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CLOUD CONTACT CENTRES It is solving a KEY
problem faced by MOST companies 
This industry
is not the most talked-about 
Its STOCK prices GAINED 175% in 1 year
Here is an EASY thread
$FIVN Five9 provides a virtual contact centre cloud platform 
It started operating in 2001 and it went public in 2014 
Today, it has over 2000 customers
globally while delivering over 5B customer interactions each year
It started operating in 2001 and it went public in 2014 Today, it has over 2000 customers
globally while delivering over 5B customer interactions each year
What is a “Cloud Contact Centre Software” 
This is basically a software packed with applications
that enable companies to run their contact centres in the cloud
This is basically a software packed with applications
that enable companies to run their contact centres in the cloud
$FIVN software facilitates engagement 
between companies and customers through various channels (voice, chat, web, email, social, mobile) $FIVN is thus NOT the contact centre in itself 
It develops a software that enables companies 
to run their own contact centres
Contact Centres are not the most talked-about industry 
However once you start a business and start selling your goods 
You might get a flood of messages and calls
from happy and unhappy customers
However
once you start a business and start selling your goods You might get a flood of messages and calls
from happy and unhappy customers
Earlier 
you could just have a phone number 
and a mailing address 
in order to gather all your customer’s messages 
These days customers expect companies to be reachable through social media, email, web, phone, chat, messaging platforms….
you could just have a phone number and a mailing address in order to gather all your customer’s messages These days
customers expect companies to be reachable through social media, email, web, phone, chat, messaging platforms….
And customers expect the agent to know everything about them directly 
to know everything about them directly
Customer EQIt enables companies to handle all the customer touchpoints
(voice, videos, email, mobile, social, SMS, chat) in one place 
Greatly simplifying the gathering of interactions 
and enabling companies to interact in an efficient way with their customers 
Agent EQGathers information
on a customer by integrating with different platforms such as the company’s CRM tool 
Enabling the agent to know all about the current customer 
(its journey, context and history) through a unified interface
Business EQAggregates and processes data
on the company’s contact centre, delivering insights on the agents’ performance 
Enabling the company to optimise its contact centre increase capacity when needed, train and coach agents, set goals for agents
Is $FIVN any better than alternatives? Let’s find out
According to Gartner and Forrester $FIVN leads the pack
According to Gartner and Forrester
$FIVN leads the pack
But does that translates into more visibility 
When looking at the numbers of website visits
$FIVN counts 1.6m web visits while $NICE counts 907k and Genesys 920k
$FIVN counts 8 web pages views while $NICE counts 1.8 and Genesys 3 views
When looking at the numbers of website visits $FIVN counts 1.6m web visits while $NICE counts 907k and Genesys 920k $FIVN counts 8 web pages views while $NICE counts 1.8 and Genesys 3 views
$FIVN focus on cloud contact centre software enables it to secure a top spot in the space
Is the market helping? Let’s review it
enables it to secure a top spot in the space Is the market helping? Let’s review it
According to Mordor Intelligence The Cloud-Based Contact Centre market was valued at $ 14B in 2019
It is expected to reach $ 45B by 2025, representing a CAGR of 23%
This is driven by
The Cloud-Based Contact Centre market was valued at $ 14B in 2019 It is expected to reach $ 45B by 2025, representing a CAGR of 23%
This is driven by
Increase in the number of customer requests and the number of channels used 
Legacy customer centres need to upgrade to cloud solutions in order to handle social media, chat and videos 
According to $FIVN only 15% of the companies in North America have made the switch to a cloud based solutions The opportunity $FIVN chases is even bigger as they plan to replace a port of the spend on labor with automated tools at contact centres
Representing a market of $234B Of whom $ 34B is automated contact centre labor spend
Can $FIVN win this HUGE market Well, when zooming out
Bigger and more threatening competitors crowd the picture $RNG RingCentral Contact Center $ZEN ZenDesk Talk
$TWLO Twilio FlexSeriously compromising $FIVN ability to win in the LABOR SPEND MARKET
Financials check
Sales grew by 29% YoY to $ 100m per quarter 
Gross margins of 57% Down from 59% in previous quarters
Operating loss of $ 8m OpEx as % of Sales at 65% up from 63% a quarter earlier
Cash flow from operating activities at $ 14m
Sales grew by 29% YoY to $ 100m per quarter Gross margins of 57% Down from 59% in previous quarters Operating loss of $ 8m OpEx as % of Sales at 65% up from 63% a quarter earlier Cash flow from operating activities at $ 14m
THE BOTTOM LINE $FIVN has a strong focus on cloud contact centre and delivers a all-in-one solutions benefiting from strong partnerships with key players ( $CRM $NOW Deloitte $GOOG $ZM )
The market is growing by a very attractive CAGR of 23% as the market is still little penetrated and NEEDS to move on to cloud-native solutions In the long run, $FIVN plans to enter to $ 234B market for labor spend on contact centre with automated solutions
The market is crowded with STRONG alternatives and growth appears to be stalling at around 28% We stay on the sidelines for now We will reconsider $FIVN once they manage to break into the labor spend for contact centre Unlocking a $ 234B market
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ Markets And Markets
✑ SimilarWeb
✑ Mordor Intelligence
Sources
✑ Investor presentation
✑ Company website
✑ Markets And Markets
✑ SimilarWeb
✑ Mordor Intelligence
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