SAN RAMON — Five9 (NASDAQ:) shares rose more than 6% as the cloud software provider reported strong first-quarter results, beating analysts’ expectations with adjusted earnings per share (EPS) of $0.48, up $0. 09 above the consensus forecast of $0.39.
Revenue also topped estimates, coming in at $247.01 million versus the $239.98 million expected, up 13% from the $218.4 million reported in the previous year’s first quarter.
The company’s performance was supported by strong year-on-year growth in subscription revenue of 20%, as well as an adjusted EBITDA margin of 15%.
Five9 Chairman and CEO Mike Berkland attributed the strong performance to its data-centric, artificial intelligence-powered platform and its largest deal with a Fortune 50 financial services company.
“The market remains huge and underserved, we believe we are the clear market leader and see a long road ahead for sustainable growth,” Berkland said.
Looking ahead, Five9’s second-quarter 2024 guidance calls for revenue of $244 million to $245 million, with the midpoint slightly below analyst consensus of $248 million. However, the adjusted EPS forecast range of $0.42 to $0.44 matches the consensus estimate of $0.44.
For the full year, the company expects revenue of $1.053 billion to $1.057 billion, slightly below the consensus estimate of $1.06 billion. Projected adjusted EPS of $2.15 to $2.19 matches the consensus of $2.16 .
Positive investor sentiment following the earnings release and optimistic guidance reflect confidence in the company’s growth trajectory and position in the market. Although slightly off the high end of full-year revenue guidance, strong first-quarter results and the signed record agreement point to a strong outlook for Five9’s business.
remove advertising
.
This article was created with the help of AI and reviewed by an editor. For more information please see our Terms and Conditions.