Five9 Earnings: Enterprise Customers Old and New Drive Strength; Fair Value Raised 7% to $62

We raise our fair value estimate for no-moat Five9 to $62 per share from $58 following the release of robust fourth-quarter results that exceeded our revenue and profitability estimates. Strong artificial intelligence demand and improved sales execution propelled the firm’s revenue during the quarter. Management laid out 2025 targets that surpassed our bottom-line expectations but fell short of our top-line estimates. Based on these results and guidance, we adjusted our intermediate forecasts to reflect our optimism about Five9’s ability to capitalize on its AI investments to drive seat expansion. The strong performance sent shares up 15% in the aftermarket. The market inches closer to our valuation, but we prefer moatier names within our coverage.