Needham analyst Scott Berg lowered the firm’s price target on Five9 to $75 from $160 but keeps a Buy rating on the shares. The company’s sales volumes within its enterprise segment remain high with the highest number of above $1M ARR deals ever, but the lighter than normal seasonal Q3 seat expansion is driving projected Q4 growth 3% below current consensus, the analyst tells investors in a research note. Berg adds however that Five9’s 16% revenue growth forecast is FY23 is "sufficiently de-risked" as it accounts for strong net new logo revenue addition but with minimal seat expansion revenues.
Published first on TheFly
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