Shares in Five9 Inc. dropped 6% in late trading today after the call center software provider forecast a weaker-than-expected outlook for its fiscal first quarter in its latest earnings report.

For its fiscal fourth quarter that ended on Dec. 31, Five9 reported adjusted earnings per share of 61 cents, up from 54 cents per share in the same quarter of 2022, on revenue of $239.1 million, up 15% year-over-year. Both were beats, as analysts had expected adjusted earnings per share of 48 cents on revenue of $238.06 million.

For the full year 2023, Five9 reported adjusted earnings per share of $2.05, up from $1.50 in 2022, on revenue of $910.5 million, up 17% year-over-year.

Over the last year, Five9 saw enterprise subscription revenue grow 25% year-over-year, with the company’s enterprise business accounting for 87% of revenue over the last 12 months. Five9 ended the year with 183 customers with annual recurring revenue of $1 million or more, representing over 50% of recurring revenue. Significant enterprise wins included a non-profit healthcare organization with $3.6 million in annual recurring revenue, a prominent university with $2 million and a healthcare service network with $1.6 million in annual recurring revenue.

Artificial intelligence and automation made up 17% of Five9’s annual contract value bookings for enterprise and 7% of enterprise subscription revenue in the fourth quarter. Year-over-year bookings for Agent Assist, Five9’s service that includes AI summaries, saw a sixfold increase in the fourth quarter.

Five9 ended the year with $730.3 million in cash, cash equivalents and marketable investments on hand, up from $615.1 million in 2022, with working capital growing to $756.8 million versus $627.9 million the year prior.

“We are experiencing strong momentum upmarket, evidenced by our fourth quarter record in enterprise bookings, an acceleration in top-of-funnel growth and pipeline reaching another all-time high,” Mike Burkland, chairman and chief executive officer of Five9, said in the company’s earnings release. “The market remains massive and underpenetrated, and we believe we are well-positioned to capitalize on this durable, multiyear opportunity as we focus on further strengthening our platform, marching upmarket and expanding internationally.”

For its fiscal 2024 first quarter, Five9 expects adjusted earnings per share of 37 to 39 cents on revenue of $239 million to $240 million. The earnings outlook was a beat, as analysts expected 32 cents, but the revenue outlook fell short of a predicted $245.6 million.

For the full year 2024, the company expects adjusted earnings per share of $2.14 to $2.18 on revenue of $1.053 billion to $1.057 billion. Analysts had expected an outlook of $2.14 and $1.055 billion.

Image: Five9