Five9, Inc.

FIVNdata completeness 88%14 fiscal years on file
The thesis, from the filings

Five9, Inc. earns about -20% on invested capital, below its ~9% cost of capital, but has diluted owners by 30% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $39.97 and $70.94 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$609.6M1$778.8M2$910.5M3$1.04B3$1.15B3
Net income−$53M4−$94.7M5−$81.8M6−$12.8M6$39.4M6
Operating cash flow$29M7$88.9M8$128.8M9$143.2M9$226.2M9
Capital expenditure$42.2M10$52.3M11$31.2M12$42.4M12$25M12
Free cash flow (derived)−$13.2M7$36.6M8$97.6M9$100.8M9$201.2M9
Total debt
Cash & equivalents$90.9M13$180.5M14$143.2M14$362.5M14$232.1M14
Diluted shares67.5M69.9M72.0M74.5M88.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$89.3
your share of equity
Profit it earned you last year
$4.48
Free cash flow it threw off
$22.87
Debt you’d be carrying

10 shares is a claim on $89.3 of net worth that earned you $4.48 and generated $22.87 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-20% avg · 5y
FY21 -37%FY22 -51%FY23 -14%FY24 -4%FY25 7%

It earned about -20% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+30% shares · 5y

Share count is up 30% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $39.97 and $70.94 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$70.94
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$100.8M
DCF · Growth Exit 5Y
$39.97
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$100.8M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$9.51
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $39.97
The three cases
Bear0.0%$19
Base20.0%$39.97
Bull20.0%$39.97

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001288847-24-000012 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001288847-25-000028 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001288847-26-000023 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001288847-24-000012 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001288847-25-000028 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001288847-26-000023 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001288847-24-000012 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001288847-25-000028 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001288847-26-000023 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001288847-24-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001288847-25-000028 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001288847-26-000023 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001288847-25-000028 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001288847-26-000023 (CashAndCashEquivalentsAtCarryingValue)