Nov 19, 2025 4:33 PM Eastern Standard Time Five9 Announces Winners of the 2025 New Era of CX Awards at CX Summit Nashville Share Awards celebrate innovative companies redefining customer experience and AI in business NASHVILLE, Tenn.--(BUSINESS WIRE)--Five9 CX Summit – Five9 (Nasdaq: FIVN), provider of the Intelligent CX Platform, today announced the winners of the 2025 New Era of CX Awards during Five9 CX Summit 2025. The awards recognize organizations and partners who are redefining what's possible in cus ...

Financial Data and Key Metrics Changes - In Q3 2025, Five9 reported revenue of $286 million, representing an 8% year-over-year growth [19] - Subscription revenue, which constitutes 81% of total revenue, grew by 10% year-over-year, primarily driven by enterprise AI revenue, which increased by 41% year-over-year [20] - Adjusted EBITDA grew by 37% year-over-year, achieving a margin of 25%, while free cash flow increased by 84% year-over-year, reaching a margin of 13% [5][23] Business Line Data and Key Metrics Changes - Enterprise AI bookings grew over 80% year-over-year, contributing to a healthy backlog [5] - Telecom usage accounted for 12% of revenue, while professional services made up 7%, both categories are not growth drivers and are becoming a smaller percentage of total revenue [20] - The commercial business represented 9% of total revenue but declined in the teens year-over-year as the company focuses on the enterprise market [21] Market Data and Key Metrics Changes - Gartner forecasts the traditional CCAS market to grow at a 9% CAGR and the GenAI customer service market at a 34% CAGR through 2029, leading to a combined annual spend of $48 billion [6] - Five9's dollar-based retention rate was 107% in Q3, down from 108% in Q2, attributed to tough comparisons from previous periods [21][22] Company Strategy and Development Direction - Five9 aims to maintain operational improvements while investing in AI and go-to-market initiatives, targeting the Rule of 40 by 2027 [5][28] - The company is focused on building strategic partnerships, with significant growth in ACV bookings with ServiceNow and Salesforce [12][19] - Five9 is positioned as a leader in the AI-powered customer experience market, leveraging its platform to integrate AI and human agents [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's foundation for the next decade, emphasizing the importance of AI in customer experience [12][13] - The CEO search is progressing well, with a focus on finding a leader experienced in product innovation and operational excellence [14] - The company anticipates a return to double-digit revenue growth in the second half of 2026, driven by strong install-based bookings and new logos [26][27] Other Important Information - Five9 announced a $150 million share repurchase program, reflecting confidence in long-term growth opportunities [19] - The company expects Q4 revenue to be approximately $297.7 million, indicating a sequential growth of 4% [24] Q&A Session Summary Question: What happened in the quarter regarding guidance? - Management noted that the growth environment is transitioning, leading to expectations of smaller beats in guidance. Subscription revenue growth was impacted by tough comparisons and a decline in commercial revenue due to underallocation of demand and a gap in sales capacity [30][31] Question: Why is it taking so long to translate install-based bookings to revenue? - Management explained that install-based bookings have longer implementation cycles, and revenue conversion will ramp up throughout 2026, particularly in the second half of the year [35][36] Question: What is the current state of the bookings environment? - The company reported strong bookings momentum, with AI bookings up 80% year-over-year and record install-based bookings [40][41] Question: Are there any pricing pressures on core live agent seats? - Management indicated that there is no significant pricing pressure at renewal time, and customers are looking for pricing models that incorporate AI [79][81]

Core Insights - Five9 Inc. has launched Five9 Fusion for ServiceNow, an AI-powered solution aimed at enhancing customer service experiences through unified voice and digital interactions [1][2]. Group 1: Product Launch and Features - Five9 Fusion integrates voice and digital interactions via an AI transcription stream, featuring a single routing engine to improve customer service delivery [2]. - The solution combines Five9's real-time system actions with ServiceNow's Customer Service Management (CSM), creating a unified AI-powered platform for businesses [2][4]. - The integration reduces expenses and provides end-to-end visibility across the customer journey, equipping agents with instant context and tools for quicker issue resolution [3]. Group 2: Benefits and Impact - Five9 Fusion aims to eliminate the friction of using multiple systems, empowering agents with a single interface for more efficient and personalized interactions [4]. - The integration enhances the customer experience by making every touchpoint more intuitive and impactful for both customers and agents [4]. - Five9's use of Generative AI in its cloud contact center platform aims to deliver more human-like and efficient customer interactions through its Genius AI Suite [4].

Core Insights - ServiceNow, Inc. is recognized as one of the best technology stocks for long-term investment, particularly following the announcement of Five9 Fusion, an AI-powered integration for enhancing customer interactions [1][2]. Group 1: Integration and Features - Five9 Fusion integrates voice and digital customer interactions using real-time AI transcription and a unified routing engine, aimed at improving customer service efficiency [2]. - The integration allows agents to access instant context and tools for quicker issue resolution, enhancing proactive service capabilities [3]. - Current AI features include real-time transcription in ServiceNow Workspace and unified routing to connect interactions to the appropriate agents, with future enhancements planned for early 2026 [3]. Group 2: Company Overview - ServiceNow, Inc. offers a cloud-based AI platform known as the Now Platform, which assists organizations in digitizing and automating workflows [4].