These two small-cap stocks look poised for a recovery heading into 2026.With only a couple of weeks left in 2025, the stock market looks set to close out another winning year. Through Dec. 16, the S&P 500 is up 15.7%, on the way to its third straight year of double-digit gains.Nobody knows for sure where the market is headed in 2026. Some investors see an AI bubble. Others believe the gains that have been dominated by the "Magnificent Seven" stocks will spread to the rest of the market, and some have argued ...

Group 1 - The company has experienced a reacceleration in growth, achieving an 18% increase, indicating a positive demand environment [1] - The founders recognized that many companies in the analytics ecosystem were not providing a complete platform, leading to efforts to consolidate various functionalities [2] - The company has been developing a range of products around analytics, starting with experimentation and expanding to activation, web analytics, guides, surveys, and session replay [3]

Amplitude (NasdaqCM:AMPL) 2025 Conference Summary Company Overview - **Company**: Amplitude - **Industry**: Software as a Service (SaaS), specifically in product analytics and marketing analytics Key Points Current Business Momentum - Amplitude has experienced a reacceleration in growth to **18%** [4][5][7] - The company is focusing on consolidating various analytics products to create a comprehensive platform [5][6] - Transitioning from a transactional sales model to an enterprise sales model has been a significant change [6][7] Financial Performance - The company reported a **Net Revenue Retention (NRR)** rate of **104%** last quarter [9] - Growth is attributed to increased data ingestion and new product offerings, despite challenges from overselling during COVID [12][19] - The company aims for **20%+ revenue growth** and NRR of **110%+** in the future [14][26] Product and Market Strategy - Amplitude's monetization strategy includes charging based on event data ingestion and additional modules [10][11] - The company has seen a **30%** increase in revenue from non-product analytics, which now represents **30%** of total revenue [29] - **71%** of Annual Recurring Revenue (ARR) comes from customers using multiple products, indicating a strong cross-sell opportunity [29] Customer Engagement and Retention - The company is focusing on increasing multi-year contracts to improve revenue visibility and reduce churn [18][19] - Newer customer cohorts show better retention and expansion rates compared to older cohorts [24][26] - The company is targeting traditional industries such as healthcare and financial services for growth [32][33] AI and Innovation - Amplitude is introducing AI capabilities, including agentic features that automate experimentation and data analysis [35][36] - The company is optimistic about the potential of AI to enhance customer engagement and retention [40][41] - New products, such as those from the acquisition of Command AI, aim to disrupt existing market players [41] Future Outlook - The company is preparing for tougher comparisons in net new ARR growth but remains optimistic about market demand [48][49] - Amplitude is focused on balancing growth and profitability, with a path towards achieving the **Rule of 40** metric [51][53] Competitive Landscape - The acquisition of Statsig by OpenAI is seen as validation of the importance of experimentation in digital engagement [44][45] - Amplitude is increasingly being adopted by AI-native companies, indicating a growing market presence [47] Additional Insights - The transition to a more enterprise-focused sales strategy is expected to yield better long-term results [20][21] - The company is methodically redesigning sales territories to optimize performance without causing disruption [20][21] - There is a significant opportunity for upselling within the existing customer base, as only **39%** of customers currently use multiple products [19][29] This summary encapsulates the key insights from the Amplitude conference, highlighting the company's growth strategies, financial performance, product innovations, and market positioning.

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Core Insights - Amplitude is experiencing a resurgence in revenue growth, attributed to the launch of its new AI platform, which has led to its fastest revenue growth in over two years [3][4] - The company reported an 18% revenue growth in Q3, reaching $88.6 million, surpassing the consensus estimate of $86.3 million [3] - Remaining performance obligations (RPO) increased by 37% to $391.9 million, indicating a trend towards longer-term contracts from customers [4] AI Platform Development - Amplitude has introduced several AI features, including the Model Context Protocol (MCP), which connects AI assistants to the platform, enhancing data accessibility for customers [5][6] - The company also launched AI Visibility, a tool for optimizing performance in AI searches, and AI Feedback, which aggregates and summarizes customer feedback from various sources [6][7] Market Position and Future Outlook - Amplitude is positioned as a smaller player in the software and analytics market, competing against larger entities like Google Analytics and Adobe Analytics [10] - The company is projected to achieve revenues between $340.8 million and $342.8 million, with a market cap of approximately $1.3 billion, resulting in a price-to-sales ratio of 4 [10] - If the AI platform gains traction, there is potential for significant stock price appreciation [10]

Core Insights - Amplitude, Inc. reported revenue of $88.56 million for the quarter ended September 2025, reflecting a year-over-year increase of 17.7% [1] - The company's EPS was $0.02, down from $0.03 in the same quarter last year, but it exceeded the consensus EPS estimate of $0.01 by 100% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $86.03 million, resulting in a revenue surprise of +2.94% [1] Financial Performance Metrics - Dollar-based Net Retention Rate was 104%, exceeding the estimated 103.4% by analysts [4] - The number of Paying Customers stood at 4,500, slightly below the average estimate of 4,565 [4] - Annual Recurring Revenue (ARR) reached $347 million, slightly above the estimated $345 million [4] - Remaining Performance Obligations (RPO) for less than or equal to 12 months were reported at $257,677, surpassing the average estimate of $243,625.60 [4] Stock Performance - Over the past month, Amplitude's shares have returned -6.4%, contrasting with the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Revenue for Q3 2025 was $88,564,000, representing a 17.5% increase from $75,217,000 in Q3 2024[24] - Gross profit for Q3 2025 was $65,490,000, up from $56,473,000 in Q3 2024, indicating a growth of 15.0%[24] - Total operating expenses for Q3 2025 were $91,140,000, compared to $76,486,000 in Q3 2024, reflecting an increase of 19.2%[24] - Net loss for Q3 2025 was $23,986,000, compared to a net loss of $16,854,000 in Q3 2024, representing a 42.5% increase in losses[24] - Revenue for the nine months ended September 30, 2025, was $251.8 million, an increase of 13.9% compared to $221.1 million for the same period in 2024[37] - Net loss for the nine months ended September 30, 2025, was $70.9 million, compared to a net loss of $61.7 million for the same period in 2024, reflecting a 14.8% increase in losses[32] - Total revenue for the third quarter ended September 30, 2025, was $88.6 million, compared to $75.2 million for the same quarter in 2024, marking a 17.8% increase[37] - The company reported a consolidated net loss of $24.0 million for the third quarter ended September 30, 2025, compared to a net loss of $16.9 million for the same quarter in 2024[37] Cash and Assets - Cash and cash equivalents decreased to $82,217,000 as of September 30, 2025, down from $171,678,000 as of December 31, 2024[22] - Total current assets decreased to $265,777,000 as of September 30, 2025, from $303,631,000 as of December 31, 2024[22] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, was $83.1 million, down from $318.3 million at the end of the same period in 2024[32] - As of September 30, 2025, cash and cash equivalents were $82.2 million, with an additional $185.1 million in marketable securities[173] Deferred Revenue and Performance Obligations - Deferred revenue increased to $131,534,000 as of September 30, 2025, compared to $109,671,000 as of December 31, 2024, showing a growth of 19.9%[22] - Remaining performance obligations (RPO) increased by 37% to $391.9 million as of September 30, 2025, compared to $286.6 million in 2024[183] - The total remaining performance obligations expected to be recognized within 12 months amounted to $257.7 million as of September 30, 2025[51] Research and Development - Research and development expenses for Q3 2025 were $26,612,000, up from $19,037,000 in Q3 2024, marking an increase of 39.8%[24] - Research and development expenses for the nine months ended September 30, 2025, were $25.3 million, compared to $24.1 million for the same period in 2024, reflecting a year-over-year increase of 4.9%[84] - Amplitude's investment in research and development is expected to increase over time, with a focus on maintaining market leadership and attracting top engineering talent[118] Stock-Based Compensation - Stock-based compensation expense for the nine months ended September 30, 2025, was $70.2 million, up from $64.9 million in the same period of 2024, indicating an increase of 8.1%[32] - The total fair value of RSUs vested during the nine months ended September 30, 2025, was $76.6 million, up from $52.7 million in 2024[78] - The intrinsic value of options exercised for the nine months ended September 30, 2025, was $9.3 million, compared to $12.6 million for the same period in 2024[74] Customer Metrics - As of September 30, 2025, Amplitude reported Annual Recurring Revenue (ARR) of $347 million, a 16% increase from $298 million in 2024[122] - The number of paying customers with ARR of $100,000 or greater increased by 15% year-over-year, reaching 653 customers in 2025 compared to 567 in 2024[114] - The dollar-based net retention rate for the trailing 12 months (TTM) improved to 102% in 2025, up from 97% in 2024[114] Acquisitions - The Company completed the acquisition of Kraftful, Inc. for a total consideration of $3.8 million, including $2.9 million in cash and $0.9 million in equity[62] - The Company acquired certain assets from Inari for $0.5 million in cash on June 25, 2025, which will be amortized over three years[61] - The fair value of developed technology acquired in the Kraftful acquisition was $3.0 million, contributing to a total purchase price allocation of $3.76 million[63] Operating Expenses - Sales and marketing expenses for the three months ended September 30, 2025, were $10.0 million, up 20.4% from $8.3 million in the same period in 2024[84] - General and administrative expenses increased by $2.1 million, or 4%, for the nine months ended September 30, 2025, compared to the same period in 2024[169] - Total operating expenses for the nine months ended September 30, 2025, were $262.6 million, an increase of $26.7 million, or 11%, compared to the prior year[166] Risks and Challenges - The company faces risks related to competition, market demand, and economic conditions that could adversely affect its business[202] - Legal proceedings and potential liabilities may incur significant costs and impact management resources[209] - The competitive landscape for digital analytics applications is fragmented and rapidly evolving, leading to intensified competition[218] Future Outlook - The company plans to invest significantly in the development of its Digital Analytics Platform, technology infrastructure, sales and marketing, international expansion, and general administration[203] - Customer retention and expansion are critical for maintaining revenue growth, with challenges arising from customer satisfaction, pricing, and competition[206] - The company expects fluctuations in financial results and key metrics, making future projections difficult[208]

Financial Data and Key Metrics Changes - The third quarter revenue was $88.6 million, up 18% year over year, exceeding the high end of guidance [3][22] - Annual recurring revenue (ARR) reached $347 million, up 16% year over year, and increased by $12 million from the previous quarter [3][22] - Non-GAAP operating income was $0.6 million, with a gross margin of 76%, down one percentage point from the third quarter of 2024 but up one percentage point from the previous quarter [23][24] - Free cash flow for the quarter was $3.4 million, or 4% of revenue, compared to $4.5 million, or 6% of revenue during the same period last year [24] Business Line Data and Key Metrics Changes - Customers with more than $100K in ARR grew to 653, an increase of 15% year over year [3][23] - 39% of customers now have multiple products, with 71% of ARR coming from that cohort [22][23] - Net revenue retention (NRR) progressed to 104%, driven by cross-sell expansions [23] Market Data and Key Metrics Changes - The average contract duration grew to nearly 22 months, up from 19 months a year ago [20] - Remaining performance obligations (RPO) growth accelerated to 22% year-over-year, up from 20% in the previous quarter [21] - Long-term RPO growth accelerated to 78% year-over-year, up from 64% last quarter [21] Company Strategy and Development Direction - The company is focusing on expanding its enterprise customer base and driving cross-platform sales with existing customers [25] - The strategy includes leveraging AI capabilities to enhance product offerings and improve customer engagement [25][26] - The company aims to redefine analytics as an AI-native system that learns, reasons, and acts [18] Management's Comments on Operating Environment and Future Outlook - Management believes that the importance of analytics and data usage for enterprises is increasing, especially with the rapid changes in development and deployment processes [19][25] - For Q4 2025, the company expects revenue to be between $89 million and $91 million, representing an annual growth rate of 15% at the midpoint [26] - The full-year revenue expectation has been raised to between $340.8 million and $342.8 million, reflecting a 14% annual growth rate at the midpoint [26] Other Important Information - The company has launched several AI-native products, including the MCP Server and AI agents, which are designed to enhance user experience and accessibility for non-technical users [8][12][14] - The company is seeing strong interest from customers in AI capabilities, which is expected to drive future growth [18][40] Q&A Session Summary Question: Can you break down the RPO growth by enterprise, mid-market, and contract duration? - Management noted that the RPO growth is driven by strategic conversations with enterprise clients, leading to multi-year contracts and increased contract duration [29][30] Question: Where are enterprises investing in the product circle of life? - Management indicated that enterprises are still early in the "use and learn" phase, with significant opportunities for improvement in analytics [32][33] Question: Can you provide insight into the Q4 revenue guidance and the balance between growth and profitability? - Management emphasized that the guidance is based on execution visibility and the strong performance of the sales team, balancing growth investments with operational leverage [35][36] Question: How is the adoption of AI products progressing? - Management reported strong customer interest in AI products, with a focus on delivering value and enhancing user experience [54] Question: What are the expectations for multi-product adoption? - Management anticipates a significant increase in multi-product adoption as more users engage with analytics and AI capabilities [40] Question: How does the company view the selling environment currently? - Management noted that there is continued cost consciousness among customers, but excitement around the effectiveness of AI solutions [49]

3Q 2025 Investor Presentation © 2025 Amplitude, Inc. All Rights Reserved. Disclaimer This presentation and the accompanying oral presentation have been prepared by Amplitude, Inc. (the "Company"). Certain statements in this presentation and the accompanying oral commentary are forward-looking statements. These statements relate to the Company's financial outlook for the fourth quarter of 2025 and full year 2025, the expected performance of the Company's products, the Company's expected quarterly and long-te ...

Financial Performance - Annual Recurring Revenue (ARR) reached $347 million, representing a 16% year-over-year increase[5] - Revenue for the third quarter was $88.6 million, an 18% increase compared to $75.2 million in the same quarter of 2024[3] - Remaining performance obligations totaled $391.9 million, up 37% year-over-year[5] - Revenue for the three months ended September 30, 2025, was $88,564,000, representing a 17.5% increase from $75,217,000 in the same period of 2024[24] - Gross profit for the three months ended September 30, 2025, was $65,490,000, up from $56,473,000 in the prior year, indicating a gross margin improvement[24] - Total operating expenses for the three months ended September 30, 2025, were $91,140,000, compared to $76,486,000 in 2024, reflecting a 19.2% increase[24] - GAAP gross profit for Q3 2025 was $65.49 million, up from $56.47 million in Q3 2024, representing a 15.4% increase[27] - Non-GAAP gross profit for the nine months ended September 30, 2025, reached $190.58 million, compared to $168.94 million in the same period of 2024, reflecting a 12.8% growth[27] Profitability and Loss - GAAP net loss per share was $(0.18), compared to $(0.14) in the third quarter of 2024[10] - Non-GAAP net income per share was $0.02, down from $0.03 in the same quarter of 2024[10] - Net loss for the three months ended September 30, 2025, was $23,986,000, compared to a net loss of $16,854,000 in the same period of 2024[24] - GAAP net loss for Q3 2025 was $23.99 million, compared to a net loss of $16.85 million in Q3 2024, indicating a 42.0% increase in losses year-over-year[27] - Free cash flow for Q3 2025 was $3.35 million, down from $4.50 million in Q3 2024, representing a 25.6% decrease[28] Cash Flow and Assets - Cash flow from operations was $5.0 million, a decrease of $1.2 million year-over-year[10] - Free cash flow was $3.4 million, down $1.1 million compared to the previous year[10] - Cash, cash equivalents, and restricted cash at the end of the period was $83,108,000, down from $318,326,000 at the end of September 30, 2024[25] - Total current assets decreased to $265,777,000 as of September 30, 2025, from $303,631,000 as of December 31, 2024[23] Future Outlook - For Q4 2025, the company expects revenue between $89.0 million and $91.0 million[7] - The full year 2025 revenue outlook is projected to be between $340.8 million and $342.8 million[7] Customer Metrics - The number of customers with $100,000 or greater in ARR increased to 653, reflecting a 15% year-over-year growth[10] - Dollar-based Net Retention Rate (NRR) for Q3 2025 was 104%, consistent with the previous quarter, indicating strong customer retention[30] Expenses and Investments - Research and development expenses for the three months ended September 30, 2025, were $26,612,000, up from $19,037,000 in the same period of 2024, reflecting a focus on innovation[24] - The company reported stock-based compensation expense of $25,116,000 for the three months ended September 30, 2025, compared to $21,112,000 in the prior year[24] - Research and development expenses for Q3 2025 were $26.61 million, up from $19.04 million in Q3 2024, a 39.9% increase, indicating a focus on innovation[27] - Sales and marketing expenses for Q3 2025 were $48.31 million, compared to $40.86 million in Q3 2024, reflecting an 18.5% increase in investment in growth initiatives[27] Operational Efficiency - GAAP operating margin for Q3 2025 was -29.0%, compared to -26.6% in Q3 2024, reflecting a decline in operational efficiency[27] - Non-GAAP operating margin for Q3 2025 improved to 0.6%, up from 2.1% in Q3 2024, showing a positive trend in operational performance[27]