Amplitude (NASDAQ:AMPL) Releases Earnings Results

Amplitude (NASDAQ:AMPL) posted its quarterly earnings data on Wednesday. The company reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.01, FiscalAI reports. The company 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 Trading Up 2.1%

NASDAQ AMPL traded up $0.35 during 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 firm has a market capitalization of $1.74 billion, a PE ratio of -22.92 and a beta of 1.30. The company’s fifty day simple moving average is $14.70 and its 200-day simple moving average is $9.73. Amplitude has a fifty-two week low of $5.51 and a fifty-two week high of $17.84.

Insider Buying and Selling

In related 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 transaction of $3,897,000.00. Following the completion of the transaction, the insider directly owned 1,622,696 shares in the company, valued at $21,078,821.04. This represents a 15.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Spenser Skates sold 185,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $12.30, for a total value of $2,275,500.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 674,087 shares of company stock worth $9,260,009 over the last three months. 21.59% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on AMPL. BTIG Research raised their price objective on Amplitude from $13.00 to $17.00 and gave the stock a “buy” rating in a research note on Tuesday, October 20th. UBS Group lifted their price target on shares of Amplitude from $8.50 to $13.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Morgan Stanley boosted their price objective on shares of Amplitude from $12.00 to $16.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Citigroup boosted 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. Finally, Bank of America increased their price objective on shares of Amplitude from $14.00 to $16.50 and gave the stock a “neutral” rating in a research note on Wednesday, October 14th. 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 issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $14.30.

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.