SAN DIEGO, Dec. 5, 2024 /PRNewswire/ -- Robbins LLP informs investors that a class action was filed on behalf of persons and entities that purchased or otherwise acquired Five9, Inc. (NASDAQ: FIVN) securities, including call options, between June 4, 2024 and August 8, 2024. Five9 provides software for a cloud-based contact center. For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.The Allegations: Robbins LLP is Investigating Allegations that Five9, Inc ...

NEW YORK, Dec. 5, 2024 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers or acquirers of securities, including call options, of Five9, Inc. (NASDAQ: FIVN) between June 4, 2024 and August 8, 2024, both dates inclusive (the "Class Period"). A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than February 3, 2025.So what: If you purchased Five9 securities, ...

Shares of Five9 (FIVN) have gained 33.3% over the past four weeks to close the last trading session at $41.28, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $51.67 indicates a potential upside of 25.2%.The mean estimate comprises 18 short-term price targets with a standard deviation of $9.09. While the lowest estimate of $40 indicates a 3.1% decline from the current price leve ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, November 19:Pitney Bowes Inc. (PBI) : This shipping and mailing company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.6% over the last 60 days.Pitney Bowes has a PEG ratio of 1.27 compared with 3.43 for the industry. The company possesses a Growth Score of B.The Greenbrier Companies, Inc. (GBX) : This railroad freight car equipment compa ...

Core Viewpoint - Five9 (FIVN) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, with a strong correlation established between earnings estimate revisions and near-term stock performance [4][6]. - Rising earnings estimates for Five9 indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10]. Earnings Estimate Revisions for Five9 - Five9 is projected to earn $2.28 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 11.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Five9 has surged by 205.9%, highlighting a significant upward revision trend [8].

Core Insights - SESTEK has officially partnered with Five9 to enhance customer-agent interactions through AI-powered solutions [1][2][3] - The collaboration aims to integrate SESTEK's advanced conversational technology into the Five9 Intelligent Cloud Contact Center, promoting personalized and efficient customer engagement [2][4] - SESTEK's solutions include Knovvu Conversational Analytics, Knovvu AQM, Knovvu Voice Biometrics, and Knovvu Real-Time Guidance, leveraging a speech recognition engine with over 97% accuracy in English [3] Company Overview - Five9 provides a comprehensive suite of solutions for customer engagement, performance insights, and business outcomes, serving over 2,500 organizations globally [5] - SESTEK specializes in AI-powered automation solutions for customer service, having assisted over 550 enterprise clients across 20 countries since its inception in 2000 [6]

Financial Data and Key Metrics Changes - Subscription revenue growth accelerated to 20% year-over-year, while total revenue growth accelerated to 15%, reaching a record of $264.2 million in Q3 [6][25] - Adjusted EBITDA margin was 19.8%, up 3.2 percentage points sequentially and 1.9 percentage points year-over-year [29] - Operating cash flow was a record $41 million, equivalent to 16% of revenue [6][31] - Non-GAAP EPS was $0.67 per diluted share, up $0.15 from Q3 2023 [31] Business Line Data and Key Metrics Changes - AI revenue grew 40% year-over-year, with Agent Assist experiencing 158% year-over-year growth [27] - The average ARR of new logo deals that included AI was over 5x larger than deals without AI [8] - AI bookings grew over 50% year-over-year in Q3 [8] Market Data and Key Metrics Changes - Telecom usage revenue made up 13% of Q3 revenue, declining year-over-year in the low single digits [28] - Professional services accounted for 7% of revenue, expected to remain stable or decline over the long term [28] Company Strategy and Development Direction - The acquisition of Acqueon is seen as a significant milestone to enhance the intelligent CX platform [14] - The company aims to drive long-term durable subscription revenue growth in the 20% to 30% range [17][36] - The focus on AI products is central to the company's strategy, with a strong emphasis on transforming customer experience [7][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential for subscription revenue growth despite current macroeconomic challenges [42][44] - The company is navigating a learning curve regarding AI adoption among customers, but remains confident in the long-term benefits [47][48] Other Important Information - The company opened a new data center in India, which is expected to unlock significant opportunities in the contact center market [67] - Five9 was named a leader in the Gartner Magic Quadrant for CCaaS [16] Q&A Session Summary Question: Insights on AI adoption from early adopters - Management noted that AI is central to customer experience, with many companies integrating AI to enhance both automation and human agent support [38][39] Question: Long-term subscription revenue growth expectations - Management remains excited about the potential for subscription revenue growth in the 20% to 30% range, emphasizing the importance of this metric [42][43] Question: Changes in consumer retail exposure and expectations for Q4 - Management observed a slightly better environment in Q3 across most verticals, with cautious expectations for Q4 due to economic indicators [51][52] Question: Competitive pricing pressure and deal closures - Management indicated no significant changes in competitive pricing pressure and noted that some medium-sized deals pushed into Q4 were successfully closed early in October [79][82]

Company Performance - Five9 reported quarterly earnings of $0.67 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and up from $0.52 per share a year ago, representing an earnings surprise of 15.52% [1] - The company posted revenues of $264.18 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.68%, compared to year-ago revenues of $230.11 million [2] - Over the last four quarters, Five9 has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - Five9 shares have declined approximately 60% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $260.7 million, and for the current fiscal year, it is $2.27 on revenues of $1.01 billion [7] - The estimate revisions trend for Five9 is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Five9 belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Company Overview - Five9 (NASDAQ: FIVN) is a software company that specializes in providing cloud solutions for contract and call centers [1] - The company has over 3,000 clients globally and employs 2,684 individuals [1] - Five9 operates under a SaaS (Software as a Service) business model [1] Investment Philosophy - The investment philosophy is based on fundamental bottom-up analysis and quantitative modeling [1] - The focus is on identifying perception gaps to take advantage of over-pessimism and excessive exuberance in the market [1] - The analysis aims to uncover unique trading opportunities influenced by the macroeconomic landscape and in-depth fundamental research on companies showing signs of dislocation or potential perception gaps [1]

Group 1 - The Bear Cave has released a bearish report on Five9, claiming that management has misled investors regarding the impact of AI on the company's business [1][2] - Five9 has not posted an annual profit since its IPO in 2014, and despite strong revenue growth, it recently lowered its revenue guidance, raising concerns among investors [3] - CEO Mike Burkland stated that AI is beneficial for Five9, expecting only 5% to 15% automation due to AI, while the company has also announced a workforce reduction of about 7% [4][5] Group 2 - The Bear Cave argues that Five9 is a "major AI loser" and is facing pressure as large companies cut spending on call centers [2][4] - The recent layoffs may indicate that management lacks confidence in its optimistic outlook regarding AI [5]