UPDATED 19:49 EST / AUGUST 03 2020

CLOUD

Call center software firm Five9 tops earnings forecasts as cloud trends accelerate

Call center software company Five9 Inc. topped expectations for its second-quarter results today as it reaped the benefits of the coronavirus pandemic that has forced more people to work from home.

The company reported a profit before certain costs such as stock compensation of 21 cents per share on revenue of $99.8 million, up 29% from a year ago. Wall Street had the company down for a 15-cent-per-share profit on revenue of $90.9 million.

Five9 sells cloud-based contact center software and services for enterprises that enables them to both keep track of and manage their interactions with customers. Its software covers traditional phone calls, as well as other video calling services, emails and social media interactions. The software is entirely web-based, and Five9 supplies the telephone hardware and phone lines too, which further simplifies things for customers. Enterprises simply pay a monthly subscription fee and do not need to invest in expensive infrastructure for their contact centers.

Five9 Chief Executive Rowan Trollope (pictured) told SiliconANGLE in a statement that the company has a big opportunity as enterprises move their business operations from on-premises to the cloud, and that this is being accelerated by recent work-from-home trends. He added that retail sales personnel are increasingly being displaced by contact center agents too.

“Our better-than-expected second quarter results and pipeline also demonstrate the strength of our core business and, most importantly, our consistent sales execution,” Trollope said.

The good news for Five9’s investors is that the company doesn’t see its business slowing down anytime soon. For the third quarter, the company predicted a profit of 17 to 18 cents per share on revenue of $100.5 million to $101.5 million. That’s in line with Wall Street’s earnings forecast of 18 cents per share and well ahead of its revenue forecast of $93.3 million.

Five9 also revised its guidance for the full year, saying it expects a profit of 77 to 80 cents per share on total revenue of $399 million to $401 million. That was up from its prior guidance of 72 to 76 cents per share in profit and $380.5 to $383.5 million in revenue.

Trollope spoke to theCUBE, SiliconANGLE’s mobile livestreaming studio, during the in March 2019 Enterprise Connect event in Kissimmee, Florida, where he talked about the growing role of cloud computing in call center operations:

Photo: SiliconANGLE

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