SAN RAMON - Shares of Five9 (NASDAQ:FIVN) surged over 6% as the cloud software provider reported a strong first quarter, beating analysts' expectations with adjusted earnings per share (EPS) of $0.48, $0.09 higher than the consensus estimate of $0.39.
Revenue also exceeded forecasts, coming in at $247.01 million against the anticipated $239.98 million. This represents a 13% increase from the $218.4 million reported in the first quarter of the previous year.
The company's performance was bolstered by a substantial year-over-year (YoY) growth in subscription revenue, which climbed by 20%, and an adjusted EBITDA margin of 15%.
Five9's Chairman and CEO, Mike Burkland, attributed the strong results to the company's AI-infused data-centric platform and its largest deal ever with a Fortune 50 financial services company.
"The market remains massive and underpenetrated, we believe we are a clear market leader, and we see a long runway ahead for durable growth," Burkland stated.
Looking ahead, Five9's guidance for the second quarter of 2024 forecasts revenue between $244 million and $245 million, with the midpoint slightly below the analyst consensus of $248 million. However, the adjusted EPS guidance range of $0.42 to $0.44 aligns with the consensus estimate of $0.44.
For the full year, the company anticipates revenue between $1.053 billion and $1.057 billion, which is slightly below the consensus forecast of $1.06 billion. The projected adjusted EPS of $2.15 to $2.19 is in line with the consensus of $2.16.
The positive investor sentiment following the earnings release and upbeat guidance reflects confidence in the company's growth trajectory and market position. Despite a slight miss on the high end of full-year revenue guidance, the strong first-quarter performance and the record deal signed indicate a robust business outlook for Five9.
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