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Five9 Inc FIVN Stock Quote

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Morningstar‘s Stock Analysis FIVN

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Is it the right time to buy or sell?

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Deja Vu As Five9 Reports Solid Quarter, Weaker Outlook on Macroeconomic Concerns; FVE Cut to $52

Dan Romanoff, CPA Senior Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Five9 reported third-quarter results slightly above our expectations, including both top- and bottom-line beats, but provided a disappointing outlook for both the fourth quarter and fiscal year 2023. The company is returning to its midteens preliminary growth outlook for 2023, consistent with prepandemic initial guidance levels. This is well short of our model, and likely the rest of Wall Street as well, as key vertical segments are slowing their expansion and midmarket customers struggle. This is returning CEO Michael Burkland’s first earnings call in five years after serving as chairman of the board for the last five. When considering the weak outlook and decelerating growth metrics, we sharply lowered our estimates for both growth and profitability over the next several years, and therefore lower our fair value estimate for the no-moat name to $52 per share from $130 per share. While we see upside to the stock from here, we prefer several of our wide-moat companies during this period of distress.

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Key Statistics FIVN

Company Profile FIVN

Business Description

Five9 provides cloud-native contact center software that enables digital customer service, sales, and marketing engagement. The company’s Virtual Contact Center platform combines core telephony functionality, omnichannel engagement capabilities, and various software modules into a unified cloud contact-center-as-a-service, or CCaaS, platform. Five9’s artificial intelligence and automation portfolio supplements and enhances the firm’s core CCaaS offerings, including solutions for digital self-service, agent assist technology, and workflow automation. Five9 also offers workforce optimization products that optimize call center efficiency through workforce management solutions, manage interaction quality, and track agent performance.

3001 Bishop Drive, Suite 350
San Ramon, CA, 94583
T +1 925 201-2000
Industry Software - Infrastructure
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 2,138