The News: Five9’s Q2 2022 revenue climbed 32 percent to $189.4 million from the same quarter in 2021, while its non-GAAP net income rose 52 percent to $24.3 million. Five9, which specializes in cloud contact center software, reported its latest Q2 2022 earnings numbers on July 28. Read the full Press Release on the Five9 website.
Five9 Q2 2022 Revenue Up 32% to $189.4M as Growth Continues
Analyst Take: Five9’s Q2 2022 revenue of $189.4 million brought more positive news for the cloud contact center software vendor, again setting a quarterly revenue record that has continued for the last several earnings periods.
Here are Five9’s Q2 2022 results by the numbers:
- Q2 2022 revenue of $189.4 million, up 32 percent from $143.8 million one year ago. The revenue figure beat consensus estimates of $180 million from analysts with Refinitiv.
- The quarterly revenue figure of $189.4 million exceeded the company’s previous record revenue in Q1 of $182.8 million, and the company’s prior record of $173.6 million in Q4 of 2021.
- Q2 2022 non-GAAP net income of $24.3 million, up 52 percent from $16 million one year ago.
- Q2 2022 non-GAAP basic earnings per share (EPS) of $0.35 per share, which beat Refinitiv consensus estimates of $0.18 per share.
- Q2 2022 non-GAAP operating income of $25 million, up 47 percent from $17 million one year ago.
- Q2 2022 adjusted gross margin of 60.7 percent, down slightly from 63.3 percent one year ago.
One of the big factors for Five9’s Q2 revenue growth is that it reported 41 percent growth in LTM (last 12 months) enterprise subscription revenue, which is a notable uptick.
These are all good results for Five9 and its scalable Virtual Contact Center cloud software platform, which delivers a wide range of capabilities to customers, including easy-to-use applications that allow simultaneous management and optimization of customer interactions across voice, chat, email, web, social media and mobile channels. The on-demand services allow clients to quickly deploy agent seats in any geographic location using a computer, headset, and broadband Internet connection, and rapidly adjust the number of contact center agent seats in response to changing business requirements.
These latest earning numbers again prove that Five9’s continuing growth is impressive and further illustrates the growing power of cloud services in a world where many companies are having trouble hiring and retaining location-based workers. By offering contact center software that helps solve these critical needs for customers, we believe that Five9 is putting itself in a good position in this competitive marketplace.
Investors will be looking for a continuation of growth at this rate in the future as more business customers look to use the company’s forward-looking approach to solving their call center pressures.
Five9 Earnings Guidance Through 2022
As part of its Q2 2022 earnings report, Five9 also provided earnings guidance for the rest of 2022. Like every other organization today, Five9 and other tech and consumer companies are doing business in a tumultuous global macroeconomic environment which is continuing to see the effects of the lingering Covid-19 pandemic, the Russian war in Ukraine, supply chain issues and other disruptions.
For the full year 2022, Five9 expects to report revenue in the range of $780.5 million to $782.5 million, as well as non-GAAP net income per share between $1.38 per share to $1.40 per share.
For the third quarter of 2022, Five9 expects to report revenue in the range of $192.5 million to $193.5 million, as well as non-GAAP net income per share between $0.31 per share to $0.33 per share.
Five9 Earnings Overview
After at least three straight quarters with record revenue, Five9 shows continuing sales success. While that is great, we believe that the company must continue to closely monitor its future trajectory in the marketplace, especially amid today’s delicate global market conditions. By doing so, Five9 can then make responsive corrections as needed to keep it on track for continuing business and customer growth.
We are encouraged to see Five9 continuing to make progress with the development of its core products by investing further in AI and automation, as well as focusing on enterprise customers, both of which will help the company integrate even broader call center innovations and services for customers as it faces growing competition.
But bringing new innovations and continuing to deliver quality service will be paramount for Five9’s future, so the company cannot rest on its past performance.
It will be interesting to watch how Five9 responds to these challenges and market changes in the future. We are confident that the company’s executive leadership will provide solid guidance and decision-making for this up and coming contact center vendor.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.
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Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
