Amplitude’s third quarter results were well received by the market, delivering growth in both revenue and customer metrics. Management attributed this outcome to increasing demand from enterprise clients, strong adoption of multi-product offerings, and a series of recent AI-focused product launches. CEO Spenser Skates emphasized that the company’s platform is seeing “broad-based success with both AI natives and traditional enterprises,” underlining the shift toward larger, multi-year contracts and deeper product integration. Management also highlighted improvements in contract duration and recurring revenue as key contributors this quarter.
Is now the time to buy AMPL? Find out in our full research report (it’s free for active Edge members).
Amplitude (AMPL) Q3 CY2025 Highlights:
- Revenue: $88.56 million vs analyst estimates of $86.34 million (17.7% year-on-year growth, 2.6% beat)
- Adjusted EPS: $0.02 vs analyst estimates of $0.01 (in line)
- Adjusted Operating Income: $568,000 vs analyst estimates of $26,820 (0.6% margin, relatively in line)
- Revenue Guidance for Q4 CY2025 is $90 million at the midpoint, above analyst estimates of $87.95 million
- Operating Margin: -29%, down from -26.6% in the same quarter last year
- Customers: 4,423, up from 4,285 in the previous quarter
- Net Revenue Retention Rate: 102%, up from 99% in the previous quarter
- Annual Recurring Revenue: $347 million vs analyst estimates of $344.6 million (16.4% year-on-year growth, 0.7% beat)
- Billings: $83.44 million at quarter end, up 27% year on year
- Market Capitalization: $1.49 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Amplitude’s Q3 Earnings Call
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Koji Ikeda (Bank of America) asked about the drivers behind the 37% growth in remaining performance obligations. CFO Andrew Casey attributed this to targeted enterprise segmentation and a focus on multi-year, high-value contracts, especially among clients with over 1,000 employees or $100 million in revenue.
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Patrick Schulz (R.W. Baird) questioned the balance between investing for growth and profitability. CEO Spenser Skates noted the company is leveraging AI tools to enhance sales productivity without significant cost increases, and Casey emphasized disciplined investment aligned with enterprise execution.
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Elizabeth Elliott (Morgan Stanley) inquired about the potential for a step change in multi-product adoption due to AI Agents. Skates explained that while current focus is on analytics and insights, future enhancements will extend to actionable recommendations, further boosting multi-product usage.
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Willow Miller (William Blair) asked if new AI functionality could expand Amplitude’s market opportunity among nontechnical users. Skates confirmed this is a key objective, highlighting aggressive internal targets for user adoption driven by simplified interfaces and AI-powered assistance.
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Claire Gerdes (UBS) sought clarity on the monetization approach for new AI products. Skates stated that initial focus is on driving adoption and value for customers, with pricing models remaining centered on familiar metrics like events and data volume rather than introducing new outcome-based pricing.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of adoption and monetization for Amplitude’s new AI-native products, (2) progress on expanding multi-year, multi-product contracts within the enterprise segment, and (3) further improvements in operational efficiency and gross margin. The evolution of the platform’s pricing model and the ability to attract nontechnical users will also be important markers to track.
Amplitude currently trades at $11.18, up from $9.64 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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