AMPL Q1 Earnings Call: Enterprise Expansion and Product Innovation Shape Outlook

Data analytics software provider Amplitude (NASDAQ:AMPL) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 10.1% year on year to $79.95 million. The company expects next quarter’s revenue to be around $81.3 million, coming in 1.3% above analysts’ estimates. Its non-GAAP loss of $0 per share was $0.01 above analysts’ consensus estimates.

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StockStory’s Take

Amplitude’s first quarter results were shaped by a renewed focus on enterprise customers and increased adoption of its multi-product analytics platform. CEO Spenser Skates highlighted progress in landing new enterprise accounts such as Hertz and The Economist Group, attributing improved growth to the company’s ability to consolidate digital analytics, experimentation, and user feedback tools into a single solution. Skates noted that, “multi-product customers now make up 30% of our installed base and 64% of our total ARR,” emphasizing the strategic importance of broadening platform usage within existing accounts. Management also pointed to the successful integration of new offerings, particularly Guides and Surveys, which drove faster incremental adoption than previous product releases and contributed to improved customer retention.

Looking forward, Amplitude’s guidance is anchored in continued expansion within the enterprise segment and the scaling of its platform beyond core analytics to serve marketing teams. Skates pointed to upcoming product updates—specifically new marketing analytics capabilities and a formalized partnership with Twilio Segment—as catalysts to reach a broader set of users. Management expects these initiatives to drive higher attach rates and longer contract durations, supported by an increased focus on operational efficiency and targeted sales efforts. CFO Andrew Casey cautioned that macroeconomic uncertainty remains, stating, “we are not assuming a positive inflection in the macro environment,” but expressed confidence that Amplitude’s positioning as a consolidation platform and its ongoing product innovation can sustain growth even if customer budgets remain constrained.

Key Insights from Management’s Remarks

Management attributed quarterly performance to successful enterprise-focused sales execution, improved customer retention, and rapid adoption of new platform products that address evolving digital analytics needs.

• Enterprise momentum strengthens: Amplitude’s new strategic accounts team targeted top enterprise clients, leading to a higher proportion of multi-year, multi-product deals and deeper executive relationships.
• Guides and Surveys adoption: The recently launched Guides and Surveys product drove more incremental annual recurring revenue in its first quarter than any previous Amplitude product, displacing standalone tools and appealing to customers seeking integrated analytics and in-product feedback.
• Customer retention improves: Net revenue retention (NRR) rose to 101%, driven by a reduction in churn and higher cross-sell activity, particularly as customers consolidated spend onto Amplitude’s platform and moved away from point solutions.
• International and vertical expansion: New wins in diverse sectors—including media, agriculture, and food service—demonstrated the platform’s appeal across industries and geographies, though management noted that international markets remain in earlier stages of growth compared to the U.S.
• Operational discipline: The company continued to focus on driving leverage through sales efficiency, process improvements, and disciplined R&D investment, with operating expenses rising mainly due to the Command AI acquisition and sales kickoff costs.

Drivers of Future Performance

Amplitude’s outlook for the next quarter and full year is rooted in scaling platform adoption among enterprise and marketing customers, while managing through continued macroeconomic uncertainty.

• Expansion within marketing teams: Management sees significant opportunity in broadening Amplitude's reach to marketing users, supported by upcoming product updates that simplify campaign analysis and customer journey tracking. Early traction with marketers switching from Google Analytics signals potential for higher attach rates.
• Multi-product adoption and contract duration: The company expects continued growth from increasing the share of customers using multiple products and securing longer-term contracts, which offer greater revenue predictability and deeper customer engagement.
• Macro environment and operational focus: While macro uncertainty persists, management is prioritizing operational efficiency and customer value, aiming for incremental margin improvement and non-GAAP profitability without assuming an improvement in external conditions.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) whether the new marketing analytics features and Twilio Segment partnership translate into broader platform adoption, (2) signs of sustained improvement in net revenue retention and contract duration as enterprise expansion continues, and (3) management’s ability to further improve operational leverage amid ongoing macroeconomic uncertainty. Execution on cross-sell and the rollout of AI-powered features will also be key milestones.

Amplitude currently trades at a forward price-to-sales ratio of 4.8×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it’s free).

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