Software provider Five9 received record revenue
Software company Five9 Inc. (FIVN) has published a substantial report for the third quarter of 2021. Subscription revenue is growing at a high double-digit rate, and the company continues to diversify to attract new customers.
In the quarter ended September 30, Five9’s revenue grew by 38% year-on-year to a record $154.3 million, with a GAAP loss of $20.5 million, or $0.3 per share.
The gross margin decreased slightly to 56.5%. A positive signal is the continued rapid growth (+51%) of subscription sales to the services of the corporate platform for automating customer service using tools with elements of artificial intelligence (AI).
During the COVID-19 period – against the background of a sharp increase in demand for tools for remote work – Five9 received an impulse to increase sales, which has to this day. However, FIVN quotes have declined significantly since August because shareholders rejected the merger of Five9 with another player in the cloud communications industry — Zoom Video Communications (ZM).
Five9 shareholders believe that the company has opportunities for independent development in a fast-growing market. The quarterly report indicates that can justify these expectations. For example, in the fourth quarter, Five9 expects sales growth of an average of 29% in the range of $164.5-$165.5 million.
Five9 invests a significant part of the income received in expanding the functionality of its ecosystem and increasing the targeted audience. The main product of Five9 is software for customer service centers, technical support, and other services.
Recently, the company has started using tools with elements of artificial intelligence to improve the commercial efficiency of support services and other structures interacting with end-users of services. Can use Some of the Five9 tools to organize remote work.
FIVN shares are currently trading 21% below the 52-week high. At the auction on November 10, the FIVN share was worth $166.27.
