Amplitude (NASDAQ:AMPL) Issues Earnings Results

Amplitude (NASDAQ:AMPL) issued its quarterly earnings data on Wednesday. The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.01, FiscalAI reports. Amplitude had a negative return on equity of 42.62% and a negative net margin of 26.59%. The business had revenue of $110.64 million during the quarter, compared to analyst estimates of $107.02 million.

Here are the key takeaways from Amplitude’s conference call:

• Q3 revenue rose 25% year over year to $111 million, while ARR increased 24% to $431 million. Non-GAAP operating income reached a record $5.7 million, and the company raised its full-year revenue and operating-income outlook.
• Enterprise adoption and expansion remained strong: customers with more than $100,000 in ARR grew 31% to 855, and remaining performance obligations increased 27%. Management said cross-sell was the largest contributor to ARR growth, with 50% of customers now using multiple products.
• Amplitude highlighted early demand for its AI products: more than 125 customers were using Agent Analytics just over a month after launch, and Wave is set to launch next week. However, Wave is still early and the company plans to work hands-on with a small group of customers before broader adoption.
• Gross margin fell to 70%, down about six percentage points year over year, reflecting higher data-ingestion and AI inference costs as well as Statsig hosting. Management said customer usage is growing ahead of potential monetization, creating near-term pressure on the cost to serve.

Amplitude Stock Performance

Amplitude stock traded down $0.24 during mid-day trading on Thursday, reaching $16.95. The stock had a trading volume of 384,352 shares, compared to its average volume of 2,114,612. Amplitude has a fifty-two week low of $5.51 and a fifty-two week high of $18.85. The stock’s 50-day simple moving average is $14.70 and its 200-day simple moving average is $9.73. The firm has a market capitalization of $1.72 billion, a PE ratio of -22.64 and a beta of 1.30.

Amplitude News Summary

Here are the key news stories impacting Amplitude this week:

• Positive Sentiment: Amplitude reported third-quarter EPS of $0.04, beating the $0.03 consensus and rising from $0.02 a year earlier. Revenue of about $110.6 million also topped expectations of $107.0 million. Zacks report on third-quarter results
• Positive Sentiment: Coverage highlighted 25% revenue growth and a record margin, with enterprise AI adoption and new products contributing to growth. The company’s full-year outlook also exceeded expectations, supporting optimism about momentum beyond the quarter. Q3 business and growth analysis Q3 sales and outlook report
• Positive Sentiment: Needham raised its price target to $21 from $18 and maintained a Buy rating. Analysts have also lifted forecasts after the better-than-expected quarter, signaling increased confidence in Amplitude’s prospects. Analyst forecast changes
• Neutral Sentiment: Despite the positive quarterly results, Amplitude still reported a negative net margin and negative return on equity, so sustained growth and improving profitability remain important to the investment outlook.

Insider Transactions at Amplitude

In related news, CEO Spenser Skates sold 185,000 shares of the company’s stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $12.30, for a total transaction of $2,275,500.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Nathaniel Glenn Crook sold 300,000 shares of Amplitude stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $12.99, for a total transaction of $3,897,000.00. Following the transaction, the insider directly owned 1,622,696 shares in the company, valued at approximately $21,078,821.04. This represents a 15.60% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 674,087 shares of company stock valued at $9,260,009 over the last quarter. Corporate insiders own 21.59% of the company’s stock.

Analysts Set New Price Targets

AMPL has been the subject of a number of research reports. UBS Group increased their target price on Amplitude from $8.50 to $13.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Citigroup lifted their price objective on shares of Amplitude from $10.00 to $11.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. DA Davidson lifted their price objective on shares of Amplitude from $10.00 to $12.50 and gave the stock a “buy” rating in a research report on Thursday, August 6th. BTIG Research lifted their target price on Amplitude from $17.00 to $19.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Weiss Ratings raised Amplitude from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $15.45.

About Amplitude

Amplitude, Inc is a software company that provides digital analytics and product experience solutions. Its platform helps organizations collect, analyze and act on user behavior data across websites, mobile applications and other digital products.

The company’s offerings include Amplitude Analytics, which enables teams to measure user engagement, retention and conversion; experimentation tools for testing product changes; session replay capabilities for reviewing user interactions; and data management and governance features.