Five9 to Report Q1 Earnings: What's in the Cards for the Stock?

Five9 FIVN is set to report its first-quarter 2025 results on May 1.

The company expects revenues of $271.5-$272.5 million for the first quarter. The Zacks Consensus Estimate for revenues is pegged at $272.58 million for the quarter, suggesting a 10.35% rise from the year-ago quarter’s reported figure.

Non-GAAP earnings are expected to be 47-49 cents per share for the first quarter of 2025. The Zacks Consensus Estimate for earnings is pinned at 48 cents per share, unchanged year over year. The figure has moved down by a penny over the past 30 days.

FIVN’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 18.55%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Five9, Inc. Price and EPS Surprise

 

Five9, Inc. price-eps-surprise | Five9, Inc. Quote

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of FIVN’s Q1 Results

Five9’s first-quarter 2025 performance is expected to have benefited from sustained momentum in its enterprise AI revenues, which grew 46% year over year in the fourth quarter of 2024 and accounted for 9% of enterprise subscription revenues. The continued adoption of its AI-driven solutions is expected to have driven profitability in the first quarter, reflecting the company’s strategic focus on expanding its high-value, AI-powered offerings.

FIVN’s exceptional fourth-quarter performance, marked by a record adjusted EBITDA margin of 23.1% and $79 million in free cash flow, positions the company to benefit from strong operational efficiency and financial stability, which are likely to have supported continued strong performance and profitability in the to-be-reported quarter.

Five9’s partnerships with major players like Salesforce, ServiceNow, Microsoft, Verint and Google are anticipated to have strengthened its competitive edge in the first quarter of 2025. These collaborations are facilitating the development of specialized AI solutions and integrated customer experiences, which are likely to have contributed to increased customer acquisition and enhanced retention.

However, macroeconomic headwinds, such as persistent inflation, elevated interest rates and currency fluctuations, are expected to have affected Five9’s performance in the quarter under review.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

Five9 has an Earnings ESP of -11.27% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Affirm AFRM has an Earnings ESP of +63.27% and presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM is set to report third-quarter fiscal 2025 results on May 8. The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 8 cents per share, which has narrowed by a penny over the past 30 days and is much narrower than the loss of 43 cents incurred in the year-ago quarter.

Block XYZ currently has an Earnings ESP of +7.52% and a Zacks Rank #2.

XYZ is set to report its first-quarter 2025 results on May 1. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 88 cents per share. The consensus estimate indicates year-over-year growth of 3.53%.

Compass COMP has an Earnings ESP of +16.67% and a Zacks Rank of #2 at present.

COMP is set to report its first-quarter 2025 results on May 8. The Zacks Consensus Estimate for first-quarter 2025 bottom line is pegged at 6 cents per share. The consensus estimate indicates a year-over-year surge of 77.78%.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research