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Five9 (FIVN) Degree of Operating Leverage : -8.36 (As of Mar. 2025)


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What is Five9 Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Five9's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -8.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Five9's Degree of Operating Leverage or its related term are showing as below:

FIVN's Degree of Operating Leverage is ranked better than
87.43% of 2665 companies
in the Software industry
Industry Median: 0.79 vs FIVN: -8.36

Five9 Degree of Operating Leverage Historical Data

The historical data trend for Five9's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Five9 Degree of Operating Leverage Chart

Five9 Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -7.03 6.08 1.73 -0.79 -7.12

Five9 Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.29 -3.60 -4.82 -7.12 -8.36

Competitive Comparison of Five9's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Five9's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Five9's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Five9's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Five9's Degree of Operating Leverage falls into.


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Five9 Degree of Operating Leverage Calculation

Five9's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 10.453 (Mar. 2025) / -50.422 (Mar. 2024) - 1 )/( 1074.633 (Mar. 2025) / 939.059 (Mar. 2024) - 1 )
=-1.2073/0.1444
=-8.36***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Five9  (NAS:FIVN) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Five9 Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Five9's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Five9 Business Description

Industry
Traded in Other Exchanges
Address
3001 Bishop Drive, Suite 350, San Ramon, CA, USA, 94583
Five9 offers cloud-native contact center software enabling digital customer service, sales, and marketing engagement. The company's Virtual Contact Center platform combines core telephony functionality, omnichannel engagement, and various modules into a unified cloud contact-center-as-a-service, or CCaaS, platform. Five9's modules include digital self-service, agent assist technology, workflow automation, as well as workforce optimization solutions that optimize call center efficiency, and manage interaction quality and agent performance.
Executives
Leena Mansharamani officer: SVP, Chief Accounting Officer 3001 BISHOP DR., STE. #350, SAN RAMON CA 94583
Panos Kozanian officer: EVP, Product Engineering 3001 BISHOP DR., STE. #350, SAN RAMON CA 94583
Barry Zwarenstein officer: Chief Financial Officer C/O IOMEGA CORP, 4435 EASTGATE MALL 3RD FLOOR, SAN DIEGO CA 92121
Michael Burkland officer: CEO, President and Chairman C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMON CA 94583
Daniel P. Burkland officer: EVP, Sales & Business Dev. C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMMON CA 94583
Jonathan D Mariner director 2200 WEST DON TYSON PARKWAY, SPRINGDALE AR 72762
Julie Iskow director 2900 UNIVERSITY BOULEVARD, AMES X1 50010
Kimberly Alexy director 500 MCCARTHY BLVD., MILPITAS CA 95035
Jack L Acosta director C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMON CA 94583
Rowan M Trollope director, officer: Chief Executive Officer 4000 EXECUTIVE PARKWAY, SUITE #400, SAN RAMON CA 94583
Michael J Burdiek director 39 PARKER, IRVINE CA 92618
Scott Welch officer: EVP, Cloud Operations C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMON CA 94583
David G Dewalt director
Ana G. Pinczuk director 5725 DELPHI DRIVE, TROY MI 48098
Robert Zollars director 3061 ZANKER RD, SAN JOSEC CA 95134