Five9 Enjoys a Record Quarter

Charlie Mitchell

Rowan Trollope, CEO at Five9, outlines how the vendor secured record quarterly revenues, despite economic turbulence

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Five9 Enjoys a Record Quarter

Five9 has set Q2 records for net new bookings and deals with its installed customer base.

Its revenue also jumped 32 percent year over year to $189 million – another quarterly record.

Shortly after announcing these figures, Five9’s stock rose by 13 percent.

As many enterprise technology providers suffer from declining valuations – after a period of hyper-growth – these results will delight Rowan Trollope, CEO at Five9.

Indeed, during a recent earnings call, Trollope was happy to share his secrets to success.

He identified three critical business drivers while discussing how Five9 has increased brand loyalty and client value.

First, Trollope stated: “We believe contact centers are mission-critical and arguably become even more critical in a downturn.

Thus, when CFOs [consider] areas to cut back on spending, they will focus on optional spend areas rather than ones where they are able to productively interact with customers, reduce costs and increase revenues.

Trollope also pinpoints Five9’s diverse customer base – across all industry sectors – and its strong retention rates as essential drivers of growth.

Fuelling the latter is the opportunity to sell new products and services to its installed customer base. These most notably include automation and virtual agents.

With bookings increasing by 63 percent and 335 percent for new logos and current clients, its intelligent virtual agent (IVA) solution is gaining momentum.

Some of this is perhaps due to the favorable reviews its IVA solution has received – with Opus Research recently naming Five9 as a market leader.

Yet, increasing contact center strain is likely also contributing to the increased take-up.

For example, a global shipping and logistics company teamed up with Five9 on an IVA project after facing average hold times of over 30 minutes. These long waits caused 3,000 customers to hang up every day before having their queries resolved.

With an IVA, the company could offload 90 percent of specific shipment tracking queries from agents to a self-service, leading to a 95 percent decrease in hold times.

Supporting such large-scale deployments, Five9 has transformed its business in recent years. As Trollope said:

The decision we made a few years back to significantly increase R&D spending to redesign and rearchitect our platform to support enterprise-grade deployments is clearly paying massive dividends.

How will Five9 move forward? Well, the company recently launched new data centers in Europe, strengthened its ties with Zoom, and teased new agent assist capabilities.

So, it seems that Trollope and his team have many irons in the fire for the coming months.

 

 


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