Five9 Earnings: What To Look For From FIVN

Jabin Bastian /
2022/04/27 8:20 am EDT

Call center software provider Five9 (NASDAQ: FIVN) will be reporting results tomorrow after market close. Here's what to look for.

Last quarter Five9 reported revenues of $173.5 million, up 35.7% year on year, beating analyst revenue expectations by 4.94%. It was a slower quarter for the company, with an underwhelming guidance for the next year and a decline in gross margin.

Is Five9 buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Five9's revenue to grow 23.9% year on year to $170.8 million, slowing down from the 45% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Five9 Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 8.59%.

With Five9 being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for productivity software stocks, but the technology segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 12.2% over the last month. Five9 is down 5.67% during the same time, and is heading into the earnings with analyst price target of $145.3, compared to share price of $100.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.