Shares of Amplitude (AMPL 3.35%), the digital products analytics specialist, were moving higher this week as the company benefited from a broader tailwind in the tech sector and better-than-expected results in its second-quarter earnings report.
As of Thursday's close, the stock was up 9.1% for the week.
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The AI agent era is here
The big news for Amplitude this week was its Q2 earnings report, which showed building momentum in its core business and excitement for its new AI agents, which it unveiled at an event in June and are currently in beta.
In Q2, annual recurring revenue (ARR) was up 16% to $335 million, and the company reported its strongest net-new revenue at $15 million since Q4 2022.
Reported revenue rose 14% to $83.3 million, which topped estimates at $81.3 million. Additionally, the company said the number of customers with ARR of $100,000 or greater rose 16% to 634.
On the bottom line, earnings per share (EPS) improved from breakeven in the quarter a year ago to $0.01, matching estimates.
In addition to its launch of AI agents in June, Amplitude has made a number of acquisitions to beef up its product as it pushes into AI.
The company was also ranked a leader in the first Forrester Wave report for digital analytics, showing the company is outperforming competitors and has a lot of potential growth ahead of it.
The response to the AI agents has been strong, and the company plans to begin selling them later this year.
What's next for Amplitude
Amplitude's guidance for Q3 and the full year was encouraging as it sees revenue of $85 million to $87 million for the current quarter, up 14% at the midpoint from a year ago.
After dealing with customer downsizing contracts after the pandemic tailwinds rolled off, Amplitude now looks to be in position to deliver steady growth with a goal of getting to 20% or higher.
The AI agents also have the potential to be a significant difference maker for the company. There's still a lot of upside potential for the stock going forward.
