February 24, 2024
London, UK

Five9, Inc. (FIVN) Third Quarter Earnings

FIVN Five9

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.

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