Virtual events with analysts are tricky to plan, especially for pacing out the program. Over the last year, vendors have tried all kinds of formats, but it seems clear that the best approach is to do it in manageable chunks of time. Nobody is going to sit through a day-long marathon of video streaming - it’s just too intense, and too easy for folks to wander off.
Over the past threee days, I’ve been tracking the Five9 Analyst Summit, and they seem to have the right formula - three days and three hours each day - and starting at 10:30 ET, which works pretty well going across multiple global time zones. It’s still a lot of content to digest, and I managed to take in just about all of it - only had to drop out a couple of times.
I’m not going to write up a full research note now, but will share a few takeaways and screenshots here while it’s still fresh. Following a solid Q1 earnings report, the updates we got this week provided detail as to why the company is doing so well.
Much like Zoom has been the right technology at the right time to enable work from home, Five9 provides a pretty complete CCaaS solution as contact centers rush to the cloud. As we heard, 85% of this market is still premises-based, and it’s hard to see why so many players are jumping in with all types of cloud offerings. Being a fully cloud-native contact center pure play, Five 9 is in a great spot right now.
The CCaaS market sure is messy right now - as is the broader customer service/CX space - and for that tangent, I’ll steer you to my latest No Jitter post which came out earlier this week. Coming back to Five9, here are some notable takeaways around the many things they’re doing right.
Lots of strong growth metrics, but their upmarket success with large enterprise customers catches my eye the most, with 45% YoY revenue growth. and 83% of Q1 business revenue. All cloud vendors will book their share of smaller customers, but I think it’s the ability to sell into this end of the market that will create the most sustainable value and growth for Five9.
We heard lots about their culture, and it’s a strong selling point for them as an organization. They’ve built out a solid managment team along with proven industry leaders on the sales side, and as CEO Rowan Trollope noted, it’s a place now “where nobody leaves” - in a good way, of course!
Plenty of updates around innovation - I’m not that technical, but their Inference acquisition is a good example with IVA - intelligent virtual agent - to help automate customer service - as is Whendu, which helps contact centers with complex legacy integrations migrate to the cloud. Aside from acquistions, they’ve added over 150 developers, and are maintaining R&D spend at a solid 12% of revenues. This is just a taste of what they’re doing, and the main idea here is that they’re holding their own, and then some, in a very competitive space that is evolving quickly.
So much more to talk about, and before I close off with some screenshots that can be shared, the intangibles of leadership have a lot to do with their success. You might be surprised to know that Five9 started in 2001, so this isn’t exactly a startup with wheels or a unicorn with hardly any revenues. They’ve been at this a long time, and both President Dan Burkland and CEO Rowan Trollope shared a clear vision for where they’re going and why they’ve been so successful, especially in this big moment of CCaaS adoption. Rowan kicked this event off talking about re-imagining CX and taking a clean slate approach with cloud and AI, and to build around the emerging “multi-modal” workforce, where both human agents and chatbots play key roles in transforming customer service into a highly personalized experience. Easier said than done, but they’re definitely on the right track - leading and not following.
