Five9 Stock Surges After Smashing Estimates, Strong Beat Fueled by the Largest Deal in its History
2022.04.29 15:46
Five9 (FIVN) Stock Surges After Smashing Estimates, Strong Beat Fueled by the Largest Deal in its History
Shares of Five9 (NASDAQ:FIVN) are up more than 7% in pre-open Friday after the company reported results that easily topped analyst estimates.
FIVN reported a first-quarter EPS of $0.22, topping the consensus estimates of $0.13 per share. The software company generated $182.8 million in revenue, while analysts were looking for $170.99 million.
The quarter saw FIVN land its largest deal in company history at $40mm+ ARR.
For Q2, Five9 expects EPS in the range of $0.17 to $0.19, beating the analyst estimates of $0.15 per share. Q2 revenue is expected to range from $179 million to $180 million, also above the expectations of $174 million.
For the full year, the company expects EPS in the range of $1.22 to $1.24, compared to the estimates of $1.13 per share. FY revenue is expected to land between $770 million and $773 million, above the consensus estimates of $756.7 million.
Needham & Company analyst Scott Berg reiterated a Buy rating and a $160.00 per share price target after witnessing “a beat across the board.”
“Enterprise was the key driver of growth (+46% on LTM basis) as the impact from investments in product, scale, and GTM over the past two years converge with demand tailwinds as the shift to the cloud in the enterprise contact center accelerates. Early adoption of newer AI modules and stronger partner sales were stronger growth vectors than expected. The updated FY22 revenue guidance suggests FIVN has a strong chance to meet the revenue target from the Zoom merger proxy, which we believe will be viewed positively,” Berg said in a note.
BTIG analyst Matt VanVliet also praised FIVN for delivering a ‘handy’ beat.
“The strong start to the year led to higher guidance (which still feels very conservative) and has the company continuing to march closer to its five-year targets. We remain very confident in the fundamentals,” the analyst wrote in a note.
By Senad Karaahmetovic
