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Five9 Stock Plunges 36% in 6 Months: Should Investors Buy the Dip?

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Five9 (FIVN - Free Report) shares have lost 36.1% over the past six months, significantly underperforming the broader Zacks Computer and Technology sector’s decline of 1.6% and the Zacks Internet - Software industry’s rise of 4.3%.

FIVN has also lagged its peers, including Paycom Software (PAYC - Free Report) , Twilio (TWLO - Free Report) and PagerDuty (PD - Free Report) , over the same period. While Paycom Software and Twilio have gained 9.8% and 10.3%, respectively, PagerDuty has declined 24.2%.

Five9’s share price decrease can be attributed to prolonged enterprise sales cycles and persistent macroeconomic uncertainty, which have impacted customer spending and decision-making processes.

Despite these headwinds, Five9’s strong first-quarter results point to underlying business resilience. The company continues to benefit from growing demand for its AI-powered solutions, particularly through its Genius AI suite. With a strategic focus on recurring subscription revenues, ongoing platform innovation and deepening partnerships with industry leaders, Five9 is well-positioned to capture future enterprise demand and deliver long-term value.

Five9, Inc. Price and Consensus

 

Five9, Inc. Price and Consensus

Five9, Inc. price-consensus-chart | Five9, Inc. Quote

FIVN Rides High on Platform Expansion & Key Alliances

Five9’s continued momentum is being fueled by robust platform innovation and high-impact strategic alliances. At the core of this growth is the company’s Genius AI product suite, which has emerged as a key catalyst for subscription revenue expansion. This suite caters to the dynamic needs of enterprise customers seeking intelligent, automated and scalable contact center solutions. By embedding advanced AI into workflows, Genius AI enables organizations to deliver faster, more personalized customer interactions, essential in today’s experience-centric economy.

Elevating its platform, Five9 recently launched Five9 Fusion for Salesforce, a major enhancement that seamlessly integrates Five9’s capabilities within the Salesforce ecosystem. This powerful integration improves agent productivity by unifying workflows across systems and enhances customer engagement by equipping agents with real-time contextual insights.

The strategic partnership with Salesforce has proven pivotal in advancing Five9’s mission of delivering a unified, AI-powered agent experience. Through this collaboration, the company enables clients to harness the combined strengths of Salesforce’s CRM and Five9’s cloud contact center technology to offer more intuitive, responsive and effective service experiences.

Five9 has established a deep integration with Microsoft, enhancing its platform capabilities. This collaboration allows for seamless integration with Microsoft's suite of tools, improving agent productivity and customer engagement.

FIVN Offers Positive Guidance

For the second quarter of 2025, Five9 expects total revenues of $274.5-$275.5 million. The Zacks Consensus Estimate for revenues is pegged at $275.07 million, indicating 9.11% year-over-year growth.

Non-GAAP earnings for the second quarter of 2025 are expected to be 64-66 cents per share. The consensus mark for earnings is pegged at 65 cents per share, up 16.1% over the past 30 days. The estimate suggests a 25% rise from the figure reported in the year-ago quarter.

For 2025, Five9 anticipates revenues of $1.140-$1.144 billion. The Zacks Consensus Estimate for revenues is pegged at $1.14 billion, implying a year-over-year rise of 9.57%.

Non-GAAP earnings for 2025 are expected to be $2.74-$2.78 per share. The consensus mark for earnings is pegged at $2.76, a rise of 6.6% over the past 30 days, indicating a year-over-year increase of 11.74%.

FIVN’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 19.26%.

Conclusion: Buy Now

Five9’s strong AI-driven subscription revenues and expanding ecosystem through key partnerships underscore its growth momentum. Continued platform innovation, rising enterprise demand and strategic integrations position FIVN for scalable growth. Its prospective guidance reflects management's confidence in implementation and long-term value creation.

Five9 currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right away. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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