Latest news with #FIVN
CNBC
2 days ago
- Business
- CNBC
Here are Friday's biggest analyst calls: Tesla, Nvidia, Robinhood, Microsoft, Deere, Amazon, McDonald's & more
Here are Friday's biggest calls on Wall Street: Morgan Stanley reiterates Tesla as a top pick Analyst Adam Jonas said he's sticking with Tesla despite the stock's volatility. "When putting our trading cap on, we have higher conviction in near-term volatility than near-term direction. We reiterate our $410 price target but are prepared for the stock to give up more than just the 4 weeks of performance it has sacrificed so far." KeyBanc initiates Twilio and Five9 as overweight KeyBanc said both stocks are well positioned for growth. "We are initiating both FIVN and TWLO at Overweight ratings. For different reasons, these two are outgrowing the rest of the cohort and yet we feel the stocks do not currently reflect the opportunity for this enhanced growth to continue." UBS upgrades Teradata to neutral from sell UBS said it's seeing "some signs of stabilization." "After speaking with ~15 customers/partners, we resume coverage at Neutral (from Sell) as we conclude the outlook for Teradata is still challenging but much of this appears to be priced in and we did pick up some signs of stabilization." Bank of America reiterates Broadcom as buy Bank of America said the stock remains a top pick following earnings on Thursday. "We rate Broadcom Buy due to its high-quality diversified exposure to secular product cycles in the smartphone, cloud data center, telecom and enterprise storage markets." Goldman Sachs initiates Teva as buy Goldman initiates the biopharma company with a buy on Friday and said the stock's valuation is compelling. "We initiate coverage of generic pharmaceutical stocks, with Buy ratings on TEVA and AMRX and a Neutral rating on VTRS. Overall, acknowledging recent volatility on both micro (e.g., FY25 guides) and macro (e.g., tariff and drug pricing policy) factors, we believe the group offers opportunities for exposure (at undemanding valuations." Read more about this call here. Bernstein downgrades CrowdStrike to market perform from outperform Bernstein downgraded the stock on valuation. " CrowdStrike is VERY expensive vs. our $371 PT, and this is a cybersecurity wide phenomenon." Morgan Stanley reiterates Amazon as overweight Morgan Stanley called Amazon an "under-appreciated GenAI winner." "AMZN's push into humanoid delivery another sign of GPU enabled advances set to drive more durable market share gains and FCF/order. Between fulfillment and delivery AMZN is now investing to automate $200bn of Logistics Costs. Remain OW for this under-appreciated GenAI winner." Goldman Sachs upgrades MasTec to buy from neutral Goldman said the infrastructure company has "significant new pipeline construction opportunities ahead." "We are upgrading MTZ to Buy and lowering MYRG to Neutral. While we continue to believe that both stocks will benefit from strong utility spending, the potential for estimate revisions is stronger at MTZ given the significant new pipeline construction opportunities ahead." Goldman Sachs reiterates Robinhood as buy Goldman raised its price target on the stock to $81 per share from $72. "We view the recent monthly data for HOOD positively, and remain constructive on the structural growth of the business and the retail trading backdrop." Barclays upgrades Ormat Technologies to overweight from equal weight Barclays said the geothermal energy company is a "winner" in the tax bill. "Geothermal emerged a winner from the proposed tax bill and will benefit from 'all of the above' solution with the US facing a severe power deficit over the next 5 years. Defensive in the near term with little earnings risk, Ormat should steadily capture higher PPA [power purchase agreement] pricing while expanding capacity." Barclays initiates Solaris Energy as overweight Barclays said the energy infrastructure company is a data center player. "With data centers creating an acute power gap, increasing with every new announcement, Solaris is the leading player in off-grid Distributed Power solutions, benefiting from higher electricity rates and the need for speed-to-power solutions." Morgan Stanley upgrades Applied Materials to equal weight from underweight Morgan Stanley says shares of Applied Materials are now "partially derisked." "Tough FY26 set up but partially derisked; Upgrade to EW." Jefferies upgrades Urban Outfitters to hold from underperform Jefferies said it sees a more balanced risk/reward. "Following URBN's healthy 1Q and ahead of an investor event next week, we are moving to Hold." Goldman Sachs reiterates Tesla as neutral The firm lowered its price target on the stock to $285 per share from $295 in its Tesla deliveries preview. "We believe 2Q deliveries could end up between 335K and 395K depending on how strong June results are (with factors including the degree of incentives Tesla utilizes), and our base case view is now 365K deliveries for 2Q25." Loop downgrades McDonald's to hold from buy Loop said the chicken strips launch has largely been a negative. "We are downgrading MCD to HOLD this morning given growing concerns the company's domestic comp growth profile will not rebound as much as expected over the remainder of 2025." Bernstein reiterates Microsoft as outperform The firm raised its price target on the stock to $540 per share from $520. " Microsoft's partnership with OpenAI can generate huge potential revenue upside for Azure by 2029/30, if OpenAI's projection turns into reality." UBS reiterates Nvidia as buy UBS said the stock remains a top idea. "In the US, we continue to prefer AVGO, MRVL, ARM, MU, NVDA, and TXN." Melius upgrades Deere to buy from hold Melius said Deere has a "leading position in ag tech. "After one to two years on the sidelines, we are returning to our Buy rating, and raising our two-year target price to $750. The timeline to cyclical recovery and to the market's appreciation for Deere's extraordinary position is still uncertain." Morgan Stanley upgrades MP Materials to overweight from equal weight Morgan Stanley said the rare earths company is well positioned for humanoids. "Geopolitical and trade tensions are finally pushing critical mineral supply chains to top of mind. MP is the most vertically integrated rare earths company ex-China. We upgrade MP to OW."
Yahoo
16-05-2025
- Business
- Yahoo
FIVN Q1 Earnings Call: AI Drives Growth and Margin Expansion Amid Cautious Outlook
Call center software provider Five9 (NASDAQ: FIVN) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 13.2% year on year to $279.7 million. The company expects next quarter's revenue to be around $275 million, close to analysts' estimates. Its non-GAAP profit of $0.62 per share was 27.9% above analysts' consensus estimates. Is now the time to buy FIVN? Find out in our full research report (it's free). Revenue: $279.7 million vs analyst estimates of $272.5 million (13.2% year-on-year growth, 2.6% beat) Adjusted EPS: $0.62 vs analyst estimates of $0.48 (27.9% beat) Adjusted Operating Income: $40.31 million vs analyst estimates of $31.1 million (14.4% margin, 29.6% beat) The company reconfirmed its revenue guidance for the full year of $1.14 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $2.76 at the midpoint, a 6.2% increase Operating Margin: -1.9%, up from -8.4% in the same quarter last year Free Cash Flow Margin: 12.5%, similar to the previous quarter Net Revenue Retention Rate: 107%, down from 108% in the previous quarter Annual Recurring Revenue: $1.06 billion at quarter end, up 11.6% year on year Billings: $275.3 million at quarter end, up 12% year on year Market Capitalization: $2.11 billion Five9's first quarter results reflected ongoing momentum in its enterprise subscription business and notable improvements in profitability, as management cited strong adoption of its artificial intelligence (AI) solutions and disciplined expense controls. CEO Mike Burkland pointed to a 32% year-over-year increase in enterprise AI revenue and highlighted customer success stories that demonstrated measurable efficiency gains, such as a fast-food chain achieving a nearly 40% improvement in call containment rates. Looking ahead, management reconfirmed annual revenue guidance but expressed caution given ongoing macroeconomic uncertainty and lengthening sales cycles in large enterprise deals. CFO Bryan Lee noted, "Given recent heightened macro uncertainty, we believe it is important to take a slightly more prudent stance in terms of our guidance," while raising full-year adjusted EPS guidance on the back of cost-saving initiatives and improved operating leverage. The company continues to invest in AI and go-to-market strategies, aiming to sustain profitable growth and achieve its medium-term "Rule of 40" targets. First quarter performance was underpinned by strength in Five9's enterprise AI offerings, ongoing cloud migration, and operational discipline. Management attributed outperformance to robust demand for AI-powered customer experience solutions and successful upsell initiatives in the installed base, while also flagging external factors affecting international growth. AI Product Momentum: Management emphasized accelerating adoption of its AI suite, with over 20% of enterprise new logo bookings containing AI and enterprise AI revenue up 32% year over year. The AI blueprint program, designed to help customers identify and deploy AI use cases, contributed to both new sales and upsells. Cloud Migrations Continue: The company noted that the shift from on-premise to cloud-based contact center solutions remains a major driver of growth, especially among large enterprise customers. Management described the upper end of the market as "the largest and least penetrated part of the market and the fastest growing category of our business." Operational Review and Cost Controls: Five9 completed an operational review, resulting in a 4% workforce reduction to streamline expenses and focus investment on AI and go-to-market initiatives. This contributed to margin expansion and improved cash generation. Strategic Partnerships Deepen: The company launched Five9 Fusion, a new native integration with Salesforce, and expanded collaborations with ServiceNow, Google Cloud, and IBM. These partnerships are designed to enhance AI-powered customer experience offerings and broaden market reach. International Headwinds: Management reported some resistance among international customers to U.S. vendors, largely driven by geopolitical factors. They indicated this was more pronounced in new logo opportunities than in the existing customer base. Management's outlook for the remainder of the year centers on continued investment in AI innovation, targeted go-to-market initiatives, and careful monitoring of macroeconomic headwinds, particularly in international and large enterprise segments. AI Adoption and Monetization: The company expects further growth from its AI offerings, with management indicating that higher AI mix should support gross margin expansion and long-term profitability. Sales Cycle and Market Conditions: Management highlighted lengthening sales cycles for large enterprise deals and increased caution among buyers, which could impact deal timing and revenue conversion. Cost Discipline and Margin Focus: Ongoing expense management, including the recent workforce reduction, is expected to support margin improvement and higher non-GAAP EPS, even as the company continues to invest in strategic initiatives. Robert Morelli (Needham): Asked if first quarter subscription revenue would be the trough for the year; management responded that revenue guidance assumes muted seasonality and increased prudence but was not specific about quarterly trends. Siti Panigrahi (Mizuho): Inquired about elongated sales cycles in enterprise, especially internationally. Management confirmed longer cycles in large deals and noted some international resistance but said most deals merely slipped to the next quarter. Raimo Lenschow (Barclays): Questioned how AI is impacting customer decision-making amid uncertainty; CEO Burkland said AI is accelerating adoption, with 50% of customers in the AI blueprint program purchasing AI products. Samad Samana (Jefferies): Asked about co-sell dynamics with partners and AI's impact on gross margins; management described active co-sell arrangements and noted that AI revenue carries higher margins, benefiting overall profitability. Rishi Jaluria (RBC): Pressed for clarity on what counts as AI revenue and whether increased AI adoption could pressure gross margins; management specified only advanced AI products are included and that AI is a margin tailwind, not a headwind. In the quarters ahead, the StockStory team will monitor (1) the pace of enterprise AI adoption and its impact on subscription growth, (2) progress of new strategic partnerships—particularly the Salesforce Fusion integration—and associated pipeline expansion, and (3) signs of stabilization or improvement in international and large enterprise sales cycles. Additionally, we will track management's ability to maintain cost discipline while investing for long-term growth. Five9 currently trades at a forward price-to-sales ratio of 2.1×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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Yahoo
13-05-2025
- Business
- Yahoo
The Zacks Analyst Blog Highlights Five9, Affirm, Microsoft, Juniper Networks and Tyler
Chicago, IL – May 12, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Five9 Inc. (FIVN), Affirm Holdings Inc. AFRM, Microsoft Corp. MSFT, Juniper Networks Inc. JNPR and Tyler Technologies Inc. TYL. Cloud computing refers to the on-demand seamless access of computing resources such as servers, storage, databases, networking, software, analytics and intelligence over the Internet (the cloud) on a pay-per-use pricing model. It marks a paradigm shift from traditional on-premises infrastructure storage to remote cloud-based storage facilities and relies heavily on virtualization and automation technologies. Instead of buying, owning and maintaining physical data centers and servers, organizations access a virtual pool of shared resources on an as-needed basis from a cloud service provider. This lowers operating costs, increases productivity with greater agility and flexibility, and improves scalability with higher economies of scale. We have narrowed our search to five cloud computing-centric stocks that are set to provide stellar returns in the short term. These are: Five9 Inc., Affirm Holdings Inc., Microsoft Corp., Juniper Networks Inc. and Tyler Technologies Inc. These stocks have strong earnings and revenue growth potential for 2025. Moreover, they have seen positive earnings estimate revisions for 2025 in the last 60 days. Each of our picks currently carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Five9 Zacks Rank #2 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 10.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6% in the last seven days. Affirm Holdings Zacks Rank #1 Affirm Holdings has achieved strong revenue growth through diverse income streams, including merchant network fees, interest from loans and virtual card revenues. AFRM expects revenues in the range of $3.13-$3.19 billion in fiscal 2025. Growing active merchant numbers, improving gross merchandise value, and the average balance of loans are driving merchant network revenues and interest income. Key partnerships, like those with Apple Pay and play a vital role in AFRM's expansion. It has officially expanded to the United Kingdom, through a partnership with Alternative Airlines. Tapping into industries like travel, hospitality, and technology bodes well for the company. Affirm Holdings has an expected revenue and earnings growth rate of 37.1% and 96.4%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings has improved 60% in the last 60 days. Microsoft Zacks Rank #2 Microsoft's third-quarter fiscal 2025 earnings and revenues beat estimates driven by strength in AI business and Copilot adoption backed by accelerating growth in Azure cloud infrastructure unit. Productivity and Business Processes revenues rose due to a strong adoption of Office 365 Commercial solutions. MSFT's ARPU growth was driven by E5 as well as M365 Copilot. MSFT's Intelligent Cloud revenues were driven by growth in Azure AI services and a rise in AI Copilot business. Focused execution drove non-AI services results aided by accelerated growth in the enterprise customer segment as well as some improvement in scale motions. MSFT's Xbox content and services revenues benefited from stronger-than-expected performance in third-party and first-party content. Microsoft has an expected revenue and earnings growth rate of 13.7% and 12.7%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings has improved 1.4% in the last seven days. Juniper Networks Zacks Rank #1 Juniper Networks reported impressive first-quarter 2025 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. JNPR is benefiting from strong growth in the Enterprise vertical, backed by healthy demand for AI-driven Enterprise, hardware maintenance and professional services. JNPR is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. JNPR is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. JNPR's merger with HP Enterprise is expected to accelerate innovation in cloud and AI-native networking solutions. Juniper Networks has an expected revenue and earnings growth rate of 7.3% and 21.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% in the last seven days. Tyler Technologies Zacks Rank #2 Tyler Technologies is benefiting from higher recurring revenues and the rebound of market and sales activities to pre-pandemic levels. The public sector's ongoing transition from on-premise and outdated systems to scalable cloud-based systems is an upside for TYL. The growing hybrid working trend is also driving the demand for its connectivity and cloud services. TYL's strong liquidity position is helping it to pursue acquisitions, which are expected to continue to drive growth. Tyler Technologies has an expected revenue and earnings growth rate of 8.9% and 15.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the last 30 days. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : 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
Yahoo
01-04-2025
- Business
- Yahoo
Five9 (FIVN): Buy, Sell, or Hold Post Q4 Earnings?
Five9 currently trades at $26.83 per share and has shown little upside over the past six months, posting a small loss of 1.6%. Is there a buying opportunity in Five9, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. We don't have much confidence in Five9. Here are three reasons why FIVN doesn't excite us and a stock we'd rather own. 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. A company's long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Five9 grew its sales at a 19.6% annual rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. For software companies like Five9, gross profit tells us how much money remains after paying for the base cost of products and services (typically servers, licenses, and certain personnel). These costs are usually low as a percentage of revenue, explaining why software is more lucrative than other sectors. Five9's gross margin is substantially worse than most software businesses, signaling it has relatively high infrastructure costs compared to asset-lite businesses like ServiceNow. As you can see below, it averaged a 54.4% gross margin over the last year. Said differently, Five9 had to pay a chunky $45.63 to its service providers for every $100 in revenue. While many software businesses point investors to their adjusted profits, which exclude stock-based compensation (SBC), we prefer GAAP operating margin because SBC is a legitimate expense used to attract and retain talent. This metric shows how much revenue remains after accounting for all core expenses – everything from the cost of goods sold to sales and R&D. Although Five9 was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 4.9% over the last year. Unprofitable software companies require extra attention because they spend heaps of money to capture market share. As seen in its historically underwhelming revenue performance, this strategy hasn't worked so far, and it's unclear what would happen if Five9 reeled back its investments. Wall Street seems to think it will face some obstacles, and we tend to agree. Five9's business quality ultimately falls short of our standards. That said, the stock currently trades at 2.1× forward price-to-sales (or $26.83 per share). While this valuation is reasonable, we don't really see a big opportunity at the moment. We're fairly confident there are better stocks to buy right now. Let us point you toward a dominant Aerospace business that has perfected its M&A strategy. With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we're laser-focused on finding the best stocks for this upcoming cycle. Put yourself in the driver's seat by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
22-02-2025
- Business
- Yahoo
Five9 Full Year 2024 Earnings: Beats Expectations
Revenue: US$1.04b (up 14% from FY 2023). Net loss: US$12.8m (loss narrowed by 84% from FY 2023). US$0.17 loss per share (improved from US$1.14 loss in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates by 39%. In the last 12 months, the only revenue segment was Internet Software & Services contributing US$1.04b. The largest operating expense was Sales & Marketing costs, amounting to US$312.0m (51% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of US$38.2m. Explore how FIVN's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in the US. Performance of the American Software industry. The company's shares are up 4.9% from a week ago. Following the latest earnings results, Five9 may be undervalued based on 6 different valuation benchmarks we assess. To access our thorough examination of analyst consensus click here and discover the expected future direction of the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
