The current conditions are turning out to be very favorable for cloud-based contact center companies like Five9 (Nasdaq: FIVN). Organizations are investing in digital transformation to manage workforce remotely and are recognizing the critical nature of business continuity plans for their contact centers. They are accepting that cloud solutions can meet this need better than on-premises solutions. Additionally, contact center agents are no longer just support desks but are moving to the forefront of the customer experience. Traditional brick-and-mortar jobs such as retail sales are also migrating to contact center delivery models as organizations see this as an opportunity to diversify geographical presence, and to access a wider talent pool.
For the second quarter, Five9’s revenues grew 29% to $99.8 million, ahead of the market’s forecast of $90.93 million. EPS came in at $0.21 per share, ahead of the market’s forecast of $0.15 per share.
For the third quarter, Five9 expects revenues of $100.5-$101.5 million with an EPS of $0.17-$0.18. The market was looking for revenues of $94.03 million for the quarter with an EPS of $0.18.
Five9’s Growth Focus
Five9 continues to drive growth by upgrading its product offering. Its latest summer release has added several new features that include improvements in Global Voice capabilities, digital channel support capabilities, integration into an omni-channel agent console, supervisor interface, along with CRM, workforce optimization, and reporting integrations. These upgrades allow organizations to be closer to their customers.
Next, it announced new package workflow automation applications that are powered by Whendu, its no-code platform. These packages provide improved operational dashboards and emphasize proactive communication through digital channels. Within AI, its Interactive Voice Assistant (IVA) is now able to leverage conversational AI to automate manual tasks and answer common questions in the contact center. IVA provides a natural conversational response to customer inquiries quickly and efficiently, resolving common issues.
I rank Five9 among my list of PaaS potentials as it has started to engage in building an active PaaS strategy.
Five9’s PaaS Strategy: Platform or API
Five9 has been strengthening its CRM and partner integrations and is making its platform increasingly open through enhanced APIs and SDKs. Last year, it launched an App Marketplace to enable organizations to leverage its platform.
Five9’s PaaS Strategy: Developer Community
Five9 has more than 80 partners within its ecosystem. Its ISV ecosystem showcases its partner integrations and provides additional tools in over 10 categories such as providing customers with access to services ranging from AI-support, CRM, unified communications, workforce optimization, and messaging.
In November last year, it had announced the acquisition of Whendu’s iPaaS platform. Whendu’s platform was built for the contact center industry and helped accelerate the migration of the contact center to the cloud by simplifying the process of integration of existing environment to the cloud. It is a no-code, visual application workflow tool with more than 50 out-of-the box application connectors that are ready to use for the contact centers. These integrations create real-time streams of data, which can be aggregated to build real-time automatic and responsive workflows.
Five9’s PaaS Strategy: Marketplace and Metrics
Five9 does not share metrics about its apps or developers. It would be interesting to get more insight into more metrics such as how many apps they have, how many developers are developing apps on their platform, how do the developers make money, etc.
Five9’s stock is currently trading at $126.15 with a market capitalization of $8.2 billion. It touched a 52-week high of $131.98 earlier last month. It has recovered from the 52-week low of $50.73 that it had fallen to in October last year.
This segment is a part in the series : Cloud Stocks