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Five9: Can the AI-First Go-To-Market Shift Become a Game-Changing CCaaS Growth Engine?

Five9 Inc. demonstrated a solid performance in its latest financial quarter, driven primarily by the ongoing expansion of its enterprise AI offerings and operational improvements. The company’s subscription revenue growth was noteworthy at 10% year-over-year, due to a significant 41% rise in enterprise AI revenue. Despite facing a challenging compare from last year’s largest customer ramp-up, Five9 managed to report a robust improvement in profitability, with adjusted EBITDA growing by 37% year-over-year, reaching a 25% margin. This was bolstered by a leap in free cash flow, which rose by 84% year-over-year. The company emphasizes its strategic focus on the burgeoning AI-powered customer experience (CX) sector, alongside leveraging its strong industry partnerships. Notably, Five9 anticipates growth potential within the traditional CCaaS market and the GenAI customer service market, projected to grow significantly through 2029.