What Action Should You Take On This Mid Cap US Stock-FIVN

Acrobull Canada Advisory Inc.

July 03			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Five9, Inc.	FIVN-NASDAQ	Technology		$2.039 Billion	Medium

Five9, Inc., together with its subsidiaries, provides intelligent cloud software for contact centers in the United States and internationally. It offers CX platform that delivers a suite of applications, which enables the breadth of customer service, sales, and marketing functions.

Recent Highlights

Five9, the provider of the Intelligent CX Platform, has announced the launch of AI Agents and AI Trust & Governance, marking a major step forward in what it calls the new era of Agentic CX. These innovations are powered by the Five9 Agentic Experience Engine, which sits at the heart of its Genius AI Architecture.

Together, these capabilities aim to deliver intelligent, scalable customer experiences by enabling systems that can reason, adapt, and take action—while ensuring security, seamlessness, and context-aware interactions throughout.

First Quarter 2025 Highlights

For the first quarter of 2025, Five9 reported a strong performance with revenue reaching a record $279.7 million, reflecting a 13% increase compared to $247.0 million in the same period of 2024. This growth highlights the company’s continued expansion in the cloud-based contact center market.

In terms of profitability, the GAAP gross margin for Q1 2025 was 55.0%, which represents an improvement over the 53.6% reported in Q1 2024. This increase in gross margin indicates better operational efficiency and cost management.

On the earnings front, Five9 delivered a GAAP net income of $0.6 million, or $0.01 per diluted share, translating to 0.2% of revenue. This is a significant turnaround from the GAAP net loss of $(7.1) million, or $(0.10) per basic share, representing a loss of (2.9)% of revenue in Q1 2024.

Excluding certain non-recurring items, Five9’s non-GAAP net income for the first quarter of 2025 was $47.3 million, or $0.62 per diluted share, accounting for 16.9% of total revenue. This is a substantial increase from the non-GAAP net income of $35.7 million, or $0.48 per diluted share, or 14.5% of revenue in Q1 2024, underscoring the company's strong core profitability and the success of its business model.

Overall, these results reflect Five9’s continued growth trajectory, robust operational performance, and the positive impact of its strategic initiatives in driving higher margins and profitability.

Stock Observation- Five9 offers its guidance based on the current market conditions and expectations. However, the company highlights that this guidance is subject to a range of important cautionary factors, as detailed in the "Forward-Looking Statements" section below. These include risks and uncertainties related to the ongoing effects of macroeconomic challenges.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$26.73 USD
Acrobull Recommendation	Buy
Target Price	$30.47 USD
RSI Level	14 Day RSI 47
Total Shares Outstanding	76.27 Million
Shares held by Insiders Shares held by Institutions Risk Factor Stop Loss	1.01% 115.15% Medium 5%