The News: Five9 Q1 revenue figures were reported April 28, highlighted by a new quarterly revenue record of $182.8 million for the cloud-based contact center services vendor. The $182.8 in Q1 2022 revenue eclipses the company’s previous record quarter of $173.6 million, which occurred in Q4 2021. Five9’s non-GAAP net income, however, was down 2.9 percent for the quarter to $15.6 million from $16.1 million one year ago. For the full Press Release, click here.
Five9 Q1 Revenue Rises to $182.8M, a 33% Increase YoY, Setting Another New Five9 Revenue Record as the Contact Center Services Vendor Sees Continued Growth
Analyst Take: It was more good revenue news for Five9’s Q1, as the cloud-based contact center software vendor impressively followed its record revenue pace from Q4 of 2021, when it booked a then-record $173.6 million in revenue. The 5.3 percent revenue rise from Q4 2021 to Q1 2022’s $182.8 million is not huge, but we believe it is a steady indication that Five9 is continuing to bring in new customers to further expand its growing user base.
What is even more impressive is the reported 33 percent revenue jump from Q1 2021 when $137.9 million was tallied, to the $182.8 million reported for Q1 2022.
We see more positive news here for Five9 as well, including reported 46 percent growth in enterprise subscription revenue over the last 12 months, though the company did not break out its exact subscription revenue figures. The company’s enterprise subscription revenue makes up about 60 percent of its total corporate revenue.
Here is how the Five9 Q1 revenue figures came in by the numbers:
- Q1 2022 revenue was $182.8 million, up 33 percent from $137.9 million for the same quarter one year ago.
- Q1 2022 revenue was up sequentially by 5.3 percent from Q4 2021, rising to $182.8 million in Q1 from $173.6 million in Q4 2021.
- Q1 non-GAAP net income was $15.6 million, down 2.9 percent from $16.1 million one year ago.
- Q1 non-GAAP net earnings per share was $0.23 cents per basic share, down slightly from $0.24 per basic share one year ago.
While the Five9 Q1 revenue numbers are solid, the company must closely monitor its future trajectory in the marketplace and 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. We also see the positive momentum for born on cloud Customer Experience/Contact Center playing a significant role as customers migrate and/or seek net new solutions that offer the flexibility and extensibility of SaaS solutions versus legacy CX/CC solutions. This bodes well for Five9 moving forward.
Founded in 2001, Five9 serves more than 2,000 customers globally, providing more than seven billion call center customer interactions each year. The company’s cloud-based flagship platform – The Five9 Intelligent Cloud Contact Center – provides digital engagement, analytics, workflow automation, workforce optimization, and practical AI to help business customers create more human customer experiences and to engage and empower their agents to provide quality services.
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.