Q3 2024 Five9 Inc Earnings Call Transcript
Key Points
- Five9 Inc (FIVN) exceeded guidance across all key metrics for the third quarter, with subscription revenue growth accelerating to 20% year over year.
- AI products accounted for over 20% of enterprise new logo ACV bookings in Q3, indicating strong momentum in AI adoption.
- The acquisition of Acqueon is expected to enhance Five9 Inc (FIVN)'s intelligent CX platform, expanding capabilities across digital channels and unlocking new revenue streams.
- Five9 Inc (FIVN) was named a leader in the Gartner Magic Quadrant for CCaaS and ranked number 16 in the 2024 Fortune Best Places to Work list in the large technology category.
- The company reported record quarterly operating cash flow of $41 million, equivalent to 16% of revenue, showcasing strong financial performance.
- Five9 Inc (FIVN) faces substantial risks and uncertainties, including macroeconomic deterioration, inflation, and supply chain disruptions, which could adversely affect future results.
- Telecom usage revenue declined year-over-year in the low single digits, reflecting a shift as larger customers opt to provide their own telephony.
- The company is experiencing a mix shift from usage to subscription revenue, which, while positive long-term, indicates a decline in telecom usage revenue.
- Despite strong AI adoption, there is a learning curve for companies in implementing AI, which could slow down decision-making and adoption rates.
- The India data center, while a strategic investment, currently represents a burden on gross margins due to its initial costs and low current revenue.
Thank you for joining us today. Certain statements made during the course of this conference call that are not historical facts including those regarding the future financial performance and cash position of the company, expected improvement in financial and related metrics, expected ARR from certain customers, our proposed acquisition of Acqueon, certain expected revenue mix shifts, customer growth, anticipated customer benefits from our solution including from AI, the extent of the anticipated TAM expansion and our ability to take advantage of any such expansion, company growth, enhancements to in development of our solution, market size and trends.
Our expectations regarding macroeconomic conditions, company market position, initiatives and expectations, technology and product initiatives, including investment in R&D and other future events or results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are simply predictions, should not be unduly relied upon by investors. Actual events or results may differ
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