Analyst Robert Oliver of Robert W. Baird maintained a Hold rating on Amplitude (AMPL – Research Report), retaining the price target of $12.00.
Robert Oliver has given his Hold rating due to a combination of factors, including Amplitude’s first-quarter performance and forward-looking guidance. Amplitude’s Q1 results showcased a top-line beat with revenue growth exceeding expectations and a modest upside to their 2024 guidance. The company demonstrated positive signs of recovery with their customer metrics improving, such as a significant year-over-year increase in total customers. However, dollar-based net retention rates showed a slight decline, indicating potential challenges in customer expansion and retention.
Furthermore, while Amplitude’s management is making strategic investments to spur future growth, the current guidance reflects continued elevated churn rates and selective spending in key areas. These investments are expected to aid in reaccelerating growth, but also contribute to near-term losses. Additionally, the anticipated mid-single-digit growth in annual recurring revenue (ARR) suggests a slower pace of growth in the near term. Oliver’s rating mirrors a cautious optimism, acknowledging both the recent positive developments and the existing headwinds that the company faces.
According to TipRanks, Oliver is a 5-star analyst with an average return of 7.7% and a 53.78% success rate. Oliver covers the Technology sector, focusing on stocks such as Tyler Technologies, Verisign, and Blackbaud.
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Amplitude (AMPL) Company Description:
Amplitude Inc is pioneering a new category of software called digital optimization. The company’s digital optimization system serves as the command center for businesses to connect digital products to business outcomes.
