Five9 Earnings: What To Look For From FIVN

StockStory
19 Feb
Five9 Earnings: What To Look For From FIVN

Call center software provider Five9 (NASDAQ: FIVN) will be reporting results tomorrow after market hours. Here’s what investors should know.

Five9 beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $264.2 million, up 14.8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

Is Five9 a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Five9’s revenue to grow 12.1% year on year to $267.9 million, slowing from the 14.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Five9 has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Five9’s peers in the productivity software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. 8x8’s revenues decreased 1.2% year on year, meeting analysts’ expectations, and Atlassian reported revenues up 21.4%, topping estimates by 3.4%. 8x8 traded down 5.9% following the results while Atlassian was up 15.2%.

Read our full analysis of 8x8’s results here and Atlassian’s results here.

There has been positive sentiment among investors in the productivity software segment, with share prices up 4.9% on average over the last month. Five9 is up 5.2% during the same time and is heading into earnings with an average analyst price target of $52.33 (compared to the current share price of $42.93).

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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