Amplitude (NASDAQ:AMPL) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Amplitude reported quarterly EPS of $0.04, beating the $0.03 consensus, and revenue of $110.64 million, above the $107.02 million estimate.
• Q3 revenue grew 25% year over year to about $111 million, and ARR rose 24% to $431 million; management raised its full-year revenue and operating-income outlook.
• Gross margin declined to 70% as data-ingestion, AI inference, and hosting costs increased, with customer usage growing ahead of monetization.

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

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 Up 2.1%

Shares of AMPL traded up $0.35 during mid-day trading on Wednesday, reaching $17.19. 3,847,217 shares of the company's stock were exchanged, compared to its average volume of 1,764,267. The company has a 50-day simple moving average of $14.70 and a two-hundred day simple moving average of $9.73. Amplitude has a 52-week low of $5.51 and a 52-week high of $17.84. The company has a market cap of $1.74 billion, a price-to-earnings ratio of -22.92 and a beta of 1.30.

Analysts Set New Price Targets

Several analysts have recently commented on AMPL shares. Piper Sandler raised their price target on Amplitude from $13.00 to $18.00 and gave the company an "overweight" rating in a report on Wednesday, September 30th. UBS Group raised their target price on Amplitude from $8.50 to $13.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Bank of America raised their target price on Amplitude from $14.00 to $16.50 and gave the company a "neutral" rating in a report on Wednesday, October 14th. BTIG Research increased their price target on shares of Amplitude from $13.00 to $17.00 and gave the company a "buy" rating in a report on Tuesday, October 20th. Finally, Weiss Ratings upgraded shares of Amplitude from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $14.30.

Insider Buying and Selling

In other Amplitude news, CEO Spenser Skates sold 6,651 shares of the firm's stock in a transaction on Wednesday, October 28th. The stock was sold at an average price of $17.53, for a total transaction of $116,592.03. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Nathaniel Glenn Crook sold 300,000 shares of the business's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $12.99, for a total value of $3,897,000.00. Following the completion of the transaction, the insider directly owned 1,622,696 shares of the company's stock, valued at approximately $21,078,821.04. This trade represents a 15.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 674,087 shares of company stock worth $9,260,009. 21.59% of the stock is owned by corporate insiders.

Amplitude Company Profile

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.

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