Core Insights - Five9 (FIVN) is witnessing a surge in enterprise AI adoption as contact center platforms shift from agent-centric models to AI-driven customer experiences [2] - The enterprise AI market is expected to grow at a CAGR of 37.6% from 2025 to 2030, with a significant migration from on-premise to cloud-native architectures [3] - FIVN's AI bookings increased over 80% year-over-year in Q3, with AI revenues making up 11% of enterprise subscription revenues, indicating a shift from pilot phases to production deployments [4] Market Dynamics - Strategic partnerships are enhancing FIVN's growth, with ServiceNow-related bookings quadrupling year-to-date and Salesforce partnerships contributing to 60% booking growth [5] - The Zacks Consensus Estimate for FIVN's 2026 revenues is $1.26 billion, reflecting a 9.54% year-over-year increase [5] Competitive Landscape - FIVN faces competition from NICE and RingCentral, which focus on analytics-driven AI and unified communications, respectively [6] - FIVN differentiates itself by maintaining conversation context across AI and human agent interactions, targeting enterprises needing end-to-end orchestration [6] Financial Performance - FIVN shares have declined 24.9% over the past six months, underperforming the Zacks Internet - Software industry and the Zacks Computer and Technology sector [7] - The forward 12-month price-to-earnings ratio for FIVN is 16.37X, significantly lower than the industry's 33.3X, indicating a favorable valuation [10] - The Zacks Consensus Estimate for FIVN's 2026 EPS is $3.17, suggesting an 8.34% year-over-year growth [12]

Core Insights - Datadog (DDOG) and Five9 (FIVN) are significant players in the enterprise cloud software sector, focusing on cloud monitoring and contact center solutions respectively, both essential for digital-first enterprises [1][2] Industry Overview - The global enterprise software market is expected to reach $517.26 billion by 2030, with a CAGR of 12.1% from 2025 to 2030, indicating substantial growth opportunities for companies like DDOG and FIVN as cloud adoption and AI integration accelerate [2] Datadog (DDOG) Analysis - Datadog provides a unified observability and monitoring platform, facilitating the management of cloud infrastructure as enterprises shift to hybrid and multi-cloud environments [4] - The Zacks Consensus Estimate for DDOG's fourth-quarter 2025 revenues is $914.55 million, reflecting a year-over-year growth of 23.9% [4] - Datadog's consumption-based revenue model aligns with customer cloud spending but introduces revenue volatility during economic uncertainty [4] - The company supports over 1,000 integrations and has a platform strategy that consolidates multiple monitoring tools, with 84% of customers using more than two products [5] - Datadog faces competition from hyperscaler-native monitoring tools and open-source alternatives, which exert pricing pressure [5] - The Zacks Consensus Estimate for DDOG's fourth-quarter EPS is 55 cents, indicating a year-over-year growth of 12.24% [7] Five9 (FIVN) Analysis - Five9 operates a cloud-based contact center platform that enables enterprises to manage customer interactions across various channels, benefiting from the shift towards AI-driven customer experience [8] - The Zacks Consensus Estimate for FIVN's fourth-quarter 2025 revenues is $297.7 million, indicating a year-over-year growth of 6.83% [8] - FIVN's subscription-based model provides predictable cash flows through multi-year contracts, enhancing revenue stability [8] - The platform approach allows for orchestrating interactions between AI and human agents, creating a competitive advantage through improved customer satisfaction [11] - Strategic partnerships, such as with ServiceNow, Salesforce, and Google Cloud, are significant growth catalysts for Five9 [12] - The Zacks Consensus Estimate for FIVN's fourth-quarter EPS is 79 cents, showing a year-over-year growth of 1.3% [13] Price Performance and Valuation - Over the past six months, Datadog shares have increased by 5.3%, while Five9 shares have decreased by 26.1%, reflecting differing investor sentiments [14] - Datadog trades at a forward sales multiple of 11.94x, significantly higher than FIVN's 1.23x, indicating a premium valuation for DDOG [17] Conclusion - Both Datadog and Five9 are well-positioned to benefit from long-term trends in enterprise software and AI adoption, but Five9 appears to offer a better risk-reward profile at current levels due to its predictable revenues and focused use case [19]

Five9, Inc. (NASDAQ:FIVN) is one of the AI Stocks Making Waves on Wall Street. On December 22, Needham maintained its Buy rating on the stock, keeping its price target at $40.00. Firm analysts remain confident on FIVN following contact center as a service (CCaaS) specialist consultations, noting that AI demand will sustain long-term growth. “We connected with two CCaaS experts including the CRO at a firm specializing in BPO & CCaaS solutions and a Senior Account Executive at a pure-play Contact Center co ...

Five9, Inc. (NASDAQ:FIVN) is one of the AI Stocks on the Market’s Radar. On December 18, Needham reiterated a “Buy” rating on the stock with a $40.00 price target. The rating affirmation follows Five9’s appointment of a new CEO, which the firm views as largely positive for scaling and AI product momentum. On Wednesday, December 17, Five9 announced the appointment of Amit Mathradas as the company’s next CEO, succeeding long-time CEO Mike Burkland. Mathradas will assume duties as CEO effective February 2, 2 ...

Company Overview - Five9, Inc. (NASDAQ:FIVN) is recognized as a promising small-cap stock with significant upside potential [1][2] - The company specializes in cloud software for contact centers, focusing on omnichannel routing, workforce organization, analytics, and reporting [4] Leadership Changes - Amit Mathradas has been appointed as the new Chief Executive Officer and director, effective February 2, 2026, succeeding Mike Burkland, who will remain on the Board [1] Financial Performance - For fiscal Q3 2025, Five9 reported an 8% increase in revenue, reaching a record $285.8 million compared to $264.2 million in the same quarter last year [3] - The company's Enterprise AI revenue grew by 41% year-over-year, and adjusted EBITDA margin reached a record 25% [3] Future Projections - For the full year 2025, Five9 anticipates revenue between $1.1435 billion and $1.1495 billion, with GAAP net income per share projected between $0.36 and $0.43, based on approximately 88.0 million diluted shares outstanding [4] Analyst Ratings - William Blair analyst Arjun Bhatia reaffirmed a Buy rating for Five9, while Wells Fargo analyst Ryan MacWilliams maintained a Hold rating with a price target of $22 [2]

Company Overview - Five9 provides a cloud-based contact center platform that offers voice, video, chat, email, social media, and API-driven customer engagement solutions [8] - The company serves enterprise clients across various industries, including banking, financial services, healthcare, technology, education, and business process outsourcing [8] - Five9 operates a subscription-based model, allowing clients access to its virtual contact center suite and related services [9] - The company leverages advanced technologies such as natural language processing and automatic speech recognition to enhance customer experience [9] Financial Performance - Five9 reported a record revenue of $285.8 million, representing an 8% year-over-year increase, with Enterprise AI revenue surging by 41% [11] - Profitability improved significantly, with adjusted EBITDA margins expanding to 25.1% from 19.8% a year earlier [11] - Operating cash flow reached a quarterly record of $59 million, indicating that growth is being achieved without sacrificing financial discipline [11] - Management authorized a $150 million share repurchase program, signaling confidence in the company's financial health [11] Investment Activity - S Squared Technology increased its holdings in Five9 by 165,000 shares in the third quarter, bringing total holdings to 350,000 shares valued at $8.5 million [2][3] - Five9 now represents 3.2% of S Squared's assets under management, although it is not among the fund's top five holdings [4][6] - The stock price of Five9 was $20.72, down 50% over the past year, contrasting with the S&P 500's 16% gain during the same period [4] Market Position and Outlook - Five9 is positioned as a key player in the cloud-based contact center market, with a focus on innovation and scalability [9] - The recent investment by S Squared Technology may indicate confidence in Five9's operating fundamentals despite its stock market performance [10] - The company is not priced for growth perfection, but improving margins, a rising AI revenue mix, and strengthening cash generation suggest a healthier business than indicated by its stock performance [12]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

Core Insights - Five9 (FIVN) is focusing its growth strategy on a strategic partner ecosystem as enterprises transition to AI-driven customer experience platforms [1] - The company is enhancing its cloud contact center platform by integrating it with enterprise systems, allowing for modernization of customer service operations while maintaining existing workflows [1] Growth Strategy - The ecosystem-driven strategy is enhancing Five9's capability to secure larger and more complex enterprise deployments, with partner integrations becoming essential for customer service modernization [2] - The partnership with ServiceNow is a key component, enabling unified voice and digital interactions powered by AI, which is increasingly embedded in daily workflows [2] - Collaborations with Salesforce and Google Cloud are expected to broaden enterprise adoption and enhance customer engagement capabilities [3] Financial Performance - Five9 reported revenues of $286 million in Q3 2025, reflecting an 8% year-over-year growth, with subscription revenues increasing by 10% [3] - The Zacks Consensus Estimate for Five9's 2025 revenues is $1.15 billion, indicating a 10.04% year-over-year growth [3] - The estimated earnings for 2025 are projected at $2.93 per share, suggesting an 18.62% year-over-year growth [10] Competitive Landscape - Five9 faces competition from NICE and RingCentral in the cloud-based customer communications and contact center software market [4] - NICE focuses on analytics and workforce optimization, while RingCentral emphasizes unified communications [4] - Five9 differentiates itself through deeper workflow integration with enterprise systems rather than modular add-ons [4] Valuation Metrics - Five9 shares are currently trading at a forward 12-month price-to-earnings ratio of 17.03X, which is lower than the industry's 33.38X [8] - The company holds a Value Score of A, indicating favorable valuation metrics [8] - Five9 has experienced a share price decline of 25.2% over the past six months, underperforming the Zacks Internet - Software industry [5]

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 ...