Why Five9 Stock Is Rising Today

Cloud-based contact center specialist Five9 (NASDAQ: FIVN) reported fourth-quarter results on Thursday evening. The company breezed past Wall Street's estimates across the board, and the stock opened Friday's trading session 19.7% higher.

But there's more to the Five9 story, and the stock is only up by 5.2% at 11:30 a.m. ET.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Five9's Q4 by the numbers

Five9's fourth-quarter revenues rose 16.6% year over year to $279 million. Your average analyst would have settled for approximately $267 million. On the bottom line, adjusted earnings jumped from $0.61 to $0.79 per diluted share. Here, the analyst consensus stopped at $0.70 per share.

So far, so good. Five9 posted record revenues and strong profits. Renewable subscription sales led the way with a 19% year-over-year gain. The company supported its marketing message while limiting its cost of operations by incorporating a growing number of artificial intelligence (AI) tools in its call center services. Personalized AI agents are emerging as a particularly important growth driver.

Why investor enthusiasm was dampened

At the same time, longtime CFO Barry Zwarenstein announced his retirement after 13 years on the job. This unexpected announcement undermined Five9's clearly positive report.

But it's an amicable separation, and Zwarenstein will stay on until the summer to ensure a smooth transition to his permanent replacement. In other words, Five9's robust report should carry more weight with investors than Zwarenstein's departure.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $363,307!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,607!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $552,526!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of February 3, 2025

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Five9. The Motley Fool has a disclosure policy.