Five9, (NASDAQ: FIVN), provider of the Intelligent CX Platform, closed 2023 with strong growth and continued business momentum leading into 2024. As enterprises continue to invest in customer experience as a core business differentiator, Five9’s focus on product innovation, ecosystem expansion with key strategic and technology partners, and global investments has strengthened the company’s market position for the year ahead.
“The team’s unwavering dedication to expanding our business through customer-centric innovation has been the cornerstone of Five9’s remarkable success in the past year,” said Mike Burkland, Five9 CEO and Chairman. “The passion and dedication exhibited by each member of the Five9 team have cultivated an unparalleled culture of excellence, for which I am both proud and deeply grateful. I am excited about a promising year ahead.”
Strong Financial Results, Customer Growth, and International Expansion
In 2023, Five9 achieved a 17% year-over-year revenue increase to a record $910 million, with strong product offerings, a vision for growth, and high-value strategic relationships with customers and partners. Key highlights:
- Enterprise subscription revenue grew 25% YoY; international revenue grew 29% YoY; 183 customers generated over $1M in ARR to Five9, representing more than 50% of recurring revenue
- Key investments in Five9’s international presence, notably the new Engineering Hub in Porto, Portugal announced in January 2023. Since its opening, headcount has increased by nearly 50%, a reflection of Five9’s commitment to expanding both with regional offices and by acquiring top talent across all regions.
- Continued channel expansion and market coverage via new and expanded international partnerships with MCM Telecom and XTT Mexico (LATAM), BT (Europe); TELUS International (Canada), and others
Industry-Leading Innovation
With the emergence of Generative AI, Five9 captured the appetite of enterprises hungry to utilize the power of artificial intelligence within the contact center. Through organic product innovation and strategic acquisition, the company has continued delivering high-value customer journey insights and analytics solutions.
- Launched Agent Assist 2.0 with AI Summary. Using the same generative AI technology behind ChatGPT, the solution summarizes customer call transcripts in seconds, yielding a rapid time to value by reducing manual, after-call work. YoY bookings growth for Agent Assist accelerated in each of the last three quarters, culminating in a 6X increase in Q4.
- Five9 launched enhancements to Five9 Workflow Automation (WFA) in March – now a standard part of the Five9 Intelligent CX Platform
- In August, Five9 announced the acquisition of Aceyus, which will help customers bring together disparate data sources in a unified view and streamline migrations to the Five9 platform
- Five9 also announced support for Deepgram’s powerful speech-to-text engine, in addition to expanded product integrations with Salesforce and ServiceNow
Expanded Partnerships
Five9’s partner ecosystem made great strides in 2023, supporting the company’s march up-market and international expansion.
- Global partner sales certifications tripled YoY; partner implementations doubled YoY; 51 partners booked more than $1 million in ACV
- Secured top sales performance accolades from Intelisys, Telarus, and Avant, a reflection of Five9’s strong partner relations
- Awarded Cloud Partner of the Year by Verint for the fourth time
- Launched Five9’s Global University for partners, which provides complete product information and a comprehensive training program to enable partners in sales, implementation, and services
Industry Recognitions and Awards
In 2023, Five9 received 23 industry accolades and honors, including being named:
- Leader in the Gartner Magic Quadrant for Contact Center as a Service (August 2023), which hailed the company for its “competencies in AI” and successful deployments in the enterprise
- Growth and Innovation Leader in the European Cloud Contact Center Market by Frost & Sullivan, and named a Leader in the Frost Radar for Enterprise Cloud Contact Centers in North America, 2023
- Leader in the 2023 Aragon Research Globe™ for Conversational AI in the Intelligent contact center
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