Five9 Stock Soars 11% on Beat and Raise, Analysts Upbeat
2022.07.29 14:57
Five9 (FIVN) Stock Soars 11% on Beat and Raise, Analysts Upbeat
By Senad Karaahmetovic
Shares of Five9 (NASDAQ:FIVN) are trading almost 11% higher in preopen Friday after the company reported Q2 results and offered guidance.
FIVN reported an adjusted EPS of 34c to crush the consensus of 18c. Revenue came in at $189.4 million, again higher than the consensus of $180.1 million.
“Despite the macro environment uncertainties, we continued to experience strong growth with second-quarter record bookings for both new logos and our installed base,” the company said.
For this quarter, Five9 expects adjusted EPS of 31 cents a share to 33 cents a share on revenue of $192.5 to $193.5 million. This compares to the average analyst estimate of 30 cents a share on revenue of $192.2 million.
On a full-year basis, FIVN sees adjusted earnings of $1.38 a share to $1.40 a share on revenue of $780.5 million to $782.5 million. Again, this proved to be higher than the consensus of $1.23 a share on revenue of $772.2 million.
“While management again provided “very prudent” guidance of 28% growth in 3Q and FY22 given the macro uncertainty, this was coupled with very positive pipeline commentary and assurance of >30% enterprise growth for the next several years. We remain confident that the company will continue to exceed expectations and deliver some of the best fundamentals in the software industry and reiterate our Buy rating,” BTIG analyst Matt VanVlient wrote in a research note.
A UBS analyst said FIVN delivered in-line results, which translates into a beat in this kind of market environment.
“While this appeared more in-line with expectations heading into earnings season, we view these results as relatively strong, since many others in software have disappointed with weaker performances/guides. This is consistent with recent checks, who were more constructive on CCaaS demand than others in the front-office/communications space. Yet, FIVN did flag some longer sales cycles in its pipeline, but management’s tone sounded upbeat on tailwinds persisting and these risks being imbedded in the guide,” McGinnis said in a client note.
The analyst hiked the price target to $140 from $135.
