Cloud contact center giant Five9, is today, reporting revenue growth of 28 percent. The company told me in a statement, it’s brought in a record $95 million, and has seen a 33 percent rise in revenue for the last twelve months thanks to its enterprise solution subscriptions. This is the seventeenth consecutive quarter of positive operating cash for Five9, which today stands at $10.4 million. On the call with investors, Five9 CEO, Rowan Trollope, said revenue for the first quarter of 2020 increased by 28 percent to a record of $95.1 million, compared to $74.5 million for the first quarter of 2019.
He also told investors, he was proud of how they’d delivered ‘exceptional service to customers during the COVID-19 pandemic.’ In recent weeks, Five9’s helped customers transition tens of thousands of agents to work from home, and mobilized a rapid response team to extend flexibility and the ability to scale up/down as needed.
Giving a business outlook for the coming months, Trollope said the cloud contact center provider expects to report revenue in the range of $380.5 to $383.5 million – the same guidance range it gave back in February 2020. The company anticipates a GAAP net loss in the range of $45.4 to $42.4 million, or $0.72 to $0.67 per basic share. This is lower than the prior guidance range of $30.9 to $27.9 million, or $0.48 to $0.43 per basic share, also given back in February 2020.
According to the investor call, non-GAAP net income should be in the range of $48.3 to $51.3 million, or $0.72 to $0.76 per diluted share, which is lower than the prior guidance range of $55.5 to $58.5 million, or $0.83 to $0.87 per diluted share. Looking toward quarter two of 2020, Trollope said Five9 expects to report revenue in the range of $90.5 to $91.5 million, a GAAP net loss in the range of $16.7 to $15.7 million, or $0.27 to $0.25 per basic share. Non-GAAP net income could end up in the range of $9.8 to $10.8 million, or $0.15 to $0.16 per diluted share, Trollope added.
Five9 also announced it had partnered with video conferencing giant, Zoom to deliver ‘Agent-Expert Consultation,’ a new experience that helps agents resolve complex customer queries by connecting them with subject-matter experts in seconds. Out with another strategic partnership announcement, Five9 said it paired with AT&T to provide a new contact center solution capable of expedited implementation.
As the company continues to outperform the market this year, and last year, there’s one question on my mind: What’s next for Five9? I reached out to Trollope to find out, and he was quite diplomatic, telling me:
“We have our heads down, and are working our tails off for customers during this uncertain period”
What the COVID-19 period has taught us in the unified communications and collaboration business, if nothing else, is that, there’s certainly a need for the advanced technologies designed to connect us in both our personal and business lives. Five9 is one of the key benefactors of said demand, and is well-deserving of it. I get the sense that leadership there has no shortage of innovative ideas and ways to help the company stay relevant, which could explain all the success it has seen in recent months.
