Group 1 - Five9's shares have decreased by 50% this year, raising investor concerns about competition and potential reductions in seat counts among customers adopting AI-based contact solutions [1] - The company operates in a competitive landscape, which is exacerbated by the increasing adoption of AI technologies that may lead to fewer required seats for customer service operations [1] Group 2 - The article reflects the author's personal investment philosophy, focusing on undercovered companies in sectors such as technology, software, electronics, and energy transition [1] - The author has over 7 years of personal investment experience and aims to identify asymmetric investment opportunities for achieving market-beating returns [1]

Shares of Five9 ( FIVN ) have been cut in half so far this year. Investor concerns remain elevated due to competition and the threat of seat count reduction at customers who are adopting AI-based contactAn individual investor primarily focused on undercovered companies, with up to 100 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally. Through my years of an ...

Investors with an interest in Internet - Software stocks have likely encountered both Five9 (FIVN) and Autodesk (ADSK) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revi ...

Core Insights - Voss Capital's funds underperformed compared to major indices in Q3 2025, with returns of +5.0% and +4.9% against +12.4% for the Russell 2000 Index, +12.6% for the Russell 2000 Value Index, and +8.3% for the S&P 500 Index [1] - The Voss Value Master Fund had a total gross exposure of 205.4% and a net long exposure of 95.8% as of September 30, 2025 [1] - The fund's top 10 long positions accounted for 77.8% of its portfolio, while the top 10 short positions represented -43.5% [1] Company Focus: Five9, Inc. - Five9, Inc. is identified as an intelligent cloud software provider for contact centers, with a one-month return of -13.69% and a 52-week loss of 52.10% [2] - As of December 01, 2025, Five9's stock closed at $19.86, with a market capitalization of $1.553 billion [2] Performance Analysis of Five9, Inc. - Five9's subscription growth decreased from 16% in Q2 to 10% in Q3, leading to a negative market reaction [3] - Despite the deceleration, Voss Capital remains optimistic about Five9's future, citing robust underlying demand with Enterprise AI revenue growing over 40% and Enterprise AI bookings increasing over 80% year-over-year [3] - The current growth challenges are viewed as minor execution issues rather than indicators of structural obsolescence [3]

Core Viewpoint - Five9, Inc. is actively engaging with investors by participating in upcoming conferences, showcasing its commitment to transparency and investor relations [1] Conference Participation - Five9 management will present at the UBS Global Technology and AI Conference on December 2nd at 4:15 pm MST [1] - The company will also participate in the Barclays 23rd Annual Global Technology Conference on December 10th at 1:55 pm PT [1] - A webcast of these events will be available on the investor relations section of the company's website [1]

Core Insights - Five9 announced the winners of the 2025 New Era of CX Awards, recognizing organizations that are innovating customer and employee experiences through AI and automation [1][2] - The awards highlight achievements in seven categories, showcasing how companies are leveraging the Five9 Intelligent CX Platform to enhance customer interactions and drive business outcomes [2] Award Categories and Winners - **AI Elevated CX Trailblazer**: Northwestern Mutual achieved a 94% CSAT accuracy rate and improved operational efficiency through AI Insights and Agent Assist [4] - **Best in CX Self Service**: The Dufresne Group increased CSAT from 60% to 95% by implementing Five9 IVAs, enhancing customer self-service and agent interactions [4] - **Best CX Platform Innovator**: SONDA's Help Desk 2.0 integration with Five9 led to a 27% rise in agent productivity across LATAM [4] - **Most Trusted Expert Award**: Christian Healthcare Ministries reduced call abandonment from 10.1% to 1.8% by modernizing member engagement with Five9 [4] - **Revenue Execution Impact**: Omaha Steaks utilized Five9 SecurePay to protect millions in revenue and scale agent operations from 200 to 1,500 during peak season [4] - **CX Leader of the Year**: Synovus Bank transformed its contact center, reducing call abandonment rates from 31% to 7% and improving wait times from 6:53 to 1:26 [4] - **Judges' Choice**: BTG Pactual created a high-performance CX ecosystem by combining AI orchestration with human expertise [4] Company Overview - Five9 provides the Intelligent CX Platform, empowering organizations to create AI-driven customer experiences that yield better business outcomes [5] - The platform is trusted by over 3,000 customers and 1,400 partners globally, emphasizing its role in enhancing customer engagement [5]

Core Insights - Five9, Inc. is a leading provider of cloud-based contact center software, competing in the growing cloud communications market with a focus on customer interactions [1] - Despite a recent stock price decline, Five9 is viewed as a strong investment opportunity with a growth potential of 43.44% [2][6] - The company has a robust Piotroski Score of 8 out of 9, indicating strong financial health and operational efficiency [3][6] - The recent stock price decline may be linked to broader market volatility, but a potential rebound is anticipated as investors recognize the company's underlying value [4] - Five9's innovative solutions and solid financial health make it an attractive long-term investment option [5][6] Financial Performance - Five9's stock has seen a monthly loss of 3.17% and an 11.56% drop over the past 10 days, presenting a potential entry point for investors [2][4] - The target price for Five9's stock is set at $30, indicating significant upside potential from current trading levels [4][5] - The company's strong financial metrics, including profitability, leverage, and liquidity, are reflected in its high Piotroski Score [3] Market Position - Five9 has established itself as a key player in the cloud communications market, competing with major players like RingCentral and NICE [1] - The company's innovative technology and customer-centric approach contribute to its competitive advantage in the industry [1][5]

Core Insights - Five9 reported better-than-expected earnings for Q3, with earnings of 78 cents per share, surpassing the analyst consensus estimate of 73 cents per share [1] - Quarterly sales reached $285.800 million, exceeding the analyst consensus estimate of $285.042 million [1] - The company raised its FY2025 adjusted EPS guidance from a range of $2.86-$2.90 to $2.92-$2.96, while slightly lowering its sales guidance from $1.144 billion-$1.150 billion to $1.143 billion-$1.149 billion [1] Financial Performance - Enterprise AI revenue grew 41% year-over-year, indicating strong growth in this segment [2] - Adjusted EBITDA margin reached a record 25%, reflecting improved profitability [2] Market Reaction - Following the earnings announcement, Five9 shares fell by 14.4%, trading at $18.36 [2] Analyst Ratings and Price Targets - Piper Sandler maintained an Overweight rating but lowered the price target from $31 to $26 [5] - Barclays also maintained an Overweight rating, reducing the price target from $33 to $29 [5] - Cantor Fitzgerald kept an Overweight rating while lowering the price target from $36 to $32 [5] - Wells Fargo maintained an Equal-Weight rating and decreased the price target from $28 to $22 [5]

Core Insights - Five9 reported better-than-expected earnings for Q3, with earnings of 78 cents per share, surpassing the analyst consensus estimate of 73 cents per share [1] - Quarterly sales reached $285.800 million, exceeding the analyst consensus estimate of $285.042 million [1] - The company raised its FY2025 adjusted EPS guidance from a range of $2.86-$2.90 to $2.92-$2.96, while slightly lowering its sales guidance from $1.144 billion-$1.150 billion to $1.143 billion-$1.149 billion [1] Financial Performance - Enterprise AI revenue grew 41% year-over-year, indicating strong growth in this segment [2] - Adjusted EBITDA margin reached a record 25%, reflecting improved profitability [2] Market Reaction - Following the earnings announcement, Five9 shares fell by 14.4%, trading at $18.36 [2] Analyst Ratings and Price Targets - Piper Sandler maintained an Overweight rating but lowered the price target from $31 to $26 [5] - Barclays also maintained an Overweight rating, reducing the price target from $33 to $29 [5] - Cantor Fitzgerald kept an Overweight rating while lowering the price target from $36 to $32 [5] - Wells Fargo maintained an Equal-Weight rating and reduced the price target from $28 to $22 [5]

Core Insights - Five9 met Wall Street's revenue expectations for Q3 CY2025, reporting sales of $285.8 million, an 8.2% year-on-year increase [1][5] - The company's non-GAAP profit of $0.78 per share exceeded analysts' consensus estimates by 6.5% [1][5] - Revenue guidance for the next quarter is $297.7 million, which is 0.8% below analysts' estimates [1][5] Financial Performance - Revenue of $285.8 million compared to analyst estimates of $285.2 million, reflecting an 8.2% year-on-year growth [5] - Adjusted EPS of $0.78 surpassed analyst estimates of $0.73 by 6.5% [5] - Adjusted Operating Income was $57.11 million, beating analyst estimates of $52.72 million, with a 20% margin [5] - Billings at quarter end were $293.8 million, up 5.4% year on year [5] - Market Capitalization stands at $1.66 billion [5] Strategic Insights - Management attributed strong performance to increasing enterprise demand for AI-powered solutions, with AI bookings growing over 80% year-on-year [3] - The shift towards high-margin subscription revenue and operational improvements contributed to margin expansion and record free cash flow [3] - The company is adjusting sales strategies and resource allocation in response to short-term headwinds in the commercial segment [3] Future Outlook - Updated guidance reflects confidence in sustained AI momentum, although revenue outlook for the next quarter is modest [4] - Backlog from recent enterprise and AI bookings is expected to drive sequential growth, with increased cross-sell and upsell activity [4] - Longer implementation cycles for complex AI deployments may delay revenue recognition, with expectations to return to double-digit growth in the second half of next year [4]