Amplitude stock surges on upbeat guidance

Published 20/02/2025, 16:44
© Reuters.

Investing.com -- Shares of Amplitude , Inc. (NASDAQ:AMPL) rose 14% today following the company’s release of strong fourth-quarter earnings and optimistic guidance for the upcoming year. The digital analytics platform reported a fourth-quarter EPS of $0.02, which is $0.01 higher than the analyst estimate of $0.01. Revenue for the quarter was also higher than expected at $78.1 million, surpassing the consensus estimate of $76.56 million.

In terms of guidance, Amplitude projects first-quarter 2025 revenue to be between $78.5 million and $80.5 million, which would exceed the consensus estimate of $77.7 million. Additionally, the company anticipates its full-year 2025 EPS to be in the range of $0.05 to $0.10, with revenue projected to be between $324.8 million and $330.8 million, ahead of the consensus estimate of $320.5 million.

The positive earnings report was further bolstered by year-over-year growth in annual recurring revenue, which was up 11% at $312 million, and a 29% increase in remaining performance obligations, totaling $308.6 million. The fourth quarter also saw a steady cash flow from operations of $3.2 million and free cash flow of $1.5 million.

Amplitude’s CEO, Spenser Skates, attributed the company’s strong performance to its platform strategy and progress with enterprise customers. He emphasized the company’s ability to deliver trusted data, insights into customer behavior, and actionable strategies in one integrated platform.

The company’s financial outlook appears promising, as analysts have responded positively to the results. KeyBanc analyst Jackson Ader raised the price target on Amplitude to $17.00 (from $15.00), maintaining an Overweight rating. "Amplitude’s top-line performance showed the continuation of an acceleration story, but we are greedy and want serious margin improvement to coincide with the revenue acceleration. Revenue guidance ahead of expectations should just be the start," Ader commented.

Baird analyst Rob Oliver also upgraded Amplitude from Neutral to Outperform with a price target of $17.00 (from $12.00). Oliver noted, "The company reported a solid Q4’24, featuring a top-line beat, and issued 2025 guidance ahead of consensus. The combination of product/platform enhancements, GTM changes, and stronger execution leaves us more optimistic the company can show growth reacceleration."

Investors appear to share the analysts’ optimism as Amplitude’s stock has responded favorably to the company’s financial achievements and forward-looking statements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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