Personal Finance

Why Shares of Five9 Inc. Popped Today

A rising stock chart.

What happened

Shares of Five9 Inc. (NASDAQ: FIVN) surged on Tuesday after the provider of cloud software for contact centers reported its second-quarter results. Both revenue and earnings easily beat analyst expectations, and the company raised its outlook for the full year. The stock was up about 23.7% at 12:55 p.m. EDT.

So what

Five9 reported second-quarter revenue of $61.1 million, up 28% year over year and about $4.7 million higher than the average analyst estimate. The enterprise business was the main driver of this growth, with enterprise subscription revenue up 37% in the trailing-12-month period.

A rising stock chart.

Image source: Getty Images.

Non- GAAP earnings per share were $0.11, up from essentially breakeven in the prior-year period and $0.07 above analyst expectations. The company lost $0.04 per share on a GAAP basis, with the difference mostly due to stock-based compensation.

"Our vision is to create a self-learning, intelligent contact center delivered through the cloud and powered by AI," said Five9 CEO Rowan Trollope. "Our recently announced Five9 Genius and partnership with Google, which brings practical AI enhancements to the contact center, is the first step in this direction."

Now what

For the third quarter, Five9 expects to produce revenue between $61 million and $62 million, and non-GAAP earnings per share (EPS) between $0.08 and $0.10. The company boosted its full-year guidance, now expecting revenue between $244.5 million and $246.5 million, and non-GAAP EPS between $0.39 and $0.42. Five9's previous full-year guidance ranges were $235.8 million to $238.8 million and $0.25 to $0.30, respectively.

Tuesday's rally pushed Five9 stock as high as $44 per share, a new all-time high. With trailing-12-month revenue of just over $200 million, the company is still in the early stages of its growth story .

10 stocks we like better than Five9

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Five9 wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 6, 2018

Timothy Green has no position in any of the stocks mentioned. The Motley Fool owns shares of Five9. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More