| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
FIVN Overview
Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally.
Five9 Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$171.59 |
| 52 Week High | US$120.66 |
| 52 Week Low | US$211.68 |
| Beta | 0.47 |
| 1 Month Change | -4.28% |
| 3 Month Change | -7.24% |
| 1 Year Change | 35.83% |
| 3 Year Change | 294.19% |
| 5 Year Change | 1,056.27% |
| Change since IPO | 2,145.94% |
Recent News & Updates
Five9: With Or Without Zoom, I Would Take It
Headquartered in San Ramon, California, Five9 offers cloud contact center solutions for companies in different industries, companies of different sizes, virtual agents, and workflow automation. Most companies are moving from transitional CRM solutions to cloud contact center software solutions. Cloud contact center software solutions offer innovative functionalities that cannot be offered by old CRMs. Among the new innovations, Five9 offers automatic speech recognition and natural language processing. I made the forecasts until 2030 with constant sales growth of 17%. I also assumed a conservative FCF margin of 11% from 2023 to 2025, and used a WACC of 4.7%. With these assumptions, Five9 would deliver sales of $2.4 billion in 2030 with a 2030 FCF of $273 million. Five9 will most likely perform successfully on its own. Under my financial model, Five9’s stock price is still far from its fair price.
Shareholder Returns
| FIVN | US Software | US Market | |
|---|---|---|---|
| 7D | 0.7% | -0.5% | -2.5% |
| 1Y | 35.8% | 38.3% | 33.0% |
Return vs Industry: FIVN underperformed the US Software industry which returned 38.3% over the past year.
Return vs Market: FIVN exceeded the US Market which returned 33% over the past year.
Price Volatility
| FIVN volatility | |
|---|---|
| FIVN Beta | 0.47 |
| Industry Beta | 0.95 |
| Market Beta | 1 |
Stable Share Price: FIVN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: FIVN's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2001 | 1,549 | Rowan Trollope | https://www.five9.com |
Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company offers virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions. Its solution enables its clients to manage these customer interactions across various channels, including voice, chat, email, web, social media, and mobile, as well as through APIs.
Valuation
Is Five9 undervalued compared to its fair value and its price relative to the market?
71.43x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: FIVN ($171.59) is trading above our estimate of fair value ($96.36)
Significantly Below Fair Value: FIVN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FIVN is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: FIVN is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate FIVN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: FIVN is overvalued based on its PB Ratio (71.4x) compared to the US Software industry average (7.5x).
Future Growth
How is Five9 forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
49.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FIVN is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: FIVN is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: FIVN is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: FIVN's revenue (35.9% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: FIVN's revenue (35.9% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FIVN's Return on Equity is forecast to be very high in 3 years time (44.8%).
Past Performance
How has Five9 performed over the past 5 years?
-35.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FIVN is currently unprofitable.
Growing Profit Margin: FIVN is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: FIVN is unprofitable, and losses have increased over the past 5 years at a rate of 35.6% per year.
Accelerating Growth: Unable to compare FIVN's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: FIVN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22.1%).
Return on Equity
High ROE: FIVN has a negative Return on Equity (-29.2%), as it is currently unprofitable.
Financial Health
How is Five9's financial position?
Financial Position Analysis
Short Term Liabilities: FIVN's short term assets ($668.9M) exceed its short term liabilities ($139.4M).
Long Term Liabilities: FIVN's short term assets ($668.9M) do not cover its long term liabilities ($833.6M).
Debt to Equity History and Analysis
Debt Level: FIVN's debt to equity ratio (475.5%) is considered high.
Reducing Debt: FIVN's debt to equity ratio has increased from 127.3% to 475.5% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable FIVN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: FIVN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 45.6% per year.
Dividend
What is Five9 current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FIVN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FIVN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FIVN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FIVN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FIVN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Rowan Trollope (48 yo)
3.33yrs
Tenure
US$6,417,891
Compensation
Mr. Rowan M. Trollope serves as an Independent Director of Smartsheet Inc since September 1, 2020. He has been the Chief Executive Officer and Director of Five9, Inc. since May 3, 2018. Mr. Trollope was Se...
CEO Compensation Analysis
Compensation vs Market: Rowan's total compensation ($USD6.42M) is below average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Rowan's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: FIVN's management team is considered experienced (2.7 years average tenure).
Board Members
Experienced Board: FIVN's board of directors are considered experienced (7.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FIVN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.
Top Shareholders
Company Information
Five9, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Five9, Inc.
- Ticker: FIVN
- Exchange: NasdaqGM
- Founded: 2001
- Industry: Application Software
- Sector: Software
- Market Cap: US$11.857b
- Shares outstanding: 67.73m
- Website: https://www.five9.com
Number of Employees
Location
- Five9, Inc.
- 3001 Bishop Drive
- Suite 350
- San Ramon
- California
- 94583
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/20 22:34 |
| End of Day Share Price | 2021/09/20 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.