What Happened?

Shares of data analytics software provider Amplitude (NASDAQ:AMPL) jumped 22.7% in the pre-market session after the company reported impressive fourth-quarter 2024 earnings: its sales and operating profits outperformed Wall Street's estimates. Looking ahead, management expects revenue growth to accelerate in 2025, with guidance implying a mid-single-digit increase. One notable bright spot is the company's ability to land larger enterprise deals, as seen in the 16% y/y growth in customers generating over $100,000 in ARR. This suggests a growing reliance on high-value contracts, which could provide more stable long-term growth. Overall, we think this was a solid quarter with some key areas of upside. Following the results, Baird upgraded the stock's rating from Hold to Buy, adding "While the macro still represents challenges, AMPL is in a very strong position to capture any increase in spend.".

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What The Market Is Telling Us

Amplitude’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for Amplitude and indicate this news significantly impacted the market’s perception of the business.

Amplitude is up 35.1% since the beginning of the year, and at $14.46 per share, has set a new 52-week high. Investors who bought $1,000 worth of Amplitude’s shares at the IPO in September 2021 would now be looking at an investment worth $263.87.

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