Shares of Five9 (NASDAQ:FIVN) have popped today, up by 10% as of 12:50 p.m. EDT, after the company reported strong first-quarter earnings. Sales hit a record level and the cloud software specialist beat on the bottom line.
Revenue in the first quarter came in at $58.9 million, topping the Street's expectations of $55.1 million in sales. Non-GAAP net income was $4.5 million, or $0.08 per share, similarly beating the consensus estimate that called for $0.03 per share in adjusted profit. Operating cash flow was $8 million, and gross margin expanded to 58.1%. Enterprise subscription revenue jumped 38%.
Interim CEO and CFO Barry Zwarenstein said in a statement:
We had a strong start to the year with both bottom and top line results significantly exceeding our expectations. Revenue grew by 25% year over year to a record $58.9 million. Our revenue growth continues to be driven by our Enterprise business, which delivered 38% growth in LTM Enterprise subscription revenue. Our strong enterprise growth and the operating leverage in our business model drove substantial improvements to our bottom line. Additionally, we set a first quarter record for Enterprise bookings and the pipeline reached an all-time high.
Five9's previous CEO had stepped down in November due to personal health reasons, with Zwarenstein pulling double duty in the months since as the company searched for a permanent replacement. In addition to first-quarter results, the company also announced that it had scored Rowan Trollope as its new permanent CEO, poaching the industry vet from Cisco Systems.
In terms of guidance, Five9 expects second-quarter revenue to be in the range of $55.8 million to $56.8 million, with non-GAAP earnings per share of $0.03 to $0.04. For the full year, the company boosted its outlook, and now expects sales to be $235.8 million to $238.8 million, up from a prior range of $231 million to $234 million. That should boost adjusted EPS, too, which is now forecast at $0.25 to $0.30 per share, compared to the previous outlook of $0.20 to $0.25 per share in adjusted profit.