Five9, Inc. (NASDAQ:FIVN) Q2 2023 Earnings Call Transcript

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Ryan MacWilliams: It’s great color. Thanks, guys.

Dan Burkland: Yeah.

Operator: And we will now hear from DJ Hynes with Canaccord.

DJ Hynes: Hey, guys. Good to see you. Congrats on the quarter. Dan, maybe one for you. I’d love to get any color on how that $42 million in enterprise bookings compares to maybe the past few quarters. I mean, I don’t think that’s a metric you’ve shared with us in the past. And then the follow-up there would just be like, anything you’d call out with respect to channel momentum? I mean, is that being driven by international? Is it just a maturing of that go-to-market motion? Any color there would be helpful.

Dan Burkland: Yeah. Great, DJ. If you look at the large mega deals, as we refer to them, we have the parcel delivery service as well as the healthcare conglomerate, but never have we had a series of wins of this size. So, when you look three or four deep or even 10 deep on that list of largest deals for the quarter, we’ve never seen this many at this type of volume. So that’s why Mike called out the fact that we’re over $40 million there just among those four. So, it’s not the super high concentration that may have been the case a couple of years ago, we’re seeing this become more of a norm. So that’s great sign there. As far as the channel, that’s across the board. We have a very strong partner group that manages and brings on new partners, headed by Jake Butterbaugh.

I mentioned him before. He’s been with us for several years for, I think, four, almost five years now. And we’ve really scaled up that part of the organization. And it’s not just about going out and signing up new partners, but it’s making sure that they view us as being their go-to-market first choice. We spend a lot of effort and a huge investment to make sure that we’re catering to our partners and making sure that they can go to market and represent Five9 in the right way and that we always make sure we’re doing the right thing for the customer, but we’re also doing the right thing for the partner and making it easy to do business with us. And I think through some of the channel checks that are done by many of you, you get that same feedback.

We want to continue to be in that pole position, if you will.

DJ Hynes: Yeah. Makes sense. Look forward to seeing you guys in Boston on Thursday.

Dan Burkland: Likewise. Thanks, DJ.

Operator: And Meta Marshall with Morgan Stanley has the next question.

Meta Marshall: Great. Thanks. I just wanted to know if you could either quantify or just kind of layout cost savings on Aceyus and kind of streamlining those cloud transitions? And then just maybe on that, does it allow you to not have to kind of invest as much in professional services resources just to transition those customers eventually? Thanks you.

Mike Burkland: Yeah. I’m happy to start on that, Meta. And, again, the beauty of Aceyus is that they are so entrenched in the Fortune 100 large enterprise contact center market. And that’s quite frankly they got our attention in these joint accounts that we were winning with them. They are beloved by their large enterprise clients. In fact, we see RFPs fairly frequently where there’s a requirement in the RFP as to integrate with Aceyus. And we’ve even heard just verbally anecdotally from a lot of our largest prospects that the one thing that we’re going to require from our CCaaS provider is that they integrate with our Aceyus, because well, that’s how we run our business. So, that’s first and foremost something that I want to make sure everybody understands.

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