What to Expect from Five9's Earnings

Five9 FIVN will release its quarterly earnings report on Thursday, 2025-05-01. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Five9 to report an earnings per share (EPS) of $0.49.

Five9 bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.09, leading to a 0.96% increase in the share price the following trading session.

Here's a look at Five9's past performance and the resulting price change:

Tracking Five9's Stock Performance

Shares of Five9 were trading at $25.33 as of April 29. Over the last 52-week period, shares are down 56.28%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Take on Five9

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Five9.

The consensus rating for Five9 is Buy, based on 15 analyst ratings. With an average one-year price target of $48.13, there's a potential 90.01% upside.

Comparing Ratings with Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of EverCommerce, Bitdeer Technologies and LiveRamp Holdings, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for EverCommerce, with an average 1-year price target of $11.12, suggesting a potential 56.1% downside.
• Analysts currently favor an Buy trajectory for Bitdeer Technologies, with an average 1-year price target of $21.95, suggesting a potential 13.34% downside.
• Analysts currently favor an Buy trajectory for LiveRamp Holdings, with an average 1-year price target of $39.6, suggesting a potential 56.34% upside.

Summary of Peers Analysis

The peer analysis summary outlines pivotal metrics for EverCommerce, Bitdeer Technologies and LiveRamp Holdings, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Five9 ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has a lower Return on Equity compared to some peers.

Delving into Five9's Background

Five9 offers cloud-native contact center software enabling digital customer service, sales, and marketing engagement. The company's Virtual Contact Center platform combines core telephony functionality, omnichannel engagement, and various modules into a unified cloud contact-center-as-a-service, or CCaaS, platform. Five9's modules include digital self-service, agent assist technology, workflow automation, as well as workforce optimization solutions that optimize call center efficiency, and manage interaction quality and agent performance.

Five9's Economic Impact: An Analysis

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Five9's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 16.56%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Five9's net margin excels beyond industry benchmarks, reaching 4.15%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Five9's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.95%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.57%, the company showcases effective utilization of assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.98, caution is advised due to increased financial risk.

To track all earnings releases for Five9 visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.