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Amplitude (AMPL)
NASDAQ:AMPL
US Market

Amplitude (AMPL) AI Stock Analysis

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Amplitude

(NASDAQ:AMPL)

63Neutral
Amplitude's overall score reflects strong growth in revenue and ARR, supported by strategic innovations and customer expansions. However, profitability challenges and valuation concerns weigh on the score. Positive technical momentum provides some optimism, but macroeconomic uncertainties and continued operating losses remain key risks.
Positive Factors
Financial Performance
Amplitude reported excellent 1Q financial results led by net new ARR increasing 100% Y/Y, highlighting both stronger sales execution and how downsell is largely in the rearview mirror.
Strategic Initiatives
AMPL just announced its first ever share buyback which should support shares at current levels.
Negative Factors
Market Competition
The market for product tools is quite fragmented, and Amplitude has made great strides in expanding its capabilities to address multiple product-related problems in one place.
Product Expansion Challenges
Customers were not yet materially expanding past the core Product Analytics offering.

Amplitude (AMPL) vs. S&P 500 (SPY)

Amplitude Business Overview & Revenue Model

Company DescriptionAmplitude, Inc. provides a digital optimization system to analyze customer behavior within digital products in the United States and internationally. It offers Amplitude analytics for insights of customer behavior; Amplitude Recommend, a no-code personalization solution that helps to increase customer engagement by adapting digital products and campaigns to every user based on behavior; Amplitude Experiment, an integrated solution that enables teams to determine and deliver the product experiences for their customers through A/B tests and controlled feature releases; Amplitude Behavioral Graph, a proprietary database for deep, real-time interactive behavioral analysis, and behavior-driven personalization – instantly joining, analyzing, and correlating any customer actions to outcomes, such as engagement, growth, and loyalty; and data management, a real-time data layer for planning, integrating, and managing data sources to create a foundation with identity resolution, enterprise-level security, and privacy solutions. The company also provides customer support services related to initial implementation setup, ongoing support, and application training. It delivers its application over the Internet as a subscription service using a software-as-a-service model. The company was formerly known as Sonalight, Inc. and changed its name to Amplitude, Inc. in December 2014. Amplitude, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.
How the Company Makes MoneyAmplitude generates revenue primarily through a subscription-based model for its software-as-a-service platform. Businesses pay for access to Amplitude's comprehensive suite of analytics tools, which are priced based on factors such as the number of users, volume of data tracked, and specific features or services utilized. The company also offers premium tiers and add-ons that provide advanced capabilities and integrations, contributing to upselling opportunities. Strategic partnerships with other technology providers enhance its ecosystem and extend its reach, further contributing to revenue generation.

Amplitude Financial Statement Overview

Summary
Amplitude is in a growth phase with strong revenue expansion but faces challenges in profitability. The balance sheet is robust with minimal debt, offering financial stability. Cash flow management shows some improvement, but further steps are needed to align cash generation with operational results. Overall, the company exhibits growth potential but must address profitability and cash flow to enhance financial performance.
Income Statement
65
Positive
Amplitude's TTM (Trailing-Twelve-Months) revenue growth rate is 8.31%, indicating solid expansion, consistent with the software industry's growth trajectory. However, the company faces profitability challenges with a negative net profit margin of -31.52% and an EBIT margin of -35.88%, reflecting ongoing operational losses. The gross profit margin of 74.28% suggests strong product profitability, but high operating expenses are eroding overall profitability.
Balance Sheet
72
Positive
Amplitude maintains a healthy balance sheet with a low debt-to-equity ratio of 0.01, indicating minimal leverage. The equity ratio is 66.50%, showing a strong reliance on equity financing. However, the negative return on equity of -31.81% highlights profitability issues despite a solid equity base. The company is financially stable but needs to improve its return on equity.
Cash Flow
68
Positive
The company's operating cash flow to net income ratio is -0.20, signaling that cash flow generation is not yet matching net income losses. The free cash flow to net income ratio of -0.15 further emphasizes the need for improved cash generation. However, the TTM free cash flow of $14.27 million is a positive sign, showing some progress in cash management.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
299.27M276.28M238.07M167.26M102.46M
Gross Profit
222.35M204.36M167.63M115.50M71.98M
EBIT
-107.38M-94.38M-96.56M-74.15M-24.00M
EBITDA
-101.28M-88.76M-91.90M-71.06M-22.31M
Net Income Common Stockholders
-94.32M-90.36M-93.38M-74.98M-24.57M
Balance SheetCash, Cash Equivalents and Short-Term Investments
241.10M322.40M230.47M307.44M117.78M
Total Assets
445.91M433.68M413.75M400.39M175.08M
Total Debt
5.58M8.18M11.09M0.000.00
Net Debt
-166.09M-240.32M-207.40M-307.44M-117.78M
Total Liabilities
149.35M138.93M118.79M93.84M242.20M
Stockholders Equity
296.56M294.75M294.97M306.55M-67.12M
Cash FlowFree Cash Flow
16.78M22.45M-11.19M-34.94M-12.60M
Operating Cash Flow
18.51M25.63M-5.38M-31.71M-10.39M
Investing Cash Flow
-75.37M9.32M-89.39M-1.50M-5.91M
Financing Cash Flow
-19.94M-4.94M5.83M222.64M54.24M

Amplitude Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.19
Price Trends
50DMA
10.24
Positive
100DMA
11.01
Positive
200DMA
10.18
Positive
Market Momentum
MACD
0.65
Negative
RSI
65.41
Neutral
STOCH
87.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMPL, the sentiment is Positive. The current price of 12.19 is above the 20-day moving average (MA) of 10.11, above the 50-day MA of 10.24, and above the 200-day MA of 10.18, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 65.41 is Neutral, neither overbought nor oversold. The STOCH value of 87.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMPL.

Amplitude Risk Analysis

Amplitude disclosed 68 risk factors in its most recent earnings report. Amplitude reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Amplitude Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.47B51.0232.09%39.29%
MLML
69
Neutral
$972.40M114.793.34%28.92%
66
Neutral
$1.60B231.832.81%22.75%-47.45%
SPSPT
65
Neutral
$1.39B-36.95%17.79%16.49%
63
Neutral
$1.60B-32.87%8.56%-4.21%
63
Neutral
$1.32B-6.49%5.15%28.27%
60
Neutral
$11.58B10.33-7.23%2.94%7.47%-10.84%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMPL
Amplitude
11.76
2.25
23.66%
SPT
Sprout Social
23.14
-8.67
-27.26%
ML
MoneyLion
85.90
2.53
3.03%
SEMR
SEMrush Holdings
10.70
-5.40
-33.54%
DAVE
Dave
182.97
136.32
292.22%
MLNK
MeridianLink
16.77
-2.08
-11.03%

Amplitude Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 29.41%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Amplitude's earnings call highlighted strong revenue and ARR growth, driven by enterprise customer expansion and successful product innovation, particularly with the new Guides and Surveys. Improved retention metrics and strategic partnerships with Twilio also contributed to positive momentum. However, challenges remain with continued operating losses and negative free cash flow, alongside macroeconomic uncertainties that may impact future growth.
Q1-2025 Updates
Positive Updates
Revenue and ARR Growth
Q1 revenue was $80 million, up 10% year-over-year. Annual recurring revenue (ARR) reached $320 million, up 12% year-over-year and increased by $8 million from last quarter.
Enterprise Customer Expansion
Customers with more than $100,000 in ARR grew to 617, an increase of 18% year-over-year. Two-thirds of ARR base comes from enterprise customers.
Product Innovation and Adoption
Introduction of Guides and Surveys product led to faster adoption and more incremental ARR than any previous product. Multi-product customers now represent 30% of the installed base and 64% of total ARR.
Improved Retention
Dollar-based net retention reached 101% in Q1, up 5 points from its lowest level in Q2 of the previous year.
Strategic Partnerships
Amplitude announced a partnership with Twilio, becoming Segment's recommended analytics platform.
Negative Updates
Operating Loss
Non-GAAP operating loss was $2.1 million for Q1.
Free Cash Flow Decline
Free cash flow in the quarter was negative $9.2 million, down from negative $1.1 million a year ago.
Macro Environment Uncertainty
Management noted ongoing macroeconomic challenges and buyer scrutiny, which may continue to affect new customer acquisitions and expansions.
Company Guidance
In Amplitude's Q1 2025 earnings call, the company highlighted several key financial metrics and strategic initiatives. The first quarter revenue was reported at $80 million, marking a 10% increase year-over-year, with annual recurring revenue (ARR) reaching $320 million, up 12% from the previous year and $8 million from the last quarter. Notably, customers with more than $100,000 in ARR increased by 18% year-over-year to 617. The non-GAAP operating loss was $2.1 million. The company emphasized its strategy to reaccelerate growth through platform deals and enterprise focus, with multi-product customers now comprising 30% of the installed base and 64% of total ARR. Amplitude's dollar-based net retention rate improved to 101% in Q1. Looking ahead, the company raised its full-year revenue outlook to between $329 million and $333 million, reflecting a 10.5% growth at the midpoint, alongside a strategic focus on expanding enterprise customer relationships and product innovations.

Amplitude Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Amplitude Appoints Tien Tzuo to Board of Directors
Positive
Feb 25, 2025

On February 22, 2025, Amplitude appointed Tien Tzuo, founder and CEO of Zuora, as a Class I director on its Board of Directors, expanding the board from nine to ten members. Tzuo, known for his strategic marketing expertise and leadership experience, will also serve on the Audit and Nominating Committees, receiving compensation in cash and restricted stock units. His appointment is expected to bolster Amplitude’s position as a leader in digital analytics, leveraging his experience from Salesforce and Zuora to enhance customer-centric strategies and product innovation.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.