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Amplitude, Inc. (AMPL) Q3 2025 Earnings Summary

Executive Summary

  • Revenue $88.6M, up 18% YoY, exceeded the high end of Q3 guidance; non-GAAP diluted EPS $0.02; ARR $347M (+16% YoY, +$12M QoQ) .
  • Total RPO accelerated to $391.9M (+37% YoY), with contract duration ~22 months; current RPO +22% YoY and long-term RPO +78% YoY, signaling stronger multi-year enterprise commitments .
  • Q4 2025 guidance: revenue $89–$91M; non-GAAP operating income $3.5–$5.5M; non-GAAP diluted EPS $0.04–$0.05; FY 2025 revenue raised to $340.8–$342.8M and non-GAAP EPS $0.06–$0.08, reflecting sustained execution and enterprise traction .
  • Product catalysts: launch of AI Visibility (Oct) and AI Feedback (Nov) enhances marketing analytics and voice-of-customer capabilities; expanded AI agents and MCP elevate AI-native analytics positioning .

What Went Well and What Went Wrong

What Went Well

  • Enterprise momentum with multi-year, seven-figure deals and broader platform sales; multi-product ARR now 71%, customers ≥$100K ARR reached 653 (+15% YoY) .
  • RPO durability improved sharply; total RPO +37% YoY with contract duration ~22 months, improving revenue visibility and leverage .
  • AI-native product innovation: MCP server general availability; AI agents (Dashboard and Session Replay) widened beta; AI Visibility and forthcoming AI Feedback embedded across the platform .
    • Quote: “Our AI analytics platform helps companies understand how people engage in their product... We are all in.” — CEO Spenser Skates .

What Went Wrong

  • GAAP losses widened YoY (loss from operations -$25.7M; GAAP EPS -$0.18 vs -$0.14 YoY), reflecting higher stock-based comp and continued investment in R&D and services .
  • Gross margin modestly compressed YoY (GAAP 73.9% vs 75.1%), tied to increased data ingestion costs and investment in services; non-GAAP gross margin 76.0% (vs 77.2% YoY) .
  • Free cash flow stepped down QoQ as collections seasonality and investment cadence shifted (FCF $3.4M vs $18.2M in Q2); YoY -$1.1M .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$75.217 $79.953 $83.270 $88.564
GAAP EPS (Basic & Diluted, $)$(0.14) $(0.17) $(0.19) $(0.18)
Non-GAAP EPS (Diluted, $)$0.03 $(0.00) $0.01 $0.02
GAAP Gross Margin (%)75.1% 74.7% 72.6% 73.9%
Non-GAAP Gross Margin (%)77.2% 76.5% 74.6% 76.0%
GAAP Operating Margin (%)(26.6)% (30.3)% (32.5)% (29.0)%
Non-GAAP Operating Margin (%)2.1% (2.6)% (1.8)% 0.6%
Net Cash from Operations ($USD Millions)$6.170 $(8.022) $20.054 $4.957
Free Cash Flow ($USD Millions)$4.498 $(9.226) $18.168 $3.352
KPIQ3 2024Q1 2025Q2 2025Q3 2025
Annual Recurring Revenue (ARR, $USD Millions)$298 $320 $335 $347
Customers ≥$100K ARR (Count)—617 634 653
Dollar-Based NRR (In-Period, %)100% 101% 104% 104%
Dollar-Based NRR (TTM, %)97% 98% 99% 102%
Remaining Performance Obligations (RPO, $USD Millions)—$325.9 $358.1 $391.9
Contract Duration (Avg, Months)——~19 ~22

Note: YoY comparisons reference Q3 2024 where disclosed. RPO breakdown (current + long-term) referenced from management commentary.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($)FY 2025$335.2–$338.2M $340.8–$342.8M Raised
Non-GAAP Operating Income ($)FY 2025($2.0)–$3.0M $0.5–$2.5M Raised floor, narrowed range
Non-GAAP Diluted EPS ($)FY 2025$0.04–$0.08 $0.06–$0.08 Raised midpoint, tightened
Revenue ($)Q4 2025N/A$89–$91M New guide
Non-GAAP Operating Income ($)Q4 2025N/A$3.5–$5.5M New guide
Non-GAAP Diluted EPS ($)Q4 2025N/A$0.04–$0.05 New guide

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q1)Current Period (Q3)Trend
AI-native analytics (MCP, Agents)Closed beta launch and demos; acquisitions (Command AI, Kraftful, Inari, June) accelerate roadmap MCP server public availability; dashboard & session replay agents broaden beta; strong customer interest Expanding adoption
Enterprise GTM & multi-year contractsStrategic accounts; enterprise focus increased CRPO; duration ~19 months Duration ~22 months; 5 seven-figure wins; stronger platform lands Strengthening
Multi-product attachARR from multi-product 67% in Q2; 30% customers multi-product in Q1 Multi-product ARR 71%; 39% customers multi-product Rising
RPO durabilityCRPO up 31% YoY (Q2); FY visibility improving Total RPO +37% YoY; current +22%; long-term +78% Accelerating
Gross margin and hosting costGM 75% (Q2) with hosting/services investments GM 76% non-GAAP; continued optimization; services monetization Stabilizing
Marketing analytics & AI VisibilityMay platform updates; Segment partnership announced (Twilio SIGNAL) AI Visibility launched; ability to track LLM mentions and conversion Broadening
Pricing/monetizationValue-based platform sales; high ASP; simplify meters (events) Focus on adoption, premium value maintained; outcomes-based pricing rejected Consistent
Share repurchase$50M buyback program initiated (Q1) Continued capital discipline noted Ongoing

Management Commentary

  • Strategic focus: “We exceeded expectations on our core financial metrics... We are winning the enterprise... We are winning the category with multi-product adoption... We are all in [on AI].” — CEO Spenser Skates .
  • RPO and durability: “Average contract duration grew to nearly 22 months... current RPO +22% YoY... long-term RPO +78% YoY... total RPO +37%.” — CFO Andrew Casey .
  • Monetization philosophy: “We command already an extraordinarily high price point... focus is just let’s make Amplitude more valuable... simplify our meters… focus on the events piece.” — CEO Spenser Skates .
  • Product launches: “AI Visibility... shows where a brand appears across major AI platforms... recommendations to improve... all integrated into Amplitude.” — Company press release .
  • Voice of customer: “AI Feedback... turns raw input into prioritized, actionable insights... fully integrated and available across all Amplitude plans.” — Company press release .

Q&A Highlights

  • RPO drivers and contract duration: Enterprise stratification yielded more multi-year constructs; duration higher in enterprise; sales incentives aligned to RPO outcomes .
  • Agents adoption and ROI: Customers favor monitoring/insights agents; trust will build toward action agents; focus remains on value creation before pricing .
  • NRR trajectory: Enterprise mix improves NRR; long-term aspiration ~115% as platform expansions grow .
  • Q4 pipeline and seasonality: Calendar-year enterprise incentives and pipeline maturity support Q4 guide conservatism and confidence .
  • Pricing approach: Meter-based (events/data volume) preferred; outcomes-based pricing rejected due to complexity and customer trust .

Estimates Context

  • Results vs consensus: Revenue $88.564M vs consensus $86.294M*; Primary EPS $0.02 vs consensus $0.014*; Revenue estimates count 9*, EPS estimates count 10*.
    • Values retrieved from S&P Global.
  • Implication: Both top-line and EPS exceeded consensus, supported by earlier-quarter deal linearity and strong enterprise/platform expansions .

Key Takeaways for Investors

  • Revenue and EPS beat consensus; revenue also exceeded the high end of guidance — a positive near-term catalyst tied to improved deal linearity and platform sales .
  • Strong RPO acceleration and longer contract duration (~22 months) enhance revenue visibility into 2026, supporting the raised FY revenue guide .
  • AI-native differentiation (MCP, agents, AI Visibility, AI Feedback) broadens Amplitude’s addressable market into marketing analytics and voice-of-customer, potentially increasing multi-product penetration and ASPs over time .
  • Gross margin compression appears manageable amid hosting/services investments; management expects incremental margin improvement as optimization and service monetization scale .
  • Multi-product momentum (71% of ARR) and enterprise mix (seven-figure, multi-year deals) should support NRR progression toward management’s ~115% aspiration over time .
  • Q4 seasonality and pipeline maturity, combined with raised FY guidance, point to continued execution; watch for sustained ARR adds and RPO growth to validate momentum .
  • Risk watch: GAAP losses and SBC remain elevated; maintain focus on cash generation consistency and margin trajectory while leveraging AI-led product innovation .

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