What To Expect By Stock Story

Call center software provider Five9 (NASDAQ: NASDAQ:)
will be reporting results tomorrow after market close. Here’s what investors should know.

Five9 met analysts’ revenue expectations last quarter, reporting revenues of $239.1 million, up 14.7% year on year. It was a decent quarter for the company, with a solid beat of analysts’ billings estimates.

Is Five9 a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.

This quarter, analysts are expecting Five9’s revenue to grow 9.9% year on year to $240.1 million, slowing from the 19.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Five9 has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.4% on average.

Looking at Five9’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pegasystems (NASDAQ:) delivered year-on-year revenue growth of 1.4%, missing analysts’ expectations by 2.1%, and ServiceNow (NYSE:) reported revenues up 24.2%, in line with consensus estimates. Pegasystems’s stock price was unchanged after the resultswhile ServiceNow was down 4.1%.

Read the full analysis of Pegasystems’s and ServiceNow’s results on StockStory.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share prices down 4% on average over the last month. Five9 is down 5.4% during the same time and is heading into earnings with an average analyst price target of $84.4 (compared to the current share price of $57.56).