11 Most Promising Small-Cap Stocks According to Analysts

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5. Five9 Inc. (NASDAQ:FIVN)

Market Capitalization as of April 23: $1.79 billion

Number of Hedge Fund Holders: 40

Average Upside Potential as of April 23: 101.78%

Five9 Inc. (NASDAQ:FIVN) provides intelligent cloud software for contact centers in the US and internationally. It offers a CX platform that delivers several applications. It enables the breadth of customer service, sales, and marketing functions. It serves customers in industries like financial services, business process outsourcers, retail, healthcare, technology, and education.

On April 3, William Blair analyst Arjun Bhatia reiterated his bullish stance on the stock and assigned it a Buy rating. The analyst highlighted Five9’s recent announcement of a 4% reduction in workforce to focus on AI investments and innovation, which enables it to better capitalize on future AI opportunities. Five9’s Enterprise AI revenue grew by 46% year-over-year in Q4 2024.

This growth has led AI to constitute 9% of the company’s total enterprise subscription revenue. Five9 is successfully penetrating its existing enterprise customer base, with AI bookings to this segment growing by 50% year-over-year in Q4. The company has been ranked as having the best AI solutions in the Baird survey and won the 2024 Aragon Research Innovation Award for AI Contact Centers.

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