SAN RAMON, Calif. - Five9 (NASDAQ:FIVN), a provider of the Intelligent CX Platform, has announced a definitive agreement to acquire Acqueon, a leader in real-time revenue execution platforms. This acquisition, expected to close in the second half of 2024, aims to advance Five9's vision of orchestrating customer interactions across marketing, sales, e-commerce, and customer service.
By integrating Acqueon's capabilities, Five9 plans to leverage artificial intelligence (AI) to enhance omnichannel customer engagement, allowing businesses to connect with customers more effectively through personalized, proactive communication. The combined strengths of the two companies are expected to help enterprises increase revenue and improve customer satisfaction while adhering to compliance standards.
Mike Burkland, Chairman and CEO of Five9, expressed enthusiasm about the acquisition, stating that it would build on the company's outbound solutions and utilize customer preferences and outreach channels to foster growth and customer delight. The interactions generated within Acqueon's platform are anticipated to enrich the data available to Five9's Genius AI Suite.
Acqueon has a history of aiding sectors like financial services, healthcare, and retail in connecting with their audience, resulting in significant revenue outcomes through improved contact rates and sales conversions. Ashish Koul, CEO of Acqueon, remarked on the success of their partnership with Five9 and the potential for their AI-powered solutions to strengthen Five9's position in the customer experience (CX) market.
Industry analysts recognize the strategic combination as a means for Five9 to extend its reach beyond the contact center and offer a more powerful connection across the customer journey.
This acquisition is part of Five9's broader strategy to provide AI-elevated customer experiences through its Intelligent CX Platform, which is trusted by over 2,500 customers and 1,400 partners worldwide.
The information for this article is based on a press release statement.
In other recent news, Five9 has been the focus of several major developments. The cloud contact center provider has seen its stock upgraded by BofA Securities due to the potential benefits of artificial intelligence and an attractive entry point for investors. Truist Securities also maintained its Buy rating on Five9 amid reports of a push for sale by investor Anson Funds Management, who recently acquired a stake in the company.
Analysts from Piper Sandler, Deutsche Bank, and Wells Fargo have revised their price targets for Five9, with all firms maintaining positive ratings despite concerns about the company's revenue growth. These revisions come in light of Five9's reported 20% year-over-year growth in subscription revenue and a 13% increase in overall revenue, reaching $247 million in the first quarter. The company projects a revenue of $244.5 million for the second quarter, and full-year 2024 revenue is expected to reach $1.055 billion.
Additionally, Five9 has announced an enhanced collaboration with Salesforce (NYSE:CRM) to improve customer experiences through AI-powered solutions. These are among the recent developments in Five9's business operations.
InvestingPro Insights
As Five9 sets its sights on enhancing customer engagement through the acquisition of Acqueon, investors and industry watchers are keeping a close eye on the company's financial health and market performance. Recent data from InvestingPro offers valuable insights into Five9's current financial position and stock market trends.
InvestingPro data shows that Five9 has a market capitalization of approximately $3.05 billion. While the company is not currently profitable, with a negative P/E ratio of -50.18, analysts are optimistic about its future, predicting a return to profitability this year. This optimism is further supported by the company's revenue growth, which stands at 15.29% for the last twelve months as of Q1 2024, indicating a robust increase in earnings. Additionally, Five9's gross profit margin is healthy at 52.89%, showcasing its ability to retain a significant portion of its revenue after accounting for the cost of goods sold.
InvestingPro Tips also shed light on Five9's financial stability and stock performance. Notably, the company's liquid assets exceed its short-term obligations, suggesting a strong liquidity position. Despite the stock having taken a significant hit over the last six months, with a price total return of -45.42%, analysts remain positive about its future prospects. They highlight that Five9 operates with a moderate level of debt and does not pay a dividend to shareholders, allowing potential reinvestment into growth and expansion efforts.
For those interested in a deeper dive into Five9's financial prognosis and stock performance, InvestingPro offers a range of additional tips, including a total of 9 more tips available on the InvestingPro platform. These insights could help investors make more informed decisions regarding the company's potential in light of its recent strategic moves in the customer experience sector.
Five9's next earnings date is set for August 8, 2024, which will provide further clarity on the company's financial trajectory and the impact of its acquisition strategy. With a fair value estimated at $56.2 by InvestingPro, compared to analyst targets of $80, investors may find an opportunity to evaluate the company's valuation in the context of its growth initiatives and market position.
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