Please ensure Javascript is enabled for purposes of website accessibility

How Five9 Shares Gained 69% in the First Half of 2020

By Anders Bylund – Jul 8, 2020 at 11:57PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cloud-based call center expert is reaping long-term benefits from the COVID-19 health crisis.

What happened

Shares of cloud-based contact center operator Five9 (FIVN 4.29%) rose 68.8% in the first half of 2020, according to data from S&P Global Market Intelligence.

So what

This stock roared into 2020 with a 50% gain in 2019 based on big wins in the enterprise subscriptions segment, only to find out that the COVID-19 crisis paved the way toward even stronger gains this year. The global health crisis lowered Five9's call center sales in some sectors, led by travel and consumer discretionary businesses, but the company's work-from-home services hit a nerve in this market. All told, Five9's total sales rose 28% year over year in the first quarter.

A smiling businesswoman talks on her phone in a home office with big-city views.

Image source: Getty Images.

Now what

One particular Five9 policy impressed me in the first quarter. At a time when many businesses were cutting costs and laying off employees, Five9 issued $1.8 million in COVID-19 relief bonuses to all employees up to the level of senior directors. The company may be sailing in uncharted waters, but the destination looks like a tropical beach with little umbrellas in every drink. Contact center services add up to a $30 billion annual market today and Five9 is poised to grab a larger slice of that enormous pie thanks to the coronavirus pandemic.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Five9. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.