Five9 Exceeds Guidance in Q2 with Strong AI Growth and Record Profitability

Five9 Inc. reported strong Q2 earnings, surpassing guidance across all key metrics. The company saw a 16% YoY growth in subscription revenue and a 42% YoY growth in Enterprise AI revenue. Five9 achieved record profitability with a 24% adjusted EBITDA margin. The company anticipates minimal seasonality for the rest of the year and expects to drive future growth through its strategic focus on AI, successful partner integrations, and strengthened leadership team.

Five9 Inc. (FIVN) reported robust second-quarter (Q2) earnings, exceeding expectations across all key financial metrics. The company's revenue surged 12% year-over-year (YoY) to a record $283.3 million, surpassing analysts' forecasts of $275.1 million [2]. This growth was primarily driven by a 16% YoY increase in subscription revenue and a significant 42% YoY acceleration in Enterprise AI revenue, which now represents 10% of Enterprise subscription revenue.

Five9's adjusted EBITDA margin hit an all-time record of 24%, up from 16.6% in the same period last year. GAAP net income for Q2 2025 was $1.2 million, or $0.01 per diluted share, compared to a GAAP net loss of $(12.8) million in Q2 2024. Non-GAAP net income was $58.3 million, or $0.76 per diluted share, up from $38.9 million in Q2 2024 [2].

The company's operating cash flow also reached a record high of $35.1 million, compared to $19.9 million in Q2 2024. Mike Burkland, Chairman and CEO of Five9, expressed satisfaction with the results, stating that the company exceeded expectations across all key metrics and is well-positioned for future growth [2].

Five9's guidance for the full year 2025 includes revenue in the range of $1.1435 to $1.1495 billion and GAAP net income per share in the range of $0.23 to $0.30, assuming diluted shares outstanding of approximately 88.5 million. The company expects non-GAAP net income per share to be in the range of $2.86 to $2.90, assuming diluted shares outstanding of approximately 77.7 million [2].

Additionally, Five9 appointed Bryan Lee as its new Chief Financial Officer (CFO), effective July 31, 2025. Lee has been an instrumental member of the finance team since joining Five9 in 2014 and has held various financial leadership roles, including Executive Vice President of Finance and Treasurer [2].

Five9's strategic focus on AI, successful partner integrations, and strengthened leadership team are expected to drive future growth and minimal seasonality for the rest of the year [2].

References:
[1] https://finance.yahoo.com/news/five9-q2-earnings-snapshot-201747357.html
[2] https://investors.five9.com/news-releases/news-release-details/five9-reports-record-revenue-283-million-second-quarter