Key Takeaways FIVN is winning larger enterprise deployments as partner integrations become central to service modernization.Five9 Fusion for ServiceNow embeds AI routing into daily workflows, lifting usage and subscription durability.Zacks Consensus Estimate pegs Five9's 2025 revenues at $1.15B, implying 10% year-over-year growth.Five9 (FIVN) is anchoring its growth strategy around its strategic partner ecosystem as enterprises shift toward AI-driven customer experience platforms. Rather than relying on inc ...

Industry Overview - The AI-driven bull run that began in 2023 and 2024 has continued into 2025, with strong momentum in the AI infrastructure segment [2] - The demand for AI infrastructure remains robust, supported by a bullish market scenario [2] Capital Expenditure Trends - Four of the "magnificent 7" stocks are set to invest $380 billion in 2025 for AI infrastructure development, representing a 54% year-over-year increase in capital spending [3] - Projections indicate that AI infrastructure capital expenditure will exceed $1 trillion by 2028, with estimates reaching a cumulative total of $5 trillion by 2030 [4] Investment Recommendations - Five small and mid-cap stocks are highlighted as potential beneficiaries of the AI boom in 2026: Calix Inc. (CALX), Qualys Inc. (QLYS), Innodata Inc. (INOD), Five9 Inc. (FIVN), and UiPath Inc. (PATH) [5][10] Company Profiles Calix Inc. (CALX) - CALX provides cloud and software platforms for communications service providers, integrating AI to enhance operations and subscriber engagement [8][9] - Expected revenue and earnings growth rates for CALX are 12.4% and 35.3%, respectively, for the next year [11] Qualys Inc. (QLYS) - QLYS specializes in cloud-based cybersecurity solutions, benefiting from increased demand amid rising cyber threats [12][15] - The company has a projected revenue growth rate of 7.7% and earnings growth of 6.5% for the next year [16] Innodata Inc. (INOD) - INOD plays a crucial role in the AI ecosystem by providing high-quality data for training language models, with expected revenue and earnings growth rates of 24.1% and 35.6%, respectively [18][21] - The company supports five of the seven major hyperscalers and is expanding its capabilities in AI services [19][20] Five9 Inc. (FIVN) - FIVN offers intelligent cloud software for contact centers, with a focus on AI-driven solutions that enhance customer interactions [22][25] - The expected revenue and earnings growth rates for FIVN are 9.5% and 8.3%, respectively, for the next year [26] UiPath Inc. (PATH) - PATH provides a robotic process automation platform that leverages AI to streamline operations, with new generative AI features enhancing its offerings [27][28] - The company anticipates revenue and earnings growth rates of 9.3% and 14.2%, respectively, for the next year [30]

Five9, Inc. (NASDAQ:FIVN) is one of the best agentic AI stocks to buy now. As of December 10, Wall Street’s consensus on Five9 is Moderate Buy, with roughly 19 analysts covering the stock and an average 12-month price target of around $34–$35. From the recent share price near the low-20s, that target implies about 60%–65% upside. Why Analysts Think Five9 Could Climb Over 60% From Current Levels On November 18, 2025, the company introduced a slate of “Genius AI” upgrades at its CX Summit 2025. Five9 said ...

Core Insights - The company is focused on a two-pronged growth strategy, emphasizing both product development and market approach [1] - There are two significant growth vectors identified for the company moving forward [1] Growth Vectors - The AI for Customer Experience (CX) segment is a major growth driver, with AI revenue growing 41% year-over-year and constituting 11% of enterprise subscription revenue [2] - AI bookings for the quarter increased by 80% year-over-year, indicating strong demand and rapid growth in this area [2] - The traditional Contact Center as a Service (CCaaS) market also presents a solid growth opportunity, with Gartner noting that 40% of contact center agents are currently in the cloud, leaving a substantial portion still on-premise [3]

Five9 (NasdaqGM:FIVN) FY Conference Summary Company Overview - **Company**: Five9 - **Industry**: Cloud-based Contact Center as a Service (CCaaS) Key Points Growth Strategy - Five9 is pursuing a two-pronged growth strategy focusing on product development and market approach [3][4] - The company identifies two major growth factors: AI for Customer Experience (CX) and traditional CCaaS market growth [3][4] - AI revenues are growing at 41% year-over-year, now constituting 11% of enterprise subscription revenue [3][4] - AI bookings increased by 80% year-over-year in the last quarter, indicating strong demand [4] Market Dynamics - Gartner projects that the percentage of contact center agents in the cloud will rise from 40% to 80% over the next several years, providing a significant growth opportunity for Five9 [4][5] - The migration to cloud solutions is expected to offset any potential cannibalization of human agents due to AI advancements [5][6] AI Adoption and Customer Engagement - The adoption of AI solutions is evolving, with many brands transitioning from proof of concepts to defined projects [12][14] - Customers are realizing the importance of integrated platforms for AI deployment, leading to increased demand for Five9's solutions [14][16] - Five9's AI offerings include self-service AI agents, Agent Assist products, and AI Insights for customer experience optimization [17][20] Partnerships and Market Position - Five9 has strengthened partnerships with major players like Salesforce, ServiceNow, and Google, with significant year-over-year growth in bookings [33][34][35] - The company is gaining market share as its growth rates outpace those of its partners, indicating a stronger position within their ecosystems [36] Financial Performance - Subscription revenue growth was 16% in Q2 and 10% in Q3, impacted by tough comparisons and a decline in the commercial business segment [42][44] - The company expects to see improved revenue trends as it laps tough comparisons and benefits from a strong backlog of new logo and install-based bookings [46][47] - Five9 is guiding for an annual revenue of $1.254 billion, with expectations of double-digit growth in the second half of the year [46] Profitability and Cost Management - Adjusted EBITDA margin improved from 19% in 2024 to a guidance of at least 24% for the current year, with a mid-term target of 25%-30% by 2027 [56] - The company is focused on cost management while reinvesting in strategic areas like AI and go-to-market initiatives [56] Capital Allocation - Five9 announced a $150 million share buyback program over two years, reflecting confidence in its valuation and cash flow generation [63] - The company is open to tech tuck-in acquisitions but remains cautious about overpaying for assets [66] Leadership and Culture - Five9 is seeking a new leader with a strong track record in product innovation and operational excellence to maintain its customer-centric culture [68][69] Additional Insights - The company emphasizes the importance of conversational data for AI effectiveness, positioning itself as a key player in the orchestration of AI and human interactions [27][28] - Five9's NPS scores are notably high, reflecting its commitment to customer success and satisfaction [69]

Core Insights - Five9 (FIVN) shares have declined 49.1% over the past 12 months, underperforming the Zacks Computer and Technology sector's return of 27.3% and the Zacks Internet Software industry's appreciation of 4.5% due to macroeconomic challenges and a transitional phase in its commercial business [1][5][9] Financial Performance and Projections - For 2025, FIVN expects revenues between $1.1435 billion and $1.1495 billion, with an adjusted EBITDA margin of approximately 23% [3] - The company anticipates exceeding a non-GAAP EPS of $3.14 for 2026, with an adjusted EBITDA margin expanding to 24% or higher and annual free cash flow reaching approximately $175 million [3] Competitive Positioning - FIVN differentiates itself with a platform that integrates AI agents and human agents, leveraging complete conversational history to enhance customer relationships [6][7] - The company has attracted over 3,000 customers globally and achieved its highest number of new $1 million-plus ARR logo wins in two years during Q3 2025 [7] AI and Market Trends - FIVN is benefiting from a surge in demand for AI-powered customer experience solutions, with enterprise AI revenue growing 41% year over year and AI bookings rising over 80% in Q3 2025 [8][9] - Strategic partnerships with ServiceNow, Salesforce, and Alphabet are enhancing FIVN's market position, with ServiceNow-related bookings quadrupling year to date [10][11] Valuation and Earnings Estimates - FIVN shares are attractively valued with a forward 12-month Price/Earnings ratio of 17.85X, significantly lower than the industry average of 34.04X and the sector average of 29.04X [12] - The Zacks Consensus Estimate for EPS in 2025 is $2.93, indicating an 18.62% year-over-year growth, reflecting increasing confidence in FIVN's subscription-led business model [15] Conclusion - Despite recent underperformance, FIVN is positioned favorably due to strengthening fundamentals, a data-driven platform advantage, and accelerating demand for AI solutions [16]

Group 1 - Five9 (FIVN) closed at $20.65, with a 4.1% gain over the past four weeks, and a mean price target of $33.95 suggests a 64.4% upside potential [1] - The mean estimate consists of 20 short-term price targets with a standard deviation of $8.77, indicating variability among analysts; the lowest estimate is $22.00 (6.5% increase), while the highest is $59.00 (185.7% increase) [2] - Analysts show strong agreement in revising earnings estimates higher, with the Zacks Consensus Estimate for the current year increasing by 25.4% over the last 30 days [11][12] Group 2 - FIVN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - The consensus price target may not be a reliable indicator of the stock's potential gain, but it does imply a positive direction for price movement [14]

Industry Overview - The artificial intelligence (AI) infrastructure segment is experiencing significant momentum, driven by a bullish demand scenario, which is expected to transform the world over the next five years [2]. Company Summaries Innodata Inc. (INOD) - Innodata is positioned as a key partner in the AI revolution, providing essential data for training advanced language models, with a long-term growth outlook supported by major tech companies and diverse customer bases [6][7]. - The company has launched a GenAI Test and Evaluation Platform to validate large language models, enhancing its capabilities in AI data and integration [8][10]. - Innodata's expected revenue and earnings growth rates for the next year are 24.1% and 35.6%, respectively, with a Zacks Consensus Estimate for earnings improving by 1.7% over the last 30 days [11]. Calix Inc. (CALX) - Calix provides cloud and software platforms for communication service providers, integrating AI to enhance operations and subscriber engagement [13][14]. - The company has an expected revenue growth rate of 12.4% and an earnings growth rate of 35.3% for the next year, with the Zacks Consensus Estimate for earnings improving by 8.3% over the last 60 days [14]. Five9 Inc. (FIVN) - Five9 specializes in contact center software solutions, benefiting from increased subscription revenues and the adoption of AI tools in its services [16][19]. - The company has an expected revenue and earnings growth rate of 9.7% and 8.3%, respectively, for the next year, with the Zacks Consensus Estimate for earnings improving by 1.3% over the last 30 days [21].

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

Five9 Conference Call Summary Company Overview - **Company**: Five9 (NasdaqGM:FIVN) - **Industry**: Cloud Contact Center Solutions Key Points AI Trends and Platform Advantages - Five9 is witnessing a significant shift towards AI in contact centers, with customers preferring an end-to-end platform that integrates AI and human interactions [4][5] - The company estimates AI revenue to be approximately $85 million, representing about 7% of total revenue, with a growth rate of over 40% in recent quarters [6][8] - AI revenue constitutes 11% of enterprise subscription revenue, with bookings growth exceeding 80% in the last quarter [8][9] Competitive Landscape - Five9 competes with various software companies, including CRM players and LLM providers, but emphasizes its end-to-end platform as a key differentiator [10][11] - The company is open to integrating third-party AI solutions, provided they enhance customer experience [12][14] Product Announcements - Recent product announcements at the CX Summit included: - **Agentic Quality Management (AQM)**: Allows AI to evaluate 100% of interactions based on customizable criteria, enhancing monitoring capabilities [15][16] - **Genius Routing**: Utilizes AI for dynamic routing decisions, improving efficiency over traditional methods [17] Financial Performance - Subscription revenue growth slowed from 16% in Q2 to 10% in Q3, primarily due to tough year-over-year comparisons and a decline in commercial revenue [19][20] - The company expects normalization in commercial revenue and anticipates a return to historical growth trends [20][24] Future Growth Outlook - Five9 is positioned for growth with a backlog of new logo bookings and upselling opportunities within existing customers [24][27] - The company projects a return to double-digit growth in total revenue by 2027, driven by both AI and traditional CCaaS segments [30][44] Margin Expansion and Cash Flow - Five9 achieved nearly 500 basis points of adjusted EBITDA margin expansion and expects at least 100 basis points in 2026 [34] - The company is focused on improving cash flow, targeting $175 million for 2026, driven by better working capital management and reduced CapEx [36][37] Partnerships - Five9 has strong partnerships with Salesforce, ServiceNow, and Google, with significant year-over-year growth in ACV bookings from these partners [38] Leadership Transition - The company is in the process of selecting a new CEO, emphasizing the need for innovation, operational excellence, and cultural fit [41] Conclusion - Five9 is navigating a dynamic market with a strong focus on AI integration, product innovation, and strategic partnerships, while also addressing recent financial challenges and preparing for future growth opportunities [30][44]