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Five9 expands board with new director from Anson Funds

Published 12/09/2024, 08:16 AM
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SAN RAMON, Calif. - Five9 (NASDAQ:FIVN), a cloud contact center provider with annual revenue exceeding $1 billion and a market capitalization of $3.2 billion, has announced the appointment of Sagar Gupta of Anson Funds to its Board of Directors. The move comes as part of a cooperation agreement with Anson Funds and is effective immediately. According to InvestingPro data, the company has shown strong momentum with impressive returns over the past three months.

Gupta, who has over a decade of experience in the technology, media, and telecommunications sectors, joins the Five9 board with a background that includes a role as Portfolio Manager and Head of Active Engagement at Anson Funds. His previous board experience includes serving on the board of Momentive Global, the parent company of SurveyMonkey.

Chairman and CEO of Five9, Mike Burkland, expressed confidence in the company's growth strategy and welcomed Gupta's insights as a shareholder and experienced technology investor. The optimism appears well-founded, as InvestingPro analysis shows 15 analysts have revised their earnings upward for the upcoming period, with expectations of profitability this year. Gupta himself noted the "significant value creation potential" at Five9 and expressed eagerness to contribute to the company's adaptation to market demands.

The appointment increases the size of Five9's board to ten directors, with nine serving as independent members. Five9's cooperation agreement with Anson Funds includes standstill, voting, and confidentiality commitments.

Five9, renowned for its Intelligent CX Platform powered by AI, serves over 2,500 customers and partners with more than 1,400 entities globally. The company aims to deliver personalized customer experiences and empower employees, which it believes will lead to better business outcomes.

Anson Funds, a privately held alternative asset manager with $2 billion in assets, is led by Chief Investment Officer Moez Kassam. Scalar Gauge Fund, whose Founder and Portfolio Manager Sumit Gautam commented on the appointment, is a special situations investment firm with expertise in enterprise software.

The announcement contains forward-looking statements, including expectations of Five9's strategy and opportunities, which are subject to risks and uncertainties that could cause actual results to differ from those projected. While the company operates with a moderate level of debt and maintains strong liquidity with current assets exceeding short-term obligations, investors seeking deeper insights can access comprehensive analysis through InvestingPro's detailed research reports, which provide extensive coverage of Five9's financial health and growth prospects.

This article is based on a press release statement from Five9.

In other recent news, Five9 has demonstrated robust financial growth in the third quarter, with total revenue rising by 15% year-over-year to $264.2 million. The company's subscription revenue, which constitutes nearly 80% of the total revenue, saw a 20% increase. Contributing to this positive performance was an adjusted EBITDA margin of 20%, leading to a record operating cash flow of $41 million.

Five9 has also raised its Q4 revenue guidance to a midpoint of $267.5 million and expects non-GAAP EPS to be $0.70 per diluted share. Notably, the firm has revised its full-year guidance upwards, indicating a strong end to the year and potential for continued growth.

In further developments, Five9 acquired Acqueon, a move expected to bolster its intelligent customer experience platform with advanced omnichannel capabilities. In addition, Five9 has opened a new data center in India to support local requirements for large customers and tap into the significant contact center opportunity in the region.

However, Five9 reported a GAAP net loss of $4.5 million due to a one-time charge of $9.6 million. Baird, an independent analyst firm, adjusted its outlook on Five9, raising the stock's price target from $40.00 to $43.00 while maintaining a Neutral rating, following the company's strong third-quarter results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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