Amplitude’s first quarter results were met with a strong market response, reflecting the company’s ability to deliver steady growth even amid ongoing macroeconomic uncertainty. Management credited the performance to a combination of improved customer retention, successful expansion within its enterprise customer base, and rising adoption of new platform features. CEO Spenser Skates highlighted that Amplitude is “reaccelerating the business,” emphasizing the company’s focus on platform deals and multi-product adoption, which now accounts for 64% of total annual recurring revenue. The quarter also saw meaningful progress in reducing churn and strengthening relationships with large organizations, supported by the launch of a strategic enterprise accounts team.
Is now the time to buy AMPL? Find out in our full research report (it’s free).
Amplitude (AMPL) Q1 CY2025 Highlights:
- Revenue: $79.95 million vs analyst estimates of $79.7 million (10.1% year-on-year growth, in line)
- Adjusted EPS: $0 vs analyst estimates of -$0.01 ($0.01 beat)
- Adjusted Operating Income: -$2.12 million vs analyst estimates of -$4.05 million (-2.6% margin, 47.8% beat)
- The company slightly lifted its revenue guidance for the full year to $331 million at the midpoint from $327.8 million
- Operating Margin: -30.3%, up from -34% in the same quarter last year
- Customers: 4,000, up from 3,875 in the previous quarter
- Net Revenue Retention Rate: 101%
- Annual Recurring Revenue: $320 million at quarter end, up 12.3% year on year
- Billings: $87.29 million at quarter end, up 19.9% year on year
- Market Capitalization: $1.68 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 Amplitude’s Q1 Earnings Call
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Scott Berg (Needham): asked about drivers of the strong net new annual recurring revenue, with CEO Spenser Skates explaining that improved churn and new enterprise wins were the biggest factors, while noting ongoing efforts to educate existing customers about expanded platform offerings.
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Arjun Bhatia (William Blair): inquired about the ramp-up of new marketing products and how their adoption will be measured. Skates responded that recent enhancements now make Amplitude a full replacement for legacy marketing analytics tools, and early traction is being seen with customers switching from competitors like Google Analytics.
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Brent Bracelin (Piper Sandler): questioned what fueled the acceleration in remaining performance obligations and the shift toward enterprise accounts. CFO Andrew Casey cited longer-term, multi-product contracts as the primary driver, supported by changes in sales incentives and go-to-market structure.
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Jackson Ader (KeyBanc): asked about the rationale for the new partnership with Twilio’s Segment. Skates explained that overlapping customer bases and a move toward collaboration, rather than competition in the customer data platform space, made Twilio an ideal partner for expanded marketing integrations.
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Taylor McGinnis (UBS): raised concerns about macroeconomic risks and customer optimization trends. Skates acknowledged that budget scrutiny remains high but argued that digital analytics remains a priority investment for most organizations.
Catalysts in Upcoming Quarters
Our analysts are monitoring (1) the rollout and customer adoption of new marketing analytics features and Amplitude Agents, (2) the pace and scale of multi-product expansion within the enterprise segment, and (3) improvements in net revenue retention resulting from reduced churn and higher customer engagement. Additional focus will be placed on the impact of new strategic partnerships, such as the integration with Twilio’s Segment, and evidence of sustained operational efficiency gains.
Amplitude currently trades at $13.07, up from $9.40 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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