SAN RAMON, Calif. - Five9 (NASDAQ:FIVN), a provider of the Intelligent CX Platform, has announced an enhanced collaboration with Salesforce (NYSE:CRM) to deliver AI-powered solutions aimed at improving customer experiences in contact centers. The latest release integrates Salesforce Einstein AI with Five9's suite of AI solutions to assist agents in servicing customer requests more effectively and provide insights into the health of contact center operations.
The integration leverages Five9's open APIs and a new feature, Five9 TranscriptStream, to facilitate real-time solutions and guidance for agents, known as 'Next Best Action'. Additionally, it enables the transcription of customer conversations, assessment of call recordings for relevance, and integration with Salesforce Einstein Conversation Insights to enhance conversation intelligence.
Dan Burkland, President of Five9, emphasized the significance of this collaboration, stating that it pushes the boundaries of what is possible in customer experience enhancement. By infusing Einstein's AI insights into the contact center and CRM, the partnership aims to eliminate repetitive tasks and guide agents towards more effective actions.
Sheila McGee-Smith, President & Principal Analyst at McGee-Smith Analytics, noted that the deeper integration offers customers a new level of choice for AI capabilities that align with their contact center needs and technology investments. She highlighted the potential for reducing agent workloads and improving customer experiences through these advancements.
Ryan Nichols, Chief Product Officer of Service Cloud at Salesforce, also commented on the collaboration's focus on enhancing agent productivity and customer satisfaction by combining customer data, knowledge, and real-time conversation transcripts with AI.
The new enhancements to Five9 for Service Cloud Voice with Partner Telephony will be available from June 30. Additionally, a webinar titled "Unlock Efficiency with the Power of AI: Five9 and Salesforce Service Cloud Voice" is scheduled for Tuesday, July 23, to provide further insights into the integration.
The information is based on a press release statement from Five9.
In other recent news, Five9 reported a strong first quarter, noting a 20% year-over-year growth in subscription revenue and a 13% increase in overall revenue, which reached $247 million. The company's successful partnerships with industry leaders like Salesforce and BT, as well as a landmark deal with a Fortune 50 financial services company, have significantly contributed to these positive results.
Five9's emphasis on artificial intelligence (AI) to enhance customer experiences has also seen notable success, resulting in record bookings and an expanding international presence. The company's strategy includes a shift to higher-margin subscription revenue and the monetization of AI.
For the second quarter, Five9 projects a revenue of $244.5 million, while the full-year 2024 revenue is expected to reach $1.055 billion. The non-GAAP EPS guidance for Q2 and full-year 2024 is $0.43 and $2.17 per diluted share, respectively.
Despite a slight decline in dollar-based retention rate, the company anticipates improvement later in the year. The company is also in the process of obtaining FedRAMP certification, which is key for federal client acquisition. These are among the recent developments at Five9.
InvestingPro Insights
As Five9 continues to innovate in the customer experience sector through its collaboration with Salesforce, the company's financial health and market position are essential for investors to consider. According to InvestingPro data, Five9 has a market capitalization of $3.31 billion, reflecting its substantial presence in the industry. Despite facing challenges over the past months, with a notable six-month price total return of -44.06%, the company's revenue growth remains robust at 15.29% over the last twelve months as of Q1 2024. This growth indicates a sustained demand for Five9's offerings in the market.
An InvestingPro Tip points out that Five9's net income is expected to grow this year, which could signal a turnaround from the recent performance where the stock has taken a significant hit. Additionally, the company's Relative Strength Index (RSI) suggests that the stock is currently in oversold territory, potentially indicating an opportunity for investors considering the company's long-term growth prospects and innovation initiatives like the enhanced collaboration with Salesforce.
For those looking to dive deeper into Five9's financial metrics and gain additional insights, InvestingPro offers a wealth of further analysis. There are 12 additional InvestingPro Tips available for Five9, which can be accessed at https://www.investing.com/pro/FIVN. Investors interested in leveraging these insights can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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