Five9 Gears Up to Report Q2 Earnings: What's in Store for the Stock?

Core Insights - Five9 (FIVN) is expected to report second-quarter 2025 results on July 31, with projected revenues between $274.5 million and $275.5 million, indicating a 9.1% year-over-year increase [1][8] - Non-GAAP earnings are anticipated to be in the range of 64-66 cents per share, reflecting a 25% year-over-year growth [2][8] - The company has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 19.3% [2] Revenue and Earnings Expectations - The Zacks Consensus Estimate for FIVN's Q2 revenues is $275.1 million, suggesting a 9.1% increase from the previous year [8] - The consensus estimate for FIVN's Q2 EPS is 65 cents, indicating a 25% year-over-year growth [8] Factors Influencing Performance - Five9's Q2 performance is likely to benefit from strong enterprise AI revenues, which grew 32% year-over-year in the first quarter and accounted for 9% of enterprise subscription sales [3] - The company reported an 18.8% adjusted EBITDA margin and $35 million in free cash flow in the first quarter, providing a solid financial foundation for further investments [4] - Strategic partnerships with major companies like Salesforce, Microsoft, and Google are expected to enhance FIVN's growth by improving AI tool integration and client retention [5] Macroeconomic Considerations - Despite positive factors, macroeconomic challenges such as persistent inflation, high interest rates, and currency fluctuations may have impacted Five9's performance in the quarter [6] Earnings Model Insights - According to the Zacks model, Five9 has a Zacks Rank of 3 and an Earnings ESP of 0.00%, indicating a neutral outlook for earnings performance [7]