UPDATED 21:47 EST / JULY 31 2019

CLOUD

Cloud call center software provider Five9’s earnings smash forecasts

Cloud-based call center software firm Five9 Inc. smashed analysts predictions with its second-quarter financial results today, delivering its 14th consecutive quarter of positive cash flow.

For the quarter ending June 30, Five9 recorded revenue of $77.4 million, up 27% from a year ago, while its gross margin came in at 59.6%, just above 59.4% in the same quarter of last year.

The company’s net loss came in at $1.9 million, or 3 cents a share, just below last year’s $2 million or 4 cents a year ago. But before costs such as stock compensation, Five9 reported a $12.3 million or 20-cent-per-share profit, way up from $6.9 million or 11 cents a share a year ago. According to Yahoo Finance, the Zacks consensus estimate of analysts had predicted earnings of 12 cents a share.

“To further strengthen our position in this massive market, we have made a meaningful investment in our engineering and technical leadership and added several key industry leaders to expand our channel development,” Rowan Trollope, chief executive officer of Five9 (pictured), said in a statement. “Our strong enterprise ecosystem continues to grow, most recently with the announcement of our partnership with Microsoft Teams, further demonstrating our momentum.”

Looking forward, the company said it expects revenue for the third quarter to come in at $78 million to $79 million, with revenue for the full year predicted to be between $312.5 million and $314.5 million. Adjusted income is predicted to remain solid, with a guidance of 15 cents per share in the third quarter and between 70 and 73 cents for the full year, up from a previous guidance of between 61 to 66 cents.

The results were received warmly by investors, with Five9’s share price surging 12% above today’s closing price of $49.37 in after-hours trading.

Five9 is certainly ambitious. Trollope spoke with SiliconANGLE’s theCUBE in March, explaining that along with now having more than 40 customers, each paying more than $1 million per year, he wants to take the company’s software to the next level through personalization and data mining.

“Nobody likes talking to a computer; you want to talk to a human,” Trollope said. “Voice is the new data. It’s the biggest source of dark data in the enterprise.”

Here’s the full interview:

Photo: SiliconANGLE

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