Five9 (FIVN) AI Stock Analysis

• Market Cap: $2.22B
• Dividend Yield: N/A
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 14.44%
• EPS Growth: 91.60%
• Country: US
• Employees: 3,073
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): 0.62
• Shares Outstanding: 76,272,010
• 10 Day Avg. Volume: 1,704,373
• 30 Day Avg. Volume: 1,973,443
• PEG Ratio: -7.03
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.64
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: 32.35
• 1Y Price Target: $35.50
• Price Target Upside: 21.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 73 Outperform
• Price Target: $31.00 ▲(6.35%Upside)

Five9's overall stock score reflects strong financial performance and positive earnings call outlook, offset by challenges in valuation metrics and longer sales cycles. Strategic investments in AI and partnerships with major players like Salesforce and Google Cloud are key strengths supporting future growth.

Positive Factors

AI Integration

Monetizing AI through partnerships in addition to its own.

Earnings

Five9 outperformed Street expectations and beat across both revenue and operating income.

Negative Factors

AI Advancements

There are concerns about the potential impact of AI advancements on the need for agent seats, which could affect Five9's primary monetization strategy.

Sales Cycle

Some international prospects are more hesitant to sign deals with U.S. companies, and it has also seen a lengthening sales cycle for larger enterprise deals.

Five9 Business Overview & Revenue Model

Company Description

Five9, Inc. (FIVN) is a leading provider of cloud-based contact center solutions, catering to businesses across various industries. The company offers a comprehensive suite of applications designed to optimize customer interactions and improve customer service operations. Its core products include inbound and outbound call center services, workforce management, predictive dialing, and analytics. Five9's solutions enable organizations to engage customers more effectively through multiple channels such as voice, email, chat, and social media, all within a single platform.

How the Company Makes Money

Five9 generates revenue primarily through a subscription-based model, where customers pay recurring fees to access its cloud contact center software. The company offers various pricing tiers based on the features and scale of the services provided, allowing it to cater to businesses of different sizes and needs. Key revenue streams include subscription fees for its software-as-a-service (SaaS) offerings and professional services, such as implementation, training, and support. Additionally, Five9 partners with various technology providers and resellers to expand its market reach and enhance its service offerings, which can contribute to its revenue growth.

Five9 Financial Statement Overview

Summary

Five9 exhibits robust revenue growth and effective cash flow management, with a strong operating cash flow position despite current unprofitability. The balance sheet is stable, but high debt levels require attention.

Income Statement

Five9 has shown a consistent growth trajectory in its revenue, with a TTM revenue of $1.07 billion, reflecting strong market demand. The gross profit margin remains healthy at around 52.6% in the TTM, indicating effective cost management. However, the company is not yet profitable on a net income basis, with a negative net profit margin of -0.5% for the TTM, though losses have been narrowing, showing potential for future profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.86, reflecting reliance on debt financing but with a manageable equity base. The equity ratio stands at 31.8%, indicating a stable asset structure, though there is room for improvement in financial leverage. The company has been increasing its equity base, supporting future growth and stability.

Cash Flow

Five9's cash flow position is strong, with an operating cash flow of $159 million for the TTM, showing solid cash generation capabilities. The free cash flow to net income ratio indicates positive cash flow generation despite net losses, with free cash flow significantly improved at $119 million for the TTM, demonstrating effective capital efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.07B	1.04B	910.49M	778.85M	609.59M	434.91M
	Gross Profit
565.58M	564.40M	477.80M	411.35M	338.49M	254.62M
	EBIT
-31.95M	-51.30M	-98.58M	-87.58M	-56.25M	-9.27M
	EBITDA
22.30M	54.96M	-10.62M	13.31M	-8.82M	14.54M
	Net Income Common Stockholders
-5.14M	-12.79M	-81.76M	-94.65M	-53.00M	-42.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
643.47M	1.01B	730.30M	614.26M	469.86M	603.54M
	Total Assets
1.12B	2.05B	1.49B	1.24B	1.19B	1.06B
	Total Debt
833.01M	1.23B	793.88M	790.56M	825.51M	653.22M
	Net Debt
656.68M	870.58M	650.68M	610.04M	734.63M	432.85M
	Total Liabilities
974.54M	1.43B	956.48M	934.52M	981.81M	784.58M
	Stockholders Equity
144.21M	622.19M	538.09M	309.96M	211.13M	279.16M
Cash Flow		Free Cash Flow
119.27M	78.56M	88.07M	32.69M	-13.73M	36.88M
	Operating Cash Flow
159.20M	143.17M	128.84M	88.86M	28.48M	67.30M
	Investing Cash Flow
-37.83M	-266.55M	-259.56M	30.96M	-150.48M	-382.33M
	Financing Cash Flow
9.17M	342.73M	94.58M	-30.23M	-7.50M	457.42M

Five9 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVN, the sentiment is Neutral. The current price of 29.15 is above the 20-day moving average (MA) of 27.44, above the 50-day MA of 25.73, and below the 200-day MA of 32.89, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 86.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FIVN.

Five9 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QLYS	78 Outperform	$5.15B	28.99	40.23%	―	9.58%	12.41%
FOUR	77 Outperform	$8.37B	31.93	30.28%	―	27.39%	115.40%
ZS	74 Outperform	$47.18B	―	-2.68%	―	25.46%	49.20%
FIVN	73 Outperform	$2.22B	―	-0.90%	―	14.44%	91.60%
VRNS	64 Neutral	$5.67B	―	-22.21%	―	13.34%	13.71%
S	64 Neutral	$6.10B	―	-26.98%	―	32.25%	20.56%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%

Five9 Corporate Events

Five9 Holds Annual Stockholders Meeting on May 21

On May 21, 2025, Five9, Inc. held its annual meeting of stockholders where three directors were elected to the board, executive compensation was approved on an advisory basis, and KPMG LLP was ratified as the independent public accounting firm for the fiscal year ending December 31, 2025. With 88% of common stock represented, these decisions are pivotal for Five9’s governance and financial oversight, reflecting strong shareholder engagement and support for the company’s strategic direction.

The most recent analyst rating on (FIVN) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Five9 stock, see the FIVN Stock Forecast page.

Five9 Appoints Andy Dignan as New President

On March 10, 2025, Five9, Inc. appointed Andy Dignan as its new President, following his tenure as Chief Operating Officer since November 2023. This strategic promotion is accompanied by a comprehensive compensation package, including a base salary, bonus eligibility, and stock awards, aligning his incentives with the company’s performance goals. This move is expected to strengthen Five9’s leadership team and potentially enhance its market position within the cloud contact center industry.