Five9 (FIVN) Baird 2024 Global Consumer, Technology & Services Conference summary

Company overview and market positioning

• Focuses on cloud contact center solutions, replacing legacy on-premises systems and leading in AI-driven customer experience.

• Serves large enterprise brands, with rapid acceleration in cloud adoption and customer experience becoming strategic.

• Offers an end-to-end platform powered by AI and data, with a portfolio of nine integrated products.

AI strategy and adoption

• AI and automation accounted for 17% of new bookings in Q4, with Intelligent Virtual Agent (IVA) as the top AI solution.

• Revenue per interaction increases with automation, and customers target 5–15% automation to self-service over time.

• No significant seat compression yet; automation is expected to expand total addressable market (TAM) over the next 3–5 years.

• Platform advantage comes from access to all communication channels and contextual data, enabling personalized experiences.

• Most customers prefer AI solutions from their CCaaS platform provider due to integrated data and cross-channel visibility.

Customer adoption and use cases

• 17% AI bookings are from new customers, but strong penetration is also seen in the existing install base.

• AI adoption is driven by practical use cases, choice of large language models (LLMs), and access to integrated data sources.

• Brands are cautious not to over-automate, prioritizing customer experience and balancing ROI with retention.