Core Viewpoint - The article highlights underappreciated small-cap stocks with AI connections that have the potential to outperform the market, specifically focusing on Sweetgreen and Amplitude as promising investment opportunities. Group 1: Sweetgreen - Sweetgreen is a fast-casual salad chain that is investing in a robotic assistant called the Infinite Kitchen to enhance service efficiency and reduce labor costs [4][6] - The company plans to retrofit existing restaurants with Infinite Kitchens and aims to open at least 40 new locations this year, with 20 of them utilizing this technology [5] - Despite recent underwhelming financial results and a significant stock decline, Sweetgreen's market cap has fallen to approximately $1 billion, indicating potential for recovery [7] - The company aims to expand its store count to at least 1,000 locations in the coming years, although it is currently experiencing losses and declining comparable-store sales [8] - Sweetgreen's recovery is contingent on improved macroeconomic conditions and consumer demand, but the stock holds significant upside potential if the Infinite Kitchens perform well [9] Group 2: Amplitude - Amplitude is a small-cap software company specializing in product analytics, helping businesses understand customer interactions with their digital products [10] - The company has enhanced its analytics platform with new AI agents that analyze data and provide insights, positioning itself as a leader in product analytics [11][12] - With a market cap of around $1.5 billion, Amplitude has substantial growth potential as it capitalizes on AI-related demand [12] - The company is experiencing accelerated growth after overcoming post-pandemic challenges, making it an attractive under-the-radar AI stock [13]

Company Overview - Amplitude aims to enhance digital engagement for customers through mobile applications, websites, and desktop applications by providing detailed insights into user interactions [2] Product Offering - The company offers a product that tracks user interactions at a granular level, referred to as "events," which include actions like scrolling and time spent on content [2] - This feedback mechanism is designed to assist developers and product creators in continuously improving their products [2] Market Position - Amplitude addresses a common challenge faced by businesses in understanding user engagement, moving beyond traditional methods like screen captures to a more sophisticated analytical approach [2]

Summary of Amplitude Conference Call Company Overview - Amplitude focuses on enhancing digital engagement for clients through detailed analytics of user interactions with applications, including mobile, web, and desktop platforms [3][4] - The company has evolved from core analytics to a broader platform approach, integrating capabilities like Experimentation, Session Replay, Guides, and Surveys [5] Core Business Insights - Amplitude's customer base is diverse, with over 30% being digital native companies, while also expanding into traditional enterprises like First American Title and retail giants like Walmart [8][9] - The company is increasingly appealing to various roles within organizations, including Chief Product Officers, Chief Digital Officers, and Chief Marketing Officers, indicating a broadening of its market reach [32] AI Integration - AI is viewed as a significant opportunity for Amplitude, with the potential to enhance developer productivity and increase the need for instrumentation [11][12] - The company is implementing agenda capabilities to optimize the use of its platform, allowing for increased productivity in experimentation and analysis [12][13] Customer Composition and ARR - 67% of Amplitude's Annual Recurring Revenue (ARR) comes from multi-product customers, indicating a strong opportunity for cross-selling within the existing customer base [19][21] - The company has reduced the percentage of its install base that needs to be renewed from 89% to 72%, with a target of closer to 60% in the near future, which should improve sales productivity [27][28] Sales Strategy and Go-to-Market Improvements - Amplitude has shifted its sales strategy to focus on value-based selling and multi-year contracts, which has led to improved customer engagement and reduced churn [24][26] - The sales team is being trained to sell the entire platform rather than just individual products, enhancing the overall value proposition to customers [25] Financial Performance and Growth Strategy - The company aims to grow revenues faster than expenses, targeting operational leverage and positive operating income in the coming years [38][40] - Recent improvements in the sales pipeline and customer conversations indicate a positive outlook heading into year-end [52] M&A Strategy - Amplitude is focused on acquiring technology and teams that can quickly fill gaps in its capabilities, rather than pursuing large transformative acquisitions [41][42] - Recent acquisitions have been aimed at enhancing product offerings, such as Guides and Surveys, and improving the overall technology stack [43] Talent Acquisition - The company is actively working to attract top talent, particularly in AI, leveraging strong relationships within the startup community [45] - There is a growing pool of talent from universities that are well-versed in AI tools, which Amplitude is tapping into [46] Conclusion - Amplitude is positioned to leverage its diverse customer base, AI integration, and improved sales strategies to drive future growth and enhance its market presence [55]

To me, the stock market’s recent snapback from all-time highs is a clear signal that investors are tiring of high valuations amid an uncertain macroeconomic outlook. But while the majority of the market has been dominated by expensive large-cap tech, there are stillWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today ...

Investors looking for stocks in the Technology Services sector might want to consider either Coherent (COHR) or Amplitude, Inc. (AMPL) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates ...

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Amplitude (AMPL) Conference Summary Company Overview - **Company**: Amplitude - **Industry**: Digital Analytics - **CFO**: Andrew Casey - **IPO**: 2021 Key Points and Arguments Company Evolution and Product Development - Amplitude started by providing digital analytics for startups and SMBs, focusing on B2C engagements like DoorDash and PayPal [3][4] - The company has expanded its product offerings beyond product analytics to include experimentation, session replay, web analytics, and marketing analytics [4][5] - Recent acquisitions include Command AI for guides and surveys, and Craftful for voice of the customer, enhancing the platform's capabilities [5] Growth Strategy - Amplitude is shifting its focus towards enterprise clients, moving from a transactional sales model to a value-oriented approach [6][7] - The company has seen acceleration in top-line growth due to improved execution and a focus on cross-selling its platform [8][9][55] - The integration of AI into its offerings is expected to further enhance customer engagement and operational efficiency [31][32] Market Position and Competition - Amplitude is increasingly competing with Adobe and Google Analytics, with improving win rates against these competitors [27][28] - The company is positioning itself as a comprehensive solution for marketing and product analytics, appealing to CMOs and Chief Data Analysts [24][25] AI Integration and Future Outlook - The introduction of agents to assist with digital engagement is expected to lower barriers for enterprises lacking resources for data science [31][36] - The agents will facilitate real-time experimentation and personalization, enhancing customer experiences [35][36] Financial Performance and Margins - Amplitude's pricing model is based on the number of events ingested into the platform, which is expected to increase as more channels are utilized [45][46] - The company aims to improve gross and operating margins by optimizing cloud hosting costs and increasing the adoption of multiple products by customers [60][62] - Sales and marketing expenses are targeted to decrease from 43% to the low 30s, while G&A is aimed to drop below 10% [64][65] Additional Important Insights - The company is building a services business to create a partner ecosystem, which may initially act as a headwind but is expected to generate billable utilization over time [63] - Amplitude's focus on a growth with leverage framework aims to grow revenues while controlling expense growth [64] This summary encapsulates the key insights from the Amplitude conference, highlighting the company's strategic direction, market positioning, and financial outlook.

Core Insights - Amplitude is experiencing accelerating revenue growth, reporting its third consecutive quarter of growth driven by its platform strategy and new product features [2][3] - The company achieved a 16% increase in annual recurring revenue (ARR) to $335 million and a net-new ARR of $15 million, indicating strong business momentum [3][5] - Amplitude's dollar-based net retention rate reached 104%, the highest in six quarters, suggesting recovery from previous churn issues [3] Financial Performance - Revenue for the quarter rose 14% year over year to $83.3 million, exceeding the consensus estimate of $81.3 million [5] - The number of customers with an ARR of $100,000 or more increased by 16% to 634 [5] - Adjusted profit was reported at $0.01 per share, up from breakeven a year ago, and free cash flow nearly tripled from $6.8 million to $18.2 million [5] AI Strategy - Amplitude has made several acquisitions to enhance its platform and launch a suite of AI agents, including Command AI, June, Kraftful, and Inari [6][7] - The AI agents, currently in beta testing, are expected to be commercially available later this year, with promising features like Experiment and Insight Generation [8][9] - Customer feedback on the AI agents has been positive, indicating potential for significant value addition [9] Market Position - Amplitude received validation from Forester, being rated highest in the strength of offering in its first digital analytics solutions report [10] - The company’s third-quarter guidance projects revenue of $85 million to $87 million, reflecting a 17.3% increase [11] - With a market cap of $1.6 billion, Amplitude is positioned to compete against legacy providers like Google Analytics and Adobe Analytics, with its growth trajectory potentially enhanced by the new AI agents [12]

Core Insights - Amplitude, Inc. reported revenue of $83.27 million for the quarter ended June 2025, reflecting a year-over-year increase of 13.6% and a surprise of +2.58% over the Zacks Consensus Estimate of $81.17 million [1] - The company's EPS was $0.01, compared to $0 in the same quarter last year, indicating no EPS surprise against the consensus estimate of $0 [1] Financial Performance Metrics - Dollar-based Net Retention Rate was 104%, exceeding the average estimate of 100.4% from three analysts [4] - The number of Paying Customers stood at 4,300, slightly below the average estimate of 4,379 from three analysts [4] - Annual Recurring Revenue (ARR) reached $335 million, surpassing the two-analyst average estimate of $326.08 million [4] - Remaining Performance Obligations (RPO) for less than or equal to 12 months were reported at $248,520, exceeding the two-analyst average estimate of $239,427.50 [4] Stock Performance - Over the past month, Amplitude's shares have returned -8.1%, contrasting with the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Amplitude, Inc.'s unaudited financial statements detail asset and liability changes, revenue growth, and net loss for the period ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show total assets and liabilities increased by June 30, 2025, while total stockholders' equity decreased, reflecting the period's net loss Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$456,610** | **$445,911** | | Cash and cash equivalents | $119,656 | $171,678 | | Total current assets | $286,792 | $303,631 | | **Total Liabilities** | **$177,106** | **$149,355** | | Deferred revenue | $136,659 | $109,671 | | Total current liabilities | $171,476 | $144,513 | | **Total Stockholders' Equity** | **$279,504** | **$296,556** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three and six months ended June 30, 2025, revenue increased, but net loss widened for both periods Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $83,270 | $73,300 | $163,223 | $145,924 | | Gross Profit | $60,458 | $53,815 | $120,207 | $107,550 | | Total Operating Expenses | $87,552 | $80,975 | $171,499 | $159,415 | | Net Loss | $(24,668) | $(23,415) | $(46,899) | $(44,875) | | Net Loss Per Share | $(0.19) | $(0.19) | $(0.36) | $(0.37) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased for the six months ended June 30, 2025, while investing and financing activities used more cash Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $12,032 | $9,180 | | Net cash provided by (used in) investing activities | $(44,995) | $35,671 | | Net cash provided by (used in) financing activities | $(19,052) | $(10,997) | | **Net decrease in cash, cash equivalents, and restricted cash** | **$(52,015)** | **$33,854** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, a significant increase in remaining performance obligations, a share repurchase program, and a subsequent acquisition - The company's business model is providing a Digital Analytics Platform as a subscription service (SaaS)[33](index=33&type=chunk) Remaining Performance Obligations (in thousands) | Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Less than or equal to 12 months | $248,520 | $223,320 | | Greater than 12 months | $109,574 | $85,315 | | **Total** | **$358,094** | **$308,635** | - On May 6, 2025, the Board approved a share repurchase program authorizing up to **$50.0 million** of the company's Class A common stock[83](index=83&type=chunk) - Subsequent to the quarter end, on July 3, 2025, the company acquired Kraftful, Inc. for an aggregate purchase price of **$3.7 million**[101](index=101&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 revenue increase, ARR growth, stable gross margin, increased operating expenses, and the company's solid liquidity position Key Business Metrics as of June 30, | Metric | 2025 | 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $335 million | $290 million | 16% | | Dollar-Based Net Retention Rate (TTM) | 99% | 98% | 1 ppt | | Paying Customers with ARR > $100k | 634 | 547 | 16% | - The company focuses on customer acquisition, AI-led platform investments, and international growth, with recent innovations including Amplitude AI Agents and new marketing capabilities[110](index=110&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk) Q2 2025 vs Q2 2024 Results (in thousands) | Metric | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $83,270 | $73,300 | $9,970 | 14% | | Cost of Revenue | $22,812 | $19,485 | $3,327 | 17% | | Total Operating Expenses | $87,552 | $80,975 | $6,577 | 8% | - As of June 30, 2025, principal liquidity sources were **$119.7 million** in cash and equivalents and **$167.9 million** in marketable securities, deemed sufficient for the next 12 months[171](index=171&type=chunk)[172](index=172&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company assesses market risks from interest rates and foreign currency, concluding that a hypothetical **10%** change would not materially affect financial results - The company's investments are exposed to interest rate fluctuations, but an immediate **10%** change in rates is not expected to have a material effect on portfolio fair value[188](index=188&type=chunk) - Operating expenses include foreign currency denominations, but exchange rate fluctuations have not been material, with a hypothetical **10%** change in the U.S. dollar not expected to have a material effect[189](index=189&type=chunk) - Management believes inflation has not had a material effect on the business, financial condition, or results of operations[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of the period end[191](index=191&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[192](index=192&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 for details on legal proceedings, including dismissed securities class actions and ongoing privacy-related class actions - For details on legal proceedings, the report directs readers to Note 9 of the financial statements[195](index=195&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks including a history of net losses, intense competition, reliance on third-party infrastructure, evolving privacy regulations, and concentrated voting power - The company has a history of net losses, reporting **$46.9 million** for the six months ended June 30, 2025, and an accumulated deficit of **$504.7 million**, with profitability not guaranteed[201](index=201&type=chunk) - The digital analytics market is highly competitive, posing risks of reduced sales, lower margins, or financial losses from large companies, in-house systems, and new entrants[216](index=216&type=chunk)[217](index=217&type=chunk) - A dual-class stock structure concentrates voting control with existing stockholders, executive officers, and directors, limiting Class A stockholders' influence on corporate matters[326](index=326&type=chunk) - The business is subject to evolving privacy laws like GDPR and CCPA, with non-compliance potentially leading to significant fines, reputational damage, and other liabilities[297](index=297&type=chunk)[298](index=298&type=chunk)[301](index=301&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=104&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In May 2025, the company repurchased Class A common shares and authorized a new share repurchase program Company Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 203,921 | $12.44 | | June 2025 | — | $— | | **Total** | **203,921** | **$12.44** | - A new repurchase program for up to **$50 million** was authorized on May 7, 2025, with no shares repurchased under it as of June 30, 2025[363](index=363&type=chunk) [Item 3. Defaults Upon Senior Securities](index=104&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None [Item 4. Mine Safety Disclosures](index=104&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not Applicable [Item 5. Other Information](index=104&type=section&id=Item%205.%20Other%20Information) On May 15, 2025, President Thomas Hansen adopted a Rule 10b5-1 trading plan for the potential sale of Class A common shares - Thomas Hansen, President of the Company, adopted a Rule 10b5-1 trading plan on May 15, 2025, for the sale of up to **210,000** shares of Class A common stock[366](index=366&type=chunk) [Item 6. Exhibits](index=105&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications