Yesterday, California-based cloud contact center solution provider Five9 reported its fourth-quarter earnings for 2019. According to the report, the company saw revenue rise by 28 percent in the fourth quarter of 2019. That same quarter, Five9 CEO, Rowan Trollope, said the company set another personal record, reporting $92.3 million in revenue.
Compare this to the $72.3 million it made in the fourth quarter of 2018. Five9 also marked its sixteenth consecutive quarter of positive operating cash flow as well as reported positive guidance.
Rowan Trollope, CEO, Five9, said its total revenue for 2019 increased by 27 percent. Last year, it reported, it earned $328 million, compared to $257.7 million in 2018. Trollope further shared in a statement, he believes 2019 was just the beginning of ten years of growth for the company.
“In 2019, we believe we set the foundation for our next decade of growth. We significantly strengthened the leadership team and expanded our product and platform to deliver the best-of-breed experiences for large enterprises”
Five9 also announced it will acquire Virtual Observer, a provider of cloud-based workplace optimization tools. The pending acquisition is set to expand Five9’s portfolio with an integrated workplace optimization offering that fits in the mix of the company’s ‘ongoing strategic partnerships with leading WFO providers,’ Five9 noted in a statement.
Both announcements come just months after Five9 said it would acquire the Integration Platform as a Service (iPaaS) platform Whendu. The solution is said to accelerate the contact center migration process.
Five9’s 2020 Guidance
On the conference call for its annual report, Trollope said he expects the company could report between $380 and $383 million in revenue. GAAP net loss may reach between $30.9 to $27.9 million, $0.43 or $0.48 per share,” he added.
Looking at non-GAAP net income, Trollope expects between $55.5 to $58.5 million, or $0.83 to $0.87 per share.
For the first quarter of 2020, Five9 said it could report figures as high as 90 million with a GAAP net loss in the range of $8.9 million to $9.9, or a loss of $0.14 to $0.16 per basic share. Non-GAAP net income could reach as high as $10.5 million, or $0.15 to $0.16 per share.
Investor Confidence Must be Soaring
In 2019, Five9 made strides toward increasing its bottom line and operating cash flow. It did so while investing in R&D and go-to-market. “We believe these investments position us well to continue to deliver sustained profitable growth as we execute in the under-penetrated market that’s driven by the migration of premise to the cloud as well as the increased focus on improving customer experience as part of overall digital transformation,” Trollope continued.
At the moment, it seems all the cards are stacked in Five9’s favor. And that is apparent from its reports of high revenue growth along with even greater projections for 2020. These two elements often lead a consensus amongst investors, and any serious Five9 investors must be smiling cheek-to-cheek after getting wind of the company’s recent financial reports.
What does the future hold for Five9? I will soon sit down with the company’s CEO, Rowan Trollope, and ask him this very question in a piece set to outline how it plans to expand Silicon Valley into Canada.
