In keeping with the CEO of Five9, development accelerates as cloud adoption sees a brand new part
Five9 has taken on a new growth spurt after cloud services became the standard for businesses, CEO Rowan Trollope told CNBC on Friday.
Digital transformation has forced companies to rethink their customer relationship strategies, which has resulted in 45% revenue growth in the last quarter for Five9, a cloud contact center platform.
“The evangelism phase for cloud software is really over,” he told Jim Cramer to Mad Money. “We no longer have to convince customers that cloud is an acceptable option. They just dive in.”
Demand for cloud services and technology stocks increased when society switched to remote working and schooling during the Covid-19 restrictions last year. As more and more companies went online, they began to move away from traditional call tone call center operations and include automated services and text services.
According to Trollope, Five9 signed two of its largest contracts during the reporting period, which together are expected to generate more than $ 20 million annually.
“AI and automation are leading the way with large customers right now,” he said. “The contact center has become the new entrance door for many companies, especially because they want to use digital channels.”
Five9’s business has accelerated steadily since the pandemic began. The company posted revenue of $ 137.88 million for the first quarter, up from 27.6% a year earlier. The growth was 38.6% in the fourth quarter and 33.9% in the third quarter.
Five9’s shares were up 3% on Friday, trading at $ 164.50. The stock is down 17% from its March highs, driven by a broader decline in technology stocks.