MarketBeat
6 min read
Key Points
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Interested in Amplitude, Inc.? Here are five stocks we like better.
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Revenue and ARR grew strongly: Q3 revenue rose 25% year over year to $111 million, while ARR increased 24% to $431 million. Amplitude raised its 2026 revenue and operating-income outlook.
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AI products and enterprise cross-selling are driving expansion: Agent Analytics had more than 125 users shortly after launch, and Amplitude planned to launch its Wave product-development tool. Customers using multiple products account for 81% of ARR.
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Profitability improved, but AI and data costs pressured margins: Non-GAAP operating income reached a quarterly record of $5.7 million, while gross margin fell to 70% amid higher data and AI costs. The company cited efficiency efforts to address those pressures.
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Is Amplitude an AI Sleeper Stock in the Making for 2025?
Amplitude (NASDAQ:AMPL) reported third-quarter revenue of $111 million, up 25% from a year earlier, and raised its full-year outlook as enterprise customers adopted more of its analytics and experimentation products.
The company recorded non-GAAP operating income of $5.7 million, its highest quarterly level, even as costs associated with artificial intelligence and data usage weighed on gross margin. Revenue exceeded the high end of management’s expectations, Chief Financial Officer Andrew Casey said on the earnings call.
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Annual recurring revenue, or ARR, reached $431 million at the end of the quarter, up 24% year over year and $21 million sequentially. Amplitude had 855 customers with more than $100,000 in ARR, an increase of 31% from a year earlier.
AI products and enterprise expansion
CEO and Chairman Spenser Skates said Amplitude is positioning its platform to help businesses determine what to build and measure whether new features work. Its offerings include analytics, Statsig’s experimentation tools and new AI products.
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Agent Analytics, which evaluates AI-agent conversations and connects them to customer behavior, launched to all customers in August. More than 125 customers were using it in just over a month, Skates said.
Amplitude plans to launch Wave, an AI product-development tool, the week after the call. Skates said Wave identifies potential improvements using customer data, proposes changes and measures their impact. In one example, he said a Wave-recommended change to Amplitude’s blog produced 45 additional user sign-ups per week.
