Five9 (FIVN) dips 5% on mixed guidance; FQ4 earnings top estimates

Five9 (NASDAQ: FIVN) saw its shares drop more than 5% following the closing bell on Wednesday after the company’s guidance overshadowed strong FQ4 results.

For the fourth quarter, the Contact Center As A Service (CCaaS) provider posted earnings per share (EPS) at $0.61, surpassing the analyst prediction of $0.48. Revenue came in at $239.1 million, just above the consensus estimate of $238.06 million.

The adjusted gross margin for the quarter stood at 61.3%, marking a decrease from 62.3% in the same period last year.

Looking ahead to FQ1 2024, Five9 projects its EPS to be between $0.37 and $0.39, exceeding the analyst consensus of $0.32.

Revenue is estimated to range from $239 million to $240 million, below the expected $245.6 million.

For the full year 2024, the company anticipates its EPS to be between $2.14 and $2.18, aligning with the lower end of the analyst consensus of $2.14.

Full-year revenue is seen ranging from $1.053 billion to $1.057 billion, compared to the $1.055 billion expected by analysts.

“We are pleased to report strong revenue growth of 17% for the full year 2023. This growth continues to be driven by our Enterprise business where subscription revenue grew 25% in 2023," said Mike Burkland, Chairman and CEO of Five9.

"We continue to strengthen our AI leadership in CX, gaining meaningful traction with our offerings and significantly enhancing our platform throughout 2023."

By Vahid Karaahmetovic

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