Five9 Shares Surge On Solid Q1 Results And Optimistic Full-Year Outlook

Benzinga
02 May

Five9, Inc (NASDAQ:FIVN) stock is trading higher Friday after the company reported upbeat quarterly results on Thursday.

The company reported first-quarter revenue growth of 13% year-on-year to $279.70 million, beating the analyst consensus estimate of $272.39 million.

Adjusted EPS of $0.62 topped the analyst consensus estimate of $0.48.

Also Read: This Five9 Analyst Slashes Forecasts Ahead Of Q1 Results

Subscription revenue grew 14% Y/Y.

The quarterly adjusted gross margin increased to 62.4% from 60.8% a year ago.

Adjusted EBITDA margin for the quarter reached 18.8%, up from 15.2% a year ago.

The company generated  $48.4 million in operating cash flow for the quarter.

Outlook: Five9 expects second-quarter revenue of $274.5 million-$275.5 million (versus analyst consensus estimate of $275.22 million) and adjusted EPS of $0.64-$0.66 (versus analyst consensus estimate of $0.56).

The company expects fiscal 2025 revenue of $1.140 billion—$1.144 billion (versus the analyst consensus estimate of $1.140 billion) and adjusted EPS of $2.74-$2.78 (prior $2.58-$2.62) versus the analyst consensus estimate of $2.59.

Wall Street firms rerated the stock on Friday. Needham analyst Scott Berg maintained Five9 with a Buy and lowered the price target from $52 to $40.

Rosenblatt analyst Catharine Trebnick reiterated Five9 with a Buy and a $36 price target.

Evercore ISI Group analyst Peter Levine maintained Five9 with an Outperform and lowered the price target from $55 to $40.

Price Action: FIVN stock is up 11.9% at $28.08 last check Friday.

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