Five9 Inc. (NASDAQ: FIVN) boosted its forecast for the current year following a strong first quarter. Generally, digital business transformation favors companies like Five9, which provides cloud-based call center services. While remote work posed a massive challenge for the company, an additional boost for growth resulted from the transition. In the wake of the pandemic, many businesses needed professional customer service but could not engage in such services due to lack of experience and resources. Five9 software is used for the management of customer service centers, technical support, and other services. Using artificial intelligence systems, the company has developed a voice assistant that can respond in natural conversation to customer requests, such as meeting scheduling, social distancing policies, updating mailing addresses, and more.
Five9 reported strong first-quarter financial results at the end of April. Sales grew 45 percent year-over-year, exceeding management’s expectations. Five9 has noted significant progress in establishing relationships with larger clients in one of its revenue growth determinants.
Five9’s management has estimated that sales for 2021 should grow to a range of $ 548 – $551 million, based on the results of 2021. Compared to the prior forecast of $ 519 – $ 521 million, this represents a significant increase. Also, net losses are expected to be slightly lower than originally estimated. However, risks remain for Five9. A contract not renewed by an important customer can significantly reduce the revenue of this company since its client base is still relatively small. Nevertheless, Five9 continuously diversifies its customer base and its range of services, building a credible business model.
Despite the stock’s recent bounce, it remains 70% above its 52-week low and 20 % above its 52-week high. At the auction on May 14, the share was worth $ 164.5.