Q4 2024 Five9 Inc Earnings Call Transcript
Key Points
- Five9 Inc (FIVN) reported annual revenue exceeding $1 billion, driven by a 17% year-over-year growth in fourth-quarter revenue.
- The company's subscription revenue grew by 19% year-over-year, contributing significantly to the overall revenue increase.
- Five9 Inc (FIVN) achieved a record adjusted EBITDA margin of 23% in the fourth quarter, indicating strong profitability.
- Enterprise AI revenue growth accelerated to 46% in the fourth quarter, showcasing the company's leadership in AI for customer experience.
- The company has strong partnerships with major players like Salesforce, ServiceNow, Microsoft, Verint, and Google, enhancing its market position and growth potential.
- Five9 Inc (FIVN) faces substantial risks and uncertainties, including macroeconomic challenges such as inflation, high interest rates, and currency fluctuations.
- The company acknowledged the potential impact of adverse economic conditions on its future results, which could affect growth projections.
- There is uncertainty regarding consumer spending, which could impact Five9 Inc (FIVN)'s revenue from usage-based services.
- The CFO transition may introduce some uncertainty, as Barry Zwarenstein is retiring, and Brian Lee is stepping in as Interim CFO.
- Five9 Inc (FIVN) noted that the seat count metric is becoming less relevant, indicating a shift in how the company measures performance, which may require investors to adjust their evaluation criteria.
(audio in progress) that are not historical facts, including those regarding the future financial performance and cash position of the company, expected improvements in financial and related metrics, expected ARR from certain customers, certain expected revenue mix shifts, customer growth, anticipated customer benefits from our solution, including from AI, the extent of the anticipated TAM expansion and our ability to take advantage of any such expansion, are AI revenue opportunities and current estimations regarding SAME, company growth, enhancements to and development of our solution, market size and trends, our expectations regarding macroeconomic conditions, company market position, initiatives and expectations, technology and product initiatives, including investment in R&D and other future events or results, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are simply predictions, should not be unduly relied upon by investors, actual events or results may differ materially, and
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