Five9, Inc. (NASDAQ:FIVN) Q4 2023 Earnings Call Transcript

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Dan Burkland: Yes, they’re taking just the normal course of — from a linked standpoint that they always would. Now we’ve moved up market. So when we work more and more of those larger deals, they do have longer sales cycles because there’s more complexity to them. The advent of AI and automation naturally led to slightly longer sales cycles, but that was a one-time occurrence as that became part of the RFP scope. But no, it’s all as expected. And we feel very good about our opportunity and our ability to close those at an unprecedented rate. I’ll just say that we kind of led the market with securing two of the largest and most complex in the world. We’ve demonstrated our ability to roll those out in a timely and efficient manner and they’re referenceable and we feel great about our opportunities going forward. So all positives there. Thank you for the question.

Matt VanVliet: Great, Dan. Thank you.

Dan Burkland: Yes.

Mike Burkland: Thank you.

Operator: Okay. Our final question comes from Thomas Blakey with KeyBanc.

Thomas Blakey: Thanks for squeezing me in, guys. I just wanted — maybe I’ll do a two-parter as the last person. Just — maybe just double-clicking on that consumer thing, Barry, I know this has been a headwind. It should be getting smaller. I just wanted to know your expectations for Consumer into the second half. I think there was a couple of questions around that in terms of visibility there, but just wanted to know just explicitly what the expectations are that installed Consumer vertical into the second half. And then maybe an update for Dan. You talked about the record pipeline. Maybe just give us an update everybody wants to hear about the megadeal kind of pipeline update would be helpful. Thank you.

Barry Zwarenstein: Tom, I’m afraid I’m going to have to disappoint you on your second last question because we’re not going to be sharing the explicit vertical expectations for each quarter of 20 — I’m exaggerating for effect. We have a — an overarching view that we’ve shared and want to limit it to that.

Dan Burkland: And the second part of your question about the mega-deal pipeline, feel extremely strong there. As I mentioned earlier, it’s at a record high. We’ve expanded that team to work those strategic accounts, those mega deals, as you say, and the bookings of those are — it’s very lumpy. They come in at different times and create lumpiness to our numbers because they are so large, but feeling very positive about the future and the opportunity that lies ahead.

Barry Zwarenstein: And Tom, just as a — to try and give some response, obviously the most variable one by far is a consumer one. And so when we look at the year-over-year comparisons for the entire company, not just consumer, we going into an increasingly easier situation as each quarter goes by 20, 18, 16, 15. So the second half is clearly somewhat easier, including the consumer.

Thomas Blakey: That was the leading question. Thank you, Berry.

Barry Zwarenstein: Thank you.

Mike Burkland: Thanks. And if I could, in closing, I just want to say a quick thank you to all the Five9ers, as we call them, the Five9 employees as well as our partners for all their great work, their hard work, their dedication, they are the reason for our record results in 2023. And I am so excited about 2024 as we surpass $1 billion in revenue and continue to go after this massive market opportunity ahead. So very exciting times. Thank you for joining us, everybody, and look forward keeping you updated as we progress through the year. Have a good one.

Operator: Good bye.

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