Amplitude’s second quarter results were positively received, as the company delivered revenue above Wall Street expectations, supported by notable gains in its enterprise customer base and multiproduct adoption. CEO Spenser Skates credited the strong performance to years of focused enterprise sales efforts, growing platform usage, and new marketing analytics capabilities. Management highlighted the highest net new annual recurring revenue in nearly three years, emphasizing that recent wins were often the result of long-term engagement with large customers looking to consolidate analytics and activation tools. Skates remarked, “Many of the deals we closed this quarter were years in the making and required multiple steps, including hiring the right reps, building the right named account strategy, finding the right solution fit, instrumenting value, closing the deal and driving impact for customers.”
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Amplitude (AMPL) Q2 CY2025 Highlights:
- Revenue: $83.27 million vs analyst estimates of $81.35 million (13.6% year-on-year growth, 2.4% beat)
- Adjusted EPS: $0.01 vs analyst estimates of $0.01 (in line)
- Adjusted Operating Income: -$1.48 million vs analyst estimates of -$1.54 million (-1.8% margin, relatively in line)
- The company lifted its revenue guidance for the full year to $336.7 million at the midpoint from $331 million, a 1.7% increase
- Operating Margin: -32.5%, up from -37.1% in the same quarter last year
- Customers: 4,271, up from 4,000 in the previous quarter
- Net Revenue Retention Rate: 99%, down from 101% in the previous quarter
- Annual Recurring Revenue: $335 million vs analyst estimates of $324.4 million (15.5% year-on-year growth, 3.3% beat)
- Billings: $102.9 million at quarter end, up 8.4% 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 Q2 Earnings Call
- Robert Cooney Oliver (R.W. Baird) asked about the monetization timeline for AI agents following recent acquisitions. CEO Spenser Skates said monetization is not immediate, with current priority placed on customer value and broad adoption before pricing is determined.
- Clark Wright (D.A. Davidson) questioned whether improvements in retention stemmed more from churn reduction or upsell momentum. CFO Andrew Casey replied that cross-sell and upselling are driving net revenue retention, but progress is also being made on managing contract downsizing.
- Brent Bracelin (Piper Sandler) asked how platform attach rates and data consumption trends contributed to committed revenue growth. Casey noted both are key, with larger, multi-year platform deals and expanding data ingestion supporting long-term visibility and potential for greater upsell.
- Elizabeth Porter (Morgan Stanley) probed how Amplitude is raising awareness of its multiproduct suite among existing customers. Skates acknowledged the challenge, citing ongoing education efforts and significant untapped wallet share as more customers move to full platform adoption.
- Scott Berg (Needham) sought clarity on whether strong net new ARR was driven by more deals or larger deal sizes. Skates said growth was broad-based, with both larger expansions and increased deal volume across multiple verticals contributing.
Catalysts in Upcoming Quarters
In the coming quarters, our analyst team will be closely watching (1) Amplitude’s progress in converting early AI agent adoption into broader customer deployment and eventual monetization; (2) ongoing improvements in net revenue retention as more customers transition to the full platform; and (3) the impact of recent acquisitions on both product roadmap execution and operational efficiency. Effective integration of new AI-driven features and further expansion into marketing analytics will also be key markers of strategic success.
Amplitude currently trades at $11.35, down from $12.23 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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