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Five9, Inc. (FIVN) Looks to Continue Leading the Charge of Businesses into the Cloud
Since its founding in 2001, Five9 has grown into one of the premier cloud-based solutions for contact centers of businesses searching for an alternative to traditional, premise-based options. With last year’s decision to publicly list on NASDAQ still fresh on the mind of investors, recently released numbers from last quarter reported $25.90 million in revenue, which is a 22.7% increase from the previous year.
Today, Five9 looks to continue its innovation and grow as an industry leader in virtual contact centers. With the 2013 acquisition of social engagement and mobile customer care solution provider SoCoCare completed, expansion into mobile and social media customer bases will provide a basis for continued growth within the rapidly expanding company, which was mentioned on Deloitte’s 2012 Technology Fast 500™ list for most rapidly growing tech companies in North America.
Five9’s growth comes as a result of its purpose-built, highly scalable and secure Virtual Contact Center (VCC) cloud platform, which delivers a comprehensive suite of tools to optimize customer interaction across voice, chat, email, web, social media and mobile channels. With these tools, clients have the ability to quickly adjust contact agent seats in a variety of locales with just a computer, headset and internet connection. With the large legacy on-premise contact center systems in place throughout the world, expansion possibilities remain promising as the transition to cloud-based systems becomes more common.
Since hitting the 500 customer milestone in 2006, Five9 has grown to over 2,000 customers worldwide as of January 2015; and even with an estimated 3 billion customer interactions facilitated annually, the company’s scalable business model leaves room for additional growth in the future. Their Software-as-a-Service (SaaS) solution is provided with recurring subscriptions based on agent seats and minutes of usage through the VCC cloud platform. With recurring revenue and strong growth, Five9 has the potential for enhanced financial forecasts.
According to the most recent available reporting from 2014, the company had $74.83 million in revenue for the first nine months of 2014 for a gross profit of $34.71 million, compared to $60.49 million in revenue and a gross profit of $24.33 million for the same period in 2013. An increase in working capital from $17.75 million at the beginning of the first nine months of 2014 to $53.49 million at the end of the nine month period can be attributed to the $71.46 million cash influx provided by the company’s IPO.
Continued growth with the newly public company is led by President and CEO Mike Burkland, who signed on with Five9 in January 2009. Since joining the company, Burkland has led the company’s strategic direction, financial success and operational excellence with the knowledge and experience gathered from leading a handful of enterprise software and cloud companies in a variety of segments. He is joined by a team of executives with decades of experience working to lead the company into a future of continued expansion.
Five9 looks to remain on the cutting edge of cloud solutions to customer service and communication. With honors including inclusion on the San Francisco Business Times Fast 100 List for the past five years, the company keeps its eyes focused on the shifting corporate culture regarding more flexible, reliable off-campus customer interaction solutions.
For more information, visit www.five9.com
