The software market, AI moats, and when to go public with Amplitude CEO Spenser Skates

Hello, and welcome back to Equity, the podcast about the business of startups, where we unpack the numbers and nuance behind the headlines.

This is our Wednesday show, where we sit down with a guest, talk about their work and unpack the rest. This week, Alex had Amplitude CEO Spenser Skates on the show to talk about the company’s journey since the time it went public in late 2021, which happened to be right before investor sentiment changed.

After a successful IPO, Amplitude warned analysts and investors alike in early 2022 that it was seeing some macroeconomic pressure, which led to its stock being sharply repriced. (That happened to most companies eventually, to be fair.)

Since then, the digital analytics company has shaken up its organizational structure, launched new AI products, and has continued to grow while becoming cash flow positive. All that made Skates the perfect person to talk about:

• The current state of the business software buyer, and when Skates expects demand for digital goods and services to improve.
• When to charge for AI products, and when not to; also, the power of data moats in AI, and how they may be more durable than they are in other areas of SaaS.
• How to know when you have to cut staff.
• And, critically, how much Baldur’s Gate 3 Skates has played so far.

Equity will be back with our news roundup Friday morning! We’ll see you then!