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Investing.com - Needham has reiterated its Buy rating on Amplitude Inc (NASDAQ:AMPL) with a price target of $18.00 following the company’s quarterly results that exceeded analyst expectations. Currently trading at $9.64, AMPL sits well below Needham’s target and is slightly undervalued according to InvestingPro Fair Value estimates, despite its stock price movements being quite volatile.
The digital analytics platform provider reported revenue 6.4% above Needham’s estimate, while operating margin also came in solidly above forecast. Annual recurring revenue (ARR) showed 15.8% year-over-year organic growth, indicating improving sales execution, increased platform awareness, and stabilizing retention. This growth outpaces Amplitude ’s overall revenue growth of 9.93% over the last twelve months, while maintaining an impressive gross profit margin of 74.23%.
Management’s target of achieving 20%+ growth is increasingly viewed as achievable, with Needham describing it as a "when not if" story. The firm believes significant upside remains through higher platform adoption across Amplitude’s customer base. While Amplitude is not profitable over the last twelve months, InvestingPro data shows analysts expect the company to turn profitable this fiscal year with a forecasted EPS of $0.07. Discover more insights with InvestingPro’s comprehensive Research Report, available for AMPL and 1,400+ other US equities.
Needham highlighted Amplitude’s new AI functionality as providing significant differentiation that should drive platform adoption by connecting various elements of the broader platform. The accelerated pace of innovation is expected to help Amplitude succeed with both new enterprise customers and existing clients.
The updated guidance from Amplitude continues to emphasize growth, with the company recognizing the large market opportunity ahead, according to Needham’s analysis.
In other recent news, Amplitude Inc has received an upgrade from UBS, which changed its stock rating from Neutral to Buy and set a price target of $13. UBS anticipates that Amplitude will achieve revenue growth exceeding 20% by fiscal year 2026, driven by easing headwinds and increased adoption of its multi-product offerings. Furthermore, DA Davidson has reiterated its Buy rating on Amplitude, maintaining a price target of $16, citing the company’s strong position in the digital analytics market.
Amplitude has also announced a new collaboration with GitHub, introducing an agent-to-agent integration to enhance product development workflows. This integration aims to connect product insights directly to code implementation, leveraging GitHub agents to streamline the software development process. Additionally, Amplitude has launched its Model Context Protocol (MCP) server, which allows companies to access behavioral data directly within AI environments. This new server enables users to query behavioral data using natural language, facilitating insights into customer trends without switching platforms. These developments reflect Amplitude’s ongoing efforts to innovate and expand its digital analytics capabilities.
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