FIVN

The past six months have been a windfall for Five9’s shareholders. The company’s stock price has jumped 87.6%, hitting $32.72 per share. This performance may have investors wondering how to approach the situation. Is now the time to buy Five9, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. We’re happy investors have made money, but we’re passing on Five9 for now. Here are three reasons why there are better opportunities than FIVN, plus one stock we’d rather own. Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Five9’s billings came in at $302.5 million in Q2, and over the last four quarters, its year-on-year growth averaged 9.1%. This performance was underwhelming and suggests that increasing competition is causing challenges in acquiring/retaining customers. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Five9’s revenue to rise by 10.5%, close to its 18.2% annualized growth for the past five years. This projection doesn’t excite us and suggests its newer products and services will not catalyze better top-line performance yet. For software companies like Five9, gross profit tells us how much money remains after paying for the base cost of products and services (typically servers, licenses, and certain personnel). These costs are usually low as a percentage of revenue, explaining why software is more lucrative than other sectors. Five9’s gross margin is substantially worse than most software businesses, signaling it has relatively high infrastructure costs compared to asset-lite businesses like ServiceNow. As you can see below, it averaged a 54.9% gross margin over the last year. That means Five9 paid its providers a lot of money ($45.09 for every $100 in revenue) to run its business. The market not only cares about gross margin levels but also how they change over time because expansion creates firepower for profitability and free cash generation. Five9 has seen gross margins improve by 2.1 percentage points over the last 2 years, which is solid in the software space. We cheer for all companies solving complex business issues, but in the case of Five9, we’ll be cheering from the sidelines. After the recent rally, the stock trades at 2.1× forward price-to-sales (or $32.72 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. There are superior stocks to buy right now. We’d suggest looking at one of our top digital advertising picks. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

SoundHound AI, Inc. SOUN has given Wall Street fresh reasons to become more positive after a record second quarter, highlighted by faster revenue growth, improving margins and strong adoption of its OASYS platform. The better-than-expected performance has led to upward estimate revisions, strengthening the investment case even as the stock remains sharply down in 2026. Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss has narrowed to 14 cents per share from 15 cents, while the estimated 2027 loss has narrowed to 15 cents from 17 cents. The consensus estimate calls for 2026 revenues to rise 41% from the 2025 level, followed by another 14.6% increase in 2027. However, the expected 2026 loss remains wider than the loss of 13 cents per share reported in the previous year. SOUN Estimate Revision Image Source: Zacks Investment Research The bullish brokerage view is also notable. Of the eight recommendations making up the current Average Brokerage Recommendation, five are Strong Buy, accounting for 62.5% of the total. The average Wall Street price target implies 62.2% upside from the latest closing price. Image Source: Zacks Investment Research SoundHound delivered second-quarter revenues of $61.9 million, up 45% year over year and 40% sequentially. The quarter marked the company's highest revenue to date. Non-GAAP loss was 2 cents per share compared with 3 cents a year earlier. GAAP gross margin expanded to 45.1% from 39%, while adjusted EBITDA loss improved 33% to $9.6 million from $14.3 million.The quarter's strength was broad-based rather than dependent on one market. Management said growth came from healthcare, financial services, technology and automotive, while enterprise AI remained the largest contributor to revenues. SoundHound also continued to expand its automotive presence in Asia.Strong second-quarter execution prompted management to raise its 2026 revenue outlook to $230-$260 million. The guidance does not yet incorporate the planned LivePerson acquisition, and SoundHound intends to update its outlook when that transaction closes. OASYS is becoming central to SoundHound's growth story. Management attributed a significant part of the second quarter's stronger-than-expected performance to the self-learning agentic AI platform, which was launched in May. The company said it is seeing strong results across demos, RFPs, pilots and production deployments. One eight-figure commitment moved from initial demonstration to contract signing in less than 90 days, highlighting the potential for OASYS to shorten sales cycles.The platform also gives SoundHound a way to expand within existing customers. OASYS allows businesses to deploy AI agents across phones, vehicles, restaurants, retail locations and other channels rather than building separate solutions for each channel. A top-20 healthcare provider quadrupled its spending with SoundHound during the second quarter, while the company expanded or renewed relationships with several other healthcare and financial-services customers.SoundHound's proprietary technology could support margins over time as well. The company is investing in its Polaris speech foundation model, specialized LLMs and speech synthesis. Its smaller-business customers are already operating entirely on SoundHound's own stack, and management believes greater use of proprietary models can reduce costs while improving accuracy, latency and control. SoundHound is increasingly diversified beyond its traditional automotive business. During the second quarter, it added and expanded customers across healthcare, financial services, restaurants, automotive and consumer devices. Restaurant adoption was particularly encouraging, with technology expanding across Five Guys, IHOP and Jersey Mike's, while a major pizza brand had SoundHound deployed in more than 75% of its locations. The company also signed an initial eight-figure multiyear partnership covering more than 20 countries in Latin America.Voice Commerce offers another potential growth channel. SoundHound plans to pilot direct in-vehicle transactions and is working to bring agentic transactions to connected devices. If these initiatives scale, the company could move beyond software fees and participate more directly in transaction-based opportunities.The planned LivePerson acquisition could further expand SoundHound's enterprise footprint. Management expects the transaction to add relationships with 25 Fortune 100 companies and believes OASYS can provide a common platform for integrating acquired technologies. Despite the operating progress, SoundHound has not yet reached profitability. Second-quarter GAAP net loss was $42.8 million, while the non-GAAP net loss totaled $9 million. For the first six months of 2026, operating activities used nearly $60 million of cash, up from $43.7 million in the year-ago period. The company nevertheless ended June with about $203 million in cash and no debt, providing financial flexibility while it continues investing in growth.The acquisition strategy adds another layer of execution risk. Integrating LivePerson while continuing to migrate customers from previously acquired businesses onto OASYS will require careful execution. Management acknowledged that legacy customers will move to OASYS at different speeds rather than through a rapid forced migration.Valuation also leaves little room for major execution setbacks. SOUN trades at 12.34X forward 12-month sales, slightly above the Zacks Computers - IT Services industry's 12.23X. Investors are therefore paying a premium for growth despite continued losses and cash use. SOUN’s P/S Ratio (Forward 12-Month) vs. Industry Image Source: Zacks Investment Research SoundHound shares are down 25.6% year to date, underperforming the Zacks Computers - IT Services industry's 14.3% decline. The gap is much wider against the broader Zacks Computer and Technology sector, which has gained 16.9%, and the S&P 500's 12.5% advance. SOUN’s YTD Price Performance Image Source: Zacks Investment Research The weak share-price performance suggests that investors remain cautious about profitability, valuation and execution. However, the combination of stronger second-quarter results, raised revenue guidance and improving earnings estimates gives the stock a stronger fundamental base than its year-to-date performance implies. SoundHound faces different competitors across its expanding AI markets. Cerence CRNC competes directly in automotive voice AI, conversational assistants and in-car AI solutions, while Five9 FIVN competes in cloud contact centers, voice bots and customer engagement automation. NICE NICE also competes in enterprise conversational AI, contact center automation and AI-powered customer service.SoundHound's 25.6% year-to-date (YTD) plunge trails Cerence's 19.1% dip and NICE's 12.8% decline, while Five9 has surged 55.6%. Valuation makes the difference even sharper. SoundHound's 12.34X forward sales multiple is far above Cerence at 1.26X, Five9 at 1.78X and NICE at 1.71X.That premium means SoundHound must deliver much faster growth to justify its valuation. Cerence remains an important automotive benchmark, while Five9 and NICE bring established enterprise customer bases. SoundHound's advantage rests on OASYS, its proprietary voice technology and its ability to connect enterprise, automotive and physical AI experiences on one platform. SoundHound's investment case has strengthened following the second quarter. Record revenues, accelerating OASYS adoption, improving margins, a higher 2026 revenue outlook and favorable estimate revisions all point toward better operating momentum. The expansion across healthcare, financial services, restaurants, automotive and Voice Commerce also reduces reliance on any single end market.Risks remain meaningful. SoundHound is still losing money and burning cash, the LivePerson deal introduces integration risk, and its valuation carries a sizable premium to Cerence, Five9 and NICE. The stock's 25.6% YTD decline shows that investors continue to demand proof that rapid revenue growth can eventually translate into sustainable profits.Still, upward estimate revisions following a strong second quarter improve the risk-reward setup. With SoundHound currently carrying a Zacks Rank #2 (Buy), investors willing to accept higher volatility and execution risk can consider the stock for its long-term exposure to conversational and agentic AI growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report Nice (NICE) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report Cerence Inc. (CRNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Five9, Inc.? Here are five stocks we like better. Five9 exceeded Q2 expectations with revenue of $312 million, up 10% year over year, driven by 14% subscription growth and a 78% increase in AI revenue to approximately $39 million. The company raised its full-year AI revenue growth outlook to at least 60% and signed a five-year, approximately $100 million contract with a Fortune 100 financial-services customer, though meaningful revenue contributions are expected mainly from 2027 onward. Five9 increased its 2026 revenue guidance midpoint to $1.266 billion while maintaining its adjusted EPS midpoint of $3.26; margins declined year over year due partly to temporary investments supporting faster AI deployments. Does Microsoft Stock Have More Room to Run? Five9 (NASDAQ:FIVN) reported second-quarter 2026 revenue of $312 million, up 10% from a year earlier and above the high end of its guidance range, as accelerating artificial intelligence revenue helped drive subscription growth. Subscription revenue rose 14% year over year, marking a third consecutive quarter of acceleration, while AI revenue increased 78%. Chief Executive Officer Amit Mathradas said the company’s results reflected progress in its efforts to strengthen execution, focus resources on complex enterprise customers and expand its AI-powered customer-experience platform. → 3 Drone Stocks That Should Soar After the Summer Slump “Five9 is sharpening its position around the opportunity we are built to lead,” Mathradas said, describing the company as a voice-led enterprise platform for customer experience. He said the company is focusing on regulated and complex sectors including financial services, healthcare and insurance, where customers require compliance, integrations, governance and human-in-the-loop workflows. Chief Financial Officer Bryan Lee said AI revenue totaled approximately $39 million in the quarter, representing an annual revenue run rate above $150 million. AI revenue accounted for about 15% of subscription revenue, compared with roughly 9% a year earlier. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Lee attributed the acceleration partly to several customers deploying AI solutions faster than previously forecast. The earlier deployments pulled revenue forward rather than reflecting larger deal sizes, he said. Excluding those faster ramps, AI revenue growth would have been near the 68% growth rate reported in the first quarter, according to Lee. The company raised its full-year 2026 AI revenue growth outlook to at least 60% year over year, from its prior forecast of more than 40%. Its CCaaS, or contact center as a service, revenue grew 7% year over year, while concurrent seat count rose at a rate generally in line with CCaaS revenue growth. → Jersey Mike's Serves Fresh Gains After IPO Stumble Five9’s last-12-month subscription dollar-based retention rate was 107% in the second quarter. Lee said the company expects that measure to rise by about one percentage point in the third quarter, driven by existing backlog. Five9 also disclosed a five-year agreement with a Fortune 100 financial services company carrying approximately $100 million in total contract value, including subscription and professional-services revenue. The company expects the customer to reach about $25 million in subscription annual recurring revenue once fully deployed. Mathradas said Five9 won the business in a competitive process involving a select group of enterprise customer-experience providers. The deal was supported by Five9’s proof of concept and delivery capabilities, as well as its work with Google and a global systems integrator. The transaction was among the first large deals completed through the Google Cloud Marketplace, Mathradas said. The customer selected Five9 as a core customer-experience platform as part of a broader cloud migration effort. Lee said the new customer is in the planning phase and is expected to make a negligible subscription revenue contribution in 2026. Revenue is expected to ramp gradually in 2027, with more meaningful growth in later years. During the question-and-answer session, Mathradas said cloud migration can become more important for enterprises seeking to deploy voice AI, because on-premises architectures may not be designed to run agentic voice technologies at their best performance. He also said Five9’s ownership of telephony and call-routing capabilities differentiates it from point-solution providers. Five9 reported an adjusted gross margin of 61%, down from 63% in the year-earlier period. Adjusted EBITDA was $70 million, or 22% of revenue, compared with $68 million, or 24% of revenue, a year earlier. Lee said both profitability measures were affected by a temporary expansion in professional-services capacity to meet customer demand for earlier AI deployments. Second-quarter margins also faced a difficult sequential comparison because the first quarter benefited from a previously disclosed one-time vendor discount worth slightly more than one percentage point of margin. Cash from operations totaled $42 million, or 13% of revenue, and free cash flow was $15 million, or 5% of revenue. The company ended the quarter with approximately $654 million in cash equivalents and short-term investments. Five9 said its $90 million accelerated share repurchase program is underway and that it received an initial delivery of 3.1 million shares, representing about 80% of the expected shares under the program. The remainder is expected before Sept. 30. A separate $200 million board authorization remains available for opportunistic use. For the third quarter, Five9 forecast revenue of $316 million to $322 million, with a midpoint of $319 million. It guided for non-GAAP earnings per diluted share of $0.77 to $0.81, with a midpoint of $0.79. For full-year 2026, the company raised its revenue outlook to a range of $1.26 billion to $1.272 billion, with a midpoint of $1.266 billion, up from the prior midpoint of $1.26 billion. Five9 maintained its full-year non-GAAP EPS outlook of $3.22 to $3.30, with a midpoint of $3.26. Lee said the company continues to expect adjusted EBITDA margin above 24% for the year and approximately $175 million in free cash flow. Revenue guidance for the remainder of the year is primarily supported by expected conversion of backlog to revenue, with “essentially no dependency” on new business wins, he said. Five9, Inc (NASDAQ: FIVN) is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience. Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Five9 Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: Q2 revenue was $312 million, up 10% year-over-year, above the high end of guidance. Subscription Revenue: Grew 14% year-over-year, marking a third consecutive quarter of acceleration. CCaaS Revenue: Grew a stable 7% year-over-year. AI Revenue: Accelerated to 78% year-over-year growth, reaching approximately $39 million in Q2, representing an annual run rate of over $150 million. AI Revenue Mix: Now makes up approximately 15% of total subscription revenue, up from approximately 9% a year ago. Adjusted Gross Margin: 61% in Q2, compared to 63% in Q2 '25. Adjusted EBITDA: $70 million, or 22% of revenue, compared to $68 million, or 24% of revenue in Q2 '25. Cash Flow: Cash from operations was $42 million (13% of revenue); free cash flow was $15 million (5% of revenue). Dollar-Based Retention Rate: LTM subscription dollar-based retention rate remained steady at 107%. Cash Position: Ended the quarter with approximately $654 million in cash equivalents and short-term investments. Share Repurchase: The $90 million ASR is underway, with an initial delivery of 3.1 million shares received. Major Win: A Fortune 100 Financial Services customer contract with approximately $100 million total contract value, expected to reach approximately $25 million in subscription ARR when fully deployed. Q3 Guidance: Total revenue midpoint of $319 million (range $316 million to $322 million). Full-Year 2026 Guidance: Total revenue midpoint of $1.266 billion (range $1.26 billion to $1.272 billion), up from prior midpoint of $1.26 billion. Non-GAAP EPS Guidance: Q3 midpoint of $0.79 per diluted share; full-year 2026 midpoint unchanged at $3.26 per diluted share. AI Growth Outlook: Full-year 2026 AI growth increased to at least 60% year-over-year, up from prior outlook of more than 40%. Warning! GuruFocus has detected 9 Warning Signs with FIVN. Is FIVN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Five9 Inc (NASDAQ:FIVN) delivered Q2 revenue of $312 million, exceeding the high end of guidance, with subscription revenue growing 14% year-over-year, marking a third consecutive quarter of acceleration. AI revenue surged 78% year-over-year, prompting the company to raise its full-year AI growth outlook from over 40% to at least 60%. Secured a significant Fortune 100 financial services customer win with approximately $100 million in total contract value, expected to ramp to $25 million in ARR, showcasing competitive strength and partnership with Google. Launched next-gen voice AI agents, re-architected for the 'humantic' world, designed to handle complex interactions with seamless human handoffs, strengthening the platform's AI capabilities. LTM subscription dollar-based retention rate remained steady at 107%, with expectations for a 1 percentage point increase in Q3, indicating strong customer retention and expansion. The company's strategy of focusing on complex, regulated industries (financial services, healthcare, insurance) is paying off, with AI attach rates at 100% for million-dollar deals and growing demand across the customer base. Adjusted gross margin declined to 61% in Q2 from 63% in Q2 '25, impacted by temporary expansion of professional services capacity to meet early AI deployment demand. Adjusted EBITDA margin fell to 22% from 24% year-over-year, partly due to the same professional services expansion and a one-time vendor discount that did not recur. Cash flow from operations was seasonally low at $42 million (13% of revenue), and free cash flow was only $15 million (5% of revenue), affected by non-recurring items including a transition to annual customer payments and pulled-forward capital expenditures. The Fortune 100 financial services win will have negligible subscription revenue contribution in 2026, with meaningful revenue ramp not expected until 2027 and beyond, limiting near-term upside. Full-year 2026 non-GAAP EPS guidance remains unchanged at $3.26 midpoint, despite the strong Q2 performance, as the company expects higher temporary expenses from organizational design initiatives. The company's revenue guidance for the second half of 2026 relies heavily on existing backlog conversion with essentially no dependency on new business, indicating limited visibility into new logo growth. Q: Can you unpack the Fortune 100 financial services win? Was it a traditional bake-off, and does it include your AI products? A: Amit Mathradas (CEO) confirmed the deal was a competitive process against a select group of enterprise-grade CX providers, not smaller point solutions. The award was for the CCaaS portion of the business, and as conversations continue, they will share more on additional facets. The win was driven by the strength of their proof of concept, delivery capabilities, and the joint go-to-market motion with Google, marking one of the first large deals transacted through the Google Cloud Marketplace. Q: What drove the faster-than-expected ramp of AI deals, and is this improvement appreciable across the broader pipeline? A: Bryan Lee (CFO) explained that the acceleration was driven by customers aligning internally faster than forecasted and requesting quicker deployment. Five9 has the professional services resources to throttle up to meet this demand. Amit Mathradas (CEO) added that even excluding these large customer ramps, AI growth would have been around 68%, matching Q1, indicating broad-based demand across new logos and the installed base, with 100% AI attach on million-dollar deals. Q: How should we think about the revenue upside and the drivers for the second half of the year? A: Bryan Lee (CFO) stated that the guidance has essentially no dependency on new logo go-getters, as it is driven by backlog conversion. They expect CCaaS revenue to mirror the shape of the total revenue guide, while AI revenue is now expected to grow at least 60% year-over-year for 2026, up from the prior outlook of more than 40%. Additionally, they expect the LTM subscription dollar-based retention rate to inflect up by 1 percentage point in Q3 to 108%. Q: As AI agents operate across the contact center and back-office systems, which platform owns the orchestration layer, and what does Five9 need to control directly? A: Amit Mathradas (CEO) emphasized that Five9's heritage in voice and ownership of routing is a key differentiator. Unlike point solutions that act as a "hammer," Five9 is the "entire toolbox." By owning the routing and having agentic quality management, Five9 can send a frustrated customer to the specific agent with the highest empathy score, driving higher resolution and containment rates, which translates to millions of dollars in value for the end user. Q: Can you provide more color on the confidence in second-half double-digit growth and the deployment timeline for the large financial services deal? A: Bryan Lee (CFO) clarified that the Fortune 100 win is a new logo with a five-year contract worth approximately $100 million in TCV. The ramp will be immaterial to subscription revenue in 2026, with more meaningful increases in 2027 and beyond, mirroring the ramp schedules of prior deals of comparable magnitude. The confidence in the second half is based on the unique, visible ramp schedules of customers already in the backlog. Q: How do you make the Google Cloud Marketplace win repeatable, and what resources is Google contributing? A: Amit Mathradas (CEO) noted that the pipeline with Google includes a variety of deal sizes, not just large ones. The partnership involves "hands-on keyboard" work, including driving better integrations and solutions, which are investments already made and will continue to evolve. This first large deal through the marketplace is a proof point for the joint go-to-market motion. Q: What is the health of the end market regarding contact center seats, and what are customers sharing for the next 6-12 months? A: Bryan Lee (CFO) reported that the concurrent agent count is growing at a healthy rate in line with CCaaS subscription revenue growth, and subscription revenue per seat is increasing in the single digits. They have not seen seat compression. The new revenue commit model is resonating well with customers as it provides flexibility in the mix between human and AI agents over the next 3-5 years, while giving Five9 visibility into revenue. Q: Where are you seeing the strongest customer demand for voice AI agents, and in what use cases? A: Amit Mathradas (CEO) stated that demand is strong across multiple use cases, from simple to complex. With the launch of the next-gen voice AI agents, customers are starting with simple use cases like password reset and quickly moving to more complex scenarios. The pipeline for these complex use cases is building, particularly in regulated industries where the previous generation of IVA was already being used. Q: How have the new leadership appointments changed execution and enthusiasm within the sales force? A: Amit Mathradas (CEO) expressed excitement about the new leaders, stating they bring experience in moving from product to solution selling. The new Chief Sales Officer, Rob Hornish, brings the right experience for transitioning to enterprise-level deals and platform selling. The CEO noted a "new pep in the step" across the organization, with teams excited about the progress and the new leadership horizon. Q: Can you elaborate on the drivers of the AI revenue acceleration and the impact on gross margin? A: Bryan Lee (CFO) explained that the 78% AI revenue growth was driven by several customers in the backlog ramping earlier than forecasted, pulling forward deployment timelines. This required a temporary expansion of professional services capacity, which impacted adjusted gross margin (61% in Q2 vs. 63% in Q2 '25). They expect gross margin to ramp through the second half of the year as these deployments stabilize. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Five9 (FIVN) came out with quarterly earnings of $0.7 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.94%. A quarter ago, it was expected that this provider of cloud-based software to call centers would post earnings of $0.69 per share when it actually produced earnings of $0.76, delivering a surprise of +10.14%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Five9, which belongs to the Zacks Internet - Software industry, posted revenues of $312.44 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.89%. This compares to year-ago revenues of $283.27 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Five9 shares have added about 47.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While Five9 has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Five9 was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $314.2 million in revenues for the coming quarter and $3.26 on $1.26 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Exodus Movement, Inc. (EXOD), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -112.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Exodus Movement, Inc.'s revenues are expected to be $19.2 million, down 25.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Five9, Inc. (FIVN) : Free Stock Analysis Report Exodus Movement, Inc. (EXOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cloud contact center software provider Five9 (NASDAQ:FIVN) announced better-than-expected revenue in Q2 CY2026, with sales up 10.3% year on year to $312.4 million. Guidance for next quarter’s revenue was better than expected at $319 million at the midpoint, 1.4% above analysts’ estimates. Its non-GAAP profit of $0.70 per share was 2.6% above analysts’ consensus estimates. Is now the time to buy Five9? Find out in our full research report. Revenue: $312.4 million vs analyst estimates of $306.6 million (10.3% year-on-year growth, 1.9% beat) Adjusted EPS: $0.70 vs analyst estimates of $0.68 (2.6% beat) Adjusted EBITDA: $70.05 million vs analyst estimates of $66.12 million (22.4% margin, 5.9% beat) The company slightly lifted its revenue guidance for the full year to $1.27 billion at the midpoint from $1.26 billion Management reiterated its full-year Adjusted EPS guidance of $3.26 at the midpoint Operating Margin: 0.6%, up from -0.6% in the same quarter last year Free Cash Flow Margin: 4.9%, down from 16.2% in the previous quarter Market Capitalization: $2.27 billion Taking its name from the "five nines" (99.999%) standard for optimal service reliability in telecommunications, Five9 (NASDAQ:FIVN) provides cloud-based software that enables businesses to run their contact centers with tools for customer service, sales, and marketing across multiple communication channels. A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Five9 grew its sales at a decent 18.2% compounded annual growth rate. Its growth was slightly above the average software company and shows its offerings resonate with customers. Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. Five9’s recent performance shows its demand has slowed as its annualized revenue growth of 11.5% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. This quarter, Five9 reported year-on-year revenue growth of 10.3%, and its $312.4 million of revenue exceeded Wall Street’s estimates by 1.9%. Company management is currently guiding for a 11.6% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 10% over the next 12 months, similar to its two-year rate. This projection doesn’t excite us and suggests its products and services will see some demand headwinds. WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. It’s relatively expensive for Five9 to acquire new customers as its CAC payback period checked in at 83.4 months this quarter. The company’s slow recovery of its sales and marketing expenses indicates it operates in a highly competitive market and must invest to stand out, even if the return on that investment is low. It was encouraging to see Five9 beat analysts’ adjusted operating income expectations this quarter. We were also glad its revenue guidance for next quarter slightly exceeded Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed. Zooming out, we think this was a mixed quarter. The stock remained flat at $28.00 immediately after reporting. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Q2 Revenue Grew 10% year-over-year Q2 Subscription Revenue Grew 14% year-over-year Announces Approximately $100 Million Total Contract Value New Customer Win SAN RAMON, Calif., August 06, 2026--(BUSINESS WIRE)--Five9, Inc. (NASDAQ:FIVN), the Intelligent CX Platform provider, today reported results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial Results Revenue for the second quarter of 2026 increased 10% to $312.4 million, compared to $283.3 million for the second quarter of 2025. GAAP gross margin was 53.4% for the second quarter of 2026, compared to 54.9% for the second quarter of 2025. Adjusted gross margin was 61.4% for the second quarter of 2026, compared to 63.0% for the second quarter of 2025. GAAP net income for the second quarter of 2026 was $3.4 million, or $0.04 per diluted share, and 1.1% of revenue, compared to GAAP net income of $1.2 million, or $0.01 per diluted share, and 0.4% of revenue, for the second quarter of 2025. Non-GAAP net income for the second quarter of 2026 was $53.5 million, or $0.70 per diluted share, and 17.1% of revenue, compared to non-GAAP net income of $58.3 million, or $0.76 per diluted share, and 20.6% of revenue, for the second quarter of 2025. Adjusted EBITDA for the second quarter of 2026 was $70.1 million, or 22.4% of revenue, compared to $67.9 million, or 24.0% of revenue, for the second quarter of 2025. GAAP operating cash flow for the second quarter of 2026 was $42.1 million, compared to GAAP operating cash flow of $35.1 million for the second quarter of 2025. "Q2 marks our third consecutive quarter of accelerating subscription revenue growth, with AI revenue accelerating even faster, and further evidence that our focused execution is producing results. Closing a 9-figure TCV agreement through the Google Marketplace and launching Five9 Voice AI Agents in the same quarter underscore the breadth of our platform and the strength of our market position. With the executive appointments in June, I am confident we have the right team and strategy to extend this momentum and compete to win in AI-empowered customer experiences." - Amit Mathradas, Chief Executive Officer Second Quarter & Recent Business Highlights LTM subscription dollar-based retention rate was 107% as of June 30, 2026 LTM subscription and telecom dollar-based retention rate was 106% as of June 30, 2026 Appointed Niranjan Vijayaragavan as Chief Technology Officer, Rob Hornish as Chief Sales Officer, and Sven Linsmaier as Executive Vice President, Transformation and Strategy Launched Five9 Voice AI Agents: human-like conversations, real-time responsiveness, enterprise-grade governance, and seamless AI + Human collaboration Joined S&P SmallCap 600 on August 3, 2026 Supplemental metric disclosure is available on the Investor Relations section of Five9's website at https://investors.five9.com/ Business Outlook Five9 provides guidance based on current market conditions and expectations. Five9 emphasizes that the guidance is subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements" below, including risks and uncertainties associated with the ongoing impact of macroeconomic challenges. For the full year 2026, Five9 expects to report: For the third quarter of 2026, Five9 expects to report: With respect to Five9’s guidance as provided above, please refer to the "Reconciliation of GAAP Net Income to Non-GAAP Net Income - Guidance" table for more details, including important assumptions upon which such guidance is based. Conference Call Details Five9 will discuss its second quarter 2026 results today, August 6, 2026, via an audio-only Zoom webinar at 4:30 p.m. Eastern Time. To access the webinar, please register by clicking here. A copy of this press release will be furnished to the Securities and Exchange Commission on a Current Report on Form 8-K and will be posted to our website, prior to the conference call. A live webcast and a replay will be available on the Investor Relations section of the Company’s website at https://investors.five9.com/. Non-GAAP Financial Measures In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. We calculate adjusted gross profit and adjusted gross margin by adding back the following items to gross profit: depreciation, intangibles amortization, stock-based compensation, acquisition and related transaction costs and one-time integration costs, and lease amortization for finance leases. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net income: depreciation and amortization, stock-based compensation, interest expense, interest income and other, acquisition and related transaction costs and one-time integration costs, lease amortization for finance leases, costs related to reduction in force plans, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, one-time expenses related to advisory services for long-term strategy and growth, legal fees related to the securities class action, office closure lease termination costs, impairment charge related to consolidation of corporate headquarters, and provision for income taxes. We calculate non-GAAP operating income by adding back or removing the following items to or from GAAP income from operations: stock-based compensation, intangibles amortization, acquisition and related transaction costs and one-time integration costs, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, one-time expenses related to advisory services for long-term strategy and growth, legal fees related to the securities class action, office closure lease termination costs, and impairment charge related to consolidation of corporate headquarters. We calculate non-GAAP net income by adding back or removing the following items to or from GAAP net income: stock-based compensation, intangibles amortization, amortization of discount and issuance costs on convertible senior notes, exit costs related to closure and relocation of Russian operations, acquisition and related transaction costs and one-time integration costs, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, one-time expenses related to advisory services for long-term strategy and growth, legal fees related to the securities class action, office closure lease termination costs, and impairment charge related to consolidation of corporate headquarters. For the periods presented, these adjustments from GAAP net income to non-GAAP net income do not include any presentation of the net tax effect of such adjustments given our significant net operating loss carryforwards. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. The Company considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what we consider to be our core operating performance, as well as unusual events. The Company’s management uses these measures to (i) illustrate underlying trends in the Company’s business that could otherwise be masked by the effect of income or expenses that are excluded from non-GAAP measures, and (ii) establish budgets and operational goals for managing the Company’s business and evaluating its performance. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented only as supplemental information for purposes of understanding the Company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP. Please see the reconciliation of non-GAAP financial measures set forth in this release. Forward-Looking Statements This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements in the quote from our Chairman and Chief Executive Officer, including statements regarding Five9's market position, platform breadth, current team and strategy, and new product releases, and the expected positive impact of these factors, and the third quarter and full year 2026 financial projections and expectations set forth under the caption "Business Outlook," that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) the impact of adverse economic conditions, including the impact of macroeconomic challenges, global tariff increases and potential future increases and announcements regarding same, continued inflation, uncertainty regarding consumer spending, high interest rates, fluctuations in currency rates, the impact of current and potential global conflicts, and other factors, may harm our business; (ii) if we are unable to attract new customers or sell additional services and functionality to our existing customers, our revenue and revenue growth will be harmed; (iii) if our existing customers terminate their subscriptions or reduce their subscriptions and related usage, or fail to grow subscriptions at the rate they have in the past or that we might expect, our revenues and gross margins will be harmed and we will be required to spend more money to grow our customer base; (iv) because a significant percentage of our revenue is derived from existing customers, downturns or upturns in new sales will not be immediately reflected in our operating results and may be difficult to discern; (v) if we fail to manage our technical operations infrastructure, our existing customers may experience service outages, our new customers may experience delays in the deployment of our solution and we could be subject to claims for credits or damages, among other things; (vi) if we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be harmed; (vii) as AI solutions will likely perform an increasing proportion of contact center interactions, if we are unable to replace decreases in subscription revenue from licenses with revenue from the sale of additional AI solutions, our revenue, results of operations and business will be harmed; (viii) further development of our AI solutions may not be successful, may not achieve market acceptance or compete effectively against our competitors, and may result in reputational harm and our future operating results could be materially harmed; (ix) the AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks; (x) we have established, and are continuing to increase, our network of technology solution distributors and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues; (xi) our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock; (xii) our historical growth may not be indicative of our future growth, and even if we continue to grow rapidly, we may fail to manage our growth effectively; (xiii) failure to adequately retain and expand our sales force will impede our growth; (xiv) the use of AI by our workforce may present risks to our business; (xv) the contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new solutions in order to maintain and grow our business; (xvi) our growth depends in part on the success of our strategic relationships with third parties and our failure to successfully maintain, grow and manage these relationships could harm our business; (xvii) the markets in which we participate involve a high number of competitors that is continuing to increase, and if we do not compete effectively, our operating results could be harmed; (xviii) we continue to expand our international operations, which exposes us to significant macroeconomic and other risks; (xix) security breaches, cybersecurity incidents, and improper access to, use of, or disclosure of our data or our customers’ data, or other cyber-attacks on our systems, could result in litigation and regulatory risk, harm our reputation, our business or financial results; (xx) we may acquire other companies, or technologies, or be the target of strategic transactions, or be impacted by transactions by other companies, which could divert our management’s attention, result in additional dilution to our stockholders or use a significant amount of our cash resources and otherwise disrupt our operations and harm our operating results; (xxi) we sell our solution to larger organizations that require longer sales and implementation cycles and often demand more configuration and integration services or customized features and functions that we may not offer, any of which could delay or prevent these sales and harm our growth rates, business and operating results; (xxii) we rely on third-party telecommunications and internet service providers to provide our customers and their customers with telecommunication services and connectivity to our cloud contact center software and any failure by these service providers to provide reliable services could cause us to lose customers and subject us to claims for credits or damages, among other things; (xxiii) prior to 2025, we had a history of losses and we may be unable to sustain profitability; (xxiv) our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control; (xxv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxvi) failure to comply with laws and regulations could harm our business and our reputation; (xxvii) we may not have sufficient cash to service our convertible senior notes and repay such notes, if required, and other risks attendant to our convertible senior notes and increased debt levels; (xxviii) risks that we may not execute repurchases in full, under our announced stock repurchase program, or may not achieve the intended benefits therefrom; and (xxix) the other risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent annual report on Form 10-K and quarterly reports on Form 10-Q. Such forward-looking statements speak only as of the date hereof and readers should not unduly rely on such statements. We undertake no obligation to update the information contained in this press release, including in any forward-looking statements. About Five9 The Five9 Intelligent CX Platform provides a comprehensive suite of solutions for orchestrating fluid customer experiences. Our cloud-native, multi-tenant, scalable, reliable, and secure platform includes contact center; omni-channel engagement; Workforce Engagement Management; extensibility through more than 1,450 partners; and innovative, practical AI, automation and journey analytics that are embedded as part of the platform. Five9 brings the power of people, technology, and partners to more than 3,000 organizations worldwide. For more information, visit www.five9.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806184084/en/ Contacts Investor Contact: Tony RighettiSVP, Investor [email protected]

ZoomInfo (GTM) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.70%. A quarter ago, it was expected that this company would post earnings of $0.26 per share when it actually produced earnings of $0.28, delivering a surprise of +7.69%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. ZoomInfo, which belongs to the Zacks Internet - Software industry, posted revenues of $310.4 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.04%. This compares to year-ago revenues of $306.7 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ZoomInfo shares have lost about 64.4% since the beginning of the year versus the S&P 500's gain of 13%. While ZoomInfo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ZoomInfo was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.29 on $292.67 million in revenues for the coming quarter and $1.12 on $1.19 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Five9 (FIVN), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This provider of cloud-based software to call centers is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of -10.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Five9's revenues are expected to be $306.65 million, up 8.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ZoomInfo Technologies Inc. (GTM) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research