Five9 to Report Q1 Earnings: What's in the Cards for the Stock?

Core Viewpoint - Five9 (FIVN) is expected to report first-quarter 2025 results on May 1, with anticipated revenues of $271.5-$272.5 million, reflecting a 10.35% increase year-over-year [1][2] Revenue and Earnings Expectations - The Zacks Consensus Estimate for revenues is $272.58 million for the quarter [1] - Non-GAAP earnings are projected to be between 47-49 cents per share, with the consensus estimate at 48 cents, unchanged from the previous year [2] Performance Drivers - Five9's performance is expected to benefit from strong enterprise AI revenue growth, which increased by 46% year-over-year in Q4 2024, contributing to 9% of enterprise subscription revenues [3] - The company achieved a record adjusted EBITDA margin of 23.1% and generated $79 million in free cash flow in Q4 2024, indicating strong operational efficiency [4] - Partnerships with major companies like Salesforce, ServiceNow, Microsoft, Verint, and Google are likely to enhance Five9's competitive position and customer acquisition [5] Macroeconomic Factors - The company may face challenges from macroeconomic factors such as persistent inflation, high interest rates, and currency fluctuations, which could impact performance [6] Earnings Prediction Model - According to the Zacks model, Five9 has an Earnings ESP of -11.27% and a Zacks Rank of 3, indicating lower odds of an earnings beat [7]