Cloud Stocks: Five9 Focuses On AI-Based Contact Centers

According to a Market Data Forecast report published earlier this year, the global cloud-based contact center market is estimated to grow at 26% CAGR to reach $31.25 billion by 2025. Five9 (Nasdaq: FIVN), a leading provider of cloud software for contact centers, recently announced its quarterly results that surpassed market expectations.

Five9’s Financials

For the third quarter, Five9’s revenues grew 34% to $112.14 million, ahead of the market’s forecast of $101 million. Adjusted EPS was $0.27 per share, ahead of the market’s forecast of $0.18 per share.

For the fourth quarter, Five9 expects revenues of $114.5-$115.5 million with an EPS of $0.22-$0.24. The market was looking for revenues of $115.2 million for the quarter with an EPS of $0.23.

Five9’s Acquisition

During the quarter, Five9 announced plans to acquire San Francisco-based Inference Solutions. Inference Solutions offers a widely deployed Intelligence Virtual Agent (IVA) platform that aims at automating mundane contact center tasks. An IVA is fast becoming a fundamental requirement in enterprise deals for contact centers. Given the current pandemic, it is not always possible to hire and train more agents quickly. Customers are now open to digital labor, a demand that is being met by IVA.

Additionally, Inference’s products are also easy to deploy. Unlike traditional IVA solutions that are either professional services-centric or developer-centric, Inference Solution’s offering can be deployed in a few days with minimal people involved.

Finally, the acquisition also brings forth considerable go-to-market synergies. Inference is already trusted by a large number of Tier 1, 2, and 3 telecom providers around the world, including AT&T in North America and Telstra in Australia. Five9 sees tremendous opportunities in leveraging Inference’s global presence and introducing them to its partners, systems integrators, and other resellers.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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