Cloud company Five9: the first steps in a large market

According to management, the provider of solutions for contact centers Five9 Inc. (FIVN), is only at the very beginning of penetration into a large market, the volume of which is at least $ 58 billion. Five9 offers solutions for organizing the work of customer service contact centers. The company’s software continuously improves customer interaction quality through various communication channels: chat, email, and phone. 

The intelligent Five9 platform helps to distribute calls between consultants depending on the content of the request. In addition, Five9 software provides data collection and analysis, which also helps to serve customers more efficiently in the future. For example, some calls may be to virtual agents, which often eliminates the need for expensive interaction between the client and the consultant. Currently, Five9’s revenue is growing at a double-digit pace: in the second quarter of 2022, it grew by 32% to $189 million, beating the expectations of Wall Street analysts. Earnings per share (non-GAAP) was $0.34. 

The company achieved significant profit growth despite investments in research and development and expansion of global infrastructure. Thanks to investments, in 2023, it will be possible to accelerate the growth of profit and revenue. Management believes it has created the basis for revenue of $2.4 billion and 23% of adjusted EBITDA by 2026. An essential driver of Five9 growth is attracting large customers. This year, the company started working with a leading European insurance company, two new large financial companies, and a medical conglomerate. Also, it expanded the contract with a parcel delivery company. According to management, Five9 is only taking its first steps to penetrate a large market with a total volume of $58 billion.