Five9 Shares Slip 15% As Zoom Video User Growth Slows

Shares of Five9, Inc. (FIVN) are slipping nearly 15% on Tuesday morning after Zoom Video Communications, Inc. (ZM) reported its second-quarter results, with user growth slowing down compared to pandemic era. Zoom also issued an outlook for the third quarter that is expected to miss current estimates.

FIVN is currently trading at $158.11, down $26.72 or 14.46%, on the Nasdaq, on a volume of 4.2 million shares, above average volume of 1.3 million shares. For the 52 week period, the stock has traded between $107.98 and $211.68. Five9 shares have gained over 25% in that time frame.

In July, Zoom Video agreed to buy Five9, a provider of the intelligent cloud contact center, in an all-stock transaction valued at about $14.7 billion.

Zoom's user growth has slowed down compared to the sharp rise recorded during the pandemic. In second quarter of 2021, the number of customers with 10 or more employees soared 458% to 370,200 from 66,300 a year ago. However, the growth slowed in the second quarter of 2022 to 36%, with the company reporting 504,900 customers with more than 10 employees.

The communications technology company expects third-quarter revenues of $1.015 billion to $1.020 billion and adjusted earnings of $1.07 to $1.08 per share. Wall Street analysts were looking for earnings of $1.09 per share on revenue of $1.01 billion.

For comments and feedback contact: editorial@rttnews.com

Business News

Get Access to Premium Stock Alerts with RTT Intelligent Investor.
Follow RTT