Five9 Q3 results top expectations, shares surge
Call center software maker Five9 this afternoon reported third-quarter revenue and profit that comfortably surpassed analysts' expectations, and forecast this quarter's results much higher as well, driving its shares sharply higher in late trading.
Five9 CEO Rowan Trollope remarked that "positive industry trends continue to accelerate and help drive our performance."
Trollope added that "the premise to cloud transition and digital transformation trends will accelerate, and demand for AI driven automation will increase."
Revenue in the three months ending in September rose 34%, year over year, to $112 million, yielding EPS of 27 cents.
The Street had been modeling $101 million and 18 cents per share.
For the current quarter, the company sees revenue in a range of $421 million to $422 million, and EPS of 87 cents to 88 cents. That compares to the average Street estimate for $367 million and 78 cents.
Separately, Five9 said it will acquire fifteen-year-old, privately held software maker Inference Solutions of San Francisco, for undisclosed terms. The deal brings Five9 intelligent virtual assistant technology. IVA can automate tasks normally handled by a person.
Said CEO Trollope, "Leveraging virtual agents to meet increasing customer interactions is rapidly becoming a requirement of the modern contact center. We are excited to build upon this acquisition and believe we are well positioned for continued growth."
Five9 shares rose 9% to $156 in late trading.