Five9 Earnings: Enterprise Momentum Fuels Healthy Growth Despite Macro Headwinds

No-moat Five9 reported reasonable fourth-quarter and full-year fiscal 2023 results, which met our top-line forecasts but fell short of our profitability expectations. Amid difficult macroeconomic conditions in 2023, Five9 experienced softer demand from cyclical consumer sector customers, offset by healthy enterprise wins and strong international expansion. Following the result, we maintain our long-term forecasts, however, we raise our fair value estimate to $60 per share from $59 on time value of money. After a sharp correction following the release, Five9 shares screen as fairly valued relative to our valuation.