Five9 (NASDAQ:FIVN) saw its shares drop more than 5% following the closing bell on Wednesday after the company’s guidance overshadowed strong FQ4 results.
For the fourth quarter, the Contact Center As A Service (CCaaS) provider posted earnings per share (EPS) at $0.61, surpassing the analysts' prediction of $0.48. Revenue came in at $239.1 million, just above the consensus estimate of $238.06 million.
The adjusted gross margin for the quarter stood at 61.3%, marking a decrease from 62.3% in the same period last year.
Looking ahead to FQ1 2024, Five9 projects its EPS to be between $0.37 and $0.39, exceeding the analysts' consensus of $0.32.
Revenue is estimated to range from $239 million to $240 million, below the expected $245.6 million.
For the full year 2024, the company anticipates its EPS to be between $2.14 and $2.18, aligning with the lower end of the analysts' consensus of $2.14.
Full-year revenue is seen ranging from $1.053 billion to $1.057 billion, compared to the $1.055 billion expected by analysts.
“We are pleased to report strong revenue growth of 17% for the full year 2023. This growth continues to be driven by our Enterprise business where subscription revenue grew 25% in 2023," said Mike Burkland, Chairman and CEO of Five9.
"We continue to strengthen our AI leadership in CX, gaining meaningful traction with our offerings and significantly enhancing our platform throughout 2023."