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 you need to know.

Five9 beat analysts’ revenue expectations by 4% last quarter, reporting revenues of $278.7 million, up 16.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.

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 10.3% year on year to $272.5 million, slowing from the 13.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.

Looking at Five9’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pegasystems delivered year-on-year revenue growth of 44.1%, beating analysts’ expectations by 33.1%, and ServiceNow reported revenues up 18.6%, in line with consensus estimates. Pegasystems traded up 28.8% following the results while ServiceNow was also up 15.4%.

Read our full analysis of Pegasystems’s results here and ServiceNow’s results here.

Investors in the productivity software segment have had steady hands going into earnings, with share prices flat over the last month. Five9 is down 6.4% during the same time and is heading into earnings with an average analyst price target of $44.30 (compared to the current share price of $25.34).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.