Some tech shares benefiting from a current surge in work-from-home tendencies have seen tons of consideration within the media. Video-conferencing firm Zoom Video, office direct-messaging platform Slack Applied sciences, and interactive fitness-product firm Peloton have seemingly turn into Wall Road darlings in a single day.
However there’s one other smaller and fast-growing tech inventory that is getting ignored in mainstream media that is equally benefiting from stay-at-home orders and corporations’ accelerating digital transformations: Five9 (NASDAQ:FIVN), a supplier of a cloud-based contact-center platform.
Following the corporate’s sturdy first-quarter outcomes earlier this week, The Motley Idiot interviewed Five9 CEO Rowan Trollope and mentioned how COVID-19 is impacting demand, what to anticipate from the tech company‘s efficiency after the virus fades into the rearview mirror, and extra.
Stellar first-quarter outcomes
On Monday, Five9 stated its income jumped 28% 12 months over 12 months to $95.1 million. Non-GAAP (adjusted) earnings per share (EPS) for the interval was $0.17, up from $0.16 within the year-ago quarter. Each Five9’s high and backside traces beat analysts’ common forecasts for income and non-GAAP EPS of $89.6 million and $0.15, respectively.
These sturdy outcomes have been pushed by a 33% year-over-year enhance in trailing-12-month enterprise subscription income.
A piece-from-home growth
Whereas Five9’s first-quarter outcomes have been spectacular, the corporate noticed significantly sturdy momentum in April. Five9 stated it helped its prospects transition “tens of 1000’s” of brokers to work at home within the weeks main as much as its Might four earnings report.
“Five9 has skilled a surge in demand to ship work-from-home fashions,” Rowan advised The Motley Idiot. He continued:
Clients now acknowledge the important nature of the contact heart and the position it performs in enterprise continuity. Since a lot of the world has shifted to distant work the place potential, there may be dramatically elevated appreciation for the truth that cloud options can tackle organizations’ wants much better than on-premise options.
Extra importantly, Trollope stated he thinks its prospects’ rising appreciation for a cloud answer throughout this time will not be a short lived boon for the corporate, however relatively, an enduring catalyst. “I imagine that as corporations have gone by means of this expertise, cloud adoption will speed up even post-COVID, as extra corporations critically think about shifting to a extra versatile mannequin, permitting brokers to work at home,” stated Trollope.
The CEO identified that Five9 just lately launched a FastTrack Program to assist rapidly onboard prospects throughout this spike in demand amid COVID-19. This system helps transition brokers to the cloud with a 48-hour turnaround, however Trollope famous that some emergency-response hotlines have been launched in as little as three hours.
“By means of this program, we’re additionally providing inexpensive month-to-month pricing and versatile contracts to accommodate present unsure enterprise situations,” Rowan stated.
With a market cap of $6.5 billion, Five9 is way smaller than Zoom ($43 billion) and Slack ($17.5 billion). Nonetheless, Five9 is positioned simply in addition to Zoom and Slack to learn from work-from-home tendencies and organizations’ accelerating digital transformations.
— to www.fool.com