Five9 (FIVN) Reports Q1: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2023/05/03 3:34 am EDT

Call center software provider Five9 (NASDAQ: FIVN) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter Five9 reported revenues of $208.3 million, up 20% year on year, beating analyst revenue expectations by 1.92%. It was a slower quarter for the company, with underwhelming guidance for the next year.

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 13.8% year on year to $208 million, slowing down from the 32.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 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 5.82%.

Looking at Five9's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Pegasystems's revenues decreased 13.5% year on year, missing analyst estimates by 7.14% and ServiceNow reported revenues up 21.7% year on year, exceeding estimates by 0.5%. Pegasystems traded up 4.19% on the results, ServiceNow was up 2.01%. Read our full analysis of Pegasystems's results here and ServiceNow's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.49% over the last month. Five9 is down 18.1% during the same time, and is heading into the earnings with analyst price target of $84.9, compared to share price of $60.66.

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.