Scott Berg, an analyst from Needham, maintained the Buy rating on Five9 (FIVN – Research Report). The associated price target is $90.00.
Scott Berg has given his Buy rating due to a combination of factors that signal a strong position for Five9 despite current market pressures. In particular, Five9’s fourth quarter performance exceeded expectations, marking a significant achievement given the smallest top-line beat to date. This was primarily due to record enterprise bookings in the quarter, indicating robust demand for Five9’s offerings. Increased deal activity, especially for contracts valued between $1 million and $5 million, suggests a healthy pipeline that could enhance recurring revenue visibility in the second half of 2024.
Additionally, the integration of AI technology into Five9’s services is seeing positive reception, with AI attach rates comprising a notable portion of net new bookings. Although some concerns linger regarding the consumer vertical and international growth rates, the guidance for the fiscal year 2024 aligns with projections for mid-20% revenue growth in the fourth quarter. This guidance, together with the strong enterprise bookings, underscores Berg’s confidence in the company’s ability to navigate through cyclical headwinds and achieve revenue re-acceleration in the coming year.
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Five9 (FIVN) Company Description:
Five9, Inc. engages in the provision of cloud software for contact centers. It specializes in omnichannel routing, analytics, workforce organization, and reporting. The company was founded in December 2001 and is headquartered in San Ramon, CA.
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