Can This Cloud Software Company Keep Growing?
Five9 Inc. (NASDAQ: FIVN) this week posted higher-than-expected fourth-quarter revenue and earnings per share. Management's 2020 guidance also exceeded analysts' expectations. But beyond these strong short-term results, the cloud contact center specialist will face intensifying competition over the next several quarters, which could pressure its rich valuation.
Contact centers are not immune to the shift of computing infrastructures and applications to the cloud. In a study Cisco Systems conducted last summer, 62% of contact center executives said they planned to implement a cloud contact center within the next 18 months.
As an illustration, despite its large customer base, the legacy communications vendor Avaya has been struggling with flattish revenue from its contact center segment -- from $361 million in fiscal 2017 to $359 million in fiscal 2019 -- partly because of its lack of cloud-based solutions.
Source Fool.com
