Amplitude's Growth Potential: A Strong Case for Acceleration

Amplitude, a growth acceleration company, is expected to continue printing mid-teens revenue growth. The company has a 20% upside to the current stock price. The author previously wrote a buy rating for Amplitude, anticipating strong growth and a potential 20% increase in the stock price.

Amplitude, a growth acceleration company, has shown strong signs of continued mid-teens revenue growth, according to recent financial reports and market analyses. The company's stock price is expected to see a 20% upside, driven by its platform strategy and AI growth potential.

Erica Schultz, a Director at Amplitude, sold 7,500 shares of Class A Common Stock on August 15, 2025, at a weighted average price of $11.4624 per share, totaling $85,968 [1]. This transaction, conducted under a 10b5-1 trading plan adopted on March 12, 2025, indicates Schultz's confidence in the company's future prospects.

Alistair Berg, an investment analyst, previously gave Amplitude a buy rating, expecting mid-teens revenue growth and a 20% increase in the stock price [2]. With the second-quarter 2025 (2Q25) earnings report now in, the bull case for Amplitude has strengthened significantly. Revenue grew 14% year-over-year (y/y) to $83.3 million, marking the third consecutive quarter of top-line acceleration. While the company reported an adjusted operating loss of -$1.5 million, this is a meaningful improvement from -$3.7 million in 2Q24.

The platform strategy has emerged as the primary growth engine for Amplitude. A record 67% of annual recurring revenue (ARR) now comes from customers using multiple products, up from 55% a year ago. This indicates that Amplitude is successfully upselling and consolidating platforms, displacing legacy vendors and winning share in the enterprise market. The company's net retention rate improved by 800 basis points (bps) y/y, further cementing its competitive position.

Amplitude's growth momentum is expected to continue, with remaining performance obligations (RPO) growing 31% y/y to $358.1 million. The company's AI strategy, bolstered by recent acquisitions, is set to become the next growth engine. AI agents can help enterprises adopt and implement continuous experiments on the platform without needing in-house data science teams, expanding Amplitude's addressable market.

Despite the strong growth outlook, investors should remain cautious. Competition from established incumbents like Adobe and Google Analytics remains a risk. Additionally, the recent deceleration in new large customer additions is a factor to watch closely.

In conclusion, Amplitude's growth acceleration and platform strategy make a compelling case for continued high-teens revenue growth. With a potential 20% upside to the stock price, investors should consider Amplitude as a strong growth opportunity, assuming the company can maintain its growth trajectory and competitive edge.

References:
[1] https://www.tradingview.com/news/tradingview:ecdb5e4c75a17:0-amplitude-director-erica-schultz-sells-7-500-shares/
[2] https://seekingalpha.com/article/4815617-amplitude-the-case-for-growth-acceleration-got-better