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.
Is now the time to buy AMPL? Find out in our full research report (it’s free for active Edge members).
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: $819.6 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Amplitude’s Q1 Earnings Call
- Taylor McGinnis (UBS): Asked why OpenAI chose to transfer the Statsig business and whether Amplitude’s organic growth guidance was reduced. CEO Spenser Skates explained OpenAI will retain Statsig for internal use, while CFO Andrew Casey clarified that accounting adjustments, not underlying performance, affected the reported growth rates.
- Robert Oliver (R.W. Baird): Questioned the impact of the new pricing model and whether Statsig’s integration would further pressure margins. Casey highlighted positive early results from the pricing changes, and Skates acknowledged that integration costs would be better understood in subsequent quarters.
- Jackson Ader (KeyBanc): Inquired about balancing frictionless AI-driven adoption with the need for technical support in the enterprise segment. Skates noted that while AI automation accelerates initial setup, human expertise is still essential for large, traditional customers seeking education and integration assistance.
- Clark Wright (D.A. Davidson): Sought details on how the new pricing curve supports enterprise scaling and what the Statsig partnership unlocks. Casey described favorable customer feedback on cost predictability, while Skates emphasized new access to data warehouse budgets and enhanced experimentation tools.
- Scott Berg (Needham): Asked about gross margin pressures from AI inference costs and the role of open source models. Skates said most customers prefer the latest models for accuracy, which are more expensive, but over time, Amplitude will optimize model choices to balance cost and performance.
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 $6.19, down from $7.52 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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