Why Is Software Company Five9 Stock Diving Premarket Friday?

Five9, Inc. FIVN shares are trading lower after the company reported second-quarter 2024 results. Revenue was $252.1 million, beating the consensus of $245.2 million.

Adjusted gross margin stood at 60.5%, down from 61.8% last year. Adjusted EBITDA rose to $41.8 million from $41.5 million a year ago.

Operating cash flow came in at $19.9 million in the quarter. Adjusted EPS of $0.52 surpassed the consensus of $0.44.

Mike Burkland, Chairman and CEO, said, “We are pleased to report strong second quarter results, achieving a key milestone with annual revenue run rate exceeding $1 billion, primarily driven by LTM enterprise subscription revenue growing 21% year-over-year.”

“As we look to the remainder of the year, we are reducing our annual revenue guidance by 3.8%, reflecting recent bookings trends and the uncertain economic conditions.”

Outlook: For 2024, Five9 reduced revenue guidance to $1.013 billion – $1.017 billion ($1.053 billion – $1.057 billion) vs. $1.055 billion and raised adjusted EPS outlook to $2.25 to $2.29 (from $2.15 to $2.19 prior) vs. street view of $2.19.

For the third quarter, Five9 anticipates revenue of $254.5 million – $255.5 million (vs. estimate of $266.4 million) and adjusted EPS of $0.57 to $0.59 (vs. street view of $0.55).

In a separate release, Five9 disclosed a definitive agreement to acquire Acqueon, a real-time revenue execution platform, for an undisclosed amount.

Investors can gain exposure to the stock via ProShares Big Data Refiners ETF DAT.

Price Action: FIVN shares are down 15.19% at $36.02 premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Read Next:

• Five9 Set To Benefit From AI And Market Expansion: ‘Headwinds Have Run Their Course’