Five9 Inc is a leading provider of cloud-based contact center solutions that empower organizations to enhance customer interactions and operational efficiency. The company offers a comprehensive suite of services that integrate artificial intelligence and advanced analytics, facilitating streamlined communication between businesses and their clients across various channels, including phone, email, chat, and social media. By leveraging its innovative platform, Five9 aims to improve customer satisfaction and drive business growth for organizations of all sizes, enabling them to adapt to the evolving demands of a digital-first landscape.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at 8x8 (NASDAQ:EGHT) and the best and worst performers in the video conferencing industry.
Cloud content storage and management platform Box (NYSE:BOX)
will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
Over the past six months, Five9’s stock price has fallen to $40.89. Shareholders have lost 16.2% of their capital, highly disappointing when considering the S&P 500 has climbed 13.4%. This might have investors contemplating their next move.
The EPS estimates for FY24 and FY25 for top internet software stocks have risen over the last 30 days, signaling strong momentum. Now could be a good time to buy Five9, Fortinet, and Toast as they solidify their position in the industry.
Shares of call center software provider Five9 (NASDAQ: FIVN)
jumped 24.7% in the morning session after the company reported strong third-quarter earnings. Five9 blew past analysts' sales, EBITDA, and EPS expectations. Notably, subscription revenue growth accelerated 20% year-over-year, driven by the strong uptake of its AI solutions, which increased customer acquisition and expanded the average revenue per user.
The company is focused on accelerating subscription revenue, which is mostly recurring, leading to lower customer acquisition costs upon renewal in subsequent years. Consequently, this translates to higher profit margins.
Call center software provider Five9 (NASDAQ: FIVN) reported revenue ahead of Wall Street’s expectations in Q3 CY2024, with sales up 14.8% year on year to $264.2 million. Guidance for next quarter’s revenue was optimistic at $267.5 million at the midpoint, 2.4% above analysts’ estimates. Its non-GAAP profit of $0.67 per share was also 15.1% above analysts’ consensus estimates.
The Fed cut rates by 0.5%, making it easier for small- to medium-sized cloud computing companies to refinance debt. Analyst suggests 5 firms may benefit.
Short-selling firm the Bear Cave has targeted contact center software company Five9 in its latest short report. The short seller highlighted recent conversations with management in which executives told investors that AI is "great" for Five9. The Bear Cave claims that management has intentionally misled investors about how AI will impact its business.
After a blistering Thursday that saw the S&P 500 close with its best session in nearly two years — up 2.3% — Wall Street’s price action turned sluggish on a Friday lacking market-moving economic events.
