Amplitude Projects Positive Earnings Guidance for FY 2025

Amplitude, Inc. (NASDAQ: AMPL) announced an optimistic earnings guidance for the fiscal year 2025 on October 11, 2023, projecting earnings per share (EPS) between $0.060 and $0.08. This forecast significantly contrasts with the consensus EPS estimate of -$0.210. The company is also estimating revenue between $340.8 million and $342.8 million, exceeding the consensus revenue expectation of $337.3 million.

In addition to the annual guidance, Amplitude updated its fourth-quarter 2025 EPS forecast to a range of $0.040 to $0.05. This announcement contributed to a 1.7% increase in the company’s stock, with shares trading at $9.64 during the day. A total of 1,794,850 shares changed hands, surpassing the average trading volume of 1,281,388 shares.

Recent Performance and Market Position

Amplitude’s current market capitalization stands at $984.36 million, with a price-to-earnings (PE) ratio of -12.68 and a beta of 1.51. Over the past year, the stock has fluctuated between a low of $7.55 and a high of $14.88. The company’s fifty-day moving average is $10.70, while its 200-day moving average is $11.35.

In its most recent quarterly earnings report released on August 6, 2023, Amplitude achieved an EPS of $0.01, aligning with analysts’ expectations. The company reported revenue of $83.27 million, surpassing forecasts of $81.29 million. Despite this positive performance, Amplitude recorded a negative net margin of 30.43% and a negative return on equity of 33.08%. Notably, the company’s revenue increased by 13.6% year-over-year. Analysts anticipate that Amplitude will report an EPS of -$0.62 for the current fiscal year.

Insider Transactions and Institutional Investments

In related news, Director Erica Schultz sold 10,000 shares of Amplitude stock on October 15, 2023, at an average price of $10.12, resulting in a transaction valued at $101,200. Following this sale, Schultz retained 107,406 shares, valued at approximately $1,086,949. This transaction reflects an 8.52% reduction in her ownership of the company. Over the past 90 days, insiders have sold a total of 27,500 shares, amounting to $297,750. Company insiders currently hold 4.80% of Amplitude’s total stock.

Institutional investors have also shown increased interest in Amplitude. Notably, AllianceBernstein L.P. raised its stake in the company by an impressive 2,126.0% during the second quarter, acquiring 4,160,481 shares valued at $51.59 million. Other significant stakes were increased by Marshall Wace LLP (56.8%), Bank of America Corp DE (149.4%), Squarepoint Ops LLC (932.3%), and Goldman Sachs Group Inc. (60.0%). Overall, institutional investors now own 73.20% of Amplitude’s stock.

Amplitude, Inc. provides a comprehensive digital analytics platform that helps businesses analyze customer behavior both in the United States and internationally. The company’s offerings include Amplitude Analytics, Amplitude Experiment, Amplitude CDP, and Amplitude Session Replay, all designed to enhance product outcomes and user experiences.

As Amplitude continues to navigate its growth trajectory, this positive earnings forecast and increasing institutional interest may position the company favorably in the competitive analytics market.