Amplitude Inc Class A ((AMPL)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Amplitude Inc’s recent earnings call painted a picture of robust financial health and strategic growth, with a strong emphasis on innovation and customer expansion. The sentiment was largely positive, driven by impressive revenue figures and the successful introduction of new AI-native products. While there were minor concerns about a slight dip in gross margin and free cash flow, these were overshadowed by the company’s overall growth trajectory and innovation efforts.
Strong Q3 Financial Performance
Amplitude reported a remarkable Q3 revenue of $88.6 million, reflecting an 18% increase year-over-year. The annual recurring revenue (ARR) also saw a significant rise, reaching $347 million, which marks a 16% increase from the previous year. This strong financial performance underscores the company’s effective growth strategies and market presence.
Enterprise Customer Growth
The company experienced a notable increase in its enterprise customer base, with the number of customers generating more than $100,000 in ARR growing to 653. This represents a 15% year-over-year increase, highlighting Amplitude’s success in attracting and retaining high-value clients.
AI Product Innovations
Amplitude introduced several AI-native products, including MCP, AI Agents, AI Visibility, and AI Feedback. These innovations are designed to broaden the company’s reach to non-technical users and enhance product analytics, positioning Amplitude as a leader in AI-driven solutions.
Expansion of Multi-Product Adoption
A significant 71% of Amplitude’s ARR now comes from customers using multiple products, indicating strong cross-product adoption. This trend reflects the company’s successful strategy in encouraging customers to integrate more of its offerings into their operations.
Increase in Contract Duration and RPO
The average contract duration has increased to nearly 22 months, accompanied by a 37% year-over-year growth in total remaining performance obligations (RPO). This indicates a solid commitment from customers and a stable revenue stream for the company.
Gross Margin Decline
Despite the overall positive financial performance, Amplitude experienced a slight decline in gross margin, which decreased by 1 percentage point to 76% compared to the previous year. This dip, while minor, is an area the company may need to address moving forward.
Free Cash Flow Decline
Free cash flow in Q3 was reported at $3.4 million, down from $4.5 million during the same period last year. Although this represents a decline, the company’s overall financial health remains strong.
Forward-Looking Guidance
Amplitude provided optimistic guidance for the fourth quarter and full year 2025, anticipating Q4 revenue between $89 million and $91 million, with non-GAAP operating income projected between $3.5 million and $5.5 million. The full year 2025 outlook was raised, with expected revenue between $340.8 million and $342.8 million, indicating a 14% growth. The company’s focus on enterprise strategy and product innovation, particularly in AI analytics, continues to drive customer engagement and revenue growth.
In conclusion, Amplitude Inc’s earnings call highlighted a strong financial performance and strategic growth, driven by innovation and an expanding customer base. Despite minor concerns around gross margin and free cash flow, the company’s positive trajectory and forward-looking guidance suggest continued success in the coming quarters.