Five9 Q2 Earnings Preview: Revenue Growth Expected to Slow Down

Five9, a call center software provider, will announce Q2 earnings on Thursday. Analysts expect a 9.2% YoY revenue increase to $275.2 million and adjusted earnings of $0.65 per share. The company has only missed revenue estimates once in the last two years. Its peers in the productivity software segment have reported strong results, with ServiceNow and Pegasystems beating estimates by 2.9% and 5.9%, respectively.

Five9, Inc. (FIVN) is set to release its second-quarter 2025 earnings report on July 31. Analysts anticipate a 9.2% year-over-year (YoY) increase in revenue to $275.2 million, with adjusted earnings per share (EPS) expected at $0.65 [1]. The company has a strong track record, having only missed revenue estimates once in the past two years.

Five9, a leading provider of cloud software for contact centers, has shown consistent growth in its enterprise AI revenues. In the first quarter, enterprise AI revenues jumped 32% YoY, accounting for 9% of its enterprise subscription sales. This momentum is expected to continue into the second quarter [1].

The company's operational efficiency is another key factor. Five9 posted an 18.8% adjusted EBITDA margin and $35 million in free cash flow in the first quarter, providing a cushion for further investment in product innovation and customer acquisition [1]. Strategic partnerships with major tech companies like Salesforce, Microsoft, ServiceNow, Verint, and Google have also contributed to its growth by enabling tailored AI tools and improved platform integration [1].

However, macroeconomic headwinds, such as persistent inflation, high interest rates, and currency fluctuations, could have impacted Five9's performance in the second quarter [1]. Despite these challenges, the company's focus on AI-based solutions and strategic partnerships positions it well for continued growth.

Five9's peers in the productivity software segment have reported strong results. ServiceNow and Pegasystems beat estimates by 2.9% and 5.9%, respectively, indicating robust performance in the sector [1].

References:
[1] https://finance.yahoo.com/news/five9-gears-report-q2-earnings-123400557.html
[2] https://investors.five9.com/