Needham raises Amplitude stock price target to $18 on strong sales

Published 07/08/2025, 11:54
Needham raises Amplitude stock price target to $18 on strong sales

Investing.com - Needham raised its price target on Amplitude Inc (NASDAQ:AMPL) to $18.00 from $16.00 on Thursday, while maintaining a Buy rating following the company’s second-quarter results. The digital analytics company, currently valued at $1.6 billion, has shown impressive momentum with a 57% return over the past year. According to InvestingPro data, analyst targets now range from $11 to $16, with the stock maintaining a FAIR financial health rating.

Amplitude reported what Needham described as "exceptional" second-quarter results, including net new annual recurring revenue (ARR) up 200% year-over-over, improving from the 100% growth seen in the first quarter. The company maintains strong fundamentals with a robust 74.5% gross profit margin and healthy liquidity, as InvestingPro analysis reveals 8 additional key insights available to subscribers.

The strong sales performance drove revenue growth to accelerate 350 basis points quarter-over-quarter to 13.6%, with updated guidance suggesting Amplitude will exceed 15% growth in the second half of the year.

Current remaining performance obligations (cRPO) growth accelerated 150 basis points to 20.2%, which Needham views as a strong leading indicator supporting its outlook for 15% or higher growth in the second half.

Net revenue retention increased three points quarter-over-quarter to 104%, exceeding Needham’s expectations by two points due to better expansion sales and lower down-sell headwinds, while early demand increases for marketing analytics and data growth above 20% suggest the sales upswing is broad-based beyond core Product Analytics.

In other recent news, Amplitude Inc. reported its earnings for the second quarter of 2025, showcasing a significant rise in revenue. The company achieved a revenue of $83.3 million, surpassing analyst forecasts. Earnings per share (EPS) remained steady at $0.01, aligning with expectations. Despite a slight dip in stock price, the company’s financial performance was bolstered by strategic advancements in AI technology. These developments reflect Amplitude’s ongoing efforts to enhance its market position. No mergers or acquisitions were announced in the recent updates. Analysts have not issued any recent upgrades or downgrades for the company. The focus remains on the company’s ability to sustain its revenue growth in the coming quarters.

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