What Happened:
Shares of data analytics software provider Amplitude (NASDAQ:AMPL) fell 8.78% in the after-market session after the company reported first quarter results that exceeded analysts' estimates for revenue and earnings per share. However, revenue guidance for the next quarter came in below Consensus, and the full year guidance was lowered. Cutting full year guidance is never a good sign. Cash burn also increased, and the net revenue retention rate declined. On a brighter note, full year EPS guidance came in ahead of Consensus. Lastly, Amplitude hired Nathaniel Crook as the Company's Chief Revenue Officer. This adds stability to the sales organization, which is an important team for most SaaS companies. Overall, it was a mixed quarter for the company, but the full-year outlook reduction will certainly weigh heavily on the market's perception of the business.
What is the market telling us:
Amplitude's shares are very volatile and over the last year have had 42 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Amplitude is down 24.1% since the beginning of the year, and at $9.24 per share it is trading 52.2% below its 52-week high of $19.33 from June 2022. Investors who bought $1,000 worth of Amplitude's shares at the IPO in September 2021 would now be looking at an investment worth $166.97.
Is now the time to buy Amplitude? Access our full analysis of the earnings results here, it's free.