Five9 stock rises as Q1 earnings beat estimates, guidance tops expectations

Published 01/05/2025, 22:10
Five9 stock rises as Q1 earnings beat estimates, guidance tops expectations

SAN RAMON, Calif. - Five9, Inc. (NASDAQ:FIVN) shares gained 4% after the provider of the Intelligent CX Platform reported better-than-expected first quarter 2025 results and raised its full-year outlook. The company’s strong performance was driven by robust subscription revenue growth and improved profitability.

Five9 posted adjusted earnings per share of $0.62, surpassing the analyst estimate of $0.49. Revenue for the quarter reached a record $279.7 million, up 13% YoY and exceeding the consensus estimate of $272.29 million. Subscription revenue, a key metric for the company, grew 14% compared to the same period last year.

The company’s guidance also topped expectations. For the second quarter, Five9 forecasts adjusted EPS of $0.64-$0.66, above the consensus of $0.56, and revenue of $274.5-$275.5 million, in line with estimates. For the full year 2025, the company raised its outlook, projecting adjusted EPS of $2.74-$2.78, higher than the $2.60 consensus, and revenue of $1.14-$1.144 billion, matching analyst expectations.

Mike Burkland, Chairman and CEO of Five9, commented on the results: "We are very pleased to report strong first quarter results, exceeding expectations across key metrics, while remaining laser focused on delivering balanced growth for both top and bottom lines."

Five9’s profitability improved significantly, with adjusted EBITDA margin expanding to 18.8% from 15.2% in the year-ago quarter. The company also reported record operating cash flow of $48.4 million for the quarter, up from $32.4 million in Q1 2024.

The strong performance and positive outlook reflect Five9’s continued momentum in AI for customer experience and execution in the core cloud contact center market. As the company moves forward in 2025, it remains well-positioned to capitalize on the growing demand for AI-enhanced customer experience solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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