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

Amplitude (NASDAQ:AMPL) announced its quarterly earnings data on Wednesday. The company reported $0.04 EPS for the quarter, beating the consensus estimate of $0.03 by $0.01, FiscalAI reports. The firm had revenue of $110.64 million during the quarter, compared to analyst estimates of $107.02 million. Amplitude had a negative net margin of 25.24% and a negative return on equity of 45.71%.

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 Price Performance

AMPL traded up $0.28 during trading on Friday, reaching $16.38. 1,220,550 shares of the company’s stock were exchanged, compared to its average volume of 2,124,702. Amplitude has a 1 year low of $5.51 and a 1 year high of $18.85. The stock has a market capitalization of $1.66 billion, a P/E ratio of -21.54 and a beta of 1.30. The company’s fifty day simple moving average is $14.76 and its 200-day simple moving average is $9.76.

More Amplitude News

Here are the key news stories impacting Amplitude this week:

• Positive Sentiment: Amplitude reported Q3 adjusted earnings of $0.04 per share, above the $0.03 consensus and up from $0.02 a year earlier. Revenue of about $110.6 million also topped estimates of $107.0 million. Q3 earnings and revenue results
• Positive Sentiment: The company’s full-year outlook exceeded expectations. Coverage also pointed to enterprise AI adoption and new products as contributors to revenue growth. Q3 sales and outlook
• Positive Sentiment: Several firms raised their price targets after the results: UBS, KeyCorp and Piper Sandler set targets of $22; Needham raised its to $21, and BTIG to $19. The revisions signal improved analyst expectations. Analyst target increases
• Negative Sentiment: Despite the earnings beat, Amplitude remains unprofitable, with a negative net margin and negative return on equity—risks for investors if growth or execution disappoints.

Insiders Place Their Bets

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

Wall Street Analysts Forecast Growth

AMPL has been the topic of a number of recent analyst reports. DA Davidson upped their price target on shares of Amplitude from $10.00 to $12.50 and gave the company a “buy” rating in a research note on Thursday, August 6th. KeyCorp boosted their price objective on shares of Amplitude from $14.00 to $22.00 and gave the company an “overweight” rating in a report on Thursday. BTIG Research upped their target price on Amplitude from $17.00 to $19.00 and gave the company a “buy” rating in a research report on Thursday. Piper Sandler raised their target price on Amplitude from $18.00 to $22.00 and gave the stock an “overweight” rating in a research note on Thursday. Finally, Needham & Company LLC raised their target price on Amplitude from $18.00 to $21.00 and gave the stock a “buy” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $17.00.

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.