This Software-as-a-Service Stock Is Getting Into Agentic AI, and It Could Be a Game-Changer
Amplitude beat estimates in its second-quarter earnings report.
Revenue growth has accelerated for three quarters in a row and is expected to improve in the third quarter.
A trio of recent acquisitions should make its AI suite even more powerful.
10 stocks we like better than Amplitude ›
Amplitude (NASDAQ: AMPL), the digital product analytics specialist, keeps building momentum quarter after quarter. The company just reported its third straight quarter of accelerating revenue growth as its platform strategy takes shape following earlier additions of product features like session replay, which allows clients to see how customers move through their websites, and guides and surveys, which let clients add a pop-up bubble to prompt customers as they go through the website.
With the help of those products, Amplitude reported its strongest growth in annual recurring revenue (ARR) in several quarters, up 16% to $335 million, and it had its highest net-new ARR in nearly three years at $15 million, showing that the business is building momentum. Its dollar-based net retention rate in the second quarter was also the strongest it has been in at least six quarters at 104%, showing it's moving past the post-pandemic churn that had hampered its growth earlier in its history.
On a reported basis, revenue in the quarter rose 14% year over year to $83.3 million, which topped the consensus at $81.3 million. The number of customers with an ARR of $100,000 or more was up 16% to 634.
On the bottom line, Amplitude is also gaining traction. The company reported an adjusted profit of $0.01 per share, up from breakeven in the quarter a year ago, which matched estimates. Better yet, free cash flow in the quarter nearly tripled, jumping from $6.8 million to $18.2 million.
Amplitude's AI playbook
The company made several acquisitions over the last year to round out its platform and launch its new suite of AI agents. It acquired Command AI last October, which laid the groundwork for its guides and surveys product, which CEO Spenser Skates said had the fastest adoption the company has had with a new offering.
It acquired June, another product analytics tool known for AI-powered analysis, last month; Kraftful for its AI-native Voice of Customer product; and Inari, another feedback analytics tool.
Those moves will help beef up Amplitude's talent and offerings as it pushes deeper into AI following the launch of its AI agents in June. Those are currently in beta, being tested by customers, and the company expects to begin selling them later this year.
At an event in June, Amplitude introduced several new AI agents, and according to Skates, two of the most promising are Experiment, which generates a variant of an existing website based on the data Amplitude has, and Insight Generation, which looks at a client's dashboard and generates insights -- pinpointing, for example, a drop in traffic and a remedy for it.
Customer response to the AI agents has been strong so far, and Amplitude shared a demonstration of some of its capabilities, showing that the company has the potential to add significant value for its customers at a time when there's a lot of hype swirling through the AI sector.
The company also got some validation from Forester in its first digital analytics solutions report, rating Amplitude highest in the strength of offering, and it was also rated as a customer favorite, underscoring management's recent efforts.
Is Amplitude a buy?
Third-quarter guidance was also better than expected, calling for revenue of $85 million to $87 million, up 17.3%, showing revenue growth is likely to accelerate again.
Amplitude is still a small company with a market cap of just $1.6 billion, and its revenue growth is already accelerating without the benefit of the new AI agents. Those could be a real difference-maker for the stock as it pioneers the digital product analytics market and takes on legacy providers like Alphabet's Google Analytics and Adobe Analytics.
The building blocks seem to be coming together for Amplitude to thrive. If its growth continues to accelerate and the AI agents take off, the stock could soar.
Should you invest $1,000 in Amplitude right now?
Before you buy stock in Amplitude, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amplitude wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!*
Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of August 4, 2025
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe and Alphabet. The Motley Fool has a disclosure policy.
This Software-as-a-Service Stock Is Getting Into Agentic AI, and It Could Be a Game-Changer was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Could robotics and timber tackle Britain's housing challenges?
By Suban Abdulla LONDON (Reuters) -Gigantic robot arms controlled by artificial intelligence glide around a vast factory in Oxfordshire, England, making building frames from timber, one of the world's oldest construction materials. With the British government committed to building 300,000 new homes a year, some housebuilders say that the combination of technology and green materials could help them to overcome challenges from skills shortages to environmental targets. Shop Top Mortgage Rates Personalized rates in minutes Your Path to Homeownership A quicker path to financial freedom England lags many similar economies in terms of the share of housing accounted for by timber-framed homes. Britain as a whole, meanwhile, is among the slowest adopters of robotics, especially in construction, according to the National Robotarium research institute at Heriot-Watt University. "We're seeing more major housebuilders and small and medium-sized builders embracing timber as a way to ... overcome the skills and carbon challenge," said Alex Goodfellow, CEO of Donaldson Timber Systems (DTS). His business makes timber-frame structures for homes and commercial buildings, including walls, floors and roofs, then sends them to housebuilders for assembly. Its automated production makes for less labour-intensive housebuilding and provides a faster, cheaper and more sustainable alternative to bricks, stone or concrete blocks, the company says. A study by construction surveyors and consultancy Rider Levett Bucknall showed that building with timber is 2.8% cheaper than with masonry. FASTER CONSTRUCTION The DTS factory in Witney, near Oxford in southeast England, makes timber panelling for about 100 homes a week with designs entered digitally using artificial intelligence, reducing the need for paper drawings. DTS says its robotics and lasers enable it to produce pre-assembled sections builders can put together quickly on site. The technology reduces the time needed to build a home by about 10 weeks compared with traditional materials, Goodfellow says. Yet barriers remain to any significant increase in timber homes in England. Amit Patel at the Royal Institution of Chartered Surveyors said the material is not commonly used in England because of difficulties in securing warranties for timber buildings owing to durability concerns. Barratt Homes tried to revive timber usage in the 1980s, but sales were undermined by potential rot and fire vulnerabilities. Andrew Orriss of the Structural Timber Association says that such concerns have been addressed by current building regulation and the STA's fire safety guide. He says that the off-site timber construction sector could help to deliver about a third of the government's target of 300,000 new homes per year - a level not achieved in England since the 1970s. Official government figures show that almost 200,000 new homes were built in England in 2023/24 and the Structural Timber Association said that approximately 40,500 of those were timber-frame homes. Builders including Vistry and Taylor Wimpey have opened or plan to open their own timber-frame manufacturing factory while Bellway plans to use timber in a third of its housing projects by 2030. Reduced environmental impact is another benefit touted by companies. GREENER AND LEANER? Simon Park, head of sustainability at Bellway, said timber absorbs and stores more carbon than it emits and that Bellway's analysis shows breeze blocks - made from concrete and known as cinder blocks in the U.S. - are the biggest carbon emitters among common building materials. Countering that, however, is the origin of the raw materials. About 80% of timber used in the UK is imported, mainly from European countries, while roughly 20% of its brick supply is imported. Concerns also remain over mortgage availability for timber homes, which is likely to improve if the government signals a move towards timber construction, said Riz Malik, mortgage broker at independent financial adviser R3 Wealth. An ageing workforce, meanwhile, highlights the need for more robotics. About a fifth of construction workers in the UK are over 50, according to the Home Builders Federation, with 25% of those set to retire in the coming decade. The government pledged 40 million pounds ($54 million) in June for robotics adoption hubs across various sectors, but Maurice van Sante, senior economist for construction at bank ING, says Britain's construction industry is far behind other countries in robotics use. ING estimates that there were 1.5 robots for every 10,000 construction workers in Europe in 2023, against 0.6 in the U.S. and 0.5 in the UK. As well as filling labour shortages directly, robotics opens up other employment opportunities, says DTS manufacturing director Frank O'Reilly, adding that the company has attracted more interest from tech-savvy younger workers since the factory's introduction of automation and robotics. "It (the technology) encourages young people to consider this as a career," he said. ($1 = 0.7433 pounds) Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
27 minutes ago
- Yahoo
Ethereum ETF Inflows Outperform Bitcoin for the Third Day Straight
Institutional investors are flooding into Ethereum funds at nearly triple the rate of Bitcoin, providing a glimpse at how Wall Street may be positioning this year for the second-largest crypto. Ethereum exchange-traded funds clocked $704 million in inflows on Wednesday compared to Bitcoin ETFs' $86.7 million, the third consecutive day of Ethereum's dominance over the alpha coin, according to Farside Investors data. Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA The three-day lead has delivered $2.2 billion to ETH ETFs following Monday's record $1 billion single-day inflow, versus just $330.9 million for Bitcoin products. "Institutions are playing a key role," Peter Chung, head of research at Presto Labs, told Decrypt as Ethereum benefits from regulatory developments, including the GENIUS Act and the 'Project Crypto' speech, where SEC Chair Paul Atkins supported DeFi growth for institutions. The momentum has propelled Ethereum to $4,775, up over 60% in the past month, according to CoinGecko, and within 4% of its November 2021 all-time high near $4,900. The rally has already inflicted some pain on bearish traders, with Ethereum liquidations hitting $127.41 million in 24 hours as short positions faced pressure from rising prices, according to CoinGlass. Tom Lee's Ethereum Treasury BitMine Ups ETH Raise by $20 Billion Monthly Ethereum ETF inflows have reached $2.3 billion, equivalent to 500,000 ETH, while the network has issued only 450,000 ETH since the September 2022 merge upgrade. The supply-demand imbalance has created upward price pressure as institutional buyers absorb available supply faster than the network creates new tokens. On Wednesday, Standard Chartered revised its Ethereum price targets to $7,500 by 2025 and $25,000 by 2028, up from a previous $4,000 forecast, citing institutional buying at "nearly double the pace of Bitcoin accumulation during peak periods." Ethereum Could Soar to $25,000 by 2028: Standard Chartered Traders on Myriad Markets see an 86.9% probability that Ethereum reaches $5,000 by January 1, 2026. (Disclosure: Myriad Markets is a prediction platform developed by Dastan, parent company of Decrypt.) Digital asset treasury companies, meanwhile, continue to hoover up crypto in record fashion. That includes Tom Lee's BitMine, which just this week announced it would increase its fundraising target for buying more of the asset by $20 billion. 'When you combine record ETF inflows with corporate and sovereign balance sheet allocations, the result is deep structural demand meeting finite supply,' Rachael Lucas, crypto analyst, BTC Markets, told Decrypt. 'That's a recipe for sustained upward pressure on prices, and a sign that digital assets are firmly embedded in global capital markets,' she said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27 minutes ago
- Yahoo
Merck KGaA's (ETR:MRK) Earnings Seem To Be Promising
Merck KGaA's (ETR:MRK) recent earnings report didn't offer any surprises, with the shares unchanged over the last week. We did some analysis to find out why and believe that investors might be missing some encouraging factors contained in the earnings. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The Impact Of Unusual Items On Profit To properly understand Merck KGaA's profit results, we need to consider the €534m expense attributed to unusual items. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect Merck KGaA to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Merck KGaA's Profit Performance Unusual items (expenses) detracted from Merck KGaA's earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that Merck KGaA's statutory profit actually understates its earnings potential! And on top of that, its earnings per share increased by 9.2% in the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. While it's really important to consider how well a company's statutory earnings represent its true earnings power, it's also worth taking a look at what analysts are forecasting for the future. Luckily, you can check out what analysts are forecasting by clicking here. This note has only looked at a single factor that sheds light on the nature of Merck KGaA's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
