© Stocksak. Five9 (FIVN), Added to Needham’s Conviction List as Considers Strong Bookings Quarter
By Senad Karaahmetovic
Needham & Company analysts added Five9 (NASDAQ:) to the firm’s Conviction List after checks returned strong.
The analysts discussed recent business trends with six large Contact Center partners of Five9, indicating that the overall activity was “at or above expected levels” in Q3.
“Contact Center seasonal hiring trends were weak initially in 3Q22, ticked up entering 4Q22 with consumer spending trends holding up better than expected. One area we focused on in our questions was on hiring trends, especially for seasonal agents, in a tough labor environment,” they said in a client note.
The analysts also believe investors are “overly cautious on the CEO transition,” while valuation remains “attractive.” They reminded the firm’s clients that FIVN should remain “a multi-year 25% revenue growth story with a strong profitability track record.”
They expect revenue growth to accelerate above 30% next year. In the meantime, FIVN should deliver “strong YTD bookings.”
Five9 shares were up more than 1% in premarket Monday