Amplitude (AMPL) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: N/A
• Average Volume (3M): 965.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: 12.78%
• EPS Growth: -20.47%
• Country: US
• Employees: 740
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 103,610,140
• 10 Day Avg. Volume: 809,329
• 30 Day Avg. Volume: 964,995
• PEG Ratio: 10.67
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 4.37
• P/FCF Ratio: 111.46
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 3.76
• Enterprise Value/Gross Profit: 5.08
• Enterprise Value/Ebitda: -12.30
• 1Y Price Target: $15.00
• Price Target Upside: 34.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $10.00 ▼(-10.15% Downside)

Amplitude's overall score is driven by strong revenue growth and strategic initiatives in AI and enterprise expansion, as highlighted in the earnings call. However, challenges in profitability, cash flow management, and a bearish technical outlook weigh on the score. The negative P/E ratio and lack of dividend yield further impact valuation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

AI Product Innovations

Innovations in AI products enhance Amplitude's competitive edge, broadening its user base and driving future growth in analytics capabilities.

Enterprise Customer Growth

Increasing enterprise customer base strengthens revenue stability and reflects successful penetration into larger markets, boosting long-term prospects.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder reinvestment and growth opportunities, affecting the company's ability to sustain long-term financial health.

Gross Margin Decline

A decline in gross margin may indicate rising costs or pricing pressures, potentially impacting future profitability and competitive positioning.

Free Cash Flow Decline

Decreasing free cash flow can limit financial flexibility and investment capacity, posing risks to sustaining growth and operational resilience.

Amplitude Business Overview & Revenue Model

Company Description

Amplitude, 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 Money

Amplitude generates revenue through a subscription-based model, wherein customers pay for access to its analytics platform based on the volume of data processed and the features utilized. The company offers several pricing tiers, catering to different business sizes and needs, which include free trials and premium plans with advanced capabilities. Key revenue streams include subscription fees from various packages, additional charges for higher data limits, and professional services such as training and consulting. Significant partnerships with major technology firms and integrations with popular software tools further enhance its offering, attracting a diverse clientele and contributing to its earnings.

Amplitude Financial Statement Overview

Summary

Amplitude shows strong revenue growth and a solid equity position, but struggles with profitability and cash flow management. The company needs to improve profit margins and enhance cash flow generation for sustainable financial health.

Income Statement

Amplitude's income statement shows a consistent revenue growth trend, with a TTM revenue growth rate of 4.22%. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains strong at 74.23%, but the persistent negative net income highlights ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.0083, indicating minimal leverage. However, the return on equity is negative, suggesting inefficiencies in generating profits from equity. The equity ratio is healthy, but the company needs to improve its profitability to enhance overall financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a TTM decrease of 4.73%. The operating cash flow to net income ratio is positive, indicating some operational cash generation, but the free cash flow to net income ratio suggests that cash flow improvements are necessary to support long-term growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	329.92M	299.27M	276.28M	238.07M	167.26M	102.46M
Gross Profit	244.02M	222.35M	204.36M	167.63M	115.50M	71.98M
EBITDA	-100.76M	-101.28M	-88.76M	-91.90M	-71.06M	-22.31M
Net Income	-103.47M	-94.32M	-90.36M	-93.38M	-74.98M	-24.57M
Balance Sheet
Total Assets	438.12M	445.91M	433.68M	413.75M	400.39M	175.08M
Cash, Cash Equivalents and Short-Term Investments	189.20M	241.10M	322.40M	230.47M	307.44M	117.78M
Total Debt	3.79M	5.58M	8.18M	11.09M	0.00	0.00
Total Liabilities	175.90M	149.35M	138.93M	118.79M	93.84M	242.20M
Stockholders Equity	262.23M	296.56M	294.75M	294.97M	306.55M	-67.12M
Cash Flow
Free Cash Flow	13.82M	11.73M	22.45M	-11.19M	-34.94M	-12.60M
Operating Cash Flow	20.14M	18.51M	25.63M	-5.38M	-31.71M	-10.39M
Investing Cash Flow	-209.94M	-75.37M	9.32M	-89.39M	-1.50M	-5.91M
Financing Cash Flow	-45.42M	-19.94M	-4.94M	5.83M	222.64M	54.24M

Amplitude Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.13 is below the 20-day moving average (MA) of 11.43, above the 50-day MA of 10.78, and above the 200-day MA of 11.07, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 33.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMPL.

Amplitude Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	77 Outperform	$1.88B	17.97	21.35%	―	6.48%	168.94%
SEMR	73 Outperform	$1.80B	-387.30	-1.68%	―	19.87%	-136.93%
PD	63 Neutral	$1.13B	7.66	70.46%	―	7.01%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$634.13M	-12.53	-26.69%	―	13.09%	32.34%
AMPL	52 Neutral	$1.46B	-13.69	-37.47%	―	12.78%	-20.47%