This Software-as-a-Service Stock Is Getting Into Agentic AI, and It Could Be a Game-Changer @themotleyfool #stocks

This Software-as-a-Service Stock Is Getting Into Agentic AI, and It Could Be a Game-Changer Amplitude (NASDAQ: AMPL), the digital product analytics specialist, is building momentum with accelerating revenue growth and a new focus on AI agents that could transform its platform. The company recently reported its third consecutive quarter of accelerating revenue, driven by innovative product features like session replay, guides, and surveys. These tools allow clients to better understand customer behavior on their websites and engage users in real-time. Amplitude posted a 16% increase in annual recurring revenue (ARR) to $335 million, with net-new ARR hitting $15 million—the highest in nearly three years. Its dollar-based net retention rate reached 104% in Q2, the strongest in over six quarters, signaling recovery from earlier post-pandemic churn. On a reported basis, Q2 revenue rose 14% year-over-year to $83.3 million, surpassing consensus estimates of $81.3 million. The number of customers with ARR of $100,000 or more increased 16% to 634. Adjusted profit was $0.01 per share, matching estimates and improving from breakeven a year ago. Free cash flow nearly tripled to $18.2 million.

Amplitude's AI Playbook

Amplitude has made several strategic acquisitions in the past year to enhance its AI capabilities. Last October, it acquired Command AI, which helped launch its guides and surveys product—its fastest-adopted offering to date. More recently, it acquired June, an AI-powered product analytics tool; Kraftful, known for its AI-native Voice of Customer product; and Inari, a feedback analytics company. These acquisitions bolster Amplitude's talent and product suite as it pushes deeper into AI. The company launched its AI agents in June, currently in beta and being tested by customers, with plans to commercialize later this year. Two standout AI agents introduced are:

• Experiment: Generates website variants based on Amplitude's data.
• Insight Generation: Analyzes client dashboards to produce actionable insights, such as identifying traffic drops and suggesting remedies.
Customer response to these AI agents has been positive, demonstrating Amplitude's potential to add significant value amid the AI hype. Amplitude also received recognition from Forrester, ranking highest in strength of offering and being named a customer favorite in its first digital analytics solutions report.

Is Amplitude a Buy?

Guidance for Q3 projects revenue between $85 million and $87 million, a 17.3% increase, indicating continued acceleration. Despite its relatively small $2 billion market cap, Amplitude's growth is strong even before the full impact of its AI agents. These innovations could differentiate it in the digital product analytics market, competing against legacy players like Google Analytics and Adobe Analytics. With its platform strategy coming together and AI initiatives gaining traction, Amplitude is positioned for potential growth and stock appreciation.

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Source: Originally published at The Motley Fool on August 10, 2025.

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Frequently Asked Questions (FAQ)

Amplitude's AI Integration

Q: What is Amplitude's strategy regarding AI agents? A: Amplitude is actively integrating AI agents into its digital product analytics platform. This strategy is driven by strategic acquisitions and the development of new AI-powered features. Q: Which companies has Amplitude acquired to bolster its AI capabilities? A: Amplitude has acquired Command AI, June, Kraftful, and Inari to enhance its AI talent and product offerings. Q: What are some examples of Amplitude's AI agents? A: Amplitude has introduced AI agents such as "Experiment," which generates website variants based on data, and "Insight Generation," which provides actionable insights from client dashboards. Q: What is the potential impact of Amplitude's AI agents on its business? A: The AI agents have the potential to transform Amplitude's platform, differentiate it in the market, and drive significant growth and stock appreciation. Q: How has customer response been to Amplitude's AI agents? A: Customer response has been positive, indicating the potential for Amplitude's AI agents to add significant value.

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Crypto Market AI's Take

Amplitude's strategic pivot into agentic AI aligns with the broader trend of AI integration across various industries, including finance and technology. At Crypto Market AI, we see significant parallels between Amplitude's focus on data-driven insights and customer engagement and the advancements we are making in the cryptocurrency space. Our platform leverages AI agents and machine learning models to provide real-time market analysis, predictive trading signals, and automated trading strategies. Companies like Amplitude, by focusing on actionable insights derived from complex data, mirror our commitment to empowering users with intelligent tools for decision-making. The integration of AI agents, as demonstrated by Amplitude's early successes with features like "Experiment" and "Insight Generation," highlights the transformative power of AI in delivering specialized, automated solutions that can unlock new levels of efficiency and value. We believe this trend towards agentic AI will continue to shape how businesses operate and how individuals interact with technology and financial markets.

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