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Five9 Inc FIVN

Morningstar Rating
$50.04 −0.47 (0.93%)
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Company Report

Five9 Earnings: Impressive Customer Wins Amid Macro Pressure on Seat Expansion

No-moat Five9 reported a reasonable start to fiscal 2024, with top-line growth and profitability marginally surpassing our expectations. Following the result, we have raised our medium-term margin forecasts based on improving operating leverage, resulting in a fair value estimate increase to $63 per share from $60. While shares jumped after the release, Five9 continues to screen as fairly valued on a risk-adjusted basis, and we prefer moatier, undervalued software peers.

Price vs Fair Value

FIVN is trading at a 617% premium.
Price
$50.04
Fair Value
$79.00
Uncertainty
Very High
1-Star Price
$353.37
5-Star Price
$29.60
Economic Moat
Qbdw
Capital Allocation
Sgsgjpy

Bulls Say, Bears Say

Bulls

As with CCaaS peers, Five9 is well placed to benefit from the massive contact center cloud transition opportunity, with only about 20% of global contact center agents having moved to the cloud as of 2023.

Bears

Five9 faces intensifying competition, including from larger companies with sizable cloud-based communications installed bases including Zoom and Salesforce.

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News

Trading Information

Previous Close Price
$50.51
Day Range
$49.5250.70
52-Week Range
$49.5292.40
Bid/Ask
$50.00 / $50.30
Market Cap
$3.70 Bil
Volume/Avg
862,517 / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
25.39
Price/Sales
3.91
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Five9 offers cloud-native contact center software enabling digital customer service, sales, and marketing engagement. The company’s Virtual Contact Center platform combines core telephony functionality, omnichannel engagement, and various modules into a unified cloud contact-center-as-a-service, or CCaaS, platform. Five9’s modules include digital self-service, agent assist technology, workflow automation, as well as workforce optimization solutions that optimize call center efficiency, and manage interaction quality and agent performance.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Small Growth
Total Number of Employees
2,684

Competitors

Valuation

Metric
FIVN
ZM
RNG
Price/Earnings (Normalized)
25.3911.9210.60
Price/Book Value
7.712.05
Price/Sales
3.914.391.48
Price/Cash Flow
15.0010.315.26
Price/Earnings
FIVN
ZM
RNG

Financial Strength

Metric
FIVN
ZM
RNG
Quick Ratio
6.474.260.75
Current Ratio
7.024.501.09
Interest Coverage
−10.00−1.61
Quick Ratio
FIVN
ZM
RNG

Profitability

Metric
FIVN
ZM
RNG
Return on Assets (Normalized)
10.40%17.88%16.13%
Return on Equity (Normalized)
33.75%22.56%
Return on Invested Capital (Normalized)
10.19%22.32%28.12%
Return on Assets
FIVN
ZM
RNG
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