Five9 Inc. (FIVN), a leading provider of cloud contact center software, saw its stock price surge over 24% in pre-market trading on November 8, 2024, after reporting impressive third-quarter financial results that exceeded analyst expectations. The company's strong performance was driven by robust demand for its AI-powered platform and continued innovation in customer experience (CX) solutions.

For the quarter ended September 2024, Five9 reported revenue of $264.2 million, a 15% increase year-over-year, surpassing the consensus estimate of $255.1 million. This growth was fueled by a 20% jump in subscription revenue, which now accounts for nearly 80% of total revenue. The company's focus on transitioning customers to its cloud platform and leveraging AI capabilities paid off, as AI revenue grew an impressive 40% compared to the previous year, with the AI Agent Assist product seeing a staggering 158% year-over-year growth.

Five9's profitability also improved significantly, with non-GAAP earnings per share (EPS) reaching $0.67, up 29% from the prior year and exceeding analyst expectations of $0.58. The company's adjusted EBITDA margin increased to 19.8%, up 1.9 percentage points year-over-year, highlighting its operational efficiency. Furthermore, Five9 generated a record operating cash flow of $41 million, or 16% of revenue, demonstrating its strong financial performance.