Christopher Harms: Competitively, we’ve continued to do very, very well, particularly against a lot of the point solutions. So if you’re a standalone AB test vendor, if you’re a standalone CDP vendor, if you’re a standalone session replay vendor, it’s kind of no real reason not to consolidate that onto Amplitude. One, it’s going to be a better experience because you can use analytics to power those things and those things make the analytics better. And two, we can offer a much lower total cost of ownership. You’re dealing with less vendors. We can give discounts. And so, we’re actually seeing that effect across the base. So it’s not just mid-market. We’re seeing an enterprise. I was just at our customer advisory board a month or two ago.
So this is like our top 20 customers in the U.S. And we presented both the existing products we had an experiment in CDP, our roadmap for session replay, some of the other things that were coming down the pipe. And out of 20 customers, all 20 were interested in expanding their capabilities with Amplitude. So, whether that be an experiment, whether it be session replay, whether it be on CDP targeting. And so I think in particular, we’re doing very, very well against the point solutions. And so it’s increasing validation of our view of the convergence of the category and the much bigger TAM that’s available outside of product analytics.
Clark Jeffries: Great. Thank you very much.
Yaoxian Chew: Next question, Tyler Radke from Citi, followed by Patrick Schulz from Baird. Tyler, go ahead, please.
Tyler Radke: Yes. Hey, good afternoon. Thanks for taking the question. So, a couple of questions on Q4. Chris, I think I heard your commentary just around expecting Flattish ARR, so Zero Net New ARR heading into Q4. I guess, certainly the last two quarters have surprised the upside. You’ve added Net New ARR in the last two quarters. And with Q4 typically being a larger bookings quarter for you, I guess with the reason why you would expect it to be flattish into Q4, are you expecting churn to be higher in Q4 than you saw in Q2, Q3? Just kind of help us understand the puts and takes into the guidance, because it would seem like you should be able to do better just on a seasonal basis in terms of the new bookings in Q4? Thanks.
Christopher Harms: Yes. Now, what’s been interesting being here now three quarters is Amplitude has not historically had that Q4 pop, which is much more enterprise driven. We’ve talked about the renewal base being actually concentrated in the first half of the year, Q1 and Q2, just on a historical basis. One of the things I expect will shift with time is having a more concentrated Q4 relative to the rest of the quarters of the year, because being very focused on winning the enterprise, both across the digital native space and the traditional company. But that’s not what we have. So that’s kind of the inside at a macro level. At the detailed level, we clearly have a pipeline that we’re feeling adequate levels of confidence as it pertains to Q4.
And we’ve got, as I said, a pretty good track record and how we’re performing on the new ARR. But there are some dynamics that are playing on the churn side that I’m trying to assess. And I felt it was prudent to continue the theme of the zero ARR expectation as it pertains to that contribution to Q4.
Tyler Radke: Okay. And just to follow up on the first half of next year, so I think it was Q1 of this year where you talked about some of the churn and headwinds that you were seeing in the business. I guess, why wouldn’t that have completely normalized in the Q2 quarter? And I guess, as you think about the pathway to reacceleration, I guess, what gives you the confidence that this isn’t going to be kind of an ongoing issue as customers come up to renew their contracts, that they continue to optimize and try to shrink their spend? Thank you.
Christopher Harms: Yes. Now, mechanically, there were some three-year contracts that they’re coming up for renewal in the first half year of 2024. So they’re playing a role, even though we’ve been talking about the theme for a while, as some of those two-year contracts were coming up for three years and started the year before coming up as they played through the 2023 year. As it pertains to the second part of the question on what kind of gives me confidence and just the mechanics of it being easier is, we know that customer base is subject to optimization and fairly meaningful right-sizing of their usage of our software that’s more commensurate with the levels of customer demands that they’re having now that we’re resetting.
We’re able to get that visibility. As I said, we definitely raised the bar on our operational insight across many facets of the business, and this is one of those areas where we’ve got better delineation into the renewal base itself, the customers that are in play, those that are more likely. And it gives me, as I look into the Q3 and Q4, we don’t have that same inherent headwind, and it should just be mechanically easier for us as long as we continue to perform at the same new ARR levels, and some new element of macro-force doesn’t leave its way.
Spenser Skates: The other color out just to give a little more color on it has been that I think I want to give a huge amount of credit to both Thomas and Nate. I think prior to that, we really were only looking at customers that were coming up for renewal in the current quarter or Q plus one. But since the work that Nate has done over the last six months since being here at Amplitude, I think we’ve really upleveled our view. And so we have much better visibility into what our expectations around the renewal base is as we look at Q1, Q2, Q3, and so on of next year. Now, obviously, there’s obviously still risk and all of that, but we have our arms around those in a much better fashion than we’ve had previously. So yes, it’s been a big change in operational execution.
Tyler Radke: Great. Thank you.
Yaoxian Chew: Great. Next question, Patrick from Baird, followed by Rachel from [indiscernible]. Patrick Schultz, please go ahead.
Patrick Schultz: Hey, guys, appreciate you guys taking my question. And I know you guys made some changes earlier this year around sales leadership and just the account ownership process in general. Can you talk about how your sales and go-to-market teams are positioned as you head into 2024, just maybe from a headcount and operational standpoint, just particularly as your PLG motion gains traction and with the recently announced Plus plan, are there any other modifications you guys are looking to make?
Spenser Skates: I think one of the biggest ones is refocusing our accounting execs on a smaller number of higher potential accounts. And so allowing the PLG motion to do the more kind of rope, you know, if you’re going to pay a few thousand dollars or $10,000 or $20,000. You can just self-serve. And that’s not a high leverage use of the sales person’s time. We want them to be thinking about how can they go after accounts that can be $100,000 or $200,000 or more. And so, as we look at 2024, we’re looking at driving increased focus through that. Now, we’ve been a sales-based motion since the start of the company. You don’t expect that to change in a crazy way as we go into next year. But I think the addition of PLG allows the driving of focus to much higher value accounts.
