Last Updated: 18 Sep 2024
Executive Summary
Five9 Inc. (FIVN) is a leading provider of cloud-based contact center software. The company has a strong financial position with a market capitalization of $2.15 billion. However, the company is currently unprofitable and has a negative EBITDA of -$26.15 million. The stock is currently trading at $28.39, below its 52-week high of $92.40.
Company Overview
Five9 was founded in 2001 and is headquartered in San Ramon, California. The company's software helps businesses manage their customer interactions across multiple channels, including voice, email, chat, and social media. Five9's customers include a wide range of businesses, from small businesses to large enterprises.
Fundamental Analysis
Five9's revenue has grown steadily in recent years, from $553.6 million in 2019 to $968.3 million in 2023. However, the company has not yet achieved profitability. In 2023, Five9 reported a net loss of $162.7 million. The company's gross margin is 42.6%, which is in line with the industry average. However, Five9's operating margin is -7.7%, which is below the industry average.
Technical Analysis
The technical analysis of Five9's stock indicates that the stock is in a downtrend. The stock has been trading below its 50-day and 200-day moving averages for the past several months. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for Five9's stock is negative. The stock is in a downtrend and is trading below its key moving averages. The stock's RSI is also below 50, which indicates that the stock is oversold.
Long Term Outlook
The long-term outlook for Five9's stock is more positive. The company has a strong market position and is growing its revenue rapidly. The company is also investing heavily in research and development, which should help it to maintain its competitive advantage.
Analyst Recommendations
The majority of analysts have a buy rating on Five9's stock. The average analyst target price is $52.53, which represents a potential upside of over 80% from the current price.
