Amplitude, Inc. (AMPL): Business Model Canvas [Dec-2025 Updated]

You're looking at Amplitude, Inc. now, and honestly, the story isn't just about product analytics anymore; it's about platform dominance fueled by AI. As someone who's watched this space for two decades, I see a clear pivot: they are aggressively consolidating tools, evidenced by that July 2025 Kraftful buy, all while pushing their AI Agents. With an $347 million Annual Recurring Revenue base as of Q3 2025 and a tight 102% Dollar-Based Net Retention Rate, the model is clearly working to expand within existing accounts, projecting revenue between $329 million and $333 million for the full year. This canvas breaks down exactly how Amplitude, Inc. is structuring its key activities and costs to defend its turf against giants and turn user behavior data into real-time, AI-driven action for its enterprise customers-dive in to see the mechanics.

Amplitude, Inc. (AMPL) - Canvas Business Model: Key Partnerships

You're looking at how Amplitude, Inc. builds out its platform value through strategic alliances, which is critical for a data platform in the AI era. The relationship with Twilio Segment is a prime example of this focus, formalized in a preferred partnership announced in May 2025 during Twilio's SIGNAL 2025 conference. This isn't just a handshake; it includes a co-selling program where Amplitude recommends Twilio Segment as the optimal Customer Data Platform (CDP), and Twilio endorses Amplitude as the preferred digital analytics platform. This alignment is designed to address the fragmentation where companies use disconnected tools for data collection and analysis. Joint customers now have access to five pre-built dashboards covering Analytics, Session Replay, Experimentation, and Guides & Surveys, tailored for sectors like e-commerce, media, and fintech. Considering Twilio has over 335,000 active customer accounts worldwide, this co-sell agreement represents a significant growth lever for Amplitude, aiming to expand its reach, especially within enterprise accounts.

The push into agentic workflows is cemented by the strategic technology integration with GitHub, announced in late October 2025. This agent-to-agent integration positions Amplitude as an agentic product manager, using its powerful analytics to surface high-impact opportunities grounded in real user data. The connection is powered by the open Model Context Protocol (MCP), allowing Amplitude to deliver product and customer data directly into GitHub Copilot-powered workflows without manual handoffs. This means teams can auto-generate detailed, data-backed product requirements directly from Amplitude insights, which GitHub Copilot then uses to jumpstart development by opening a pull request. Amplitude serves over 4,500 customers as of December 2025, and this integration helps these teams focus on strategic work instead of manual ticket-writing.

To close the loop between quantitative behavior and qualitative understanding, Amplitude executed the acquisition of Kraftful in July 2025. Kraftful was an AI-native Voice of Customer (VoC) startup that used proprietary LLM analysis to distill massive volumes of unstructured user feedback-like support tickets and app reviews-into actionable insights. Kraftful, which was backed by investors including Y Combinator, Google, and Samsung, previously enabled over 50,000 product teams to build products by listening to users at scale. The integration aims to give Amplitude customers a 360-degree view, moving beyond just seeing what users do to understanding why they do it, which is expected to drive outcomes like higher Net Promoter Scores (NPS) and improved customer retention.

Platform hosting relies on major cloud infrastructure providers, and Amplitude has a strategic collaboration agreement with AWS, announced in May 2025, to expand jointly built solutions. This is happening in a market where the 'Big Three' dominate; in the third quarter of 2025, global cloud infrastructure service spending hit $107 billion. AWS maintained the lead with an estimated 29% market share in Q3 2025, while Google Cloud held 13%. For Amplitude, securing these foundational relationships ensures platform scalability and performance for its growing customer base.

Here's a quick look at the hard numbers associated with these key relationships as of late 2025:

Partnership/Metric	Key Data Point	Context/Date
Total Customers	Over 4,500	As of December 2, 2025
Twilio Segment Co-Sell Potential	335,000+ Active Accounts	Twilio Customer Base
Kraftful Pre-Acquisition Scale	50,000+ Product Teams Enabled	Kraftful user base
Cloud Infrastructure Spending (Q3 2025)	$107 billion	Global Enterprise Spending
AWS Market Share (Q3 2025)	29%	Cloud Infrastructure Market
Google Cloud Market Share (Q3 2025)	13%	Cloud Infrastructure Market

Beyond these marquee integrations, Amplitude relies on an extensive ecosystem to extend platform value. The company integrates with technology partners such as Adobe, Airship, and Fivetran, among others. While the prompt suggests hundreds of delivery and technology partners, data from a prior period indicated an install base of 130+ technology partners. This network is crucial for ensuring data flows smoothly into and out of the Amplitude platform, supporting the overall value proposition for its thousands of customers.

Finance: review Q4 2025 partnership-driven pipeline growth by next Tuesday.

Amplitude, Inc. (AMPL) - Canvas Business Model: Key Activities

You're looking at how Amplitude, Inc. is spending its resources to drive growth right now, late in 2025. It's all about pushing the platform forward while locking in bigger enterprise deals. Honestly, the numbers show a clear pivot toward AI and locking in longer commitments.

Core platform development and continuous AI innovation (e.g., AI Agents, MCP)

Development activity is high, which you see reflected in the investment levels. For the third quarter of 2025, Research and Development (R&D) was 19% of revenue, which was up three percentage points from the third quarter of 2024. That translates to R&D expenses of $26.61 million for Q3 2025 alone. For the first nine months of 2025, R&D costs climbed to $108.6 million, an increase of $11.1 million year-over-year. This spend fuels key launches like the open beta of AI Agents and the release of the Amplitude Model Context Protocol (MCP) server, which is designed to move behavioral insights directly into enterprise AI workflows. They also rolled out AI Visibility and the AI Feedback platform earlier in the year.

Enterprise sales and account management for large, multi-year contracts

The sales focus is definitely on durability. Management explicitly pointed to a strategy of growing the enterprise customer base and securing multi-year deals. This focus is working; Remaining Performance Obligations (RPO) shot up 37% year-over-year to $391.9 million as of Q3 2025, which is a strong indicator of committed future revenue. The average contract duration has reportedly risen to ~22 months. We can track the success in landing larger accounts:

Metric	Q3 2025 Value	Year-over-Year Growth
Customers with $\ge$ $100,000$ ARR	653	15%
Annual Recurring Revenue (ARR)	$347 million	16%
Billings	$83.44 million	27%

The dollar-based net retention rate improved to 102% in Q3 2025, up from 99% the prior quarter, showing existing customers are expanding their spend, even if overall growth is modest.

Global data ingestion, processing, and infrastructure management

While specific infrastructure spend isn't broken out separately, the commitment to handling data is implied by the platform's core function and the growth in RPO. The fact that RPO grew 37% year-over-year suggests a significant amount of committed, long-term work related to data contracts and platform usage that needs to be provisioned and maintained globally. The platform's ability to ingest and process data is what underpins the value proposition for these multi-year enterprise commitments.

Professional services for implementation and customer training (Amplitude Academy)

The growth in the services business is a noted contributor to the top line. For instance, the services business growth helped Q3 revenue linearity. You should know that the company is actively working to make the platform more accessible, which reduces the long-term burden on professional services, but for now, services are a recognized revenue driver. The goal is to make the platform less about the UI and understanding the tool itself, and more about catering to specific business needs.

Marketing to position the platform against competitors like Google and Adobe

Marketing activity centers on reinforcing Amplitude's leadership in AI-powered analytics and its unified platform approach. They are actively promoting new capabilities like AI Visibility to help brands measure their presence in AI search responses. Furthermore, Amplitude was ranked #1 in eight G2 categories in the Spring 2025 Report, which is a key piece of third-party validation used to counter established players. The CEO noted the platform is seeing success with both 'AI natives and traditional enterprises,' positioning it as the essential tool for understanding user engagement regardless of the customer's starting point.

Finance: draft 13-week cash view by Friday.

Amplitude, Inc. (AMPL) - Canvas Business Model: Key Resources

You're looking at the core assets that make Amplitude, Inc. run, the things they own or control that let them deliver value. Honestly, for a SaaS platform like this, the real value isn't in the servers; it's in the code and the people who write it.

The foundation is the proprietary behavioral data analytics platform and underlying data model. This is the engine that processes user actions into insights. While specific 2025 metrics on the model itself aren't public, we know the scale it handles, which speaks to its robustness. For instance, historical data suggests the platform processed over 1.2 trillion user actions monthly across its client base. The platform's evolution includes new IP like the Amplitude Model Context Protocol (MCP), which enables insights to flow directly into AI tools.

Next up is the highly skilled product, data science, and engineering talent. This is a major cost center, reflected in the $25.7 million in stock-based compensation expense reported for Q3 2025 alone. This investment fuels the continuous innovation, including the development of features like the AI Agents, which use natural language queries to surface insights.

Financially, the engine is powered by the Annual Recurring Revenue (ARR) base of $347 million as of Q3 2025. This number is the clearest indicator of the current scale and market acceptance. It's supported by a growing base of large customers; as of Q3 2025, the count of customers contributing $100,000 or more in ARR reached 653.

The global customer data infrastructure for high-volume event ingestion is critical for maintaining real-time performance. This infrastructure must support the entire customer base, which grew to 4,500 customers in Q3 2025. The platform's ability to retain and expand revenue from these customers is strong, with the Net Revenue Retention rate improving to 102% in Q3 2025.

Finally, the intellectual property related to product analytics and AI-driven insights is what differentiates Amplitude, Inc. This IP is embodied in their core product analytics engine and their newer AI capabilities. They are clearly betting on AI, with the CEO stating they are 'all in' on their AI analytics platform. This IP is what allows them to claim leadership, such as being ranked #1 in product analytics categories by G2's Winter 2025 Report.

Here's a quick look at the scale metrics supporting these resources as of late 2025:

Metric	Value	Reporting Period
Annual Recurring Revenue (ARR)	$347 million	Q3 2025
Total Customers	4,500	Q3 2025
Customers with $100k+ ARR	653	Q3 2025
Net Revenue Retention (NRR)	102%	Q3 2025
Stock-Based Compensation Expense	$25.7 million	Q3 2025

You can see the investment in the platform through the following operational highlights:

• Platform sales were particularly strong in Q3 2025.
• 39% of customers now have multiple products.
• 71% of ARR comes from the multi-product cohort.
• The company's market capitalization was reported as $1.49 billion.

Finance: draft 13-week cash view by Friday.

Amplitude, Inc. (AMPL) - Canvas Business Model: Value Propositions

You're looking at the core reasons why product, marketing, and engineering teams are choosing Amplitude, Inc. (AMPL) over the alternatives as of late 2025. It's about consolidation, intelligence, and speed.

The primary value is moving away from fragmented toolsets to a unified platform. This is showing up in customer adoption metrics, where multi-product attach reached 67% of ARR in Q2 2025. By Q3 2025, 39% of customers had multiple products, driving 71% of ARR from that cohort. This platform approach helps clients consolidate and reduce vendor spend, a key selling point in the current environment. The platform now spans digital analytics, session replays, guides, surveys, and agentic AI, supported by over 130 integrations with data, engagement, and experimentation platforms.

The push toward intelligence is clear, especially with the introduction of agentic AI capabilities. The Forrester Wave™: Digital Analytics Solutions, Q3 2025 report recognized Amplitude with the highest possible scores in criteria like AI for insights generation and AI for assistance. You saw the open beta launch of AI Agents in Q3 2025, designed to automate the iterative analysis product teams usually perform. Furthermore, the October 2025 launch of AI Visibility gives marketers insight into brand presence in AI search results, tracking a Visibility Score across major LLMs and connecting those mentions to actual conversion outcomes within the platform.

Real-time understanding is a non-negotiable for modern product iteration. The Forrester Wave Q3 2025 report gave Amplitude the highest possible scores for its capabilities in Real Time and Predictive Analysis. The platform enables segmentation and targeting based on real-time usage patterns, helping teams launch feedback or tailor experiments instantly.

Amplitude provides a suite of tools that move beyond just tracking usage. These include tools for experimentation, feature management, and user activation. For instance, in Q1 2025, the launch of Guides and Surveys specifically targeted improving onboarding and user engagement, directly addressing activation friction. The platform also shipped capabilities like heatmaps and Session Replay Everywhere to enhance this suite.

Ultimately, the value proposition simplifies the complex data landscape for decision-makers. The company's stated value centers on democratizing data, unlocking real-time insights, and turning those into measurable business impact. The platform is positioned as ideal for product-led organizations where ease of use is a priority, aiming to unify the 'buying' and 'product' experience. This focus on enterprise traction is paying off; the Dollar-based Net Retention Rate (NRR) hit 104% in Q2 2025, and enterprise customers show NRR that is 3 and 4 points higher than the average customer. The number of customers contributing $\ge$$100,000 in ARR grew to 653 by Q3 2025.

Here's a quick look at the platform's feature breadth supporting these value claims:

Value Component	Specific Feature/Metric	Data Point (Late 2025)
Platform Consolidation	Multi-Product Attach Rate (ARR)	71% (Q3 2025)
Enterprise Stickiness	Customers $\ge$ $100K ARR	653 (Q3 2025)
Customer Expansion	Dollar-based Net Retention Rate (NRR)	104% (Q2 2025) / 102% (Q3 2025)
AI Innovation	AI Agents Status	Open Beta (Q3 2025)
AI Visibility	AI Search Insight Tool Launch	October 2025

The company is projecting full-year 2025 revenue between $340.8 million and $342.8 million, reflecting a 14% annual growth rate at the midpoint, which shows the market is buying into this unified, intelligent platform story.

You should review the cross-sell attach rates against the $358.1 million in Remaining Performance Obligations (RPO) reported at the end of Q2 2025 to see how fast this platform consolidation is translating to recognized revenue.

Amplitude, Inc. (AMPL) - Canvas Business Model: Customer Relationships

You're looking at how Amplitude, Inc. keeps its customers happy and spending more over time. It's a mix of dedicated attention for the biggest spenders and scalable resources for everyone else. This approach is clearly working, given the strong retention figures we're seeing in late 2025.

The relationship structure is tiered. For your top-tier clients, the relationship is deeply embedded. Management has highlighted a clear strategic pivot toward an enterprise selling model, moving away from a purely transactional approach. This is backed by the increasing durability of those deals; the average contract duration has climbed to nearly 22 months, up from 19 months just one year ago. This increased commitment is also visible in the 37% year-over-year growth in Remaining Performance Obligations (RPO).

High-touch professional services are definitely a component of this, especially for those complex, large-scale implementations that drive multi-year contracts. While we don't have a specific revenue line item for professional services, the focus on enterprise segmentation and the growth in RPO suggest significant, high-touch engagement is required to secure and service these larger accounts.

For smaller customers and developers just starting out, the relationship leans heavily on self-service enablement. Amplitude is making sure users can get value quickly. They offer the Amplitude Academy, which provides self-guided courses and badges to help users ramp up. Plus, the community is a significant asset, boasting 20,000 active community members who connect, crowdsource ideas, and help shape the product. New features like Guides and Surveys are designed to help organizations improve onboarding and user engagement right out of the gate.

The financial proof of successful relationship management is in the retention numbers. The Dollar-based Net Retention Rate (DBNRR) for Q3 2025 was reported at 102%. This means that even without adding any new customers, the existing base spent 102% of what they spent the prior year, showing solid upsell and cross-sell activity offsetting any minor churn or contraction. The in-period Net Revenue Retention (NRR) was even stronger at 104%.

Driving this expansion is the continuous product innovation aimed at increasing the number of products a customer uses. This multi-product attach rate is a key lever for expansion revenue. As of Q3 2025, 39% of their customers now have multiple products, and this cohort is responsible for 71% of the total Annual Recurring Revenue (ARR).

Here's a quick look at the key customer metrics driving this relationship strategy as of Q3 2025:

Metric	Value	Context/Period
Dollar-Based Net Retention Rate (DBNRR)	102%	Q3 2025
In-Period NRR	104%	Q3 2025
Customers with $\ge\$100,000$ ARR	653	Q3 2025
YoY Growth in $\ge\$100k$ ARR Customers	15%	Q3 2025
Multi-Product Customers (Percentage of Base)	39%	Q3 2025
ARR from Multi-Product Customers	71%	Q3 2025
Average Contract Duration	Nearly 22 months	Q3 2025 (Up from 19 months YoY)

The success in expanding relationships is also evident in the platform adoption metrics:

• Annual Recurring Revenue (ARR) reached $347 million, up 16% year-over-year.
• Total Remaining Performance Obligations (RPO) grew 37% year-over-year.
• The total customer base grew to approximately 4,500.
• The company is seeing success with both AI natives and traditional enterprises.

Finance: draft 13-week cash view by Friday.

Amplitude, Inc. (AMPL) - Canvas Business Model: Channels

You're looking at how Amplitude, Inc. gets its product in front of users and ultimately converts them into paying customers as of late 2025. The channel strategy clearly balances high-touch enterprise sales with scalable product-led motions, which is reflected in their financial focus on both new logos and expansion revenue.

Direct sales team focused on landing and expanding enterprise accounts.

The direct sales motion is heavily geared toward securing and growing the top-tier customer base. As of the third quarter of 2025, the number of customers representing $100,000 or more in Annual Recurring Revenue (ARR) grew to 653, a 15% year-over-year increase (Source 11). The sales team is emphasizing durability by leaning in more towards multiyear contracts (Source 10). This focus on enterprise success is supported by a significant investment in the go-to-market engine, with sales and marketing expenses increasing by 18% for the first nine months of 2025 compared to the prior year period (Source 6).

Self-service sign-up and product-led growth motions for smaller teams.

For broader adoption, Amplitude, Inc. continues to rely on product-led growth (PLG) principles, making the platform accessible for self-service evaluation. As of March 31, 2025, the company served over 4,000 customers (Source 9). To support this motion and drive activation, the company shipped new product capabilities like Guides and Surveys in the first quarter of 2025 to help organizations improve onboarding and user engagement (Source 14). The platform's core value proposition is built around providing self-service visibility into the entire customer journey (Source 9).

Partner channel for co-selling and referrals (e.g., Twilio Segment).

While specific revenue attribution from the partner channel isn't detailed in the latest reports, the overall strategy is focused on platform expansion, which often involves ecosystem integration. The company is building out its platform play around analytics, experimentation, activation, and more, creating an environment where partners can integrate or co-sell complementary solutions (Source 10). The success in expansion revenue suggests that integrated workflows, which partners often facilitate, are a key driver.

Online presence: website, blog, developer documentation, and Amplitude Academy.

A strong digital footprint is essential for both self-service users and for establishing thought leadership that supports the direct sales effort. The company's commitment to being the best-in-class analytics solution is validated by external recognition. For instance, Amplitude, Inc. was ranked #1 in product analytics in G2's Spring 2025 report (Source 14). The platform itself is designed to make complex analysis accessible to non-technical users, democratizing data insight (Source 2). The focus on an event-driven architecture captures micro-actions, which is a key differentiator communicated through their online content (Source 4).

Industry events and investor conferences to drive brand awareness.

Executive visibility at key industry gatherings helps drive brand awareness and validates the platform's strategic direction, especially around AI. The leadership team actively participates in major financial and technology forums. For example, Amplitude, Inc. presented at the UBS Technology & AI Conference on December 3, 2025 (Source 9), following their Q3 2025 Earnings Webcast on November 5, 2025 (Source 7). Furthermore, Forrester named Amplitude, Inc. a Leader and Customer Favorite in The Forrester Wave™: Digital Analytics Solutions, Q3 2025 (Source 1).

Here is a snapshot of key metrics related to customer acquisition and expansion channels as of late 2025:

Metric Category	Key Channel Indicator	Value (as of late 2025)	Source Context
Enterprise Sales Focus	Customers with $\geq$$100,000 ARR	653 (Q3 2025)	Enterprise customer base growth (Source 11)
Product-Led Growth Scale	Total Customers	Over 4,000 (Q1 2025)	Overall customer base size (Source 9)
Expansion/Cross-Sell Channel	ARR from Multi-Product Customers	71% of Total ARR (Q3 2025)	Indicates success of platform expansion channel (Source 11)
Expansion/Cross-Sell Channel	Customer Multi-Product Attach Rate	39% of Customers (Q3 2025)	Indicates headroom for expansion sales (Source 11)
Expansion/Cross-Sell Channel	Typical Uplift per Added Module	25% to 30%	Value derived from selling additional platform modules (Source 10)
Customer Retention/Expansion	Dollar-Based Net Retention Rate (NRR)	104% (Q2 & Q3 2025)	Driven by cross-sell expansions (Source 1, 11)
Brand Awareness/Content	G2 Ranking for Product Analytics	#1 (Spring 2025 Report)	External validation of product quality (Source 14)

The company's strategy is clearly about driving expansion within the installed base, as evidenced by the 104% NRR (Source 11) and the fact that 71% of ARR comes from customers using multiple products (Source 11). Still, only 39% of customers have multiple products, meaning the expansion channel has significant runway (Source 11). Finance: review Q4 2025 Sales & Marketing spend vs. Q3 2025 to assess efficiency of the 18% year-over-year expense increase (Source 6).

Amplitude, Inc. (AMPL) - Canvas Business Model: Customer Segments

You're looking at the core of Amplitude, Inc.'s revenue engine, which is clearly anchored in landing and expanding with large, data-intensive organizations. The focus is decidedly on the enterprise tier, which is where the most significant Annual Recurring Revenue (ARR) is generated. As of the third quarter of 2025, the company reported a total ARR of $347 million, reflecting a 16% year-over-year growth rate.

The key indicator of this enterprise focus is the count of high-value customers. By the end of Q3 2025, Amplitude had 653 customers contributing more than $100,000 in ARR, which was a 15% increase compared to the same period last year. This trend shows consistent success in capturing larger deals, even as the growth rate for this segment slowed slightly from the 18% year-over-year growth seen in Q1 2025 when the count stood at 617 such customers.

To be fair, the platform's value proposition is driving consolidation spend. The data from Q1 2025 shows that enterprise customers already accounted for approximately 65% of the total ARR. Furthermore, the platform strategy is working: in Q3 2025, 71% of ARR came from customers utilizing multiple products, up from 64% in Q1 2025. This expansion within existing accounts is critical, as evidenced by the Q3 2025 in-period Net Revenue Retention (NRR) progressing to 104%.

Here's the quick math on the high-value segment progression:

Metric	Q1 2025	Q2 2025	Q3 2025
Customers >$100K ARR	617	634	653
YoY Growth Rate for Segment	18%	16%	15%
Total ARR	$320 million	$335 million	$347 million

What this estimate hides is the exact split between mid-market and the largest global brands, but we know the platform is used by major players. For instance, Atlassian is a confirmed customer, and the prompt suggests Walmart is part of that top-tier segment. The overall customer base is substantial, with Amplitude serving over 4,000 customers as of early to mid-2025.

The platform is designed for cross-functional adoption within these client organizations, which is why the next layer of the segment is defined by the internal teams using the data. This isn't just for one department; it's about creating a shared, data-driven view across the organization. The primary internal users include:

• Product teams driving feature adoption and usage analysis.
• Marketing teams for attribution and campaign effectiveness measurement.
• Data teams managing the underlying insights infrastructure.
• Engineering teams integrating insights directly into development workflows, such as via agent-to-agent integrations.

The diversity of the customer base spans several key digital-first sectors, indicating the platform's broad applicability across any business with a significant digital presence. While specific financial breakdowns by industry aren't public, the customer examples point to key verticals:

• Software/SaaS (e.g., Atlassian)
• E-commerce/Retail (e.g., Shopify, Under Armour)
• Media (e.g., NBCUniversal, The Economist Group)
• Fintech/Payments (e.g., Square)

Finance: draft the Q4 2025 segment analysis by Friday.

Amplitude, Inc. (AMPL) - Canvas Business Model: Cost Structure

You're looking at the expenses that fuel Amplitude, Inc.'s growth engine as of late 2025. The cost structure clearly shows a company prioritizing market share and platform evolution over immediate bottom-line results, which is typical for a high-growth SaaS player in this space.

High Sales and Marketing expenses are necessary to drive the enterprise sales motion you're seeing. To land those larger, multi-year deals, the customer acquisition cost (CAC) remains substantial. For the third quarter of 2025, Sales and Marketing expenses were reported at $64.52 million, reflecting an 18% year-over-year increase. This spend is directly tied to expanding the base of customers with $100,000 or greater in Annual Recurring Revenue (ARR), which reached 653, up 15% year-over-year as of Q3 2025.

The commitment to innovation is evident in the Research and Development (R&D) line item. Amplitude is definitely going all-in on AI, as the CEO stated. This investment is crucial for platform expansion, including the Amplitude Model Context Protocol (MCP) and AI Agents. R&D costs climbed significantly in Q3 2025, reaching $26.61 million, a 40% year-over-year jump.

Cost of Revenue is a key lever impacting your margin profile. This includes the costs associated with serving customers, primarily data ingestion and cloud infrastructure. While the platform is sticky, these infrastructure costs are rising as data volumes grow. For Q3 2025, the Cost of Revenue increased by 23% to $23.07 million. Despite these rising costs, Amplitude is maintaining a strong gross margin, which was reported at 75% for Q3 2025. That 75% GAAP gross margin is what you'd expect from a mature SaaS platform, but the pressure from infrastructure costs is real, causing a one-point slip year-over-year on the GAAP metric.

Stock-based compensation expense remains a significant, non-cash component of the overall cost base, reflecting the need to retain top engineering and sales talent. For the third quarter of 2025, this expense was $25.7 million. This was up from $21.5 million in Q3 2024.

Finally, General and Administrative (G&A) costs cover the overhead of running a publicly traded, global SaaS company-think finance, legal, HR, and executive functions. These costs scale with the business but are under scrutiny as the company works toward leverage. For the nine months ended September 30, 2025, Selling, General & Administrative expenses totaled $247.8 million.

Here's a quick look at how some of these major cost components stacked up for the quarter and the nine-month period ending September 30, 2025. Remember, the GAAP Loss from Operations for Q3 2025 was $(25.7 million).

Cost Component	Period	Amount (in Millions USD)
Sales and Marketing Expense	Q3 2025	$64.52
Research and Development (R&D) Expense	Q3 2025	$26.61
Stock-Based Compensation Expense	Q3 2025	$25.7
Cost of Revenue	Q3 2025	$23.07
Selling, General & Administrative (SG&A)	Nine Months Ended 9/30/2025	$247.8
GAAP Gross Margin	Q3 2025	75%

The company is clearly investing heavily now, with R&D and S&M consuming the vast majority of operating spend. If onboarding takes 14+ days, churn risk rises, which directly impacts the efficiency of that S&M spend. Finance: draft 13-week cash view by Friday.

Amplitude, Inc. (AMPL) - Canvas Business Model: Revenue Streams

You're looking at how Amplitude, Inc. (AMPL) actually brings in the money, which is almost entirely through its software-as-a-service (SaaS) offering. This is the core engine of the business model.

Subscription revenue from the SaaS platform (primary stream) is the bedrock. You see this clearly in the Annual Recurring Revenue (ARR) figures. As of the third quarter of 2025, the ARR hit $347 million, marking a 16% year-over-year increase. This subscription focus means revenue is highly predictable, which is what investors like to see in a growth-stage software company. The full-year 2025 revenue is projected to be between $329 million and $333 million, with one specific analyst projection for 2025 revenue landing at $329,918,000.

The way Amplitude charges is directly tied to usage, which is key to understanding the scalability of this stream. Pricing based on event volume/data ingestion and feature set access means costs scale with customer success, but also that high-volume users face significant costs. The platform uses a tiered structure, moving from a free entry point to custom enterprise contracts.

Plan Tier	Monthly Tracked Users (MTUs) Limit	Event Volume Limit	Starting Annual Cost Estimate
Starter (Free)	Up to 50K	Up to 10M events	$0
Plus	Up to 300K	Up to 25M events	$49/mo (billed annually)
Growth	Custom	Custom	Contact Sales
Enterprise	Custom	Custom	Contact Sales

The push toward a platform strategy is evident in the revenue from multi-product attach. This is where customers buy into more than just the core analytics product, which boosts the overall contract value. By the second quarter of 2025, a significant 67% of ARR was coming from customers using multiple products. This cross-sell motion is critical for driving net retention.

You can see the product attach success reflected in the customer metrics:

• The number of customers with $100,000+ in ARR increased 16% year-over-year to 634 as of Q2 2025.
• The dollar-based net retention rate (NRR) improved to 104% in Q2 2025, up from 97% in March 2024.
• The Q3 2025 NRR was reported at 102%.

Finally, there's the smaller, lower-margin component: Professional services and training fees. While this stream is not the focus, its cost impact is visible. Gross margins slipped by 1 percentage point year-over-year, now standing at 75%, with rising data ingestion, infrastructure, and professional services costs cited as a drag on profitability. In the third quarter of 2025, the Cost of Revenue rose 23% to $23.07 million, driven partly by personnel expenses.