Five9 Gets A Reality Check: Analyst Lowers Price Target Amid Macro Headwinds

KeyBanc analyst Thomas Blakey reiterated an Overweight rating on the shares of Five9, Inc. FIVN, lowering the price target to $81 from $94.
In the company's recently-reported first quarter of FY23 results, LTM DBRR was 114%, down 1 pt sequentially due to lower seat adds related to macro headwinds, the analyst noted.
Going ahead, LTM DBRR may continue to decline in the near term, barring macro improvement.
The analyst remained particularly cautious about Five9's installed base, which continued to face headwinds to growth.
Regarding the outlook for 2H, macro continues to impact installed base expansions, the analyst cautioned.
Blakey noted that the Financial Services vertical, Five9's second largest vertical remained flat sequentially.
Price Action: FIVN shares traded lower by 0.96% at $55.96 on the last check Friday.

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