Amplitude, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Scott Berg from Needham maintained a Buy rating on the stock and has a $18.00 price target.
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Scott Berg has given his Buy rating due to a combination of factors that highlight Amplitude’s strong financial performance and promising growth prospects. The company reported impressive second-quarter results, with net new annual recurring revenue (ARR) increasing by 200% year-over-year, surpassing the previous quarter’s 100% growth. This robust sales performance led to a significant acceleration in revenue growth, with expectations that Amplitude will achieve over 15% growth in the second half of the year.
Additionally, the company’s current remaining performance obligation (cRPO) growth accelerated, indicating strong future sales potential. Net revenue retention also improved, driven by better expansion sales and reduced down-sell pressures. Furthermore, the rising demand for Amplitude’s marketing analytics and data solutions, which grew by more than 20%, suggests a broader sales upswing beyond its core Product Analytics. These factors collectively support the view that Amplitude’s growth rate could return to 20% or more, justifying the Buy rating.