This SaaS Stock’s Bold Leap Into Agentic AI Could Reshape the Game Entirely
Move over, legacy players—this SaaS disruptor just upped the ante with agentic AI.
Why it matters: When a cloud-native player pivots hard into autonomous AI systems, it's either a masterstroke or a Hail Mary. Early bets suggest the former.
The AI edge: Unlike passive tools, agentic frameworks make decisions—cutting latency, bypassing human bottlenecks, and (theoretically) printing margin expansion. Just what the SaaS sector needs after last quarter's 'efficiency theater.'
Wall Street's take: Analysts are torn between 'transformational' and 'yet another AI bandwagon play.' Meanwhile, the C-suite's stock-based comp just got more interesting.
The bottom line: In a market where 'AI-washing' gets rewarded faster than real innovation, this move might actually deliver both. Or it'll make a great case study in pivoting gone wrong—either way, we win.
Image source: Getty Images.
On a reported basis, revenue in the quarter ROSE 14% year over year to $83.3 million, which topped the consensus at $81.3 million. The number of customers with an ARR of $100,000 or more was up 16% to 634.
On the bottom line, Amplitude is also gaining traction. The company reported an adjusted profit of $0.01 per share, up from breakeven in the quarter a year ago, which matched estimates. Better yet, free cash FLOW in the quarter nearly tripled, jumping from $6.8 million to $18.2 million.
Amplitude's AI playbook
The company made several acquisitions over the last year to round out its platform and launch its new suite of AI agents. It acquired Command AI last October, which laid the groundwork for its guides and surveys product, which CEO Spenser Skates said had the fastest adoption the company has had with a new offering.
It acquired June, another product analytics tool known for AI-powered analysis, last month; Kraftful for its AI-native Voice of Customer product; and Inari, another feedback analytics tool.
Those moves will help beef up Amplitude's talent and offerings as it pushes deeper into AI following the launch of its AI agents in June. Those are currently in beta, being tested by customers, and the company expects to begin selling them later this year.
At an event in June, Amplitude introduced several new AI agents, and according to Skates, two of the most promising are Experiment, which generates a variant of an existing website based on the data Amplitude has, and Insight Generation, which looks at a client's dashboard and generates insights -- pinpointing, for example, a drop in traffic and a remedy for it.
Customer response to the AI agents has been strong so far, and Amplitude shared a demonstration of some of its capabilities, showing that the company has the potential to add significant value for its customers at a time when there's a lot of HYPE swirling through the AI sector.
The company also got some validation from Forester in its first digital analytics solutions report, rating Amplitude highest in the strength of offering, and it was also rated as a customer favorite, underscoring management's recent efforts.
Is Amplitude a buy?
Third-quarter guidance was also better than expected, calling for revenue of $85 million to $87 million, up 17.3%, showing revenue growth is likely to accelerate again.
Amplitude is still a small company with a market cap of just $1.6 billion, and its revenue growth is already accelerating without the benefit of the new AI agents. Those could be a real difference-maker for the stock as it pioneers the digital product analytics market and takes on legacy providers like's Google Analytics andAnalytics.
The building blocks seem to be coming together for Amplitude to thrive. If its growth continues to accelerate and the AI agents take off, the stock could soar.
