Earnings To Watch: Amplitude (AMPL) Reports Q3 Results Tomorrow

Radek Strnad /
2023/11/06 2:01 am EST

Data analytics software provider Amplitude (NASDAQ:AMPL) will be reporting earnings tomorrow afternoon. Here's what you need to know.

Last quarter Amplitude reported revenues of $67.8 million, up 16.6% year on year, beating analyst revenue expectations by 1.3%. It was a solid quarter for the company, with a significant improvement in its gross margin and optimistic revenue guidance for the next quarter. The company added 169 customers to a total of 2,344.

Is Amplitude buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting Amplitude's revenue to grow 13.7% year on year to $70.1 million, slowing down from the 35.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

Amplitude Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.5%.

Looking at Amplitude's peers in the data and analytics software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Palantir delivered top-line growth of 16.8% year on year, beating analyst estimates by 0.4% and Commvault Systems reported revenues up 6.9% year on year, exceeding estimates by 3%. Palantir traded up 12.8% on the results, and Commvault Systems was up 0.3%.

Read our full analysis of Palantir's results here and Commvault Systems's results here.

Tech stocks have been facing declining investor sentiment since 2022 and while some of the data and analytics software stocks have fared somewhat better, they have not been spared, with share price declining 2.7% over the last month. Amplitude is down 0.8% during the same time, and is heading into the earnings with analyst price target of $13, compared to share price of $10.7.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

The author has no position in any of the stocks mentioned.