Why Five9 Stock Jumped Today
Shares of Five9 (NASDAQ: FIVN) jumped Friday after the cloud-based call center software company reported strong results for the second quarter that handily beat analysts' expectations. As of noon ET, Five9 stock was up by 13%.
In Q2, Five9's revenue grew by 32% year over year to $189 million -- a quarterly record. Analysts' consensus expectation had been significantly lower. So were the expectations of Five9's own management: The top of its guidance range had been $180 million. That solid growth at a time when many tech companies are reporting sharp sales declines was enough to bring cheer to Five9 investors Friday.
Five9's profit margins did take a slight hit in Q2: Its gross margin came in at 53.4% compared to 55.2% a year earlier. And the company had negative operating cash flow of $3.1 million compared to positive operating cash flow of $11.4 million in the prior-year period.
Source Fool.com
