Amplitude, Inc. (NASDAQ:AMPL) Just Reported And Analysts Have Been Lifting Their Price Targets

Explore Amplitude's Fair Values from the Community and select yours

The quarterly results for Amplitude, Inc. (NASDAQ:AMPL) were released last week, making it a good time to revisit its performance. The results don't look great, especially considering that statutory losses grew 22% toUS$0.19 per share. Revenues of US$83m did beat expectations by 2.4%, but it looks like a bit of a cold comfort. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Amplitude's ten analysts is for revenues of US$337.7m in 2025. This reflects a credible 6.7% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 12% from last year to US$0.64. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$330.9m and losses of US$0.57 per share in 2025. So it's pretty clear the analysts have mixed opinions on Amplitude even after this update; although they upped their revenue numbers, it came at the cost of a notable increase in per-share losses.

Check out our latest analysis for Amplitude

It will come as a surprise to learn that the consensus price target rose 11% to US$15.44, with the analysts clearly more interested in growing revenue, even as losses intensify. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Amplitude at US$18.00 per share, while the most bearish prices it at US$12.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 12% annual growth over the past three years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. So although Amplitude is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Amplitude will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Amplitude. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Amplitude going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Amplitude that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.