Shares of Five9 (NASDAQ:FIVN) jumped 14% on Wednesday after the company reported third-quarter earnings. The company, which makes cloud-based software for call centers, crushed bottom-line expectations, much like last quarter.
Revenue in the third quarter jumped 30% to a record $65.3 million, which led to non-GAAP net income of $11.1 million, or $0.18 per share. The market was expecting Five9 to post $61.7 million in sales and an adjusted profit of $0.09 per share. CEO Rowan Trollope noted it was the fastest revenue growth since the company went public four years ago. Adjusted EBITDA more than doubled to $12.8 million, and operating cash flow was $9.4 million. Non-GAAP gross margin also expanded to 64.3%, up from 63.1% a year ago.
"In the third quarter, we continued to execute crisply in a strong market and made solid progress on our strategic priorities, including building our talent bench, investing in R&D, and advancing our long-term investments," Trollope said in a statement. "We are driving toward our goal of creating the world's best self-learning intelligent contact center delivered through the cloud and powered by AI. Enterprise customers are recognizing the value of our innovative platform and our compelling vision for the future."
In terms of outlook, fourth-quarter revenue should be in the range of $65.8 million to $66.8 million, resulting in non-GAAP net income of $8 million to $9 million, or $0.13 to $0.14 per share. Consensus estimates call for $64.6 million in sales and $0.12 per share in adjusted profit for the fourth quarter.