By Sam Boughedda
Five9 (NASDAQ:FIVN) dropped in early Thursday trading after it missed first quarter revenue guidance expectations.
The company told investors it expects Q1 2023 earnings of $0.23 to $0.25 per share, versus the consensus of $0.21, but revenue for the quarter is seen between $207 million and $208M, below the consensus of $209.71M.
Despite beating on other metrics, the Q1 revenue guidance miss was enough to see the stock fall 8% at the open.
For the full-year 2023, Five9 sees earnings per share between $1.67 and $1.71, versus the consensus of $1.57, while revenue is expected to be from $900M to $903M, versus the consensus of $900.63M.
In addition, the company topped Q4 top and bottom line estimates, with earnings of $0.54 per share, $0.13 better than the analyst estimate of $0.41, and revenue coming in at a record $208.3M versus the consensus estimate of $204.68M.
The company stated that its growth was driven by the continued strength of its Enterprise business, where LTM subscription revenue grew 32% year-over-year.
Following the release, BofA analysts maintained an Underperform rating and $61 price target on the stock, stating that the results were solid, but macro headwinds weighed on the company's guidance.
"FIVN reported 4Q22 results above estimates but macro-driven changes in customer behavior contributed to management maintaining a cautious FY23 revenue guide of 16% (well below its previous LT guidance of 30%+). Management noted macro headwinds are driving customers to be more cautious, leading to elongated sales cycles and areas of softness in new logos, suggesting there is still risk to estimates," the analysts wrote.
Needham & Company analysts kept a Buy rating and a $90 per share price target on the stock.
They said in a research note that Five9 reported 4Q22 financial results that they "view as in line with consensus expectations led by a modest revenue beat as the macro pressured seat expansions roughly as expected."
"Sales commentary was positive with stable sales cycles, sustained large customer demand, and a growing European business that represents a new growth vector. The company announced two new AI modules based on ChatGPT that we believe will contribute to ARPU growth, as they were not a part of the FIVN story two years ago," wrote the analysts.