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Amplitude (AMPL)
NASDAQ:AMPL
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Amplitude
(NASDAQ:AMPL)
71Outperform
Positive Factors
Financial Performance
Amplitude reported solid 4Q24 results with revenue, annual recurring revenue (ARR), and non-GAAP operating income above estimates.
Platform Strategy
Amplitude's enterprise traction and platform strategy have been showing positive early signs.
Product Innovation
The upcoming agentic AI offering has the potential to become a good growth driver for the business over the long-term.
Negative Factors
Profitability Concerns
Looking for more sustained top-line acceleration along with progress on profitability.
Retention Rates
With TTM NRR at 97%, Amplitude’s retention rates are currently among the lowest across application software peers.
Amplitude (AMPL) vs. S&P 500 (SPY)
Market Cap
$1.37B
Dividend YieldN/A
Average Volume (3M)1.21M
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth8.32%
EPS Growth2.04%
CountryUS
Employees724
SectorTechnology
Sector Strength44
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.76
Shares Outstanding96,317,764
10 Day Avg. Volume1,069,780
30 Day Avg. Volume1,209,041
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.04
Price to Cash Flow (P/CF)119.40
P/FCF Ratio119.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.20Price Target Upside44.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Amplitude Business Overview & Revenue Model
Company DescriptionAmplitude, Inc. provides a digital optimization system to analyze customer behavior within digital products in the United States and internationally. It offers Amplitude analytics for insights of customer behavior; Amplitude Recommend, a no-code personalization solution that helps to increase customer engagement by adapting digital products and campaigns to every user based on behavior; Amplitude Experiment, an integrated solution that enables teams to determine and deliver the product experiences for their customers through A/B tests and controlled feature releases; Amplitude Behavioral Graph, a proprietary database for deep, real-time interactive behavioral analysis, and behavior-driven personalization instantly joining, analyzing, and correlating any customer actions to outcomes, such as engagement, growth, and loyalty; and data management, a real-time data layer for planning, integrating, and managing data sources to create a foundation with identity resolution, enterprise-level security, and privacy solutions. The company also provides customer support services related to initial implementation setup, ongoing support, and application training. It delivers its application over the Internet as a subscription service using a software-as-a-service model. The company was formerly known as Sonalight, Inc. and changed its name to Amplitude, Inc. in December 2014. Amplitude, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.
How the Company Makes MoneyAmplitude generates revenue primarily through a subscription-based model for its software-as-a-service platform. Businesses pay for access to Amplitude's comprehensive suite of analytics tools, which are priced based on factors such as the number of users, volume of data tracked, and specific features or services utilized. The company also offers premium tiers and add-ons that provide advanced capabilities and integrations, contributing to upselling opportunities. Strategic partnerships with other technology providers enhance its ecosystem and extend its reach, further contributing to revenue generation.
Amplitude Financial Statement Overview
Summary
Amplitude is experiencing solid revenue growth but is challenged by negative profitability margins and cash flow issues. The balance sheet is strong with minimal debt, which provides financial stability.Income Statement
Amplitude's TTM (Trailing-Twelve-Months) revenue growth rate is 8.31%, indicating solid expansion, consistent with the software industry's growth trajectory. However, the company faces profitability challenges with a negative net profit margin of -31.52% and an EBIT margin of -35.88%, reflecting ongoing operational losses. The gross profit margin of 74.28% suggests strong product profitability, but high operating expenses are eroding overall profitability.65
Positive
Balance Sheet
Amplitude maintains a healthy balance sheet with a low debt-to-equity ratio of 0.01, indicating minimal leverage. The equity ratio is 66.50%, showing a strong reliance on equity financing. However, the negative return on equity of -31.81% highlights profitability issues despite a solid equity base. The company is financially stable but needs to improve its return on equity.72
Positive
Cash Flow
The company's operating cash flow to net income ratio is -0.20, signaling that cash flow generation is not yet matching net income losses. The free cash flow to net income ratio of -0.15 further emphasizes the need for improved cash generation. However, the TTM free cash flow of $14.27 million is a positive sign, showing some progress in cash management.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 299.27M | 276.28M | 238.07M | 167.26M | 102.46M | Gross Profit |
| 222.35M | 204.36M | 167.63M | 115.50M | 71.98M | EBIT |
| -107.38M | -94.38M | -96.56M | -74.15M | -24.00M | EBITDA |
| -107.38M | -88.76M | -91.90M | -71.06M | -22.31M | Net Income Common Stockholders |
| -94.32M | -90.36M | -93.38M | -74.98M | -24.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 241.10M | 322.40M | 230.47M | 307.44M | 117.78M | Total Assets |
| 445.91M | 433.68M | 413.75M | 400.39M | 175.08M | Total Debt |
| 1.77M | 8.18M | 11.09M | 0.00 | 0.00 | Net Debt |
| -169.91M | -240.32M | -207.40M | -307.44M | -117.78M | Total Liabilities |
| 149.35M | 138.93M | 118.79M | 93.84M | 242.20M | Stockholders Equity |
| 296.56M | 294.75M | 294.97M | 306.55M | -67.12M |
| Cash Flow | Free Cash Flow | |||
| 16.78M | 22.45M | -11.19M | -34.94M | -12.60M | Operating Cash Flow |
| 18.51M | 25.63M | -5.38M | -31.71M | -10.39M | Investing Cash Flow |
| -75.37M | 9.32M | -89.39M | -1.50M | -5.91M | Financing Cash Flow |
| -19.94M | -4.94M | 5.83M | 222.64M | 54.24M |
Amplitude Technical Analysis
Negative
10.55
Price Trends
12.05
Negative
11.35
Negative
9.98
Positive
Market Momentum
-0.28
Positive
35.91
Neutral
10.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMPL, the sentiment is Negative. The current price of 10.55 is below the 20-day moving average (MA) of 11.88, below the 50-day MA of 12.05, and above the 200-day MA of 9.98, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 35.91 is Neutral, neither overbought nor oversold. The STOCH value of 10.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMPL.
Amplitude Risk Analysis
Amplitude disclosed 68 risk factors in its most recent earnings report. Amplitude reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amplitude Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $22.84B | 23.37 | 11.92% | ― | 3.05% | 55.96% | |
73 Outperform | $88.52B | 721.64 | -0.69% | ― | 29.39% | -119.62% | |
71 Outperform | $1.37B | ― | -31.90% | ― | 8.32% | 2.04% | |
69 Neutral | $18.75B | 1,842.83 | 0.46% | ― | 15.33% | ― | |
66 Neutral | $34.65B | 196.88 | 7.75% | ― | 26.12% | 274.50% | |
60 Neutral | $14.45B | ― | -6.70% | ― | 19.22% | 28.46% | |
58 Neutral | $21.03B | 10.58 | -16.29% | 2.47% | 4.38% | -23.63% |
* Technology Sector Average
Performance Comparison
AMPL
Amplitude
10.55
-0.21
-1.95%
OKTA
Okta
107.99
4.50
4.35%
MDB
MongoDB
178.03
-178.06
-50.00%
ZM
Zoom Video Communications
74.84
10.11
15.62%
CRWD
CrowdStrike Holdings
357.11
37.52
11.74%
DDOG
Datadog
101.10
-22.05
-17.90%
Amplitude Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -10.97% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
Amplitude showed positive revenue and ARR growth with strategic focus on enterprise customers and product innovation. However, the challenging macro environment and churn issues present ongoing challenges.Highlights
Q4 Revenue and ARR Growth
Amplitude reported fourth quarter revenue of $78 million, up 9% year-over-year. Annual recurring revenue (ARR) reached $312 million, an increase of $13 million from the previous quarter.
Enterprise Customer Growth
The number of customers with more than $100,000 in ARR grew to 591, representing a 16% year-over-year increase.
Product Innovations and Launches
Amplitude launched several new products, including Guides and Surveys, Snowflake Native Amplitude, and a HubSpot integration, which contributed to a record-breaking number of new sign-ups.
Strategic Enterprise Accounts Team
Amplitude created a new strategic enterprise accounts team to focus on the top 30 customers and prospects, resulting in a significant portion of ARR coming from multi-product deals.
Lowlights
Challenging Macro Environment
The macroeconomic environment remains challenging, impacting new logo acquisition and driving continued pressure in the lower end of the market.
Churn and Contract Rightsizing
While churn rates are stabilizing, Amplitude still faces challenges with key accounts that require monitoring, and the company anticipates continued pressure on the lower end of the market.
Sales and Marketing Expenses
Sales and marketing expenses increased to 44% of revenue, reflecting investments in enterprise coverage, but were accompanied by only slight improvements in sales efficiencies.
Company Guidance
During Amplitude's fourth-quarter earnings call for fiscal year 2024, the company reported robust financial performance and provided guidance for 2025. Key metrics included fourth-quarter revenue of $78 million, reflecting a year-over-year increase of 9%, and an annual recurring revenue (ARR) of $312 million, which rose by $13 million from the previous quarter. The company also achieved a non-GAAP operating income of $0.2 million and saw a 16% year-over-year increase in customers with more than $100,000 in ARR, totaling 591. For the full year 2024, Amplitude exited with over $299 million in revenue, an ARR growth of more than 10%, and a free cash flow of nearly $12 million. For 2025, Amplitude set a revenue guidance of $325-331 million, projecting a 10% growth, and anticipated a non-GAAP net income per share between $0.05 and $0.10. The call emphasized a strategic focus on enterprise expansion, product innovation, and enhancing customer engagement through their integrated platform.Amplitude Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Amplitude Appoints Tien Tzuo to Board of Directors
Positive
Feb 25, 2025
On February 22, 2025, Amplitude appointed Tien Tzuo, founder and CEO of Zuora, as a Class I director on its Board of Directors, expanding the board from nine to ten members. Tzuo, known for his strategic marketing expertise and leadership experience, will also serve on the Audit and Nominating Committees, receiving compensation in cash and restricted stock units. His appointment is expected to bolster Amplitude’s position as a leader in digital analytics, leveraging his experience from Salesforce and Zuora to enhance customer-centric strategies and product innovation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.