RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the markets performed strongly. The Russell 1000 Growth Index (RLG) and the S&P 500 index returned 11.41% and 10.56%, respectively during the quarter and RPX returned 9.20%. The monthly inflation readings in the first quarter exceeded market expectations. A couple of megatrends that drove the markets higher were GLP-1 weight loss drugs and everything related to artificial intelligence (AI). In addition, please check the fund’s top five holdings to know its best picks in 2024.
RiverPark Large Growth Fund highlighted stocks like Five9, Inc. (NASDAQ:FIVN), in the first quarter 2024 investor letter. Five9, Inc. (NASDAQ:FIVN) provides intelligent cloud software for contact centers. One-month return of Five9, Inc. (NASDAQ:FIVN) was -19.68%, and its shares lost 33.88% of their value over the last 52 weeks. On May 30, 2024, Five9, Inc. (NASDAQ:FIVN) stock closed at $46.49 per share with a market capitalization of $3.434 billion.
RiverPark Large Growth Fund stated the following regarding Five9, Inc. (NASDAQ:FIVN) in its first quarter 2024 investor letter:
“Five9, Inc. (NASDAQ:FIVN): FIVN was a top detractor in 1Q24 despite better-than-expected 4Q earnings and guidance. FIVN reported $239 million of revenue, 15% year-over-year revenue growth and $1 million higher than estimates, and $0.61 of EPS, 13% growth and $0.13 better than estimates. Management guided 1Q24 and full year 2024 in line with investor expectations, but some investors had expected guidance to be raised.
Five9 is a leader in providing cloud-based software to contact centers. The company’s suite of applications provides contact center agents with a unified communication platform (voice, email, text, chat, web, social) and a desktop of tools to help agents engage customers more quickly and effectively. FIVN is well-positioned as contact centers transition to the cloud and has high customer retention (112% net revenue retention last quarter). The company doubled its strategic sales team over the past year and signed new partnerships with AT&T, CDW and Microsoft. We believe the company can grow its top line in the high teens, while improving on its 4Q 60% gross margin and 16% operating income margin, leading to 20%+ EPS growth for the foreseeable future.”
An IT engineer working on a laptop as planograms for a cloud-based virtual contact center platform appear on the monitor.
Five9, Inc. (NASDAQ:FIVN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Five9, Inc. (NASDAQ:FIVN) at the end of the first quarter which was 52 in the previous quarter.
In another article, we discussed Five9, Inc. (NASDAQ:FIVN) and shared Conestoga Capital Advisors’ views on the company. Also, Five9, Inc. (NASDAQ:FIVN) was the top detractor of RiverPark Large Growth Fund in the third quarter 2023. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
