FIVN

Five9 Inc

TMT


Presented:07/10/2023
Price:$83.85
Cap:$5.97B
Current Price:$30.41
Cap:$2.27B

Presented

Date07/10/2023
Price$83.85
Market Cap$5.97B
Ent Value$5.31B
P/E RatioN/A
Book Value$4.74
Div Yield0%
Shares O/S71.18M
Ave Daily Vol1,404,483
Short Int5.25%

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: Five9 Inc (FIVN), Nice Ltd (NICE)

Highlights

The presenter is long shares of Five9 Inc (FIVN), which sells cloud software to contact centers. The stock fell dramatically from ~$120 per share in late summer 2022 due to a macroeconomic-driven derating, and dropped another 25% immediately following the resignation of CEO Rowan Trollope, eventually bottoming below $50 in November 2022. It has since recovered to the current $83 share price but has meaningfully underperformed its software comp set in 2023 because of the AI risk around the dissipation of contact center seats. However, the presenter views FIVN as an AI winner and thinks the company is on the verge of reaccelerating revenue growth as it moves up market and wins land-and-expand deals. In that scenario, the current 5x valuation on his 2024 revenue forecast should rerate in line with other best-in-class enterprise software companies growing 20% – 30%, which would imply a HSDx revenue valuation and share price appreciation from the current $83 to $140 – $150.

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Idea Discussion

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