Five9 (FIVN) AI Stock Analysis

• Market Cap: $1.86B
• Dividend Yield: N/A
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 266.3
• Beta (1Y): 1.61
• Revenue Growth: 14.21%
• EPS Growth: N/A
• Country: US
• Employees: 3,073
• Sector: Technology
• Sector Strength: 96
• Industry: Software - Infrastructure
• EPS (TTM): 0.76
• Shares Outstanding: 77,262,690
• 10 Day Avg. Volume: 2,781,879
• 30 Day Avg. Volume: 2,104,979
• PEG Ratio: 2.79
• Price to Book (P/B): 4.87
• Price to Sales (P/S): 2.91
• P/FCF Ratio: 38.54
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 47.15
• 1Y Price Target: $36.64
• Price Target Upside: 49.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 65 Neutral
• Price Target: $26.00 ▲(5.73% Upside)

Five9's stock score is primarily driven by its strong financial performance and positive earnings call results which highlight significant growth in AI and profitability. However, the stock's technical analysis presents bearish signals, and the high P/E ratio suggests overvaluation, which negatively impacts the overall score.

Positive Factors

AI Trends

Enterprise AI revenue grew 42% to 10% of total revenue, showing strong momentum in AI trends.

Financial Performance

The adjusted EBITDA margin and adjusted EPS exceeded analyst forecasts, indicating strong financial performance.

Revenue Guidance

The company raised full-year revenue guidance, reflecting confidence in ongoing business strength and AI traction.

Negative Factors

International Market Hesitation

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.

Management Changes

Management changes with the announcement of the CEO's retirement might cause uncertainty until a successor is named.

Seasonal Benefits

FIVN expects weaker-than-normal Q4 seasonal benefits based on customer conversations and tougher comparisons.

Five9 Business Overview & Revenue Model

Company Description

Five9, Inc. is a leading provider of cloud-based contact center software, enabling businesses to deliver exceptional customer service through advanced automation and analytics. Founded in 2001 and headquartered in San Ramon, California, Five9 offers a comprehensive suite of solutions that includes inbound and outbound calling, multichannel communication, workforce optimization, and artificial intelligence integration. The company primarily serves sectors such as retail, healthcare, financial services, and technology, helping organizations enhance customer engagement and improve operational efficiency.

How the Company Makes Money

Five9 generates revenue primarily through subscription-based pricing models, which include monthly or annual fees for access to its cloud contact center solutions. The company's key revenue streams consist of software licenses, professional services, and customer support. Additionally, Five9 offers various add-on services, such as analytics and workforce optimization tools, that provide opportunities for upselling and cross-selling. Significant partnerships with major telecommunications providers and technology companies further contribute to its earnings by expanding its market reach and enhancing product offerings.

Five9 Financial Statement Overview

Summary

Five9 exhibits strong revenue growth and improving operational efficiency, evident from positive trends in revenue and cash flow metrics. Despite these strengths, the company's profitability remains constrained by negative EBIT, and leverage is still a concern. The balance sheet reflects improved financial stability, but further reduction in leverage would enhance overall strength.

Income Statement

The company has shown strong revenue growth over the years, with a notable increase in the TTM period. Gross Profit Margin remains healthy at 54.9%, but the Net Profit Margin is low at 0.8% due to negative EBIT. The company has improved its EBITDA Margin to 2.3%, indicating better operational efficiency compared to previous periods.

Balance Sheet

The Debt-to-Equity Ratio has improved to 1.11, showing a reduction in leverage compared to last year, but it remains relatively high. Return on Equity (ROE) is positive at 1.2% for TTM, reflecting improved profitability. The Equity Ratio is 42.1%, suggesting a moderate level of financial stability.

Cash Flow

The company has demonstrated a robust Operating Cash Flow to Net Income Ratio of 19.8, indicating strong cash generation relative to net income. Free Cash Flow has grown significantly in TTM, and the Free Cash Flow to Net Income Ratio stands at 16.2, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.04B	910.49M	778.85M	609.59M	434.91M
Gross Profit	607.38M	564.40M	477.80M	411.35M	338.49M	254.62M
EBITDA	53.19M	54.96M	-10.62M	13.31M	-8.82M	14.54M
Net Income	8.83M	-12.79M	-81.76M	-94.65M	-53.00M	-42.13M
Balance Sheet
Total Assets	1.70B	2.05B	1.49B	1.24B	1.19B	1.06B
Cash, Cash Equivalents and Short-Term Investments	635.88M	1.01B	730.30M	614.26M	469.86M	603.54M
Total Debt	799.50M	1.23B	793.88M	790.56M	825.51M	653.22M
Total Liabilities	987.48M	1.43B	956.48M	934.52M	981.81M	784.58M
Stockholders Equity	717.38M	622.19M	538.09M	309.96M	211.13M	279.16M
Cash Flow
Free Cash Flow	142.75M	78.56M	88.07M	32.69M	-13.73M	36.88M
Operating Cash Flow	174.38M	143.17M	128.84M	88.86M	28.48M	67.30M
Investing Cash Flow	284.62M	-266.55M	-259.56M	30.96M	-150.48M	-382.33M
Financing Cash Flow	-428.81M	342.73M	94.58M	-30.23M	-7.50M	457.42M

Five9 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVN, the sentiment is Negative. The current price of 24.59 is below the 20-day moving average (MA) of 26.58, below the 50-day MA of 27.13, and below the 200-day MA of 32.28, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 12.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIVN.

Five9 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QLYS	75 Outperform	$4.62B	25.48	39.53%	―	9.69%	9.50%
ZS	73 Outperform	$42.22B	―	-2.68%	―	25.46%	49.20%
VRNS	72 Outperform	$6.09B	―	-25.73%	―	14.29%	-14.42%
FOUR	71 Outperform	$7.34B	30.75	19.00%	―	23.86%	79.35%
FIVN	65 Neutral	$1.86B	266.33	1.42%	―	14.21%	―
S	64 Neutral	$5.26B	―	-26.98%	―	28.19%	-31.34%
Sector *	61 Neutral	$36.31B	7.01	-9.37%	2.01%	7.73%	-9.28%

Five9 Corporate Events

Five9 Announces CEO Retirement and CFO Appointment

On July 31, 2025, Five9, Inc. announced the retirement of its CEO, Michael Burkland, who will remain in his role until a successor is appointed. Burkland will then serve as Executive Chairman for up to six months to aid in the transition. Concurrently, Bryan Lee was appointed as Chief Financial Officer, having previously served in an interim capacity. The company also plans to declassify its board and remove the supermajority vote threshold, aiming to enhance corporate governance and shareholder engagement.

The most recent analyst rating on (FIVN) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Five9 stock, see the FIVN Stock Forecast page.

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.