Investors with an interest in Internet - Software stocks have likely encountered both Five9 (FIVN) and F5 Networks (FFIV) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revisio ...

The market expects Five9 (FIVN) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be releas ...

Core Insights - ServiceNow (NOW) has announced the acquisition of Logik.ai, enhancing its AI-powered Configure, Price, Quote (CPQ) solutions [1] - The acquisition aims to improve Customer Relationship Management capabilities, particularly in Sales and Order Management, by integrating advanced AI-driven sales tools [2] - Despite the positive long-term outlook from the acquisition, NOW's shares have fallen 31.9% year to date amid challenging macroeconomic conditions [3] Group 1: Acquisition Strategy - The acquisition of Logik.ai aligns with ServiceNow's goal to strengthen its CRM capabilities and enhance sales efficiency through AI solutions [4] - ServiceNow has been actively pursuing acquisitions, including Cuein, Moveworks, and Quality 360, to expand its AI footprint and improve operational efficiency [5][6] Group 2: Customer Growth and Partnerships - ServiceNow ended Q4 2024 with 2,109 customers with over $1 million in annual contract value, reflecting a 14% year-over-year growth [7] - The company has established strong partnerships with major players like NVIDIA, Google Cloud, and Oracle, which have been key to its business expansion [8][9][10] Group 3: Financial Outlook - For 2025, ServiceNow expects subscription revenues to range from $12.635 billion to $12.675 billion, indicating an 18.5% to 19% increase from 2024 [11] - The company anticipates a forex impact of approximately $175 million, which may affect growth rates, alongside a strategy to accelerate Agentic AI adoption [12] - The consensus estimate for 2025 earnings is $3.78 per share, representing a 10.85% increase from 2024 [12][13]

Financial Data and Key Metrics Changes - The company reported annual revenue exceeding $1 billion, with fourth-quarter revenue growth accelerating to 17% year-over-year, primarily driven by a 19% increase in subscription revenue [4][36] - Adjusted EBITDA margin for the fourth quarter reached a record 23%, contributing to record operating cash flow of $50 million, or 18% of revenue, and record free cash flow of $33 million, or 12% of revenue [5][36] - The company achieved a dollar-based retention rate of 108% and reported a decrease in stock-based compensation from $50 million to $38 million, improving to 14% of revenue in the fourth quarter [37][38] Business Line Data and Key Metrics Changes - Subscription revenue accounted for 79% of total revenue in Q4, with usage revenue at 14% and professional services at 7% [36] - Enterprise AI revenue grew 46% year-over-year, now representing 9% of enterprise subscription revenue [6][36] - The commercial business, which represents 11% of total revenue, grew in the low single digits on a last twelve months (LTM) basis [37] Market Data and Key Metrics Changes - The company experienced strong enterprise new logo bookings in Q4, with the highest number of $1 million plus ARR new logo wins in any quarter of 2024 [28] - The company noted heightened levels of RFP volume in Q4, indicating a robust pipeline entering 2025 [28] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance customer experience, with a strong emphasis on delivering accurate and personalized self-service solutions [6][9] - Partnerships with Salesforce, ServiceNow, Microsoft, Verint, and Google are expected to drive growth and innovation in AI-powered solutions [18][20][22] - The company aims to maintain its leadership position in AI for customer experience by providing a comprehensive suite of AI solutions and deep expertise [17][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2025, driven by AI adoption and a strong sales pipeline [51][52] - The company acknowledged macroeconomic uncertainties but indicated that it continues to deliver growth despite these challenges [52][68] - Management highlighted the importance of contextual data for AI effectiveness and the company's role as a control point for this data [59] Other Important Information - The CFO announced his retirement effective March 31, with Brian Lee appointed as Interim CFO [24][25] - The company will not host an Analyst Day in the first half of the year due to the CFO transition [42] Q&A Session Summary Question: How have customer conversations changed since the election, and what are the potential upside drivers for 2025? - Management noted that customer conversations are increasingly focused on leveraging AI, with excitement around AI growth and subscription revenue [49][50] Question: How does the company monetize access to contextual data, and what does that mean for the financial model? - Management explained that the company monetizes data access through voice stream and transcript stream, charging on a per-minute consumption basis [62] Question: What are the seasonal trends and deal cadence observed in Q4? - Management indicated that Q4 showed better-than-expected performance, particularly in consumer and healthcare sectors, with a positive growth trend [66][70] Question: How is the company addressing the shift from seat-based pricing to consumption-based models? - Management confirmed that the company is moving towards a consumption-based model, which provides significant ROI for customers [88][92] Question: What is the trajectory of AI revenue growth, and how does it compare to the overall business? - Management reported a 46% year-over-year growth in AI revenue, indicating a strong trajectory compared to the overall business growth [90][91]

There have been no material changes from the significant accounting policies previously disclosed in Part II, Item 8, of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 as filed with the SEC on February 24, 2023. Remaining Performance Obligations 13 Property and equipment capitalized under finance lease obligations consists primarily of computer and network equipment and was immaterial as of June 30, 2023 and December 31, 2022. UNITED STATES SECURITIES AND EXCHANGE COMMI ...

| --- | --- | |-----------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | Q4 2021 Investor | | | Presentation Five9 (NASDAQ: FIVN) | | | | | Safe Harbor 2 This presentation is proprietary and is intended solely for the information of the persons to whom it is presented. Disclosure of this presentation, its contents, extracts or abstracts to third parties is not authorized without the express written permission of Five9, Inc. (the "Company"), and it may not be retained, reproduc ...