Q2 2024 Five9 Inc Earnings Call Transcript
Key Points
- Five9 Inc (FIVN) achieved a key milestone with an annual revenue run rate exceeding $1 billion, driven by a 21% year-over-year growth in LTM Enterprise subscription revenue.
- The company reported strong LTM operating cash flow of $126 million, representing 13% of revenue.
- Five9 Inc (FIVN) announced the acquisition of Acqueon, which is expected to enhance their AI-powered CX platform and expand market reach.
- The introduction of GenAI Studio and AI Knowledge are significant steps in extending Five9 Inc (FIVN)'s leadership position in AI, offering hyper-personalization and improved business outcomes.
- Five9 Inc (FIVN) continues to see strong growth in its AI and automation portfolio, with AI Agent Assist showing a 111% year-over-year growth.
- Five9 Inc (FIVN) reduced its top line annual guidance by 3.8% due to softer new logo bookings and lower than expected dollar-based retention rates.
- The company faced a challenging bookings quarter in Q2, with fewer $1 million ARR deals than expected.
- Adjusted gross margins decreased by approximately 130 basis points year-over-year, primarily due to substantial investments in scaling operations.
- The company experienced a decline in its LTM database retention rate from 109% to 108%.
- Five9 Inc (FIVN) noted macroeconomic challenges, including constrained customer budgets and increased scrutiny, impacting sales execution and efficiency.
Thank you for joining us today. On the call are Mike Burkland, Chairman and CEO; Dan Burkland, President; and Barry Zwarenstein, CFO.
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 improvements in financial-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 anticipated TAM expansion.
Our ability to take advantage of such expansion, company growth, enhancements to and 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
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
