year and $5 million sequentially. Here’s more detail on key elements of ARR. We again saw sequential growth in customer count and ARR across both our $1 million plus and our $100,000 plus ARR base. New ARR was fairly evenly split between land and expand. Direct contrast to the large expansion driven performance in the prior quarter, this was more broad based. Churn remains elevated and slightly lower in absolute dollar terms than Q2 and in line with our expectations. Teams here have been consistent. First thing, as companies come up for renewals, they’re often resetting and optimizing for new expected levels of growth. The substantive portion of these legacy multi-year contracts are expected to be reset by the end of Q2 2024.
The second thing, cost pressures persist, particularly with smaller customers. Competitive losses remain rare as these smaller customers are choosing to not use a solution from any provider to preserve cash. In period, ARR dropped to 99%. As stated, land and expand were fairly evenly splinted in Q3, meaning new ARR from expand was lower than the prior quarter. Churn, while down from the prior quarter, remained sizable. Combination of the two factors resulted in the in-period ARR dropping below 100%. NRR on a trailing 12 month base has declined sequentially to 105%. Gross dollar retention this quarter was in the mid-80s. As a reminder, Amplitude includes both ARR reductions from fully churned and lost customers and ARR reductions from partially churned and retained customers in our GDR metric.
Gross margin was 78.7% of four percentage points a year over a year, mainly reflecting the improvements made in our unit hosting cost and the margin impact of restructuring our services team in the second quarter, both of which we have covered previously. Total operating expenses were $53 million down sequentially and growing 4% year-on-year. Here, we remain measured around our pace of hiring following the restructuring completed in the second quarter. Operating profit was a positive $2.8 million or 4% of revenue, of 12 percentage point improvement on a year-over-year basis. Net income per share was $0.05 based on $128.1 million on fully diluted shares compared to a loss of $0.03 with 112.0 million shares a year ago. Free cash flow was positive $7.5 million or 11% of revenue.
Free cash flow saw a benefit this quarter from higher collections and timing of certain payments. Now onto our outlook. For the fourth quarter, we are raising the revenue outlook that was implied in our August guide, with a Q4 revenue guide between $71.3 and $71.9 million, representing an annual growth rate of 10% at the midpoint. We expect non-GAAP operating income between positive $1.3 million and $1.9 million. We expect non-GAAP net income per share to be between $0.02 and $0.03, assuming shares outstanding of approximately $129.8 million as measured on a fully diluted basis. For the full year, we expect revenue to be between $276.2 million and $276.8 million, an annual growth rate of 16%. We expect non-GAAP operating loss between $4.5 million and $3.9 million, and we expect non-GAAP net income per share to be between $0.05 and $0.06, assuming shares outstanding of approximately $127.8 million as measured on a fully diluted basis.
As it relates to 2024, we will provide more detailed guidance on our fourth quarter earnings call in February. However, I do want to provide some additional context for your modeling purposes. We have expressed a zero-add net ARR expectation for the fourth quarter of 2023 in our prior earnings calls, coupled with a net ARR add of $18 million year-to-date through September 30th. This implies a year-over-year growth rate of ARR for the year that is below 10%. There is a high correlation between the current year ARR growth rate and the subsequent year revenue growth rate within our revenue model. We expect new ARR to be relatively balanced between land and expand over the coming quarters. Coordinally, given the magnitude of churn that we have been conveying, we expect in-period NRR to be below 100%.
