Five9 hits $1Bn revenue milestone, AI drives growth

CALIFORNIA, UNITED STATES — Cloud contact center solutions provider Five9 reached a major milestone by surpassing a $1 billion annual revenue run rate.
This achievement, announced during the company’s Q2 2024 earnings call, highlights the significant impact of artificial intelligence (AI) and automation on the company’s growth, despite facing recent sales challenges.
AI and automation fuel enterprise growth
CEO and Chairman Mike Burkland attributed the revenue milestone primarily to the growth of Enterprise subscriptions, which increased by 21% year-over-year.
Within this sector, the AI and automation portfolio emerged as the fastest-growing category, now making up 8% of all Enterprise subscription revenue. Five9’s AI Agent Assist saw a remarkable 111% year-over-year growth, becoming the second-largest AI product after RVA.
Burkland emphasized the company’s dedication to enhancing customer experiences through AI, stating, “Harnessing the power of AI to elevate CX is our vision.”
The Intelligence CX platform, powered by Five9 Genius AI, is designed to orchestrate seamless interactions between consumers and brands by integrating AI across various touchpoints.
Successful implementation across industries
Five9’s AI solutions have been effectively implemented in various industries, as demonstrated by three customer case studies.
A healthcare company using Five9’s Intelligent Virtual Assistant (IVA) achieved a 10% reduction in agent handle time and a 20% increase in subscription revenue. Similarly, a financial institution saw an 8% reduction in agent talk time, boosting Five9’s subscription revenue by 30%.
Additionally, a Fortune 500 medical device company reduced call duration by 16%, contributing to another 30% increase in Five9’s revenue.
Strategic leadership to address sales challenges
Despite the impressive revenue milestone, Five9 faced a challenging bookings quarter, with fewer high-value deals than anticipated.
In response, the company appointed a seasoned Five9 veteran as the new EVP of Sales, aiming to enhance sales execution.
President Dan Burkland clarified that this move was not a “knee-jerk” reaction but a strategic decision to strengthen leadership as the company scales.
Expanding AI capabilities
In addition to its existing offerings, Five9 introduced AI Knowledge, a generative AI tool designed to improve customer interactions by providing contextually relevant responses. This tool enhances both live and virtual agent interactions by drawing from an organization’s comprehensive knowledge sources.
To further bolster its AI capabilities, Five9 also announced its planned acquisition of Acqueon. This acquisition will integrate Acqueon’s AI-driven, omnichannel engagement features into Five9’s platform, aligning with the company’s vision of becoming the “orchestration engine” for customer interactions across various stages of the customer journey.
As Five9 continues to innovate and expand its AI-driven solutions, the company remains focused on delivering value and improving customer experiences, positioning itself as a leader in the evolving contact center industry.