Five9 Surpasses $1 Billion in Annual Revenue Run Rate and Highlights AI and Automation Growth

Five9 Surpasses $1 Billion in Annual Revenue Run Rate: A Closer Look at the Milestone

Five9, a leading provider of cloud contact center software, recently announced that the company has surpassed $1 billion in annual revenue run rate. This significant milestone was revealed during the organization’s Q2 2024 earnings call, where CEO and Chairman Mike Burland confirmed that Enterprise subscriptions were the key driver behind this achievement, with a 21 percent year-over-year growth.

One of the standout performers within the Enterprise sector was Five9’s AI and automation portfolio, which Barry Zwarenstein, Chief Financial Officer, highlighted as the “fastest growing category,” accounting for eight percent of all Enterprise subscription revenue. In particular, the AI Agent Assist product saw an impressive 111% year-over-year growth, making it the second biggest AI product after RVA.

Mike Burkland, CEO and Chairman of Five9, emphasized the company’s vision of “harnessing the power of AI to elevate CX.” He pointed out that many consumers find their interactions with brands disjointed and unsatisfactory due to siloed customer interactions across various platforms. This has driven Five9’s ambition to orchestrate every interaction between consumers and brands through their Intelligence CX platform powered by Five9 Genius AI.

The Intelligence platform aims to enhance customer experiences by personalizing interactions with contextual data. By integrating AI across their platform, Five9 believes they can provide practical solutions that deliver real business value while also promoting responsible AI usage.

In addition to discussing the performance of Five9’s AI sector and solutions, Mike Burkland shared three real-life examples of customers who successfully adopted the technology. These examples showcased how companies in healthcare, finance, and the medical device industry benefited from implementing Five9’s Intelligent Virtual Assistant (IVA) to improve efficiency, reduce costs, and increase revenue.

Despite the milestone achievement and success in the AI sector, Five9 faced challenges in booking new deals during the quarter. President Dan Burkland acknowledged the difficulties in landing “mega deals” and securing fewer than expected $1 million ARR deals. In response to this, the company promoted a seasoned Five9 veteran to the position of EVP of Sales to enhance sales execution and drive long-term growth.

In addition to their existing AI solutions, Five9 introduced AI Knowledge, powered by generative AI (GenAI), to help agents provide faster responses to inquiries based on contextual data. The company also announced its planned acquisition of Acqueon, a move aimed at expanding its AI capabilities and market presence to become the “orchestration engine” for all customer interactions throughout the journey.

Overall, Five9’s journey to surpassing $1 billion in annual revenue run rate showcases the company’s commitment to leveraging AI to enhance customer experiences, drive business value, and expand its capabilities to meet the evolving needs of the market. With a focus on innovation, customer success, and strategic acquisitions, Five9 is poised to continue its growth trajectory and solidify its position as a leader in the cloud contact center software industry.