Why Five9 Inc. Stock Popped Today

By Steve Symington Markets Fool.com

What happened

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Shares of Five9 Inc. (NASDAQ: FIVN) were up 16.5% as of 3:00 p.m. EDT Thursday after the contact-center software specialist announced stronger-than-expected first-quarter 2017 results.

So what

Quarterly revenue climbed 23.7% year over year, to $47 million, including40% growth in LTM enterprise subscription revenue. That translated to an adjusted net loss of $0.3 million, or roughly breakeven on a per-share basis, narrowed from an adjusted net loss of $2.7 million, or $0.05 per share in the same year-ago period. By comparison, analysts' consensus estimates predicted a net loss of $0.03 per share on lower revenue of $44.8 million.

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"I am extremely pleased that we had our second best quarter ever for Enterprise bookings in the first quarter and our sales pipeline reached another all-time high," added Five9 CEO Mike Burkland. "Furthermore, we continued to deliver leverage in our business model even as we accelerated hiring in a number of areas, most notably in our professional services capacity, in response to the ongoing momentum in our Enterprise bookings."

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Now what

For the current quarter, Five9 expects revenue in the range of $45.3 million to $46.3 million, which should result in an adjusted net loss of $1.3 million to $2.3 million, or $0.02 to $0.04 on a per-share basis.

As such, Five9 now anticipates full-year 2017 revenue of $190.6 million to $193.6 million -- an increase from $187 million to $190 million previously -- and an adjusted net income or loss in the range of $0.5 million to ($2.5) million, up from ($1.5) million to ($4.5) million previously. That equates to an adjusted bottom line ranging from earnings of $0.01 per share to a loss of $0.04 per share compared to previous guidance for a loss of $0.03 to $0.09 per share. Here again, even the bottom ends of both ranges were above Wall Street's expectations for a full-year loss of $0.06 per share on revenue of $188.8 million.

In the end, it doesn't get much more straightforward than this beat and raise. And even with shares up almost 27% year to date as of yesterday's close, it's hard to blame the market for bidding up Five9 stock even more today.

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Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.