Cloud contact center software provider Five9 (NASDAQ:FIVN) will be reporting results this Thursday afternoon. Here’s what investors should know.
Five9 beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $283.3 million, up 12.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Five9 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Five9’s revenue to grow 7.9% year on year to $285.2 million, slowing from the 14.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Five9 has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.7% on average.
Looking at Five9’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. 8x8 delivered year-on-year revenue growth of 1.7%, beating analysts’ expectations by 3.1%, and RingCentral reported revenues up 4.9%, in line with consensus estimates. RingCentral traded down 8.1% following the results.
Read our full analysis of 8x8’s results here and RingCentral’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the productivity software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Five9’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $36.38 (compared to the current share price of $22.95).
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