Investment Thesis
Amplitude demonstrates strong product fundamentals with 73% gross margins and 14.7% revenue growth, but is deeply unprofitable with -23.7% operating margin and -$11.6M operating cash flow. At current burn rates, the company has only 7-8 quarters of cash runway, requiring immediate achievement of profitability despite scaling revenue.
Strengths
- Exceptional 73% gross margin demonstrates strong pricing power and product quality
- Strong balance sheet with $86.6M cash, zero long-term debt, and 1.52x current ratio provides financial cushion
- Revenue growth of 14.7% YoY shows sustained market demand and customer acquisition traction
Risks
- Unprofitable with -$23.7% operating margin; operating expenses consume 97% of revenue despite healthy gross profit
- Negative operating cash flow of -$11.6M and negative free cash flow of -$12.0M indicate unsustainable burn rate
- Cash runway approximately 7-8 quarters at current burn rates; company must achieve profitability urgently or face capital constraints
Key Metrics to Watch
- Operating margin trajectory and path to profitability with revenue growth
- Operating cash flow inflection point - must turn positive to validate unit economics
- Operating expense ratio trends and efficiency improvements relative to revenue scale
Financial Metrics
Revenue
93.5M
Net Income
-23.3M
EPS (Diluted)
$-0.17
Free Cash Flow
-12.0M
Total Assets
401.7M
Cash
86.6M
Profitability Ratios
Gross Margin
73.0%
Operating Margin
-23.7%
Net Margin
-24.9%
ROE
-10.7%
ROA
-5.8%
FCF Margin
-12.9%
Balance Sheet & Liquidity
Current Ratio
1.52x
Quick Ratio
1.52x
Debt/Equity
0.00x
Debt/Assets
45.9%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T09:03:25.752722 |
Data as of: 2026-03-31 |
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