Five9 (FIVN) Q3 Earnings and Revenues Beat Estimates

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]