How Stronger Revenue and Updated Guidance at Amplitude (AMPL) Has Changed Its Investment Story

• Amplitude, Inc. recently reported its second quarter 2025 earnings, showing revenue of US$83.27 million compared to US$73.3 million a year earlier, with a net loss of US$24.67 million, and provided updated financial guidance for the rest of the year.
• The company’s consistent year-over-year sales growth, along with reaffirmed revenue expectations for coming quarters, underscores ongoing momentum despite continued net losses.
• To better understand what these results signal for Amplitude’s longer-term outlook, we’ll explore how stronger revenue performance and updated guidance impact its investment narrative.

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Amplitude Investment Narrative Recap

To be a shareholder in Amplitude, you need to believe that strong enterprise adoption, growing demand for actionable analytics, and Amplitude’s ongoing expansion into AI-driven products will eventually translate into sustained top-line growth and a path to profitability. The recent earnings results, while reinforcing near-term revenue momentum, do not meaningfully change the main short-term catalyst, adoption of multi-product solutions, nor do they alleviate the biggest risk: the challenge of monetizing new AI features while controlling rising costs pressuring margins.

Among the latest announcements, Amplitude’s introduction of AI Agents stands out. This new capability speaks directly to the company's efforts to differentiate its platform, which is crucial to boosting enterprise cross-sell rates and increasing customer lifetime value. However, because these products remain in closed beta and monetization is still pending, the near-term impact on financials is limited, and the commercial execution challenge remains front and center.

By contrast, Amplitude’s ongoing net losses and persistent cost pressures are risks investors should be aware of, especially if ...

Read the full narrative on Amplitude (it's free!)

Amplitude's outlook anticipates $466.6 million in revenue and $62.5 million in earnings by 2028. Achieving these targets requires a 13.8% annual revenue growth and an earnings increase of $158.8 million from the current earnings of -$96.3 million.

Uncover how Amplitude's forecasts yield a $15.67 fair value, a 37% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community members estimate Amplitude’s fair value anywhere from US$9.11 to US$18.08 per share. This diversity of opinion exists as Amplitude’s strong revenue guidance continues to be offset by concerns about unproven monetization of new AI offerings and ongoing losses, giving you several perspectives to explore.

Explore 3 other fair value estimates on Amplitude - why the stock might be worth 21% less than the current price!

Build Your Own Amplitude Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Amplitude research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Amplitude research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Amplitude's overall financial health at a glance.

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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.

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