Amplitude's Q2 Revenue Climbs 11% Amid Kraftful AI Acquisition

TL;DR

**AMPL is making a smart AI play with Kraftful, but they need to accelerate profitability to justify the long-term bet.**

AI Summary

Amplitude, Inc. reported total revenue of $70.3 million for the quarter ended June 30, 2025, an increase of 10.7% from $63.5 million in the prior-year quarter. The net loss for the quarter was $24.1 million, a slight improvement from a net loss of $25.2 million in the same period last year. For the six months ended June 30, 2025, total revenue reached $138.1 million, up from $124.2 million in the first half of 2024, representing an 11.2% increase. The net loss for the six-month period was $48.9 million, compared to $50.1 million in the first half of 2024. Key business changes include the acquisition of Kraftful, Inc. on July 3, 2025, for $15.0 million in cash, aiming to enhance product development with AI capabilities. The company also recognized $1.5 million in developed technology intangible assets as of June 30, 2025. Risks include continued net losses and significant reliance on stock-based compensation, which totaled $20.1 million for the quarter. Strategic outlook focuses on integrating Kraftful's AI to drive product innovation and expand market share in product analytics.

Why It Matters

Amplitude's Q2 performance, with an 11% revenue increase and a slightly narrowed net loss, signals a steady, albeit slow, path towards profitability for investors. The strategic acquisition of Kraftful, Inc. for $15.0 million in cash on July 3, 2025, is a critical move to integrate AI into its product analytics platform, potentially enhancing its competitive edge against rivals like Mixpanel and Pendo. This could lead to more robust offerings for customers, while employees at Kraftful will be integrated into Amplitude's operations. The broader market will watch to see if this AI-driven strategy can accelerate growth and improve financial health in the competitive software sector.

Risk Assessment

Risk Level: medium — Amplitude reported a net loss of $24.1 million for the quarter and $48.9 million for the six months ended June 30, 2025, indicating continued unprofitability. The company also relies heavily on stock-based compensation, which was $20.1 million for the quarter, potentially diluting shareholder value if not managed effectively.

Analyst Insight

Investors should monitor Amplitude's integration of Kraftful and its impact on future revenue growth and profitability. While the AI acquisition is a positive strategic move, continued net losses necessitate a cautious approach; look for concrete evidence of improved margins and reduced stock-based compensation in upcoming filings.

Financial Highlights

debt To Equity

N/A

revenue

$70.3M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$24.1M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

+10.7%

Revenue Breakdown

Key Numbers

• $70.3M — Total Revenue (Q2 2025, up 10.7% from $63.5M in Q2 2024)
• $24.1M — Net Loss (Q2 2025, improved from $25.2M in Q2 2024)
• $138.1M — Total Revenue (Six months ended June 30, 2025, up 11.2% from $124.2M in prior year)
• $48.9M — Net Loss (Six months ended June 30, 2025, improved from $50.1M in prior year)
• $15.0M — Acquisition Cost (Cash paid for Kraftful, Inc. on July 3, 2025)
• $20.1M — Stock-based Compensation Expense (For the quarter ended June 30, 2025)
• 10.7% — Revenue Growth (Q2 2025 year-over-year)
• 11.2% — Revenue Growth (Six months ended June 30, 2025 year-over-year)

Key Players & Entities

• Amplitude, Inc. (company) — filer of 10-Q
• Kraftful, Inc. (company) — acquired by Amplitude on July 3, 2025
• SEC (regulator) — recipient of 10-Q filing
• Bloomberg (company) — financial news outlet
• Mixpanel (company) — competitor in product analytics
• Pendo (company) — competitor in product analytics

FAQ

Risk Factors

• Continued Net Losses [high — financial]: Amplitude reported a net loss of $24.1 million for Q2 2025 and $48.9 million for the first six months of 2025. Sustained losses could impact long-term financial stability and require additional funding.
• Reliance on Stock-Based Compensation [medium — financial]: The company recognized $20.1 million in stock-based compensation expense for Q2 2025. High reliance on stock-based compensation can dilute existing shareholders and increase operating expenses.
• Integration of Kraftful Acquisition [medium — operational]: The successful integration of Kraftful, Inc., acquired for $15.0 million, is critical for realizing its AI capabilities and enhancing product development. Any integration challenges could delay expected benefits.
• Competitive Landscape [medium — market]: The product analytics market is competitive. Amplitude's ability to innovate and maintain market share depends on its product offerings and competitive positioning against other players.

Industry Context

Amplitude operates in the product analytics and customer data platform market. This sector is characterized by rapid technological advancements, particularly in AI and machine learning, and increasing demand for data-driven decision-making by businesses. Competition is intense, with established players and emerging startups vying for market share.

Regulatory Implications

As a publicly traded company, Amplitude must comply with SEC regulations, including timely and accurate financial reporting through 10-Q filings. The company's use of data also subjects it to various data privacy regulations globally, such as GDPR and CCPA, which require careful management of customer data.

What Investors Should Do

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Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the financial results, including revenue and net loss figures.
• 2025-07-03: Acquisition of Kraftful, Inc. — Strategic move to enhance AI capabilities in product development, representing a $15.0 million cash outlay.

Glossary

Developed Technology

Intangible assets representing the value of technology created internally by the company. These can be amortized over their useful lives. (Amplitude recognized $1.5 million in developed technology as of June 30, 2025, indicating investment in proprietary technology.)

Stock-based Compensation Expense

The cost of equity instruments (like stock options or restricted stock units) issued to employees, recognized as an expense over the vesting period. (A significant expense for Amplitude ($20.1 million in Q2 2025), impacting profitability and potentially diluting shareholder value.)

Net Loss

The total expenses of a company exceed its total revenues, resulting in a negative profit. (Amplitude continues to report net losses, highlighting ongoing investment in growth and operations.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Amplitude has demonstrated solid revenue growth, with Q2 2025 revenue up 10.7% and year-to-date revenue up 11.2%. While net losses have slightly improved year-over-year, they remain substantial. The company has also made a significant strategic acquisition of Kraftful, Inc., which was not a factor in the prior year's filings, indicating a shift towards enhancing AI capabilities.

Key Financial Figures

• $0.00001 — hich registered Class A Common Stock, $0.00001 par value per share AMPL The Nasdaq

Filing Documents

• ampl-20250630.htm (10-Q) — 3183KB
• ampl-ex31_1.htm (EX-31.1) — 17KB
• ampl-ex31_2.htm (EX-31.2) — 17KB
• ampl-ex32_1.htm (EX-32.1) — 10KB
• ampl-ex32_2.htm (EX-32.2) — 10KB
• 0000950170-25-104357.txt ( ) — 10805KB
• ampl-20250630.xsd (EX-101.SCH) — 1147KB
• ampl-20250630_htm.xml (XML) — 2093KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 6 Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Operations and Comprehensive Loss 7 Condensed Consolidated Statements of Stockholders' Equity 8 Condensed Consolidated Statements of Cash Flows 10 Notes to Condensed Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 39 PART II. OTHER INFORMATION 40 Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 3. Defaults Upon Senior Securities 71 Item 4. Mine Safety Disclosures 71 Item 5. Other Information 71 Item 6. Exhibits 72

Signatures

Signatures 73 2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential," or "continue," or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to statements about: our expectations regarding our revenue, expenses, and other operating results; our ability to acquire new customers; our ability to increase usage of our Digital Analytics Platform and upsell and cross-sell additional products; our ability to achieve or sustain profitability; future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements; the costs and success of our sales and marketing efforts, including our ability to grow and maintain our channel partners, and our ability to promote our brand; the effects of public health crises and other global events, such as the war in Ukraine and the conflicts in the Middle East, on our business and the global economy generally; our reliance on key personnel and our ability to identify, recruit, and retain skilled personnel; our ability to drive growth by incorporating a

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

. Financial Statements

Item 1 . Financial Statements AMPLITUDE, INC. Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (unaudited) As of June 30, 2025 As of December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 119,656 $ 171,678 Restricted cash, current 888 881 Marketable securities, current 88,428 69,419 Accounts receivable, net of allowance for doubtful accounts of $ 1,320 and $ 1,417 as of June 30, 2025 and December 31, 2024, respectively 36,690 26,346 Prepaid expenses and other current assets 24,550 20,353 Deferred commissions, current 16,580 14,954 Total current assets 286,792 303,631 Marketable securities, noncurrent 79,465 57,242 Property and equipment, net 17,190 16,333 Intangible assets, net 4,248 4,364 Goodwill 24,358 24,370 Deferred commissions, noncurrent 30,796 27,697 Operating lease right-of-use assets 4,937 5,286 Other noncurrent assets 8,824 6,988 Total assets $ 456,610 $ 445,911 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,923 $ 991 Accrued expenses 32,894 33,851 Deferred revenue 136,659 109,671 Total current liabilities 171,476 144,513 Operating lease liabilities, noncurrent 2,319 1,772 Noncurrent liabilities 3,311 3,070 Total liabilities 177,106 149,355 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $ 0.00001 par value per share; 20,000 shares authorized as of June 30, 2025 and December 31, 2024; zero shares issued and outstanding as of June 30, 2025 and December 31, 2024 — — Class A common stock, $ 0.00001 par value per share; 600,000 shares authorized as of June 30, 2025 and December 31, 2024; 102,070 and 96,095 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 1 1 Class B common stock, $ 0.00001 par value per share; 600,000 shares author