Five9 Inc at Canaccord Genuity Growth Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: David Hynes - Canaccord Genuity Corp - Analyst : But maybe we could talk a little bit about Q2 results and just what you're seeing in the business. It's a great quarter, right? I think you said highest quarterly ACV bookings in two years, so some nice momentum. What's driving that? What are you seeing? And then we can unpack some of the details.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah, good. You noted some executive changes, some that are coming and some that have happened. So first, congrats to you, Bryan, confirmed as permanent CEO -- or CFO, I should say.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah, well that's open, too, I hear. And then obviously, Mike, you made the announcement that you are going to transition out of the CEO role and become Executive Chairman. As part of that, there were some Tier 2 management changes as well. So maybe talk about why now for you and then what we should read into those Tier 2 changes as it pertains to initiatives to drive margins higher.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. We're just both talking about our golf games before this started and how we're -- neither one of us are playing as much as we'd like. So maybe there's more golf in your future.

Question: David Hynes - Canaccord Genuity Corp - Analyst : We are going to talk a lot about AI. Obviously, it's critical of the story. But before we go there, I want to talk about the core business, right, which is upgrading premise-based systems into the cloud. I mean, it is a prerequisite to start leveraging AI, right? So I think there would be a lot of demand. I am curious what you are seeing with that core premise-based, the cloud upgrade cycle. Because I feel like the narrative today, we sometimes lose picture of what's happening beneath the AI water line, if you will. So talk about that core upgrade.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Can we talk a little bit about partner contribution and what you're seeing there? I don't know if it was coincidence, but I felt like more of the large deals that you called out on the quarter seemed to be partner influenced. Who are the key partners and how do they contribute to the growth matrix?

Question: David Hynes - Canaccord Genuity Corp - Analyst : And then on the ISV partner side, Salesforce and ServiceNow are obviously important partners to you. They had an announcement, an investment in a competitor in the space. That news hit, of course, right in conjunction with the earnings, so I think everyone was reacting in real time to that. What do you make of that news? And have you had a chance to talk to those partners now, since we've obviously had a couple of weeks here since earnings or a week and a half or so. Just what are you hearing from them?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah, good. Let's transition over to AI. Maybe just to set the stage, like what competitively differentiates Five9's AI offering versus others in the space?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. You hit on some of the AI numbers, right, 20% of enterprise bookings, the tripling, the 42% revenue growth. Clearly, there is momentum there. But there's a lot in the portfolio, as you just said, 10 different SKUs. Which of those are driving the growth? Like what are the -- what's the core use case that you're seeing adopted most frequently today?

Question: David Hynes - Canaccord Genuity Corp - Analyst : So it is broad based. We talked a little bit about customer choice, right? And you made the case for why customers are going to choose their platform vendor for AI, right, just that integrated experience, the contextual data. However, there are the service cloud vendors that are also competing for AI on the front end, right? So how are those decisions made if a customer is going to go with Five9 for AI or a service cloud provider? And if they choose to go the service cloud provider route, how do you guys participate in that?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Bryan, maybe we could work you into the conversation a little bit. We talked about consumption elements of the business model. Does it become harder to forecast Five9 as those grow? And how meaningful are they today?

Question: David Hynes - Canaccord Genuity Corp - Analyst : So growing quickly and margin accretive. Mike, the question I asked on the public earnings call is a question we get all the time from investors. It's just, what is happening? Customers that are further along in their AI journey, right? I think there is a view among investors that it's going to pressure agency count, right? Are you going to be able to fill that gap, entering a world where no one is going to sit in a contact center anymore? What are you seeing for those that are further along in terms of core agency count and how they are managing that with the investments in AI that are happening?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Have you seen a big shift in the mix of channel interactions at Five9, like voice versus digital versus -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2025 / 2:00PM, FIVN.OQ - Five9 Inc at Canaccord Genuity Growth Conference

Question: David Hynes - Canaccord Genuity Corp - Analyst : Good. Maybe a competitive dynamic question. So NICE made an acquisition recently, a business, Cognigy. I think they spent close to $1 billion to buy that asset. And I am not asking you to speak to their rationale, but I'm curious. Is that a vendor you were seeing in the space? How does it change the competitive landscape, if at all?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah, we will let the investors do that math.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Bryan, maybe we could talk about the numbers for a little bit. So obviously, we have your guide for the second half. We are going to be lapping some tougher comps from a year ago in the back half of the year. Not asking for guidance beyond that, but how do you think about the shape of that growth curve over the next six to eight quarters?

Question: David Hynes - Canaccord Genuity Corp - Analyst : We talked about some restructuring that you guys have done in the business. Do you feel like you have the appropriate level of sales coverage? And are you seeing all the deals that you should be seeing?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Bryan, back to you. Just thinking our way down the P&L, you have some intermediate term targets out there for margins. What are the biggest levers in the model that can move you towards those goals?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Our meter is running out on us, but I will ask you a final question. Just what do you think investors are still getting wrong about the CCaaS space and how are you going to prove that they are getting it wrong?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Well, obviously, you proved that in Q2. And hopefully, we can do it again in Q3 and Q4.