What To Expect From Amplitude’s (AMPL) Q4 Earnings

Adam Hejl /
2023/02/14 5:07 am EST
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Data analytics software provider Amplitude (NASDAQ:AMPL) will be reporting earnings tomorrow after market close. Here's what to expect.

Last quarter Amplitude reported revenues of $61.6 million, up 35.5% year on year, beating analyst revenue expectations by 2.37%. It was a mixed quarter for the company, with exceptional revenue growth but decelerating customer growth. The company added 77 customers to a total of 1,913.

Is Amplitude buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Amplitude's revenue to grow 28.7% year on year to $63.6 million, slowing down from the 64.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 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 4.37%.

Looking at Amplitude's peers in the data and analytics software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Alteryx delivered top-line growth of 73.2% year on year, beating analyst estimates by 7.79% and Palantir reported revenues up 17.5% year on year, exceeding estimates by 0.72%. Alteryx traded up 9.24% on the results, Read our full analysis of Alteryx's results here and Palantir's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 12.3% over the last month. Amplitude is up 23.3% during the same time, and is heading into the earnings with analyst price target of $16.8, compared to share price of $15.72.

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.

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