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The Top 5 Analyst Questions From Five9's Q2 Earnings Call

By Anthony Lee | August 12, 2025, 11:01 PM

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Five9’s second quarter results drew a negative market response despite surpassing Wall Street’s expectations for both revenue and non-GAAP profit. Management attributed the outperformance mainly to accelerated enterprise adoption of its AI solutions, which now drive a significant share of subscription revenue. CEO Mike Burkland also acknowledged that recent executive realignments and the ongoing focus on large enterprise customers were key contributors to improved profitability and sales execution. In addition, the company saw the highest quarterly total bookings in two years, supported by robust demand for AI-powered customer experience solutions across sectors such as healthcare and financial services.

Is now the time to buy FIVN? Find out in our full research report (it’s free).

Five9 (FIVN) Q2 CY2025 Highlights:

  • Revenue: $283.3 million vs analyst estimates of $275.2 million (12.4% year-on-year growth, 2.9% beat)
  • Adjusted EPS: $0.76 vs analyst estimates of $0.65 (17% beat)
  • Adjusted Operating Income: $54.45 million vs analyst estimates of $42.33 million (19.2% margin, 28.6% beat)
  • The company slightly lifted its revenue guidance for the full year to $1.15 billion at the midpoint from $1.14 billion
  • Management raised its full-year Adjusted EPS guidance to $2.88 at the midpoint, a 4.3% increase
  • Operating Margin: -0.6%, up from -7.7% in the same quarter last year
  • Annual Recurring Revenue: $1.09 billion vs analyst estimates of $1.07 billion (12.1% year-on-year growth, 1.4% beat)
  • Billings: $276.5 million at quarter end, up 10.4% year on year
  • Market Capitalization: $1.9 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Five9’s Q2 Earnings Call

  • Terrell Frederick Tillman (Truist): Asked about the sustainability of enterprise AI growth, to which CEO Mike Burkland responded that both new logo and installed base bookings are strong, with continued bullishness on AI momentum due to their platform’s competitive position.

  • Sitikantha Panigrahi (Mizuho): Inquired about deal elongation and international momentum. President Andy Dignan noted a return to stronger deal execution versus prior quarters, while CFO Bryan Lee explained that the guidance factors in minimal seasonality and longer revenue ramps for upsell activity.

  • David E. Hynes (Canaccord): Questioned whether AI adoption is reducing human agent seats. Burkland clarified that most clients are using AI to contain a small percentage of interactions, with little evidence of agent reductions and both AI and core business segments growing.

  • Jackson Edmund Ader (KeyBanc): Asked about CEO search priorities and product strategy. Burkland emphasized a focus on candidates with AI and operational excellence experience and clarified that Five9 aims to be best-in-class in customer experience AI rather than broad AI applications.

  • Peter Marc Levine (Evercore): Sought insights on customer AI readiness and pricing models. Burkland explained adoption is gated by customer data quality, while Five9’s AI products are mainly sold on consumption or capacity-based pricing, which customers value for its predictability.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will closely monitor (1) the pace of enterprise adoption and monetization of Five9’s Agentic AI suite, (2) the impact of executive transitions on go-to-market strategy and operational alignment, and (3) the realization of revenue from large upsell and cross-sell deals closed in the second quarter. Additionally, we will watch for further traction in strategic partnerships with technology and industry vertical players.

Five9 currently trades at $24.44, down from $25.82 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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