Five9 (FIVN) Q3 earnings report preview: what to look for

What happened

Five9, a cloud contact center software provider, is scheduled to report its third-quarter earnings this Thursday after the market closes. Analysts expect revenue to grow 11.7% year over year, compared with 8.2% growth in the same quarter last year; estimates were generally reaffirmed over the past 30 days.

Confirmed

Global impact / market context

The report will show whether Five9’s sales growth is accelerating as analysts expect. Stronger revenue could support investment in its contact center software business, while weaker growth could raise questions about customer demand and future sales. Operating income, which reflects profit from business operations, will also indicate how well costs are controlled.

Analyst inference

Five9 beat revenue expectations last quarter, with revenue up 10.3% year over year, and exceeded estimates for adjusted operating income. Among reported peers, RingCentral grew revenue 5.9% and beat estimates, while Microsoft grew 18.8% and also beat; their share-price responses differed.

Confirmed

What to watch

1. Check whether reported revenue growth exceeds or falls short of the 11.7% year-over-year expectation, since the result will shape views of Five9’s sales momentum. Analyst inference
2. Compare adjusted operating income with expectations; this measure excludes selected items and can show whether business costs are rising faster or slower than revenue. Analyst inference
3. Watch management’s comments on customer demand and the outlook for future revenue, because these may clarify whether the expected improvement can continue beyond this quarter. Analyst inference

Evidence

• stockstory.org