Scotiabank has revised its price expectation for Amplitude (AMPL, Financial), reducing the target from $12 to $10 while maintaining a Sector Perform rating on the stock. This adjustment comes as part of a broader update to price targets within the U.S. Software sector, in response to a recent downturn affecting the industry.
According to Scotiabank analyst Nick Altmann, the anticipated effects of tariffs are likely to become apparent in the second quarter and the second half of the year. Despite these challenges, the firm views the current environment as beneficial for Amplitude, hinting at potential opportunities amid the sector's fluctuations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Amplitude Inc (AMPL, Financial) is $14.20 with a high estimate of $17.00 and a low estimate of $11.00. The average target implies an upside of 64.54% from the current price of $8.63. More detailed estimate data can be found on the Amplitude Inc (AMPL) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Amplitude Inc's (AMPL, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Amplitude Inc (AMPL, Financial) in one year is $13.66, suggesting a upside of 58.28% from the current price of $8.6301. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Amplitude Inc (AMPL) Summary page.
AMPL Key Business Developments
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Amplitude Inc (AMPL, Financial) reported a 9% year-over-year increase in Q4 revenue, reaching $78 million.
- Annual recurring revenue (ARR) grew by $13 million from the previous quarter, totaling $312 million.
- The company saw a 16% year-over-year increase in customers with more than $100k in ARR, reaching 591 customers.
- Amplitude Inc (AMPL) launched several new products, including session replay and web experimentation, enhancing its platform capabilities.
- The company successfully integrated Command AI's technology, launching the guides and surveys product within four months of acquisition, demonstrating strong execution capabilities.
Negative Points
- The macroeconomic environment remains challenging, impacting new customer acquisitions and overall growth.
- Churn rates, particularly among lower-end market customers, continue to be a concern, although they are showing signs of stabilization.
- Sales and marketing expenses increased to 44% of revenue, reflecting higher investments in enterprise coverage.
- The company anticipates a non-GAAP operating loss between $5.5 million and $3.5 million for Q1 2025, indicating ongoing financial challenges.
- Despite progress, 75% of customers still use only one Amplitude product, highlighting a need for better cross-selling strategies.
