Cloud contact center software provider Five9 (NASDAQ: FIVN) will be reporting earnings this Thursday after market close. Here’s what to look for.
Five9 beat analysts’ revenue expectations last quarter, reporting revenues of $312.4 million, up 10.3% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates.
Is Five9 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Five9’s revenue to grow 11.7% year on year, improving from the 8.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Five9 has a history of exceeding Wall Street’s expectations.
Looking at Five9’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. RingCentral delivered year-on-year revenue growth of 5.9%, beating analysts’ expectations by 1.3%, and Microsoft reported revenues up 18.8%, topping estimates by 1.8%. RingCentral traded up 5% following the results while Microsoft’s stock price was unchanged.
Read our full analysis of RingCentral’s results here and Microsoft’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 3.5% on average over the last month. Five9 is up 4% during the same time and is heading into earnings with an average analyst price target of $36.90 (compared to the current share price of $35.73).
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