Five9 Inc at Cantor Global Technology Conference Summary

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

Question: Tom Blakey - Cantor Fitzgerald - Analyst : <_ALACRA_META_ABSTRACT>So we'll jump in maybe with Andy and Bryan. The guidance we thought for '25 was strong. And looking at peers, we won't name names, but it seemed like you guys are seeing a little bit more momentum. Just walking us back not too far in terms of 2023 and '24. What changed in terms of the momentum there in '24? And what are you seeing here as we head into '25 with regard to bookings and these trends that obviously have turned from what I'm seeing positive here?

Question: Tom Blakey - Cantor Fitzgerald - Analyst : Right. That's interesting. Can you just -- this consumer part that -- and we've been talking about credit card data, Barry, for a while. We have to take that over, Bryan. But walk us through in terms of like that second half guide that sounds like it's a little bit more conservative. I don't want to misspeak in terms of maybe -- because this is a -- going into the third year, right? This would be the third year in a row that the consumer was a headwind starting with the 4Q '23 that we started talking about this. How -- where in terms of the relative size of the business is this consumer part now? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 5:00PM, FIVN.OQ - Five9 Inc at Cantor Global Technology Conference

Question: Tom Blakey - Cantor Fitzgerald - Analyst : Interesting. Barry. We're lucky, you mentioned, Andy, AI and AI monetization. We have the head -- the CTO and the Head of AI, Jonathan Rosenberg here from Five9. Could you just maybe walk us through where you see AI monetization, say, even leaving out a year, maybe even two years, because right now, Five9 was early with IVA, intelligent virtual assistant, and obviously was quick to capitalize. I think it was in the first half of '23 on GenAI services like Agent Assist and summaries. There's some really large opportunities that you laid out in the most recent call that are data-driven, like related to, I think, the voice streaming -- just walk us through where -- how this business is going to evolve for Five9 and how large it can become.

Question: Tom Blakey - Cantor Fitzgerald - Analyst : There's a lot of name calling in 2023, Barry, but I guess he's taken some of the jelly out of your donut there, Jonathan. Maybe AI will be a higher percentage revenue. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 5:00PM, FIVN.OQ - Five9 Inc at Cantor Global Technology Conference

Question: Tom Blakey - Cantor Fitzgerald - Analyst : And back maybe to the higher level way we look at this, there's been success with IVA and some GenAI solutions. Is there going to be a mix shift, maybe looking out a year or two to more of a consumption-based model related to that data -- the data streams that you control.

Question: Tom Blakey - Cantor Fitzgerald - Analyst : We've been talking about the medium of voice is not going away. We are talking right here. You mentioned partners, that's where incidentally I was going to go, Andy. So talk to -- and Jonathan mentioned system of record. That's a strong word in the software world. So what is Five9's relationship look like in terms of that term system of record when you go to market with ServiceNow and Salesforces of the world?

Question: Tom Blakey - Cantor Fitzgerald - Analyst : And maybe just one more or maybe a couple more on the partners. We talked about, I think, on the call about maybe from using the partner channel as a channel for core CCaaS. Can you maybe illuminate us in terms of -- is that --

Question: Tom Blakey - Cantor Fitzgerald - Analyst : Yes. The partnership strategy, if they're retired, if they can retire quota of that and selling the actual core Five9 product because I think we've been over with Barry and Jonathan that these data-led AI solutions are going to be important going forward. Now we just try to double click exactly on what else the partners can bring to Five9.

Question: Tom Blakey - Cantor Fitzgerald - Analyst :

Question: Tom Blakey - Cantor Fitzgerald - Analyst : Okay. Let me just pause here first a second. Are there any questions from the audience? Unidentified Participant (inaudible)

Question: Tom Blakey - Cantor Fitzgerald - Analyst : Maybe as an extension to that, net retention has stabilized recently, Barry or Bryan. I agree as a percentage of total revenue, too, I mean, it's less than 9% in terms of AI, but it is growing so dynamically relative to the double-digit percentage top line growth. And as you anniversary, it seems like with the $1 million Dolphin wins and these are new customers taking on AI. So maybe it might take a little bit more time to the gentleman's question on lapping these deals from an NRR perspective. But I guess a multipart question, would you assume AI could be an expander for NRR sometime in the next 12 months? And if not, what are the other levers that you're seeing that could expand that?

Question: Tom Blakey - Cantor Fitzgerald - Analyst : Maybe one more check with the audience. Okay. I think we have time for maybe one more question, maybe two. Jonathan, you mentioned the $1 billion run rate here. That is a great achievement. Bryan or Barry, back to the financials. Just maybe remind us -- and again, timing would be very helpful in terms of what the levers are to expand gross margins, which are -- and you've been very open about this, that these are subscale. And just maybe remind us about the timing and the levers there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 5:00PM, FIVN.OQ - Five9 Inc at Cantor Global Technology Conference

Question: Tom Blakey - Cantor Fitzgerald - Analyst : Is there an update on India there by chance in the margins, the gross margins in that region? I was just surprised --

Question: Tom Blakey - Cantor Fitzgerald - Analyst : I won't try to squeeze one in the next 30 seconds. Thank you guys very much for your time. It's great to hear the story.