AmplitudeNASDAQ: AMPL

Down 88%, This Growth Stock Could Be Set for a Recovery in 2025

Amplitude, Inc. (NASDAQ:AMPL ) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Yaoxian Chew - Vice President, Investor Relations Spenser Skates - Chief Executive Officer & Founder Andrew Casey - Chief Financial Officer Conference Call Participants George McGregor-Henon - Bank of America Brent Bracelin - Piper Matt Pryde - Citi Willow Ahn - Blair Jack Nichols - KeyBanc Elizabeth Porter - Morgan Stanley Clark Wright - DA Davidson Operator Yaoxian Chew During today's call, management will make forward-looking statements, including statements regarding our financial outlook for the fourth quarter and full year 2024, the expected performance of our products, our expected quarterly and long-term growth investments, and our overall future prospects. These forward-looking statements are based on current information, assumptions, and expectations and are subject to risks and uncertainties, some of which are beyond our control that could cause actual results to differ materially from those described in these statements.

Amplitude is undervalued at 2x EV/NTM Sales, with a market cap of $1 billion, down 90% from its $10 billion peak. AMPL leads in product analytics, poised for growth with simplified user experience and expanding enterprise penetration. Revenue growth and NRR are expected to re-accelerate in 2025, with NRR bottoming out in Q3 '24 at ~95%.

Lannion, October 21, 2024 – 5:55 pm Q3 REVENUE AGREEMENT SIGNED TO ACQUIRE THE CONTINUUM PRODUCT RANGE FROM THE AMPLITUDE LASER GROUP Growth upturn in Q3 for the Medical Division, stability for the Photonics Division Signature of an agreement with Amplitude Laser Group to acquire the Continuum range of nanosecond lasers from its US subsidiary The LUMIBIRD Group (FR0000038242 - LBIRD), the European leader in laser technologies, recorded revenues of €141.5m for the first 9 months of 2024, up +2% and stable on a like-for-like basis. Revenues for the 3rd quarter showed a clear upturn in growth for the Medical segment, at +8.0%, and stability for the Photonics segment, at +0.2% on a reported basis.

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Amplitude said it's moved past its biggest contract resets from the pandemic. Its software is emerging is a crucial tool for generative AI companies.

Upgraded rating from hold to buy due to potential growth acceleration in the coming quarters. 2Q24 earnings showed positive growth, strong billings, and raised revenue guidance. New Amplitude product launch expected to drive further growth acceleration.

While the top- and bottom-line numbers for Amplitude (AMPL) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Headlines might say technology stocks have been rallying this year, but it depends on where you look. The Russell 2000 Index, for example, tracks small-t0-midsized capitalization stocks listed in the United States.