Amplitude (AMPL) AI Stock Analysis

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Amplitude

(NASDAQ:AMPL)

Select Model

Neutral 60 (OpenAI - 4o)

Rating:60Neutral

Price Target:

$12.00

▲(19.64% Upside)

Amplitude's overall score reflects strong revenue growth and cash flow improvements, supported by positive earnings call sentiment. However, profitability challenges and valuation concerns weigh on the score. Continued focus on profitability and strategic growth initiatives will be key for future performance.

Positive Factors

Revenue Growth

Amplitude's strong revenue growth indicates robust demand for its analytics platform, reflecting its effective market positioning and product adoption.

Customer Retention

Improved customer retention rates demonstrate Amplitude's ability to maintain and expand its customer base, ensuring sustained revenue streams.

Cash Flow Improvement

Significant improvement in free cash flow highlights Amplitude's effective cash management, enhancing its financial flexibility for future investments.

Negative Factors

Profitability Challenges

Ongoing operating losses indicate persistent profitability challenges, which could impact Amplitude's ability to reinvest in growth initiatives.

Gross Margin Decline

A decline in gross margin suggests rising costs, which could pressure Amplitude's profitability if not managed effectively.

Negative Return on Equity

A negative return on equity reflects inefficiencies in generating returns from shareholders' investments, potentially deterring future investors.

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

Market Cap

$1.52B

Dividend YieldN/A

Average Volume (3M)1.62M

Price to Earnings (P/E)―

Beta (1Y)1.38

Revenue Growth9.93%

EPS Growth-11.15%

CountryUS

Employees740

SectorTechnology

Sector Strength88

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.01

Shares Outstanding102,111,650

10 Day Avg. Volume1,368,713

30 Day Avg. Volume1,617,487

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.94

Enterprise Value/Revenue4.50

Enterprise Value/Gross Profit6.06

Enterprise Value/Ebitda-14.08

Forecast

1Y Price Target

$15.13

Price Target Upside50.85% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

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 through a subscription-based model, offering various pricing tiers based on features and usage levels. Its core revenue streams include subscriptions to its analytics platform, which allows customers to access data insights and reporting capabilities. Additionally, Amplitude may offer professional services, such as consulting and implementation support, to assist clients in maximizing the value of their analytics investments. Key factors contributing to its earnings include the growing demand for data-driven insights in digital product development and strategic partnerships with other technology providers that enhance its service offerings.

Amplitude Key Performance Indicators (KPIs)

Any

Total Paying Users

Total Paying Users
Indicates the number of customers who are actively paying for services, reflecting the company's ability to convert users into revenue-generating clients and its overall market penetration.

Chart InsightsAmplitude's total paying users have shown consistent growth, reaching 4,300 by mid-2025. This aligns with the company's strategic focus on enterprise expansion and platform adoption, as highlighted in their recent earnings call. Despite a slight expected decline in net new ARR for the next quarter, the overall momentum remains strong, supported by record expansion deals and increased multiproduct adoption. The company's leadership in digital analytics and product innovation, particularly in AI, further underpins this growth trajectory, although challenges like declining gross margins may need attention.

Data provided by:

Main Street Data

Amplitude Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 11, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong revenue and ARR growth, successful product innovation with AI integration, and recognition as a market leader. However, there were challenges with an operating loss and a slight decline in gross margin. Despite these lowlights, the overall sentiment of the call is largely positive due to the significant achievements and growth metrics.

Q2-2025 Updates

Positive Updates

Strong Q2 Revenue and ARR Growth

Second quarter revenue was $83.3 million, up 14% year-over-year, with annual recurring revenue (ARR) reaching $335 million, up 16% year-over-year. This exceeded the high end of guidance and marked the highest net new ARR in 11 quarters.

Increase in High-Value Customers

The number of customers with more than $100,000 in ARR grew to 634, an increase of 16% year-over-year.

Improvement in Net Revenue Retention

Dollar-based net retention rate increased to 104%, up from 101% last quarter and 96% in the second quarter last year.

Successful Product Innovation and AI Integration

Significant progress in AI developments with the launch of AI agents in a closed beta, demonstrating capabilities to optimize workflows and generate insights quickly. This included successful integration of recent acquisitions such as Kraftful and Inari.

Recognition as a Market Leader

Amplitude was named a leader in the 2025 Forrester Wave for Digital Analytics Solutions and ranked #1 in 8 categories in G2's Summer 2025 report.

Positive Free Cash Flow

Free cash flow in the quarter was $18.2 million, or 22% of revenue, compared to $6.8 million or 9% of revenue during the same period last year.

Negative Updates

Operating Loss

Non-GAAP operating loss was $1.5 million for the quarter.

Gross Margin Decline

Gross margin was 75% for the second quarter, down 1 point from the second quarter of 2024, impacted by increased data ingestion costs and higher amortization of software development costs.

Company Guidance

During the second quarter of 2025, Amplitude reported strong financial performance with a revenue of $83.3 million, marking a 14% year-over-year increase and surpassing their guidance. The company's annual recurring revenue (ARR) reached $335 million, reflecting a 16% year-over-year growth, with the highest net new ARR in 11 quarters. Non-GAAP operating loss was $1.5 million, while free cash flow margin improved to 22%, generating $8.9 million over the first half of the year. Amplitude's focus on platform sales led to 67% of ARR coming from multiproduct customers, up from 64% last quarter. The company also saw significant enterprise traction, with customers with more than $100,000 in ARR growing to 634, an increase of 16% year-over-year. Additionally, Amplitude's dollar-based net retention improved to 104% from 101% last quarter, indicating successful retention and expansion efforts. Despite facing some gross margin challenges due to increased data ingestion costs, Amplitude remains focused on investing in areas with high ROI potential while continuing to expand their platform capabilities.

Amplitude Financial Statement Overview

Summary

Amplitude shows positive revenue growth and improved cash flow, but faces profitability challenges with negative net income and return on equity. Strong gross profit margin and low leverage are positive indicators.

Income Statement

Neutral

Amplitude's revenue growth is positive, with a 3.25% increase in TTM, indicating a steady upward trajectory. However, the company is still facing profitability challenges, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at 74.2%, suggesting efficient cost management in production.

Balance Sheet

Neutral

The company's balance sheet shows a low debt-to-equity ratio of 0.008, indicating minimal leverage and financial risk. However, the negative return on equity (-33.3%) highlights ongoing profitability issues. The equity ratio is healthy, reflecting a solid capital structure.

Cash Flow

Positive

Amplitude has shown significant improvement in free cash flow, with a growth rate of 205.13% in TTM, indicating better cash management. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from its operations despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.57M	299.27M	276.28M	238.07M	167.26M	102.46M
Gross Profit	235.00M	222.35M	204.36M	167.63M	115.50M	71.98M
EBITDA	-101.18M	-101.28M	-88.76M	-91.90M	-71.06M	-22.31M
Net Income	-96.34M	-94.32M	-90.36M	-93.38M	-74.98M	-24.57M
Balance Sheet
Total Assets	456.61M	445.91M	433.68M	413.75M	400.39M	175.08M
Cash, Cash Equivalents and Short-Term Investments	208.08M	241.10M	322.40M	230.47M	307.44M	117.78M
Total Debt	2.32M	5.58M	8.18M	11.09M	0.00	0.00
Total Liabilities	177.11M	149.35M	138.93M	118.79M	93.84M	242.20M
Stockholders Equity	279.50M	296.56M	294.75M	294.97M	306.55M	-67.12M
Cash Flow
Free Cash Flow	18.85M	16.78M	22.45M	-11.19M	-34.94M	-12.60M
Operating Cash Flow	21.36M	18.51M	25.63M	-5.38M	-31.71M	-10.39M
Investing Cash Flow	-156.03M	-75.37M	9.32M	-89.39M	-1.50M	-5.91M
Financing Cash Flow	-28.00M	-19.94M	-4.94M	5.83M	222.64M	54.24M

Amplitude Technical Analysis

Technical Analysis Sentiment

Negative

Last Price10.03

Price Trends

50DMA

11.60

Negative

100DMA

11.96

Negative

200DMA

11.47

Negative

Market Momentum

MACD

-0.15

Positive

RSI

33.65

Neutral

STOCH

12.53

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMPL, the sentiment is Negative. The current price of 10.03 is below the 20-day moving average (MA) of 11.35, below the 50-day MA of 11.60, and below the 200-day MA of 11.47, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 33.65 is Neutral, neither overbought nor oversold. The STOCH value of 12.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMEO	72 Outperform	$1.29B	102.11	―	―	-1.35%	-59.67%
CXM	70 Neutral	$1.89B	17.19	22.11%	―	6.08%	153.79%
PD	64 Neutral	$1.52B	-104.35	-7.33%	―	8.20%	82.75%
SPT	62 Neutral	$733.92M	-13.14	-37.20%	―	14.79%	27.52%
AMPL	60 Neutral	$1.52B	―	-33.99%	―	9.93%	-11.15%
SEMR	60 Neutral	$1.06B	-794.44	-0.46%	―	22.16%	-107.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

AMPL

Amplitude

10.03

1.05

11.69%

PagerDuty

16.31

-1.74

-9.64%

SPT

Sprout Social

12.47

-16.87

-57.50%

SEMR

SEMrush Holdings

7.15

-7.28

-50.45%

VMEO

Vimeo

7.75

2.82

57.20%

CXM

Sprinklr

7.76

0.30

4.02%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 27, 2025