Five9 (FIVN) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: 14.44%
• EPS Growth: 91.60%
• Country: US
• Employees: 3,073
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Infrastructure
• EPS (TTM): 0.62
• Shares Outstanding: 76,272,010
• 10 Day Avg. Volume: 1,324,996
• 30 Day Avg. Volume: 1,571,969
• PEG Ratio: -0.71
• Price to Book (P/B): 15.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 145.13
• Enterprise Value/Market Cap: 2.64
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 9.47
• Enterprise Value/Ebitda: 56.11
• 1Y Price Target: $35.50
• Price Target Upside: 33.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 72 Outperform
• Price Target: $31.00 ▲(16.32%Upside)

Five9's overall score reflects strong financial performance and a positive earnings call, offset by valuation challenges and moderate technical signals. The company's strategic focus on AI and partnerships bodes well for future growth, though current financial metrics and market conditions suggest caution.

Positive Factors

AI Innovation

Monetizing AI through partnerships in addition to its own.

Financial Performance

Five9 outperformed Street expectations and beat across both revenue and operating income.

Growth Prospects

Growth continues to be supported by large customers and adoption of Five9’s AI capabilities.

Negative Factors

AI Impact Concerns

There are concerns about the potential impact of AI advancements on the need for agent seats, which could affect Five9's primary monetization strategy.

International Market Challenges

Some international prospects are more hesitant to sign deals with U.S. companies, and it has also seen a lengthening sales cycle for larger enterprise deals.

Management Uncertainty

The ongoing search for a new CFO and the conservative guidance from outgoing CFO create uncertainty in future risk assessments.

Five9 Business Overview & Revenue Model

Company Description

Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company offers virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions. Its solution enables its clients to manage these customer interactions across various channels, including voice, video, chat, email, website, social media, click-to-call, callback, and mobile channels, as well as through APIs; and provides natural language processing and automatic speech recognition solutions. The company serves customers in various industries comprising banking and financial services, business process outsourcers, consumer, healthcare, technology, and education. Five9, Inc. was incorporated in 2001 and is headquartered in San Ramon, California.

How the Company Makes Money

Five9 generates revenue primarily through a subscription-based model, where customers pay recurring fees to access its cloud contact center software. The company offers various pricing tiers based on the features and scale of the services provided, allowing it to cater to businesses of different sizes and needs. Key revenue streams include subscription fees for its software-as-a-service (SaaS) offerings and professional services, such as implementation, training, and support. Additionally, Five9 partners with various technology providers and resellers to expand its market reach and enhance its service offerings, which can contribute to its revenue growth.

Five9 Financial Statement Overview

Summary

Five9 exhibits robust revenue growth and effective cash flow management, with a strong operating cash flow position despite current unprofitability. The balance sheet is stable, but high debt levels require attention.

Income Statement

Five9 has shown a consistent growth trajectory in its revenue, with a TTM revenue of $1.07 billion, reflecting strong market demand. The gross profit margin remains healthy at around 52.6% in the TTM, indicating effective cost management. However, the company is not yet profitable on a net income basis, with a negative net profit margin of -0.5% for the TTM, though losses have been narrowing, showing potential for future profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.86, reflecting reliance on debt financing but with a manageable equity base. The equity ratio stands at 31.8%, indicating a stable asset structure, though there is room for improvement in financial leverage. The company has been increasing its equity base, supporting future growth and stability.

Cash Flow

Five9's cash flow position is strong, with an operating cash flow of $159 million for the TTM, showing solid cash generation capabilities. The free cash flow to net income ratio indicates positive cash flow generation despite net losses, with free cash flow significantly improved at $119 million for the TTM, demonstrating effective capital efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.04B	910.49M	778.85M	609.59M	434.91M
Gross Profit	565.58M	564.40M	477.80M	411.35M	338.49M	254.62M
EBITDA	22.30M	54.96M	-10.62M	13.31M	-8.82M	14.54M
Net Income	-5.14M	-12.79M	-81.76M	-94.65M	-53.00M	-42.13M
Balance Sheet
Total Assets	2.09B	2.05B	1.49B	1.24B	1.19B	1.06B
Cash, Cash Equivalents and Short-Term Investments	370.34M	1.01B	730.30M	614.26M	469.86M	603.54M
Total Debt	1.23B	1.23B	793.88M	790.56M	825.51M	653.22M
Total Liabilities	1.43B	1.43B	956.48M	934.52M	981.81M	784.58M
Stockholders Equity	664.29M	622.19M	538.09M	309.96M	211.13M	279.16M
Cash Flow
Free Cash Flow	119.27M	78.56M	88.07M	32.69M	-13.73M	36.88M
Operating Cash Flow	159.20M	143.17M	128.84M	88.86M	28.48M	67.30M
Investing Cash Flow	-37.83M	-266.55M	-259.56M	30.96M	-150.48M	-382.33M
Financing Cash Flow	9.17M	342.73M	94.58M	-30.23M	-7.50M	457.42M

Five9 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVN, the sentiment is Negative. The current price of 26.65 is below the 20-day moving average (MA) of 27.60, above the 50-day MA of 26.44, and below the 200-day MA of 32.58, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 46.55 is Neutral, neither overbought nor oversold. The STOCH value of 31.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIVN.

Five9 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	79 Outperform	$8.55B	33.16	30.28%	―	27.39%	115.40%
QLYS	78 Outperform	$5.13B	28.97	40.23%	―	9.58%	12.41%
FIVN	72 Outperform	$2.03B	―	-0.90%	―	14.44%	91.60%
ZS	72 Outperform	$48.57B	―	-2.68%	―	25.46%	49.20%
VRNS	64 Neutral	$5.61B	―	-22.21%	―	13.34%	13.71%
S	64 Neutral	$5.90B	―	-26.98%	―	32.25%	20.56%
Sector *	63 Neutral	$32.90B	6.03	-11.70%	1.95%	5.55%	-19.87%

Five9 Corporate Events

Five9 Holds Annual Stockholders Meeting on May 21

On May 21, 2025, Five9, Inc. held its annual meeting of stockholders where three directors were elected to the board, executive compensation was approved on an advisory basis, and KPMG LLP was ratified as the independent public accounting firm for the fiscal year ending December 31, 2025. With 88% of common stock represented, these decisions are pivotal for Five9’s governance and financial oversight, reflecting strong shareholder engagement and support for the company’s strategic direction.

The most recent analyst rating on (FIVN) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Five9 stock, see the FIVN Stock Forecast page.