Core Insights - Scalar Gauge Management sold its entire stake in Five9 for an estimated $10.6 million in the third quarter, liquidating 399,717 shares [1][2] - Five9's stock price closed at $24.28, reflecting an 18% decline over the past year, underperforming the S&P 500's nearly 17% gain during the same period [3] - Scalar Gauge's exit from Five9 indicates a broader trend of pulling back from cloud software investments amid compressed enterprise valuations [6][7] Company Overview - Five9 is a leading provider of cloud software for contact centers, facilitating customer interactions across various digital and voice channels [5][9] - The company reported a trailing twelve months (TTM) revenue of $1.1 billion and a net income of $8.8 million [4] Market Context - Scalar Gauge noted that software multiples have fallen below 2022 troughs despite stronger profitability, indicating that valuation pressures are influencing market behavior rather than fundamentals [7] - The firm continues to view enterprise software as an attractive segment but is temporarily reducing exposure while awaiting market stabilization [7][10]

Core Insights - The AI-driven bull run that began in 2023 and 2024 continues into 2025, with AI infrastructure developers poised for significant growth [1] - Despite the overall positive trend, several AI stocks have underperformed in 2025, presenting potential growth opportunities [2] Company Summaries Five9 Inc. (FIVN) - Five9 is a contact center software solutions provider benefiting from increased subscription revenues and enterprise AI traction [4][9] - The company offers a virtual contact center cloud platform with applications for customer service, sales, and marketing [5] - FIVN's expected revenue and earnings growth rates for the current year are 10.6% and 16.6%, respectively, with a 4.3% improvement in earnings estimates over the last 90 days [9] TaskUs Inc. (TASK) - TaskUs provides outsourced digital services across various sectors, including social media and e-commerce [11] - The company has formed strategic partnerships to enhance its agentic AI consulting services, driving double-digit growth [12][13] - TASK's expected revenue and earnings growth rates for the current year are 17.8% and 16.3%, respectively, with a 4.2% improvement in earnings estimates over the last 60 days [13] Workday Inc. (WDAY) - Workday's diversified product portfolio and cloud-based business model are key growth drivers, supported by significant investments [15][16] - The company has strong customer wins across various sectors, contributing to its revenue growth [16] - WDAY's expected revenue and earnings growth rates for the current year are 12.7% and 21.1%, respectively, with a 0.3% improvement in earnings estimates over the last 60 days [17] GitLab Inc. (GTLB) - GitLab offers a DevOps platform that enhances visibility and control over the DevOps lifecycle, with significant innovations in its product portfolio [18] - The introduction of GitLab Duo Workflow, a secure agentic AI, is expected to expand its market presence [19] - GTLB's expected revenue and earnings growth rates for the current year are 23.8% and 12.2%, respectively, with a notable 10.7% improvement in earnings estimates over the last 60 days [19] BILL Holdings Inc. (BILL) - BILL Holdings focuses on AI-enabled financial software for small and medium businesses, benefiting from a growing client base [21][22] - The company is enhancing customer experience through its AI-powered financial operations platform [22] - BILL's expected revenue and earnings growth rates for the current year are 10.5% and -3.2%, respectively, with a 0.5% improvement in earnings estimates over the last 30 days [23]

Core Insights - Afiniti Inc. has announced a partnership with Five9 to integrate its AI Pairing technology into the Five9 Intelligent Cloud Contact Center, aiming to enhance customer experience and business outcomes [1] Company Overview - Afiniti Inc. is a global provider specializing in artificial intelligence and customer experience optimization [1] - Five9 is recognized as an intelligent CX platform provider [1] Technology and Impact - The collaboration will enable Five9 customers to utilize Afiniti's AI Pairing technology, which is designed to improve conversion rates and boost agent performance [1] - The integration is expected to drive measurable business outcomes for organizations using the Five9 platform [1]

Industry Overview - The artificial intelligence (AI) infrastructure segment is experiencing significant momentum, driven by a bullish demand scenario, with expectations of transformative changes across various fields over the next five years, including hyperscale automation, robotics, healthcare, energy, materials, financials, and cybersecurity [1] Company Summaries Innodata Inc. (INOD) - Innodata is positioned as a key player in the AI revolution, providing essential data for training advanced language models, with a focus on long-term demand from big tech, enterprises, federal agencies, and healthcare [3][4] - The company has launched a GenAI Test and Evaluation Platform aimed at validating large language models, enhancing its integration with major tech investments [5] - Innodata's expected revenue growth rate is 42.8% for the current year, with earnings growth projected at -6.7%, while next year's revenue and earnings growth rates are expected to be 26.6% and 46.6%, respectively [9][10] Five9 Inc. (FIVN) - Five9 provides intelligent cloud software for contact centers, benefiting from rising subscription revenues and the adoption of AI tools, particularly through its Intelligent CX Platform powered by Five9 Genius AI [11][13] - The platform includes features such as interactive virtual agents and AI insights, optimizing customer interactions across multiple channels [12] - Five9's expected revenue growth rate is 10.1% for the current year, with earnings growth at 16.6%, and for the next year, both revenue and earnings growth are projected at 9.6% and 8.5%, respectively [15] UiPath Inc. (PATH) - UiPath offers an end-to-end automation platform with embedded AI, machine learning, and natural language processing capabilities, enhancing decision-making and information processing [16][17] - The company has introduced new generative AI features to improve automated AI models tailored for specific business needs [17] - UiPath's expected revenue growth rate is 10.1% for the current year, with earnings growth at 22.6%, and for the next year, revenue and earnings growth rates are projected at 8.1% and 11.3%, respectively [18]

Core Insights - The analyst has not reviewed Five9, Inc. (NASDAQ: FIVN) since January, indicating a lack of recent analysis on the stock's value [1] Company Analysis - The analyst previously assessed that Five9, Inc. did not represent good value at the time of the last review [1] - The focus is on companies that combine strong fundamentals with real potential, particularly in the tech, infrastructure, and internet services sectors [1] Analyst Background - The analyst holds FMVA® and BIDA® certifications and has a background in petroleum and gas engineering, transitioning into finance due to an interest in business growth and market reactions [1] - The analyst aims to share investment ideas and connect with long-term investors, emphasizing the importance of thoughtful analysis over short-term market noise [1]

Group 1 - The analyst has not reviewed Five9, Inc. (NASDAQ: FIVN) since January and previously did not find the stock to represent good value [1] - The analyst has a background in petroleum and gas engineering but transitioned to finance, focusing on tech, infrastructure, and internet services [1] - The analyst aims to share investment ideas and connect with long-term investors, emphasizing the importance of strong fundamentals and potential [1] Group 2 - No stock or derivative positions are held by the analyst in any mentioned companies, nor are there plans to initiate such positions in the near future [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole [3]

Group 1 - Five9 has been recognized as a Leader in the inaugural IDC MarketScape: European Contact Center as a Service 2025 Vendor Assessment [1] - This recognition highlights Five9's strengths in supporting European enterprises with complex requirements for data protection, sovereignty, and compliance [1] - The company is noted for its capabilities in modernizing omni-channel customer experience [1]

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors: Montrose Environmental Group, Fox, and Five9 [1][2][3] Group 1: Montrose Environmental Group (MEG) - Montrose Environmental Group provides environmental services primarily in the United States [1] - The company has a Zacks Rank of 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 8.9% over the last 60 days [1] - Montrose has a PEG ratio of 1.12, significantly lower than the industry average of 4.86 [2] - The company possesses a Growth Score of A [2] Group 2: Fox (FOX) - Fox produces and distributes news, sports, and entertainment content [2] - The company also carries a Zacks Rank of 1 (Strong Buy) [2] - The Zacks Consensus Estimate for its current year earnings has increased by 5.5% over the last 60 days [2] - Fox has a PEG ratio of 1.26 compared to the industry average of 2.44 [2] - The company possesses a Growth Score of B [2] Group 3: Five9 (FIVN) - Five9 offers software products including workforce management, speech recognition, predictive dialer, and voice applications [3] - The company holds a Zacks Rank of 1 (Strong Buy) [3] - The Zacks Consensus Estimate for its current year earnings has increased by 0.4% over the last 60 days [3] - Five9 has a PEG ratio of 0.53, which is lower than the industry average of 0.62 [3] - The company possesses a Growth Score of B [3]

Group 1 - Five9 Inc. is considered one of the most undervalued technology stocks according to analysts [1] - The company announced the appointment of Sudhakar Ramakrishna to its Board of Directors, effective September 26, and the retirement of Lead Independent Director David Welsh after over 14 years of service [1][3] - Ramakrishna has approximately 25 years of technology leadership experience and is currently the CEO of SolarWinds Corporation, where he has led significant transformations in technology and cybersecurity [2][3] Group 2 - Five9 provides intelligent cloud software for contact centers, offering a CX platform that supports customer service, sales, and marketing functions [4] - Ramakrishna's expertise in enterprise software, cybersecurity, and IT infrastructure is expected to benefit Five9, particularly in scaling secure, AI-driven platforms [3]

Core Insights - Five9 Inc. has launched Five9 Fusion for ServiceNow, an AI-powered solution aimed at enhancing customer service experiences through unified voice and digital interactions [1][2]. Group 1: Product Launch and Features - Five9 Fusion integrates voice and digital interactions via an AI transcription stream, featuring a single routing engine to improve customer service delivery [2]. - The solution combines Five9's real-time system actions with ServiceNow's Customer Service Management (CSM), creating a unified AI-powered platform for businesses [2][4]. - The integration reduces expenses and provides end-to-end visibility across the customer journey, equipping agents with instant context and tools for quicker issue resolution [3]. Group 2: Benefits and Impact - Five9 Fusion aims to eliminate the friction of using multiple systems, empowering agents with a single interface for more efficient and personalized interactions [4]. - The integration enhances the customer experience by making every touchpoint more intuitive and impactful for both customers and agents [4]. - Five9's use of Generative AI in its cloud contact center platform aims to deliver more human-like and efficient customer interactions through its Genius AI Suite [4].