Amplitude (AMPL) Stock Forecast & Price Target

Amplitude Inc. has demonstrated a robust financial performance, with subscription revenue growth accelerating for the sixth consecutive quarter, significantly benefiting from strong platform upsells. The company's current remaining performance obligation (cRPO) growth exceeded 20%, reaching 22% year-over-year, while remaining performance obligation (RPO) growth showcased a remarkable 37%, highlighting expanding contract durations. Additionally, the company achieved its largest sequential net new Annual Recurring Revenue (ARR) build in nearly three years during Q3, resulting in a 16% year-over-year growth and marking its fifth consecutive quarter of accelerating ARR growth, all while returning to positive operating margins.

Amplitude Inc. has adjusted its full-year operating profit guidance downward by $2 million at the midpoint, indicating potential challenges in managing costs associated with acquisitions and ongoing investments. While the company has made improvements in operational efficiency, reducing team task completion times significantly, this may not sufficiently offset concerns regarding its profitability outlook. The reliance on subscription revenue primarily from the U.S. market further emphasizes the risks associated with potential market fluctuations and varying customer demand.