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Five9 (FIVN) to Report Q3 Earnings: Is a Beat in the Cards?

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Five9, Inc. (FIVN - Free Report) is scheduled to report third-quarter results on Nov 6.

In the last reported quarter, the company came up with a positive earnings surprise of 175%.  Notably, the company beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 229.2%.

Moreover, revenues of $61 million increased 28% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $56 million in the second quarter.

For third-quarter 2018, Five9 expects revenues in the range of $55.8-$56.8 million. The Zacks Consensus Estimate is pegged at $56.45 million, indicating an 18.3% increase from the year-ago quarter.

Let’s see how things are shaping up for the upcoming announcement.

Factors to Consider

Five9’s cloud contact-center software has been witnessing accelerated growth for the past several quarters due to the ongoing digital transformation as organizations are increasingly looking for ways to minimize costs and improve customer support. Five9’s ongoing execution has placed it well to capitalize on this opportunity.

Moreover, the company‘s strong partnerships with industry leaders such as Salesforce (CRM - Free Report) , Oracle, Zendesk, and Microsoft (MSFT - Free Report) Dynamics 365 have enabled it to offer customers greater flexibility, enhanced experience and cloud-based solutions. The company also announced partnership with Alphabet (GOOGL - Free Report) and its new cloud contact center AI platform.

We note that Five9’s top-line performance continues to be driven by its enterprise business.  Notably, Enterprise Subscription is the company’s fastest growing and most profitable part of business.

The company is benefiting from increasing customer satisfaction that is eventually driving retention rate. Additionally, Five9’s focus on the commercial business and improved execution are positives.

Five9, Inc. Price and EPS Surprise

Five9, Inc. Price and EPS Surprise | Five9, Inc. Quote

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or #5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Five9 currently carries a Zacks Rank #3 and has an Earnings ESP of +5.88%.

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