AMPL Q2 Deep Dive: Enterprise Platform Momentum and AI Product Expansion Highlight Quarter

August 12, 2025 at 03:20 AM EDT

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Data analytics software provider Amplitude (NASDAQ: AMPL) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 13.6% year on year to $83.27 million. On top of that, next quarter’s revenue guidance ($86 million at the midpoint) was surprisingly good and 3.4% above what analysts were expecting. Its non-GAAP profit of $0.01 per share was in line with analysts’ consensus estimates.

Is now the time to buy AMPL? Find out in our full research report (it’s free).

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 at quarter end, up 15.5% year on year
Billings: $102.9 million at quarter end, up 8.4% year on year
Market Capitalization: $1.48 billion

StockStory’s Take

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.”

Looking forward, Amplitude’s updated guidance is anchored by its expanding platform strategy and anticipated benefits from recent AI-focused acquisitions. Management sees continued opportunity in broadening customer adoption of its multiproduct suite and deepening enterprise relationships, particularly as new AI agents and analytics features move from beta to general availability. Skates emphasized that while monetization of AI agents is still early, the focus remains on maximizing customer value, stating, "The main thing is to make sure they're valuable for customers and they create a lot." CFO Andrew Casey added that ongoing investments in professional services and platform innovation are expected to support durable growth, with further improvement in customer retention and upsell motion projected for the coming quarters.

Key Insights from Management’s Remarks

Management attributed the quarter’s revenue momentum to enterprise deal wins, strategic product expansion, and early results from AI-driven product innovation.

Enterprise customer expansion: Amplitude’s push to serve larger organizations led to a record number of new and expanded enterprise platform deals, reflecting a deliberate shift from transactional sales to longer-term value-based relationships. Management highlighted the importance of dedicated strategic accounts teams and direct engagement with C-level decision makers to drive these wins.
Multiproduct adoption drives growth: The company continued to see increased attachment of multiple products per customer, with 67% of annual recurring revenue now coming from multiproduct users. This trend was enabled by cross-sell initiatives and improved customer education about the full suite of Amplitude’s capabilities, especially among new customers onboarding to the entire platform.
AI product innovation accelerates: Amplitude’s acquisitions of Command AI, Kraftful, Inari, and June have fast-tracked the development of AI-driven features such as AI agents, voice-of-customer analytics, and dashboard monitoring. These additions have already shown the fastest adoption rates of any product in Amplitude’s history, supporting a broader strategy to make the platform “AI native.”
Marketing analytics traction: The introduction of new marketing-focused solutions in May resulted in increased engagement from marketing teams and expanded Amplitude’s competitive footprint against both legacy vendors and specialist point solutions. Management cited multiple customer case studies where the unified platform led to measurable improvements in experimentation speed and business outcomes.
Sales efficiency and operational improvements: CFO Andrew Casey pointed to improved sales methodologies and territory management as key drivers of productivity gains and better sales execution. These changes have contributed to rising contract values and a shift towards longer, multi-year agreements, strengthening Amplitude’s revenue visibility and durability.

Drivers of Future Performance

Amplitude’s guidance reflects confidence in continued enterprise expansion, multiproduct adoption, and the integration of new AI-driven capabilities, while acknowledging ongoing investment needs and retention challenges.

AI-driven platform expansion: Management believes recently launched and upcoming AI-powered features—enabled by multiple acquisitions—will help differentiate Amplitude in the crowded analytics market and unlock new upsell and cross-sell opportunities across its enterprise base. The company expects AI agents to drive workflow automation and accelerate customer value, although monetization is still at an early stage.
Focus on customer retention and upsell: The company is prioritizing improvement in net revenue retention by educating existing customers about platform breadth and investing in sales enablement. Management expects that as more customers migrate to using multiple products, overall contract value and stickiness will increase, helping offset continued churn or downsizing in legacy contracts.
Margin and investment dynamics: While gross margins remain pressured by increased data ingestion and professional services costs, management views these as necessary investments to support future growth. The company expects margins to recover over time as these new services scale, and as partners take on a greater share of implementation work.

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 $11.20, 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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