Amplitude (NASDAQ:AMPL) Issues Earnings Results

Amplitude (NASDAQ:AMPL) announced its 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. Amplitude had a negative net margin of 26.59% and a negative return on equity of 42.62%. The company had revenue of $110.64 million during the quarter, compared to analysts’ expectations 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

AMPL stock traded up $0.35 during trading on Wednesday, hitting $17.19. The stock had a trading volume of 3,847,217 shares, compared to its average volume of 1,764,267. The company’s 50 day moving average price is $14.70 and its two-hundred day moving average price is $9.73. Amplitude has a 1-year low of $5.51 and a 1-year high of $17.84. The stock has a market cap of $1.74 billion, a price-to-earnings ratio of -22.92 and a beta of 1.30.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. DA Davidson increased their price target on shares of Amplitude from $10.00 to $12.50 and gave the company a “buy” rating in a research report on Thursday, August 6th. Citigroup lifted their price objective on Amplitude from $10.00 to $11.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Piper Sandler upped their target price on Amplitude from $13.00 to $18.00 and gave the company an “overweight” rating in a research note on Wednesday, September 30th. Weiss Ratings upgraded Amplitude from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, August 11th. Finally, Morgan Stanley increased their target price on Amplitude from $12.00 to $16.00 and gave the company an “overweight” rating in a report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Amplitude presently has a consensus rating of “Moderate Buy” and a consensus target price of $14.30.

Insider Activity

In other Amplitude news, CEO Spenser Skates sold 6,651 shares of the firm’s stock in a transaction dated Wednesday, October 28th. The shares were sold at an average price of $17.53, for a total transaction of $116,592.03. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Nathaniel Glenn Crook sold 300,000 shares of Amplitude stock in a transaction dated 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 sale, the insider 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 674,087 shares of company stock worth $9,260,009 over the last ninety days. 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.