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Amplitude, Inc. (AMPL) Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue of $83.3M grew 14% YoY and came in above guidance; ARR reached $335M (+16% YoY) with the highest net-new ARR in nearly three years .
  • Dollar-based net retention improved to 104% and multi-product attach reached 67% of ARR, reflecting enterprise platform traction and cross-sell momentum .
  • Management raised FY 2025 revenue guidance to $335.2–$338.2M (from $329.0–$333.0M) and guided Q3 revenue to $85.0–$87.0M; non-GAAP diluted EPS guided to $0.04–$0.08 for FY 2025 .
  • Catalysts: raised FY guidance, record expansion deal activity, AI Agents beta launch, and recognition as a Leader in Forrester’s Digital Analytics Wave; near-term watch: gross margin compression tied to data ingestion and services investments .

What Went Well and What Went Wrong

What Went Well

  • Enterprise platform execution: strongest net-new ARR add in 11 quarters; customers ≥$100K ARR rose to 634 (+16% YoY) on broad-based enterprise expansions and platform consolidation wins .
  • Improved retention and visibility: NRR rose to 104% (up 3 pts QoQ); RPO grew 31% YoY to $358.1M; management highlighted longer contract duration and shift to annual prepayments .
  • Product and AI momentum: beta launch of AI Agents and acquisitions (Kraftful, Inari, June) to accelerate AI-native capabilities; “We believe Amplitude is the only company in digital analytics doing anything meaningful with AI today” — CEO Spenser Skates .

What Went Wrong

  • Gross margin compression: GAAP gross margin fell to 72.6% (from 74.7% in Q1), with non-GAAP at 74.6%, driven by increased data ingestion costs, higher amortization of software development costs, and services investments .
  • GAAP losses remain: GAAP loss from operations of $(27.1)M and GAAP net loss/share of $(0.19); non-GAAP operating loss of $(1.5)M, despite sequential revenue growth .
  • Q3 net-new ARR expected to be “down slightly” sequentially as the company laps churn/downsell cohorts; trajectory still positive, but near-term net-new cadence moderated .

Financial Results

Core P&L and Cash Flow (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$78.1 $80.0 $83.3
GAAP EPS (Basic & Diluted) ($)$(0.26) $(0.17) $(0.19)
Non-GAAP Diluted EPS ($)$0.02 $(0.00) $0.01
GAAP Gross Margin (%)74.7% 74.7% 72.6%
Non-GAAP Gross Margin (%)77.3% 76.5% 74.6%
Non-GAAP Operating Margin (%)0.3% (2.6%) (1.8%)
Cash from Operations ($USD Millions)$3.2 $(8.0) $20.1
Free Cash Flow ($USD Millions)$1.5 $(9.2) $18.2

Growth and KPIs

KPIQ4 2024Q1 2025Q2 2025
Annual Recurring Revenue (ARR) ($USD Millions)$312 $320 $335
Remaining Performance Obligations (RPO) ($USD Millions)$308.6 $325.9 $358.1
Dollar-Based Net Retention (NRR) (%)101% 101% 104%
Customers ≥$100K ARR (Count)591 617 634
Multi-Product Attach (ARR share) (%)55% 64% 67%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q2 2025$80.3–$82.3 Actual: $83.3 Beat vs guidance
Revenue ($USD Millions)Q3 2025—$85.0–$87.0 New
Revenue ($USD Millions)FY 2025$329.0–$333.0 $335.2–$338.2 Raised
Non-GAAP Operating Income ($USD Millions)FY 2025$0.0–$5.0 $(2.0)–$3.0 Range lowered/shifted
Non-GAAP Diluted EPS ($)FY 2025$0.05–$0.10 $0.04–$0.08 Narrowed slightly lower
Non-GAAP Diluted EPS ($)Q3 2025—$(0.00)–$0.02 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24 & Q1’25)Current Period (Q2’25)Trend
AI/technology initiativesAcquired Command AI; launched Guides & Surveys Beta of AI Agents; acquired Kraftful, Inari, June; demos of agentic workflows and LLM brand analytics Accelerating AI-native platform
Enterprise platform focusEmphasis on platform consolidation and multi-year deals Record expand deal, broad-based enterprise wins; attach 67% of ARR Strengthening
Retention and contract structureNRR rebounding toward/above 100%; push for longer durations NRR 104%; duration ~21 months, aiming >30; shift to annual prepay Improving
Gross margin driversStable mid-70s gross margins Compression from data ingestion, software amortization, services investments Near-term pressure; set-up for growth
Marketing analytics momentumEarly days replacing legacy tools; initial capabilities shipped Growing traction; customers evaluating full-stack replacement Building
RPO/visibilityRPO up strongly YoY CRPO growth back to ~20%; total RPO +31% YoY Improving visibility

Management Commentary

  • “Q2 was a strong quarter. We delivered the highest net-new ARR in nearly three years and saw record multi-product adoption.” — Spenser Skates, CEO .
  • “Gross margin was impacted by increased data ingestion costs, higher amortization of software development costs, and an investment in professional services... a prelude to future revenues.” — Andrew Casey, CFO .
  • “Customers with more than one product accounted for 67% of our total ARR, up from 64% last quarter and 55% in the second quarter last year.” — CFO .
  • “We believe Amplitude is the only company in digital analytics doing anything meaningful with AI today.” — CEO .
  • “We expect third quarter [net new ARR] to be down slightly... but our year-over-year growth rate should continue to accelerate slightly.” — CFO .

Q&A Highlights

  • AI Agents monetization: Management focused first on customer value; confident in pricing power but not committing to near-term monetization specifics .
  • Sales efficiency: Shift from transactional to value-oriented enterprise selling; territory coverage and pipeline conversion rigor driving platform-sized deals .
  • RPO and contract duration: Platform upsells and multi-year strategic relationships lifting RPO; aiming to raise dollar-weighted duration from ~21 months toward 30+ months .
  • Gross margins outlook: Short-term compression from services and hosting investments expected to support future upsells via higher data ingestion; long-term focus on margin expansion remains .
  • Marketing analytics: Early but increasing full-stack replacement opportunities vs. legacy tools; multi-year growth lever .

Estimates Context

  • Q2 2025: Revenue consensus $81.32M* vs actual $83.27M — bold beat; EPS consensus $0.0079* vs actual $0.01 — bold beat .
  • Q3 2025: Revenue consensus $86.29M* vs guidance $85.0–$87.0; EPS consensus $0.0142* vs guidance $(0.00)–$0.02 .
  • FY 2025: Revenue consensus $342.19M* vs guidance $335.2–$338.2; estimates may need modest downward revision unless H2 outperformance materializes .
    Values retrieved from S&P Global.*

Detailed Estimates vs Actuals

MetricQ2 2025 ConsensusQ2 2025 ActualQ3 2025 ConsensusQ3 2025 Guidance
Revenue ($USD)$81,323,570*$83,270,000 $86,293,690*$85,000,000–$87,000,000
Primary EPS ($)$0.00793*$0.01 $0.01421*$(0.00)–$0.02

Key Takeaways for Investors

  • Raised FY revenue guidance signals confidence in enterprise platform strategy; watch Q3 net-new ARR cadence given management’s “down slightly” comment .
  • Strong expansion and multi-product attach (67% of ARR) underpin NRR improvement to 104%; sustained platform upsells should support ARR growth .
  • Near-term gross margin compression is investment-driven (hosting/services) to enable higher data ingestion and partner ecosystem; monitor margin trajectory into H2 .
  • AI Agents and VoC integration (Kraftful) differentiate Amplitude’s analytics-to-action platform; potential monetization optionality over time .
  • Cash generation inflected: Q2 operating cash flow $20.1M and FCF $18.2M; the shift to annual prepayments improves working capital .
  • Consensus appears above FY guidance; unless sustained beats continue, expect estimate recalibration toward management’s range .
  • Tactical: Positive beat-and-raise setup plus industry leadership recognition (Forrester) are supportive; watch services mix and data costs for GM stabilization .

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