Shares of Five9 Inc. (FIVN -0.82%) surged on Tuesday after the provider of cloud software for contact centers reported its second-quarter results. Both revenue and earnings easily beat analyst expectations, and the company raised its outlook for the full year. The stock was up about 23.7% at 12:55 p.m. EDT.
Five9 reported second-quarter revenue of $61.1 million, up 28% year over year and about $4.7 million higher than the average analyst estimate. The enterprise business was the main driver of this growth, with enterprise subscription revenue up 37% in the trailing-12-month period.
Non-GAAP earnings per share were $0.11, up from essentially breakeven in the prior-year period and $0.07 above analyst expectations. The company lost $0.04 per share on a GAAP basis, with the difference mostly due to stock-based compensation.
"Our vision is to create a self-learning, intelligent contact center delivered through the cloud and powered by AI," said Five9 CEO Rowan Trollope. "Our recently announced Five9 Genius and partnership with Google, which brings practical AI enhancements to the contact center, is the first step in this direction."
For the third quarter, Five9 expects to produce revenue between $61 million and $62 million, and non-GAAP earnings per share (EPS) between $0.08 and $0.10. The company boosted its full-year guidance, now expecting revenue between $244.5 million and $246.5 million, and non-GAAP EPS between $0.39 and $0.42. Five9's previous full-year guidance ranges were $235.8 million to $238.8 million and $0.25 to $0.30, respectively.
Tuesday's rally pushed Five9 stock as high as $44 per share, a new all-time high. With trailing-12-month revenue of just over $200 million, the company is still in the early stages of its growth story.