Five9 (FIVN) 2024 RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference summary

Key business highlights

• Achieved $1 billion in revenue, with 80% from subscription, which grew 20% year-over-year in Q3.

• AI revenue grew 40% year-over-year, with AI bookings making up 20% of ACV bookings and AI upsell/cross-sell into the installed base up 50%.

• Closed the Acqueon acquisition, immediately contributing $4 million ARR.

• Landed record intake from backlog and large customer wins, with $1M+ customers now 183, up from 3 at IPO.

• 88% of revenue is from enterprise customers, with only 12% from SMB.

AI strategy and impact

• AI-powered platform enables both self-service and human-assisted interactions, with higher revenue per AI interaction.

• Launched next-gen AI agents (digital and voice) and introduced the AI Blueprint program to guide customers on AI adoption.

• AI monetization is through consumption-based pricing, allowing customers to pilot and scale as needed.

• AI is seen as a TAM expansion, not a threat to seat count, and is a catalyst for new customer acquisition.

• Developing new AI products like AI Knowledge and AI Insights to further support customer journeys.

Competitive positioning and partnerships

• Competes primarily with NICE and Genesys in a three-horse race for mid-size and enterprise markets.

• Differentiates through an end-to-end platform with deep integration into 20-24 enterprise systems, enabling contextual AI.

• Strong partner ecosystem includes ISVs (e.g., Salesforce, ServiceNow), VARs, SIs, and referral partners.

• International expansion and partner-led deals are significant growth drivers.

• UCaaS vendors face high barriers to entry; most customers seek full functionality over price.