Latest news with #FIVN
Yahoo
03-08-2025
- Business
- Yahoo
Why Five9 Stock Was Flailing on Friday
Key Points The company notched a double beat in its second quarter, but that wasn't good enough for the market. Investors seemed more concerned about a coming change in top management. 10 stocks we like better than Five9 › Contact center software solutions provider Five9 (NASDAQ: FIVN) has been having a forgettable Friday on the stock exchange. After the company published its latest set of quarterly results and announced a top-level managerial change, investors sold out of its stock to the point where it was down nearly 4% in late-session trading. That slide was notably more pronounced than the 1.7% decrease of the S&P 500 index. Double-digit improvements For its second quarter, Five9 posted a record-high revenue figure of over $283 million, which was 12% higher year over year. Artificial intelligence (AI) played a significant role in this, as the company's enterprise AI revenue advanced by 42% during the period. As for profitability, it also rose at a double-digit rate. Non-GAAP (adjusted) net income came in at over $58 million ($0.76 per share), well up from the nearly $39 million in the year-ago period. Analysts tracking the stock were expecting an adjusted net income figure of $0.62, on revenue of slightly more than $275. Five9 also proffered guidance for both its current (third) quarter and the entirety of 2025. For the latter period, it's modeling slightly over $1.14 billion to almost $1.15 billion for revenue, and adjusted net income ranging from $2.86 to $2.90 per share. The consensus analyst projections for the two metrics are a bit more than $1.14 billion and $0.70, respectively. Successful CEO is stepping down That double beat was good news, but this was obscured by the company's announcement that CEO Mike Burkland is retiring. He will stay in the job until a replacement is found. Burkland served as Five9's leader from 2008 to 2017, until he was diagnosed with cancer. He returned to the position in 2022. In its announcement of his departure, Five9 said that Buckland was at the helm of the company as it achieved notable milestones, and it credited him for growing it from $10 million to more than $1 billion in annual revenue. It's little wonder investors were displeased to hear of his looming departure. Do the experts think Five9 is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Five9 make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,036% vs. just 181% for the S&P — that is beating the market by 855.09%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Five9. The Motley Fool has a disclosure policy. Why Five9 Stock Was Flailing on Friday was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
02-08-2025
- Business
- Globe and Mail
Five9 (FIVN) Q2 Revenue Jumps 12%
Key Points GAAP revenue rose 12% year over year to $283.3 million in Q2 2025, surpassing analyst estimates by $8.1 million. Non-GAAP earnings per share reached $0.76, beating expectations by $0.14 (non-GAAP) and up from $0.52 per diluted share (non-GAAP) in Q2 2024. Enterprise AI revenue grew 42% year-over-year, now accounting for 10% of enterprise subscription revenue. These 10 stocks could mint the next wave of millionaires › Five9 (NASDAQ:FIVN), a provider of cloud-based contact center software, released its second quarter earnings for fiscal 2025 on July 31, 2025. Five9 posted GAAP revenue of $283.3 million for Q2 2025, up 12% from the prior year period. , coming in $8.1 million ahead of analyst expectations. Non-GAAP earnings per share were $0.76, well above the $0.62 analyst forecast (non-GAAP). Five9 highlighted accelerated growth in its Enterprise AI segment, with Enterprise AI revenue increasing 42% year-over-year, achieving a record adjusted EBITDA margin and improved operating cash flow, despite some macroeconomic caution and a sequential dip in its key net retention metric, with LTM dollar-based retention rate at 107% versus 108% in the prior quarter. Overall, the quarter showed broad-based improvement and momentum in both financial and operational metrics. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $0.76 $0.62 $0.52 46.2% Revenue $283.3 million $275.2 million $252.1 million 12.4% Gross Margin 54.9% 53.0% 1.9 pp Gross Margin (Non-GAAP) 63.0% 60.5% 2.5 pp Adjusted EBITDA Margin 24.0% 16.6% 7.4 pp Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Business Overview and Strategic Focus Five9 operates in the software-as-a-service space, specifically providing cloud-based call center platforms for businesses shifting away from traditional, on-premises systems. Its main product allows organizations to manage phone, chat, email, and other customer interactions in a single platform. The system is designed to replace legacy hardware with scalable, flexible solutions that enable remote work and seamless customer engagement across digital channels. In recent years, Five9's key areas of focus have included driving adoption of its cloud solutions, accelerating advancements in Artificial Intelligence, supporting digital transformation for clients, and extending its partner ecosystem. These strategies are vital for capturing market share as companies modernize their customer-facing operations. Enterprise migration to the cloud, integration of advanced AI features, and deeper relationships with global partners have become central to Five9's growth and ongoing relevance in a rapidly changing market. Quarter Highlights and Notable Developments During Q2 2025, Five9 substantially outperformed its financial guidance and market estimates, with non-GAAP EPS of $0.76 exceeding the analyst estimate of $0.62 and GAAP revenue of $283.3 million surpassing the analyst estimate of $275.17 million. It reported a significant revenue increase, a record high in adjusted EBITDA margin (24.0% non-GAAP), and stronger free cash flow. Non-GAAP earnings were higher than expected, reflecting improved operating efficiency and a favorable revenue mix shift toward subscription and AI-driven services. These results marked the company's best quarter yet for both operating and free cash flow. AI revenue in the enterprise market rose 42% year-over-year and now accounts for 10% of enterprise subscription revenue. Management reported that Enterprise AI bookings more than tripled year-over-year, and more than 20% of new large enterprise deals included AI solutions in Q1 2025. Product launches this quarter included new Agentic AI Agents and Trust & Governance tools, both part of the Genius AI suite. These products use machine learning and generative AI to improve call handling and oversight, offering customers real savings and operational improvements. Subscription revenue -- the portion of revenue tied to ongoing platform usage -- grew by 16% year-over-year. This growth, combined with strong uptake of AI and multi-channel capabilities, improved both GAAP and non-GAAP gross margins and overall profitability. Five9 attributed much of the margin expansion in Q1 2025 to this revenue mix shift and to disciplined cost controls, including a workforce reduction earlier in the year that is expected to save $20–$25 million in annual compensation-related non-GAAP expense. These savings are now being reinvested in high-priority areas such as AI development and go-to-market (sales and marketing) initiatives. The company's partnerships and channel strategies played a significant role in the quarter. Integrations with enterprise software providers such as Salesforce, Microsoft, ServiceNow, and IBM are expanding Five9's reach and enabling joint sales wins, especially in financial services, healthcare, and vehicle mobility. Management noted some resistance to U.S. vendors in international regions during the Q1 2025 earnings call and took a conservative view on international growth for the remainder of 2025. Regarding specific products, Five9's Agentic AI Agents are virtual representatives powered by artificial intelligence, designed to automate both self-service and assist live agents. The Genius AI suite includes applications for speech recognition, automated insights, and conversation summaries. Five9 Fusion, its integration for Salesforce users, enables enterprise clients to use Five9's voice services alongside CRM data in a unified workflow, further enhancing digital transformation. Looking Ahead: Guidance and Watch Points Management's guidance for Q3 2025 is revenue between $283.0 million and $286.0 million, essentially flat from Q2 2025. Full-year 2025 revenue guidance remains $1.1435 billion to $1.1495 billion, reflecting a prudent approach given current economic conditions and some lengthening of large deal sales cycles. For earnings, the company projects GAAP diluted EPS of $0.06 to $0.12 for Q3 2025 and $0.23 to $0.30 for the full year; Non-GAAP EPS guidance is $0.72 to $0.74 for Q3 2025 and $2.86 to $2.90 for FY2025. Management cited high visibility into the installed customer base as supporting the stability of these forecasts. About 93% of incremental recurring revenue expected in the 2025 outlook is planned to come from existing clients, not new wins. There is also some risk noted on international deals and go-to-market execution, as well as a significant drop in cash and marketable investments from $362.5 million and $643.4 million as of December 31, 2024, to $205.5 million and $430.4 million as of June 30, 2025, following debt repayment. Continued success in AI product adoption and further penetration of new and existing enterprise clients will be important to monitor. Five9 does not currently pay a dividend. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,036%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
04-07-2025
- Business
- Yahoo
Q1 Earnings Review: Video Conferencing Stocks Led by Five9 (NASDAQ:FIVN)
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the video conferencing stocks, including Five9 (NASDAQ:FIVN) and its peers. Work is becoming more distributed, both across geographies and devices. In order for businesses to keep functioning efficiently, they need to be able to communicate as well as they did when the teams were co-located, which drives the demand for integrated communication platforms. The 4 video conferencing stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 0.8% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 8.3% on average since the latest earnings results. Started in 2001, Five9 (NASDAQ: FIVN) offers software-as-a-service that makes it easier for companies to set up and efficiently run call centers to offer more tailored customer support. Five9 reported revenues of $279.7 million, up 13.2% year on year. This print exceeded analysts' expectations by 2.6%. Overall, it was a very strong quarter for the company with EPS guidance for next quarter exceeding analysts' expectations and a solid beat of analysts' EBITDA estimates. Five9 pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 10.4% since reporting and currently trades at $27.71. Is now the time to buy Five9? Access our full analysis of the earnings results here, it's free. Started by Eric Yuan who once ran engineering for Cisco's video conferencing business, Zoom (NASDAQ:ZM) offers an easy to use, cloud-based platform for video conferencing, audio conferencing and screen sharing. Zoom reported revenues of $1.17 billion, up 2.9% year on year, outperforming analysts' expectations by 0.8%. The business had a strong quarter with full-year EPS guidance exceeding analysts' expectations and a solid beat of analysts' EBITDA estimates. Zoom scored the highest full-year guidance raise among its peers. The company added 104 enterprise customers paying more than $100,000 annually to reach a total of 4,192. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.6% since reporting. It currently trades at $78.29. Is now the time to buy Zoom? Access our full analysis of the earnings results here, it's free. Founded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners. 8x8 reported revenues of $177 million, down 1.3% year on year, in line with analysts' expectations. It was a slower quarter as it posted a slight miss of analysts' EBITDA estimates and billings in line with analysts' estimates. 8x8 delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. Interestingly, the stock is up 15.6% since the results and currently trades at $2.07. Read our full analysis of 8x8's results here. Founded in 1999 during the dot-com era, RingCentral (NYSE:RNG) provides software as a service that unifies phone, text, fax, video calls and chat in one platform. RingCentral reported revenues of $612.1 million, up 4.8% year on year. This print met analysts' expectations. More broadly, it was a mixed quarter as it also produced a decent beat of analysts' EBITDA estimates but a miss of analysts' billings estimates. The stock is up 11.9% since reporting and currently trades at $29.87. Read our full, actionable report on RingCentral here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Sign in to access your portfolio
Yahoo
23-06-2025
- Business
- Yahoo
Five9 Unveils Agentic CX with New AI Agents, Trust & Governance at Customer Contact Week
Five9 Inc. (NASDAQ:FIVN) is one of the best technology stocks according to Wall Street analysts. Earlier on June 10, Five9 announced the launch of Agentic CX, which featured new AI Agents and AI Trust & Governance at Customer Contact Week in Las Vegas. The advancements were powered by the Five9 Agentic Experience Engine, which is central to the company's Genius AI Architecture. The advancements are designed to revolutionize customer experience with AI that reasons, decides, and takes action autonomously, without compromising on control and security. For rapid deployment, Five9 provides pre-built templates for specific industry verticals that customers can customize. Additionally, Code Crafter uses LLMs to generate high-quality JavaScript functions, which reduces development effort. An IT engineer working on a laptop as planograms for a cloud-based virtual contact center platform appear on the monitor. Some of the key features include an AI Summary Node, which automatically summarizes voice and digital interactions in selectable languages to provide context for live agents or future reference. Intent Detection and Entity Extraction use LLMs to facilitate natural dialogues and ensure quicker resolution of customer inquiries. Similarly, a Knowledge Node utilizes Retrieval Augmented Generation/RAG to generate contextual answers based on enterprise knowledge. Five9 Inc. (NASDAQ:FIVN) provides an Intelligent CX Platform for contact centers internationally. While we acknowledge the potential of FIVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Buy 5 AI-Focused Mid-Cap Internet Software Stocks for a Solid Portfolio
The Internet Software and Services space is gathering momentum owing to robust IT spending on solutions that support hybrid operating environments. Outstanding penetration of mobile devices among users makes sense for businesses to invest heavily in web-based infrastructure, applications and security software. Within the Technology sector, the Zacks-defined Internet Software industry is currently within the top 17% of the Zacks Industry Rank. Since the Internet Software industry is ranked in the top half of Zacks Ranked Industries, we expect it to outperform the market over the next three to six months. We recommend five artificial intelligence (AI)-focused mid-cap stocks from this space that have strong potential for the second half of 2025. These are — UiPath Inc. PATH, Five9 Inc. FIVN, Fastly Inc. FSLY, Calix Inc. CALX and Confluent Inc. CFLT. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The chart below shows the price performance of our five picks in the past three months. Image Source: Zacks Investment Research UiPath provides an end-to-end automation platform that offers a range of robotic process automation solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. PATH offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. The PATH platform's embedded AI, ML, and NLP (Natural Language Processing) capabilities improve decisioning and information processing. PATH introduced new generative AI features, including specialized LLMs (Large Language Model) such as DocPATH and CommPATH, and Context Grounding, to enhance automated AI models for specific business needs. UiPath has an expected revenue and earnings growth rate of 8.5% and 3.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the last seven days. Five9 provides intelligent cloud software for contact centers in the United States, India, and internationally. FIVN offers a virtual contact center cloud platform that delivers a suite of applications, enabling a broad range of contact center-related customer service, sales, and marketing functions. FIVN's platform comprises interactive virtual agents, agent assistance, workflow automation, workforce engagement management, AI insights, and AI summaries. It allows management and optimization of customer interactions across voice, chat, email, web, social media, and mobile channels directly or through its application programming interfaces. FIVN has been benefiting from the growing adoption of AI tools in its call center services, with personalized AI agents emerging as a major growth driver. On Feb. 19, Five9 introduced its Intelligent CX Platform powered by Five9 Genius AI on the Google Cloud space. FIVN also released new Five9 AI agents tailor-made for Google Cloud. Five9 has an expected revenue and earnings growth rate of 9.6% and 11.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the last 60 days. Fastly provides infrastructure software offering cloud computing, image optimization, security, edge computer technology and streaming solutions. On Dec.16, 2024, FSLY unveiled Fastly AI Accelerator, a semantic caching solution that allows developers to optimize their LLM generative AI applications. FSLY operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. FSLY's Edge Cloud Platform offers more efficient performance as developers need only a single line of code instead of repeated calls to the AI provider to update their application to a new API endpoint. Fastly has an expected revenue and earnings growth rate of 8.6% and 25%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 10% over the last seven days. Calix provides cloud and software platforms, and systems and services in the United States, the rest of the Americas, Europe, the Middle East, Africa, and the Asia Pacific. CALX's cloud and software platforms, and systems and services enable broadband service providers to provide a range of services. CALX offers the Calix Cloud platform comprising Calix Engagement Cloud, Calix Operations Cloud, and Calix Service Cloud, which are configurable to display role-based insights and enable BEPs to anticipate and target new revenue-generating services and applications through mobile applications, such as CommandIQ for residents and CommandWorx for businesses. CALX has integrated AI into its cloud platform and products to enhance broadband experience providers' operations, subscriber engagement, and service delivery. CALX offers AI-powered marketing solutions for the health and finance industries, AI-powered chat bots, and AI-driven initiatives like Calix AI Agents. Calix has an expected revenue and earnings growth rate of 7.1% and 65.4%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 21.1% over the last 60 days. Confluent operates a data streaming platform in the United States and internationally. CFLT provides platforms that allow customers to connect their applications, systems, and data layers comprising Confluent Cloud, a managed cloud-native software-as-a-service (SaaS), and Confluent Platform, an enterprise-grade self-managed software. CFLT serves banking and financial services, retail and ecommerce, manufacturing, automotive, telecommunication, gaming, insurance, and technology industries, as well as the public sector. Using the Confluent Data Streaming Platform, individuals can stream data in real time from everywhere to deliver production-scale AI-powered applications faster. CFLT has an expected revenue and earnings growth rate of 19% and 24.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% in the last 60 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Calix, Inc (CALX) : Free Stock Analysis Report UiPath, Inc. (PATH) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report Fastly, Inc. (FSLY) : Free Stock Analysis Report Confluent, Inc. (CFLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
