Five9 (FIVN), the San Ramon, California-based company reported financial results for the third quarter that ended September 30, 2022. The revenue beat the estimates but the fourth quarter and full-year guidance disappointed investors.
Here are the key points from the Five9 Third Quarter 2022 Financial Results
Revenue rose 29% to a record $198.3 million, topping Wall Street analyst’s estimates of $196.5 million. In Q3 2021 the company posted revenue of $154.3 million.
Five9 net loss for Q3 was -$23.2 million, or -$0.33 a share, compared to net loss of -$20.5 million, or -$0.30 a share, for the third quarter of 2021.
Net income for Q3 was $27.8 million, or $0.39 per share, compared to net income of $20.0 million, or $0.28 per share, for the Q3 of 2021.
GAAP gross margin was 52.6% compared to 56.5% for the Q3 of 2021.
The Adjusted gross margin was 61.4%, compared to 64.1% for Q3 of 2021.
Adjusted EBITDA was $36.7 million, or 18.5% of revenue, compared to $27.4 million, or 17.8% of revenue, for Q3 of 2021.
GAAP operating cash flow for Q3 of 2022 was $30.5 million, compared to operating cash flow of $(4.8) million in the same quarter the previous year.
Five9 Q4 and Full-Year Guidance
For the current quarter ending in December, the company forecasts its per-share earnings to range from $0. 40 to $0.42 analysts’ expectations were for EPS of $0.51. Revenue is forecasted in the range of $204.0 to $205.0 million, below the estimates of $215.9.
FIVN expects full-year 2022 earnings in the range of $1.35 to $1.37 a share, with revenue ranging from $774.5 million to $775.5 million. The guidance disappointed investors and analysts who expected revenue of $782.56 and earnings per share of $1.42.
Why is Five9 (FIVN) stock dropping?
Five9 stock closed yesterday’s trading session 5.43% lower at $47.00, in after markets trading the stock is 12.13% lower at $41.30 after investors were disappointed by the company’s guidance for the fourth quarter and for the full-year 2022.
FIVN stock has a 52-week trading range between $46.61 and $168.56, and the market capitalization stands at $3.48 billion. Five9 hit an all-time on August 5, 2021, at $211.68.
On October 25, MKM Partners cut the Five9 price target from $135 to $110.
Five9 (FIVN) took a hit after the announcement in early October that the company’s CEO Rowan Trollope will resign to become the CEO at a company in a different sector. Mike Burkland the former CEO will return to the CEO position.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).
