Amplitude, Inc. (AMPL): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Amplitude, Inc. (AMPL) through the BCG Matrix lens, and honestly, it's a classic SaaS portfolio story of balancing growth investment with cash generation. The engine room is strong: the core platform drives 71% of multi-product ARR, backed by $391.9 million in future revenue visibility (RPO), while the business itself is printing positive Free Cash Flow of $3.4 million in Q3 2025 on a 76.0% gross margin. The tension, however, lies in the high-investment Question Marks-new AI products-which are currently causing a GAAP loss of $(0.18) per share as AMPL bets big on converting them into future Stars. Below, we map out exactly where the capital is flowing and what this means for your investment thesis.

Background of Amplitude, Inc. (AMPL)

Amplitude, Inc. (AMPL) operates as the leading digital analytics platform, providing tools for companies to understand user engagement within their digital products. Founded by Spenser Skates and Curtis Liu, the company has evolved its value proposition beyond pure product analytics to offer a unified platform for product, data, and marketing teams. As of late 2025, Amplitude serves over 4,000 customers, including major names like Atlassian, Shopify, and NBCUniversal.

The core strategy for Amplitude in 2025 has been centered on platform expansion and deep integration of artificial intelligence, with CEO Spenser Skates stating the company is 'all in' on AI. This focus manifests in new offerings like the Amplitude Model Context Protocol (MCP) and AI Agents, designed to enhance product analytics and integrate behavioral insights directly into AI workflows. The company is actively positioning its integrated platform to address the convergence of product and marketing analytics, aiming to give organizations a single view of the customer journey.

Financially, Amplitude demonstrated continued top-line momentum through the third quarter of fiscal 2025. For Q3 2025, the company reported total revenue of $88.6 million, marking an 18% year-over-year increase. Annual Recurring Revenue (ARR) reached $347 million as of the end of Q3 2025, representing a 16% year-over-year growth rate. Furthermore, multi-product adoption is a key driver, now accounting for 71% of the total ARR.

The focus on enterprise expansion is evident in the customer metrics; Amplitude reported having 653 customers with $100,000 or more in ARR in Q3 2025, which was a 15% year-over-year increase. While growth is strong, the company continues to manage profitability challenges, reporting a GAAP Net Loss per share of $(0.18) for the third quarter of 2025. On a non-GAAP basis, the company achieved a slight positive income from operations of $0.6 million for the same period, and Free Cash Flow was reported at $3.4 million.

Amplitude, Inc. (AMPL) - BCG Matrix: Stars

You're looking at the business units or products that are leading the charge for Amplitude, Inc. These are the Stars-high market share in a market that's still growing fast. They consume cash to maintain that growth, but they are the future cash cows if the market growth rate eventually slows.

The core Digital Analytics Platform, specifically its enterprise segment, is firmly positioned here. This segment is driving 71% of the total multi-product Annual Recurring Revenue (ARR). This shows where the biggest, most committed customers are placing their bets on Amplitude, Inc.'s platform.

We see clear evidence of market leadership through significant customer commitments. The durability of future revenue is strong, with Total Remaining Performance Obligations (RPO) accelerating sharply. This backlog growth signals deep enterprise confidence, often tied to multi-year, seven-figure deals.

Here are the key numbers underpinning this Star status as of Q3 2025:

• Enterprise segment drives 71% multi-product ARR.
• Total RPO grew 37% year-over-year to $391.9 million in Q3 2025.
• Customers with $\ge$ $100,000 in ARR reached 653 accounts.
• This high-value customer cohort grew 15% year-over-year.

The commitment level is high, with the average contract duration extending to nearly 22 months as of Q3 2025, up from 19 months a year ago. This extended commitment is what fuels the RPO growth and provides excellent revenue visibility.

Let's look at the core metrics defining this segment's performance:

The growth rate, while strong, still requires significant investment, which is why cash flow is tight. For instance, Free Cash Flow in Q3 2025 was $3.4 million, equating to 4% of revenue, while Non-GAAP Operating Income was $600,000 for the quarter. The strategy here is definitely to invest to keep that market share high, hoping these units mature into Cash Cows when the market growth inevitably settles down.

The in-period Net Revenue Retention (NRR) was 104%, showing that existing customers are expanding their usage, which is a great sign for a Star product. You want to see that expansion because it means the product is becoming stickier and more central to the customer's operations.

Amplitude, Inc. (AMPL) - BCG Matrix: Cash Cows

You're looking at the core engine of Amplitude, Inc. (AMPL) business, the part that generates the steady, predictable revenue that funds the riskier bets elsewhere in the portfolio. These are the established products operating in a mature segment where market share is high, and growth, while still present, is slower than the hyper-growth phase.

The established, core subscription base provides a foundation of predictable Annual Recurring Revenue (ARR) of $347 million as of Q3 2025. This figure represents a 16% year-over-year increase. That growth, even in a mature market, shows the stickiness of the core offering. Also, 71% of that ARR comes from customers using multiple products, which is a great sign of embedding within the customer's workflow.

Honestly, the overall business is generating positive Free Cash Flow (FCF) of $3.4 million in Q3 2025, which is the cash used to fund other segments, like those Question Marks we'll discuss later. That FCF is calculated after capital expenditures. The Dollar-Based Net Retention Rate (NRR) of 102% (TTM) indicates stable, albeit modest, revenue expansion from existing customers, meaning the base is largely retained and growing slightly.

The subscription model is definitely the cash engine here, evidenced by the high non-GAAP gross margin of 76.0% in Q3 2025. This margin is what allows the core business to generate cash even when GAAP operating losses are present due to investments like stock-based compensation, which totaled $25.7 million in the quarter.

We can map out the key financial characteristics that define this Cash Cow quadrant for Amplitude, Inc. (AMPL) based on the latest figures:

To maintain this position, the focus is on efficiency and milking the gains passively, though Amplitude, Inc. (AMPL) is clearly still investing to support infrastructure and new AI features. The company is striving to improve leverage, as CFO Andrew Casey noted the strategy includes growing with additional leverage in our business model.

The stability comes from the enterprise focus, where the number of customers with $100,000 or greater in ARR reached 653, a 15% year-over-year increase. This cohort contributes to the durability of the revenue stream. You want to see these customers stay and expand, which the 102% NRR reflects.

Here are the key elements supporting the Cash Cow status:

• $347 million in Annual Recurring Revenue.
• 76.0% non-GAAP gross margin.
• 102% Dollar-Based Net Retention Rate.
• Positive Free Cash Flow of $3.4 million in Q3 2025.
• 71% of ARR from multi-product customers.

Investments here are targeted to maintain current productivity or improve efficiency, like optimizing service monetization where management expects incremental margin improvement.

Amplitude, Inc. (AMPL) - BCG Matrix: Dogs

You're looking at the parts of Amplitude, Inc. (AMPL) that aren't driving the platform narrative, the areas where investment might be better spent elsewhere. In the BCG framework, Dogs are low market share in low growth markets, and for Amplitude, Inc., this quadrant is populated by the smallest customers and any features not central to the unified platform push.

The company's stated focus for 2025 is the platform, with CEO Spencer emphasizing it's the year of the platform, underscoring the move toward comprehensive digital analytics, including new capabilities like $\text{AI Agents}$ and $\text{Amplitude Model Context Protocol}$ ($\text{MCP}$). This strategic pivot inherently de-prioritizes older, less integrated components.

The clearest proxy for the Dog segment is the smallest customer cohort. While Amplitude, Inc. is successfully scaling its high-value segment, the remaining customers likely fall into this lower-tier category, which requires disproportionate support relative to the revenue they bring in. As of the third quarter of 2025, the company had $\mathbf{653}$ customers contributing $\mathbf{\$100,000}$ or greater in Annual Recurring Revenue ($\text{ARR}$).

Here's the quick math on the customer base as of Q3 2025, which helps define the scale of the lower-priority segment:

Legacy, low-adoption features or older point solutions that are not part of the current multi-product platform push are candidates for this quadrant. The company's $\text{Q1 2025}$ $\text{ARR}$ was $\mathbf{\$320}$ million, growing to $\mathbf{\$347}$ million by $\text{Q3 2025}$. The growth is clearly being driven by the enterprise segment, which accounted for approximately $\mathbf{65\%}$ of $\text{ARR}$ in $\text{Q1 2025}$.

The smallest customer cohort, those under $\mathbf{\$100\text{K}}$ $\text{ARR}$, are definitely a lower priority because the cost to serve them eats into margins. If we take the total customer count of $\mathbf{4,423}$ reported in $\text{Q3 2025}$ and subtract the $\mathbf{653}$ high-value accounts, you're left with an estimated $\mathbf{3,770}$ smaller accounts. That's a significant number of accounts that likely require high sales and support cost relative to their revenue contribution.

Any non-strategic, low-margin professional services or implementation work that doesn't lead to high-value subscription expansion also fits here. The financial data shows a clear push toward subscription revenue, with $\text{ARR}$ growth at $\mathbf{16\%}$ year-over-year in $\text{Q3 2025}$, while $\text{GAAP}$ Net Loss per share was $\$(0.18)$ in the same quarter. This suggests that any service revenue not immediately converting to high-value subscription expansion is likely a drag on achieving profitability, which was $\mathbf{\$0.02}$ non-GAAP net income per share in $\text{Q3 2025}$.

The company's financial priorities are clearly aligned with accelerating net new $\text{ARR}$ and platform consolidation. You should treat these smaller customers and non-core services as cash traps where expensive turn-around plans are unlikely to yield the platform-level returns seen in the enterprise segment. The action here is minimizing resource allocation.

• Legacy features not part of the unified platform strategy.
• The estimated $\mathbf{3,770}$ customers under $\mathbf{\$100\text{K}}$ $\text{ARR}$.
• Professional services that don't drive multi-product attach.
• Focusing on the $\mathbf{653}$ customers with $\ge \$100\text{K}$ $\text{ARR}$.

Amplitude, Inc. (AMPL) - BCG Matrix: Question Marks

You're looking at the new wave of investment for Amplitude, Inc., which fits squarely into the Question Marks quadrant: high market growth potential, but currently low market share and high cash consumption. These are your new AI-native products like AI Visibility, AI Agents, and the Model Context Protocol (MCP). They are positioned in the hyper-growth AI market, but right now, they represent a small, high-investment portion of the total revenue picture.

This strategy of aggressive investment to capture future market share is definitely showing up on the income statement. For the third quarter of 2025, Amplitude reported a GAAP net loss per share of $(0.18). That loss from operations was $25.7 million for the quarter, which is the direct cost of trying to convert these nascent products into future Stars. Honestly, the stock-based compensation expense alone hit $25.7 million in Q3 2025, up from $21.5 million in Q3 2024, showing you where a lot of that cash is going-funding the future.

Still, the underlying market is growing, as evidenced by the 18% year-over-year revenue increase to $88.6 million in Q3 2025, and Annual Recurring Revenue (ARR) climbing to $347 million, a 16% increase year-over-year. The market is signaling interest, but the investment required to secure that share is substantial.

Here's a quick look at the financial context surrounding these high-growth, high-cost initiatives as of the latest reporting period:

The strategy here is clear: heavy investment is needed to rapidly increase market share in these new areas before the growth stalls and they become Dogs. The geographic push is part of this, too, as Amplitude seeks to establish a foothold where market share is currently low but the digital analytics growth potential is high. You have to commit the cash now to win later.

The specific Question Mark initiatives demanding this capital include:

• New AI-native products: AI Visibility and Amplitude Model Context Protocol (MCP).
• The AI Agents feature, which was announced in open beta during Q3 2025.
• Continued investment in R&D, which drove R&D expenses to 19% of revenue in Q3 2025.
• Geographic expansion, where approximately 39% of revenue was already generated outside the United States as of June 30, 2025.