Five9 Inc.’s stock (FIVN) dove more than 6% in extended trading Wednesday after the cloud-software reported a widening quarterly loss. For the fiscal fourth-quarter, Five9 reported a net loss of $13.65 million, or 19 cents a share, compared to the net loss of $3.6 million, or 5 cents a share, in the same quarter the year prior. Revenue for the quarter jumped 20% to $208.3 million, from $173.6 million a year ago. Analysts surveyed by FactSet had expected on average net earnings of 41 cents a share on revenue of $204.7 million.
The stock market’s reaction to the earnings report was a sharp drop in Five9’s stock price. This was in contrast to the broader S&P 500 index (SPX) which is up 4% year-to-date.
Five9’s cloud-software is designed to help businesses with customer contact centers. It is a cloud-based customer contact center software that enables businesses to manage customer interactions. The software provides a range of features, including voice-over-IP, automated call routing, and analytics. The software is used by more than 3,500 customers worldwide, including some of the world’s largest financial services, healthcare, retail, and travel companies.
The company’s success has been driven by the increasing demand for cloud-based customer contact center solutions. As businesses increasingly move away from traditional on-premise solutions, they are looking for cloud-based solutions that can provide them with greater flexibility and scalability. Five9’s solutions have been well-received by customers, and the company has seen strong growth in recent years.
The company’s financials have also been strong in recent quarters. Five9 reported a net income of $32.9 million for the full year 2020, up from $17.3 million in 2019. Revenue for the year was up 22.3% to $766.8 million. The company’s operating income for the year was $45.8 million, up from $24.3 million in 2019.
Five9’s strong financials and increasing demand for cloud-based customer contact center solutions bode well for the company’s future. The company is continuing to invest in its solutions, and is expanding into new markets. Five9 is also investing in its sales and marketing efforts, and is looking to expand its customer base.
Overall, Five9’s stock drop in extended trading on Wednesday was likely due to the company’s wider than expected quarterly loss. However, the company’s strong financials and increasing demand for cloud-based customer contact center solutions suggest that the stock could rebound in the coming months. Investors should keep an eye on Five9’s financials and progress in the market to get a better sense of the company’s future prospects.
