Earnings Results: Five9 stock falls 15% after outlook disappoints

United States

Five9 Inc. shares dropped in the extended session Wednesday after the cloud contact-center software company’s outlook fell short of Wall Street expectations.

Five9 FIVN, -8.93% shares fell more than 15% after hours, following an 8.9% drop in the regular session to close at $ 104.14, their lowest close since June 24, 2020.

The company forecast earnings of 12 cents to 14 cents a share on revenue of $ 170 million to $ 171 million for the first quarter, and $ 1.12 to $ 1.16 a share on revenue of $ 754.5 million to $ 757.5 million for the year.

Analysts surveyed by FactSet had estimated earnings of 22 cents a share on revenue of $ 170.5 million for the first quarter, and $ 1.14 a share on revenue of $ 748.4 million for the year.

The company reported a fourth-quarter loss of $ 3.6 million, or 5 cents a share, compared with a loss of $ 7.2 million, or 11 cents a share, in the year-ago period.

Adjusted earnings, which exclude stock-based compensation expenses and other items, were 42 cents a share, compared with 34 cents a share in the year-ago period. Revenue rose to $ 173.6 million to $ 127.9 million in the year-ago quarter.

Analysts had forecast earnings of 36 cents a share on revenue of $ 165.4 million.