FIVN

Five9 Inc

TMT


Presented:02/23/2021
Price:$178.09
Cap:$11.75B
Current Price:$30.41
Cap:$2.27B

Presented

Date02/23/2021
Price$178.09
Market Cap$11.75B
Ent Value$11.58B
P/E RatioN/A
Book Value$3.99
Div Yield0%
Shares O/S65.98M
Ave Daily Vol672,471
Short Int5.04%

Current

Price$30.41
Market Cap$2.27B
Five9, Inc. engages in the provision of cloud software for contact centers. It specializes in omnichannel routing, analytics, workforce organization, and reporting. The company was founded in December 2001 and is headquartered in San Ramon, CA.

Publicly traded companies mentioned herein: Avaya Holdings Corp (AVYA), Cisco Systems Inc (CSCO), Five9 Inc (FIVN), Forrester Research Inc (FORR), Gartner Inc (IT), NICE Ltd (NICE)

Highlights

The presenter is long shares of Five9 Inc (FIVN), which offers services in the high-growth contact center category and trades at ~$175 per share. The market has historically been led by legacy on-premise players AVYA and CSCO. However, the industry is in the midst of a transition to the cloud and contact center as a service (CCaaS), which has been accelerated by COVID-19. Given FIVN’s best-in-class product, strong SaaS metrics, excellent management team, and positive market share trends, the presenter believes a long FIVN position is the best way to capitalize on the category’s transformation. Through unit and ARPU growth, he projects revenues to reach $2.5B by 2025, compounding at ~25% thereafter. Given the strong growth rate in out years, he considers a 10x sales multiple appropriate, which yields a price target of $300+ in the next 2 – 3 years.

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Idea Discussion

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