Five9, Inc.

Thank you for joining us today. On the call are Mike Berkland, Chairman and CEO, Dan Berkland, President, and Barry Zwornstein, CFO. Certain statements made during the course of this conference call that are not historical facts, including those regarding the future financial performance and cash position of the company, expected improvements in financial and related metrics, expected ARR from certain customers, certain expected revenue mix shifts, customer growth, anticipated customer benefits from our solution, including from AI, company growth, enhancements to and development of our solution, market size and trends, our expectations regarding macroeconomic conditions, company market position, initiatives and expectations, technology and product initiatives, including investment in R&D and other future events or results, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are simply predictions, should not be unduly relied upon by investors, Actual events or results may differ materially, and the company undertakes no obligation to update the information in such statements. These statements are subject to substantial risks and uncertainties that can adversely affect Five9's future results and cause these forward-looking statements to be inaccurate, including the impact of adverse economic conditions, including macroeconomic deterioration and uncertainty, including continuing increased inflation, increased interest rates, supply chain disruptions, decreased economic output and fluctuations in currency exchange rates, lower growth rates within our installed base of customers, and the other risks discussed under the caption risk factors and elsewhere in five nines annual and quarterly reports filed with the Securities and Exchange Commission. In addition, management will make reference to non-GAAP financial measures during this call. A discussion of why we use non-GAAP financial measures and information regarding reconciliation of our GAAP versus non-GAAP results and guidance is currently available in our press release issued earlier this afternoon, as well as in the appendix of our investor deck that can be found in the investor relations section on Five9's website at investors.five9.com. Lastly, a reminder that unless otherwise indicated, financial figures discussed are non-GAAP. And now I'd like to turn the call over to Five9's chairman and CEO, Mike Berkland.

Thanks, Emily. And thanks everyone for joining our call this afternoon. I'm pleased to report strong first quarter results with our subscription revenue growing 20% year over year and total revenue exceeding the midpoint of our guidance by three percentage points. As a reminder, our subscription revenue, which others in the industry refer to as cloud revenue, accounts for nearly 80% of our total revenue. Also, this 20% growth in subscription revenue does not include any benefit whatsoever from customers converting from on-premise to cloud since we do not have any on-premise business. And this growth is all organic, except for an immaterial amount. Adjusted EBITDA margin for the first quarter was 15% of revenue, helping drive strong LTM operating cash flow of 128 million or 14% of revenue. As you all know, we take a balanced approach to delivering top line growth and bottom line profitability. I will begin today by discussing our broader market opportunity, which continues to be propelled by three ongoing trends. First, the migration to cloud contact center platforms continues to be a top priority for enterprises, particularly as many on-premise solutions are being end of life. With current cloud penetration standing at approximately 25 to 30%, we believe there's a multi-year durable growth opportunity ahead. Second, enterprises are laser focused on improving customer experience, which has become a strategic initiative aimed at driving better business outcomes. With our intelligent CX platform, we're changing the game for some of the largest brands in the world and helping them reimagine their customer experience. And third, AI is revolutionizing the way brands enhance customer experience. With our AI-infused and data-driven intelligent CX platform, we're helping enterprises deliver personalized, connected, and effortless experiences for their customers. These three trends are driving a massive market opportunity, and we are a clear market leader given our platform, our success in marching up market, and our strong international expansion. And now let me take each of those three growth drivers in order, starting with our platform. Five9's AI leadership has been a key reason why customers choose us. Our AI strategy is simple. We combine the power of the industry's leading engines with contextual data unique to each of our customers. We have always believed it's optimal to leverage the best engines in the industry, and the arrival of generative AI has further validated that strategy. Because of this, we believe we have established a significant lead in this market. By embracing the best engines and expanding them with contextual data, we can easily produce basic industry models. But more importantly, we can go beyond that to produce customer-specific models that are setting new standards in providing exceptional customer experience and also doing it responsibly by protecting the privacy of their data. Additionally, empowering customers with this is not just a matter of technology, it's also a matter of people. Five9's experts work hand in hand with our customers to gather the right data from the right sources to deliver these customer-specific models, resulting in what really matters, personalized CX and better business outcomes. We believe this strategy has allowed us to be more nimble than our competitors in adopting generative AI and using it across our platform. This has been demonstrated through our recent announcement of GenAI Studio, the industry's first tool that easily allows enterprises to combine best-in-class engines with their unique contextual data and to customize the models on an interaction by interaction basis, allowing for new levels of personalization. GenAI Studio can be customized by integrating any piece of data that our platform accesses during the processing of an interaction. This allows customers to leverage investments they've already made in integrations on our platform, which is one of the more complex and time consuming aspects of implementation. This enables us to supercharge their results when they attach our AI products. Feedback from customers has been overwhelmingly positive as they will begin to gain these benefits in just a few days, given the ease of use of GenAI Studio. And it's not just customers saying we're ahead. We continue to earn awards and industry recognition from marquee analysts. And of course, nothing speaks to the success of our strategy more than numbers. For example, our AI and automation ARR bookings grew 15X year over year in the first quarter. And now I'd like to focus on our March Up Market and international expansion. We're very excited to share that we signed our largest deal ever, a Fortune 50 financial services company, which is a testament to our continuing success in Marching Up Market. Dan will share more details in a moment, but I just want to say we're thrilled to add this win to our previously announced mega deals, such as the Parcel Delivery Company, the Healthcare Conglomerate, and the Global Healthcare Insurance Company. Additionally, as a result of this win enterprises, the financial services industry are taking notice and they're already pulling us into large financial services opportunities. As a reminder, our success at market is not just due to our award winning platform, but also because of our people and our partners. Our customer success model remains a key differentiator. as we have hundreds of CX experts globally at Five9 who execute a repeatable large enterprise playbook that focuses on transformation, migration, implementation, and ongoing optimization. Additionally, our collaboration with premier CX partners around the world is driving our upmarket success and international expansion, as demonstrated by the following three examples. First, we are seeing increased momentum from large SIs. We have an ongoing initiative called Project Pull-Through, which enables and certifies a select group of partners to take on implementation and support services. And it's incentivizing these SIs to lead with Five9 in some of the largest global opportunities. Second, our Salesforce partnership continues to gain momentum, where we have become the first and only CCaaS partner of Salesforce to reach summit status. This is a major step forward for our partnership, and it gives us early access to releases and APIs so that we can stay at the forefront with Salesforce. Our advanced BYOT integration for Service Cloud Voice is a great testament to this partnership. And third, our BT partnership is taking hold. As a reminder, we have a go-to-market reciprocal arrangement where they resell our 5.9 solutions, and we also resell BT connectivity. This is not only proving itself in the UK and Ireland markets, but also in other parts of the world where they've been instrumental in helping introduce and secure 5.9 business. These are just a few examples of our partners helping pull 5.9 upmarket and also helping expand our global footprint. Before I turn it over to Dan, I'd like to make a few comments on our journey as a public company. As many of you may have seen, a few weeks ago on April 4th, we celebrated the 10-year anniversary of Five9's IPO by ringing the opening bell at NASDAQ. It was a perfect opportunity to reflect on our journey as a public company. Over these last 10 years, we've made significant progress on multiple vectors, including the following five examples. We grew revenue by 10X in that 10 year period, virtually all organically. We increased EBITDA margins by 43 percentage points. We increased the number of $1 million plus ARR customers from three to 183. We were one of the early pioneers of Cloud Contact Center and had become a clear market leader and the largest pure-play cloud provider in our industry. And more recently, we have been leading the AI revolution in Contact Center and CX. Today, we're changing the game for many of the largest brands in the world as we help them reimagine CX with our AI-infused data-centric platform combined with our passionate experts. In addition to reflecting on our progress, I'd like to take a moment to thank our team of Five Niners. Our success over the last decade has been driven by their teamwork, commitment, and passion. And I want to personally thank every Five Niner for all you do. We are still in the early stages of a massive transformation in CX, and I'm super excited about what we can achieve over the next 10 years. And with that, I will turn it over to our president and CRO, Dan Berkman. Dan, please go ahead.

Thank you, Mike, and good afternoon, everyone. I'm pleased to report that we had a record booking sporter and our partner and channel momentum has never been better. Our market-leading platform, the expertise of our people, and our relentless focus on helping customers achieve their CX business goals continue to propel us forward in this tremendous market opportunity. And now I'd like to share some examples of key wins for the quarter. As Mike mentioned, we're very excited to announce that we have contracted with one of the largest US banks serving nearly 70 million customers worldwide. The bank has been using a variety of legacy systems that acquired directly as well as through M&A. They spent several years looking for a strategic partner who could help them transform and consolidate CX across their global footprint with a modern, innovative, secure, and scalable CCaaS solution. A key part of this migration to 5.9 will include our recently acquired ACS solution. allowing them to centralize and normalize all of their data from many different disparate systems. They chose Five9 arguably for one reason, trust. They trust that Five9 has the platform, the people, and the partners to deliver an unparalleled CX solution. They purchased our full omni-channel solution, our IVAs, our WEM suite powered by Verint, and integration to over two dozen CRM systems, including Salesforce and ServiceNow. We anticipate this initial order will roll out and ramp over several years and will ultimately result in over $50 million in subscription ARR to Five9. The second one I'd like to highlight is a company that specializes in higher education, helping universities with recruitment, enrollment services, guidance counseling, and alumni fundraising activities. They had been using another cloud vendor, which was not meeting their needs. They will be using Five9 for a full omni-channel solution for both inbound engagements and proactive outreach. Our full WEM suite powered by Varon, agent assist solution for call transcripts and summaries and our performance dashboards along with Microsoft Dynamics integration. We anticipate this initial order to result in over $3.8 million in ARR to 5.9. The third example is an American radiology firm specializing in outpatient diagnostic imaging centers throughout the US. They have been using Cisco, which lacks the deep integration and functionality with Salesforce, which they had just rolled out last year. They chose Five9 for our end-to-end functionality, our deep integration and partnership with Salesforce, and our industry-leading AI and automation suite. They will start with our IVA and chatbots to intelligently route inbound inquiries to the best resources while also using transcription, call summaries, Five9 insights and analytics to identify where best to introduce even more automation and self-service applications. We anticipate this initial order to result in over $2.8 million in ARR and Five9. And now, as I normally do, I'd like to share an example of an existing customer who expanded with us. This customer is in the healthcare industry, where they provide non-emergency transportation services to and from many hospital networks throughout the US. They have been our customer for nearly three years, and we're spending approximately $2.3 million in ARR. In Q1, they expanded their operation, both in number of human seats, as well as adding several hundred IVA ports with additional use cases and languages. With this Q1 expansion, we anticipate that ARR will increase from approximately $2.3 million to over $6 million. So as you can see, we continue to execute very successfully on our go-to-market initiatives, including our march-up market, our international expansion, and our growth of our partner ecosystem. And with that, I'll hand it over to Barry to cover the financials. Barry?