Amplitude (AMPL) Stock Forecast & Price Target

Amplitude Inc. has demonstrated a robust financial performance, with subscription revenue growth accelerating for the sixth consecutive quarter, driven by strong platform upsells. The company reported a cRPO growth rate of 22% year-over-year, which highlights its ability to secure long-term commitments from clients, while RPO growth of 37% indicates an expanding average contract duration. Additionally, Amplitude experienced a significant sequential net new ARR build of $12 million in Q3, reflecting a 16% year-over-year growth and marking the fifth consecutive quarter of accelerating ARR growth, further solidifying a positive outlook for the company.

Amplitude Inc. has revised its full-year operating profit guidance down by $2 million at the midpoint due to the impacts of acquisitions and ongoing investments. Despite improvements in operational efficiency, such as reducing task completion times significantly, the adjustment in profit expectations raises concerns about the company's financial stability. The reliance on subscription revenue, primarily derived from the U.S. market, adds to the uncertainty surrounding its growth potential and overall performance amidst fluctuating profit forecasts.