Five9 Earnings: What To Look For From FIVN

Radek Strnad /
2022/11/07 2:04 am EST

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

Last quarter Five9 reported revenues of $189.3 million, up 31.7% year on year, beating analyst revenue expectations by 5.16%. It was a strong quarter for the company, with a significant improvement in gross margin and a solid beat of analyst estimates.

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 26.8% year on year to $195.6 million, slowing down from the 37.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.

Five9 Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing nine upwards revisions over the last thirty days. 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 8.14%.

Looking at Five9's peers in the productivity software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. 8x8 delivered top-line growth of 23.6% year on year, beating analyst estimates by 0.45% and Dropbox reported revenues up 7.41% year on year, exceeding estimates by 0.82%. 8x8 was flat on the results, Dropbox was up 4.88%. Read our full analysis of 8x8's results here and Dropbox's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share price declining 5.91% over the last month. Five9 is down 11.7% during the same time, and is heading into the earnings with analyst price target of $109.90, compared to share price of $50.56.

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.