We feel now is a pretty good time to analyse Five9, Inc.'s (NASDAQ:FIVN) business as it appears the company may be on the cusp of a considerable accomplishment. Five9, Inc., together with its subsidiaries, provides intelligent cloud software for contact centers in the United States, India, and internationally. With the latest financial year loss of US$82m and a trailing-twelve-month loss of US$37m, the US$3.2b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Five9 will turn a profit, with the big question being "when will the company breakeven?" In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Consensus from 21 of the American Software analysts is that Five9 is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$29m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 68% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Five9 given that this is a high-level summary, though, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there's one issue worth mentioning. Five9 currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn't exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Five9 to cover in one brief article, but the key fundamentals for the company can all be found in one place – Five9's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

1. Valuation: What is Five9 worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Five9 is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Five9's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.