Cloud-based contact center software provider Five9 (FIVN) reported better-than-expected third-quarter results, backed by strong growth in Enterprise subscription revenue, coupled with overall business momentum. Shares jumped 7.1% during the extended trading session on November 8.
The company reported earnings of $0.28 per share, up 3.7% year-over-year, and 5 cents higher than analyst estimates of $0.23 per share.
Furthermore, quarterly revenue of $154.33 million grew 38% compared to the same period last year, surpassing Street estimates of $146.65 million.
Commenting on the results, Rowan Trollope, CEO of Five9, said, “Our performance for the quarter underscores the strength of our platform, and the value we deliver to customers seeking to modernize and transform their contact centers.”
Trollope added, “We have differentiated our platform by building a leadership position in AI-driven automation around customer experience, and remain confident in the durability of our growth powered by market momentum, continued product innovation, and our go-to-market machine.”
Based on the current economic conditions and business momentum, Five9 forecasts fourth-quarter revenue and earnings to be in the range of $164.5 million to $165.5 million and $0.36-$0.37 per share, respectively.
Additionally, the full-year fiscal 2021 revenue is expected to be between $600.5 million and $601.5 million against the consensus of $585 million. Meanwhile, FY21 earnings are projected to fall in the range of $1.09 to $1.10 per share against the consensus of $1.02 per share.
With 11 Buys and 3 Holds, Five9 stock commands a Strong Buy consensus rating. The average Five9 price target of $196.79 implies 35.48% upside potential to current levels. Shares have gained 2.8% over the past year.
TipRanks data shows that financial blogger opinions are 100% Bullish on FIVN, compared to a sector average of 71%.