Digital analytics platform Amplitude (NASDAQ:AMPL) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 16.9% year on year to $93.49 million. Guidance for next quarter’s revenue was better than expected at $98 million at the midpoint, 1.8% above analysts’ estimates. Its non-GAAP loss of $0.02 per share was $0.01 below analysts’ consensus estimates.
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Amplitude (AMPL) Q1 CY2026 Highlights:
- Revenue: $93.49 million vs analyst estimates of $92.94 million (16.9% year-on-year growth, 0.6% beat)
- Adjusted EPS: -$0.02 vs analyst estimates of -$0.01 ($0.01 miss)
- Adjusted Operating Income: -$3.12 million vs analyst estimates of -$3.29 million (-3.3% margin, relatively in line)
- The company lifted its revenue guidance for the full year to $400 million at the midpoint from $394 million, a 1.5% increase
- Management lowered its full-year Adjusted EPS guidance to $0.05 at the midpoint, a 57.1% decrease
- Operating Margin: -25.8%, up from -30.3% in the same quarter last year
- Customers: 727 customers paying more than $100,000 annually
- Net Revenue Retention Rate: 106%, up from 104% in the previous quarter
- Annual Recurring Revenue: $374 million vs analyst estimates of $372.7 million (16.9% year-on-year growth, in line)
- Billings: $105 million at quarter end, up 20.3% year on year
- Market Capitalization: $997 million
StockStory’s Take
Amplitude’s first quarter was marked by robust revenue growth and incremental operational improvements, but the market responded negatively due to persistent losses and increased cost pressures. Management attributed the quarter’s results to rapid adoption of new AI-driven capabilities, expanded multiproduct usage among enterprise clients, and significant organizational shifts. CEO Spenser Skates noted that “90% of the code our team ships today is written by AI,” emphasizing how quickly the company is transforming its development process. However, increased AI usage has driven up inference costs, pressuring gross margins and contributing to a non-GAAP operating loss.
Looking ahead, Amplitude’s guidance is shaped by its continued investment in AI products and the integration of Statsig’s experimentation platform. Management believes the new pricing and packaging model, along with deeper AI-native workflows, will drive broader customer adoption and higher data ingestion. CFO Andrew Casey cautioned that while these initiatives are expected to increase long-term value and upsell potential, they will also result in short-term gross margin compression as the company invests in infrastructure and supports the transition of Statsig customers. Amplitude’s leadership highlighted the need to “move as fast as possible to where the puck is going,” prioritizing speed over near-term profitability as it seeks to become an AI-first analytics platform.
Key Insights from Management’s Remarks
Management cited rapid AI adoption, organizational restructuring, and the Statsig partnership as key influences on both the quarter’s financial performance and future trajectory.
- AI-driven transformation: The company accelerated the roll-out of AI-powered products, including Agent Analytics and AI Assistant, with management emphasizing that becoming an AI-native organization is now the core strategic focus. These products are designed to automate insights and streamline customer workflows, meeting the increasing demand among technology-forward customers.
- Leadership changes and organizational restructuring: Recent changes to the go-to-market team, including appointing Nate Crook as Chief Commercial Officer and onboarding Gab Menachem as Chief Product Officer, are intended to make the organization more technical and responsive. The restructuring aims to reduce layers and enhance technical coverage for clients, particularly as they adopt AI-driven products.
- Statsig partnership and TAM expansion: Amplitude acquired the Statsig brand, customers, and technology, which broadens its experimentation and feature management capabilities and extends its reach into data warehouse-native budgets. Management expects the combined offering to unlock new cross-sell opportunities and attract advanced AI customers.
- Multiproduct platform adoption: Over 77% of annual recurring revenue is now derived from customers using more than two Amplitude products, up from 64% a year ago. Management believes that as customers adopt AI features, they will naturally expand into the broader platform, driving incremental upsell and stickiness.
- Short-term margin headwinds: Increased use of AI tools has led to higher inference costs, contributing to gross margin compression. Management acknowledged the pressure but indicated that supporting rapid adoption is the top priority, with optimization and margin recovery expected longer-term as the technology scales and models become more cost-effective.
Drivers of Future Performance
Amplitude’s forward outlook hinges on the success of its AI transformation, Statsig integration, and the ability to scale new pricing models while managing evolving cost structures.
- AI product adoption and monetization: Management expects continued growth in data ingestion and customer usage of AI-powered features such as Agent Analytics and the AI Assistant. This trend is anticipated to drive revenue expansion and greater upsell opportunities, but it also temporarily increases infrastructure costs, especially as inference spend remains elevated.
- Statsig integration and cross-sell: The addition of Statsig’s experimentation platform is seen as a catalyst for expanding Amplitude’s total addressable market, particularly among data-centric organizations and AI-native teams. Management believes the combined product suite will enable broader market consolidation and access to new buying centers within large enterprises.
- Margin recovery and cost discipline: While short-term gross margin pressure is expected due to higher AI-related costs, leadership is focused on eventually optimizing model selection (e.g., balancing leading-edge and open source AI models) and automating workflows to improve operational leverage and profitability over time. Cost discipline in sales and marketing, as well as technical success staffing, will be critical as the company navigates this transition.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) how quickly Statsig’s integration delivers incremental ARR and meaningful cross-sell, (2) the pace of customer migration to Amplitude’s new pricing and packaging model, and (3) whether gross margin stabilizes as AI adoption matures and infrastructure optimization efforts take hold. Additionally, the evolution of AI-native features and client feedback on workflow automation will be key indicators of future performance.
Amplitude currently trades at $5.81, down from $7.52 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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