Five9 (FIVN) 3 Aug 202020 Q2 Earnings call transcript

Good day ladies and gentlemen and thank you for standing by. Welcome to today’s Five9, Second Quarter Fiscal Year 2020 Earnings Call.

As a quick reminder, today’s program is being recorded. And at this time I’d like to turn the floor over to Ms. Lisa Laukkanen. ma'am. ahead, go Please

future XXXX. those that events joining the results are Burkland, to risks today's upon statements the CFO. future President; company, such the conference performance update made statements for Trollope, could differ including Certain are are forward-looking Securities or of simply statements forward-looking Such within CEO; to uncertainties company the be during statements facts, predictions, call this in of Dan of to and financial and unduly and be Litigation the subject Act by These trends, results inaccurate, Private statements. initiatives should of of substantial cause relied course and not us. the COVID'XX including pandemic. company materially regarding events these you other are historical FiveX's and call On obligation future Rowan industry statements are the information not undertakes Thank impact no investors. Actual the that meaning Barry Reform adversely Zwarenstein, affect may

The Securities and FiveX's Exchange with Quarterly filed Risk discussed the the and Annual elsewhere Reports Commission. under other Factors risks in and caption

turn section over and And FiveX's as FiveX's investor.fiveX.com. well the in website to this release make results this afternoon, the non-GAAP to press reference non-GAAP addition, we Relations Rowan of Trollope. In will to is management discussion our I'd financial call. investor measures currently in issued in on as like non-GAAP measures GAAP to call reconciliation now, and our the of CEO, during available earlier financial A available use why to appendix our the information Investor regarding as deck at

LPN year-over-year for records are Thank quarter XX% our you, couldn't for million Lisa, and and as happier our Both year-over-year sequential with basis. be thanks afternoon. growth XX% X% QX with subscription and revenue I growth accelerating growth. results revenue second an to everyone growth $XX.X sequential grew joining our and this to on call FiveX and

bottom strongest QX showing. strength base. installed more quarter contending margin there and experiencing line XX.X%, fronts, these we with On to our With but one both QX go factors challenging are adjusted most logos was and detail I’ll are booking and and new shortly, into the enterprise, EBITDA seasonal driving COVID commercial both for I for want being that highlight on exceptional also our of all the results. are teams performance. truly our four disruptions, our

some two been accelerating. The of trends shift for are COVID-XX which to and cloud from have both that time. building digital potentially on-premises there is importance First, transformation, of the

go-to-market investments dividends, most AT&T. increased our Second, clearly and the systems paying notably are integrators

delivering enhanced this just with and resulting is clockwork. happens all executing and out product to fourth, strive And partners macro to team. expanded faster we’ve with all superb and who FiveX have finally, execution. transcending increased our innovation. engineering in truly the and environment go like Third, My continue is armed amazing them the this an leadership the FiveX investments of more on keep our team team delivering. entire Whatever especially We we’ll the thanks

space. starting details contact drivers of the share four each market dynamics I’ll with recent in on Now, those center some

I if not As mentioned believe due is the accelerating earlier, on-premises steady we cloud migration COVID-XX. of the to to

contact on-premises critical appreciation can far plans solutions. address increased there's for nature their and for the cloud business than recognize centers now of better these the solutions that fact an customers needs So continuity

jobs that they as talent COVID-XX forefront businesses. contact people retail pool. many effectively center their wider to of and environment customer has current front enterprise and the service customer to converted in from more even an customers become retention a addition, engagements customer are to new moving service agents access geographically have critical. sales the center experience. brick-and-mortar opportunity We've risk purposes In Contact heard centers see to for and agents, for management this door contact from making disperse also the

know back has to are will trend. shift to way we're which don't things and take will has positioned that were, advantage we this we changed there to extent way of this the we well proven deliver degree. model some the COVID-XX and permanently the implement that work companies indications While to continue on the customers that FiveX work-from-home to consistently

in our QX Next, role a and is in success, initiatives pipeline. played execution. highlight our execution a our clockwork let has on me and provide which strong results go-to-market This an key our driving update massive factor like

While many our effort entire even we standard liability relentless and our on lives, workforce still of team FiveX our of particularly to feel the is remote. pandemic their high aspects for the for, management maintain XXX% while effects I'm for that of known being proud the

today's being coverage fully in guidance indicative with and on pleased initiatives, enterprise strategic I'm shift on earnings partner press on go-to-market Barry model we've new on focus front. our our of business today made financial the commercial, and Our the with me operational each which our let will is our shortly progress including release of track. and touch but

Our booking QX all-time partners are combined, XXXX today in large to momentum Deloitte, not migration of and SIs as digital big that I'm from all This report on also off the cloud the were than happy global have only validates more Accenture. continue transformation strengthen you been and front investments results paying with to partnerships represented our on an to but EY embarking enterprises Slalom, number record key very projects. see of time. and that we IBM, our

an agents of master bookings resellers strong increase execute year-over-year and in and with continue grow. pipeline to us for XX% our addition, In

look news the announce the Now, is I'd partnership providers great with some really largest to couldn't more you. pleased of share with be sales happier to terrific team forward dedicated I am with I very, to work hundreds reps. The there. got a the like with to technology investment strategic working CDW in of team our I U.S. and they've center CDW, be to one supporting very a team the increasing CDW and contact CDW

key progress our sales partnership personnel our AT&T taking initiatives progressing the accelerated advancement our as with I'm thrilled pipeline, and OEM and go-to-market integrations and shape hundred of customizations. the with several and implementations of Finally, of training are

look we this forward stated, revenue to we contributing nicely that’s As to so go-to-market. our momentum, XXXX and

here, Now, to to few examples. products. turn me let a We've progress make considerable continued illustrate concrete I with can which

deep positive is release of major XX initial our now out into an summer features up-leveling to XXX This from and our including First, for digital features, feedback. including a very as new engage, rolled support delivers console, release well and reporting Global Voice, running they being interface, integrations. of their right compromising over supervisor the integration CRM, rigor to workforce center. and like as to where customers are optimization allows a This contact would on without how agent customers choose channels, our omnichannel be

new channels, Next, platform. communication Whendu, up-leveling emphasize dashboards automation powered applications on building listening there. no we by and packages package four These through also operational cover announced our workflow proactive our digital code in social

days We’re proud these them showing fact are made especially our traction. XX the early of excellent apps that after teams available so acquisition, our within

conversational initiative, best-in-class AI IVA, questions contact Finally we our center. lost leverages Voice assistant, virtual that in common Assistant Interactive on answer tasks FiveX the and to AI automate manual our

common provides partnerships this. others technology leveraged with and Our response a issues. accomplish our We conversational to strategic inquiries efficiently, to virtual assistant and Google resolving natural Whendu and customer quickly

received Agent customers and are commitments to of Additionally, traffic month. product, go-live Assist to about we XX them production from implement this expected half with our

integrator enterprise availability. position, escalation general FiveX an product in These We track especially customers. In routing enhancements, and intelligent record agent are given bigger extremely alliances and win now also strong in extremely as times. the premises in migration reseller increased cloud and even us have our systems our proven more to to chat-bot transformation conclusion, even an these our helping added digital integrations accelerate, challenging is and of with execution launches and partners

this favorable market believe and XX’s Given maintain growth. we execute, the we proven ability to enterprise trends level subscription can

turn ahead. Burkland. to over to Dan, the Dan like President, call I'd our go Now,

with again to enterprises. Thank you, up-market Rowan. more Once execute and we larger continue complex

record. set all-time an bookings Our QX

an over to of deals. Xx it of and grow ecosystem Our is high pipeline a was all-time and XX% continues our partners our to influence to year ago, what again continues

key the quarter. aggressive as did of pandemic, a wins it during terms opportunity to special we’ve hiring, increase once pretty the a we some in do, we to we In of the hiring examples the since I'd brunt share resumed And our pace initial for slow now such while of became market. have like sales share clear that strong normally

end-to-end reliability. solution, they The first well their compliance deliver for the did nor in U.S. with the largest Level and collections company the able PCI of that need. were cloud TCPA XXXX the was is a a not requirements mortgage reliability and an solution as They deliver lenders to department, FiveX using compliance one X functionality, along improved Fortune as compliance

based, our a order share are to excited and of history. worldwide. U.S. $X.X result in to now, approximately While annual FiveX this quality providing agents management. our solution will to initial over Verint management They are FiveX. deals workforce powered in WFO the And leveraging in We anticipate revenue they million largest recurring by two FiveX with also I'm you X,XXX global is for solution

send gamification. desired. automation which They transportation in give used The them surveys. Avaya automate healthcare $X.X X,XXX first revenue did status is and to this solution automation, to workflow and using order including solutions also and FiveX. confirmations, to by state recurring IBA initial as FiveX system WFO had powered with with workforce fully With performance They management, and for able is managed a provide helps at automatic looked Also operational transportation. as million reminders, annual to give been being of the bookings service. SMS efficiencies cloud over selected announced that the FiveX recently organizations our agents, management process in concurrent logistics the anticipate they booking the FiveX, company trigger governments an result for Google, leading rides, we're approximately we follow-up well not

won with been that requirements company in which multiple using the closing a retail brands to our integration including was Cisco, the after which lacked some the works of Zendesk. servicing initial They we weeks two Just largest ever Oracle order, have largest and world. business, Salesforce, that CRMs,

processing a been contact from We with to workforce WFO million had their FiveX. Due with to they for added leading who solution, comes us current speech and so, they selected revenue feedback and their that They to customer existing to enabling $X.X desktop questions example FiveX online we robust expanding over total transactions them customer to customer Genesis. retail to normally In I'd five to along spend anticipate XXX more And now deliver a survey traffic several to million. COVID, for with as do, also and result with In FiveX, like in customer e-commerce analytics, FiveX to order convert an website. recurring this their center over online Amazon the was our accommodate and addition visual experiences. considered their management needed relationship the and of purchased approximately They virtual double additional management. full along in annual hundred application, anticipated seats with $X.X FiveX. expanded inquiries. the initial storefront including unparalleled share the bringing to spend with associated FiveX their engagement all an than video to brands performance apparel the years suite, WSM doing omnichannel and outlets one over follow-up

are execute great continue we to culture from more engineering on clients provide complex our our customer see, first to It win to testament as programs can well experiences. you delivering our help is to successfully a up-market always enterprises. more go-to-market and teams, for and and product as as demanding looking deliver who larger, and services teams, customer So our

I'll you over Barry. So it with that, hand to

you, Thank Dan.

far all our that very indicated, both the going a quarter, exceeding into Reconciliations figures are website. and discuss will line appendix non-GAAP. I bottom financial with had of remind results included from investor specifics, GAAP our you are presentation We the Before I top results non-GAAP unless on expectations. in strong to our otherwise

increased strongly remaining our earlier, that mentioned all-time come X% revenue in public both represents QX grew Rowan highs XX%. QX strong an late makes The year-over-year for year-over-year up year-over-year was driven a As business the in quite primarily on commercial execution now company. LTM enterprise and and quarter-over-quarter, revenue growth by basis. revenue Note teens. business. XX% and Enterprise QX, LTM our XX% as business early initial and an of XX% downturn grew despite back has commercial the The

than a extensions XX% normal specifically extension forecasted our be during large QX approximately call, for reserves we revenue $X we of in however, million corporate $X.X expecting requests we’re discussed only million received of majority As We requests COVID to ultimately due extensions, a customers reminder, X resulting XX% large in year-over-year given revenue. reserves meaningfully current the and estimated or amount guidance against became of challenges; a $X.X reserved their million in a in payment last to that percentage receiving revenue $XXX,XXX, accounts that the $XXX,XXX have of the higher QX earnings payment will of requests. represented This wide on on headwind reported which due related point was growth. COVID their

As COVID-XX. to by you disproportionately continue impacted would see we expect, industry some

be seats. decreasing consumer to best and have been customers education been instance, discretion some technology. mixed industry hospitality in travel performance For increasing, expected, as continues communications, seats others but with customers and have The while reducing

financial, steady. revenue of LTM our other X% from for industries, business to DBRR the and three grow increased to services. revenue comprised of last services XX% of our quarter. Our largest continue XXX% accounted revenue, healthcare professional Recurring was XXX%

a and at larger the to different our at come as rates. platform on customers As winning different continue fluctuation and they larger continued is times enterprise core reminder, ramp in success to expected

approximately Second XX were quarter gross of XX.X%, adjusted margins points increase year-over-year. an basis

Second was XX of basis decrease quarter an million, XX.X% a margin. $XX.X This adjusted year-over-year. approximately points representing is EBITDA

in net with, diluted flow $XX.X a very COVID regards share. happy the XX related or the cash given are Second income and non-GAAP quarter we DSOs performance $X.XX sheet balance strains. remained was at to days With highlights, per liquidity million QX,

year expectation and quarter NOLs with low discussion third continuing DSOs. quarter was substantial potential finish remarks million cash remain for achievable the brief like optimistic given we today’s about and a flow generation I’d Second our of $XX.X our long and record XXXX. flow our prepared model, operating to of cash full our our for term

$XXX In sequential guiding top-line quarter which a million, the a growth. terms year-over-year are of of represents we revenue X% to and third XX% a mid-point increase

guidance $XXX For raising revenue revenue years the the have forecast the to that guidance established to from with are we of the from annual rate XX%. for over prudence the follow half annual QX Both which an ongoing and difficult XXXX closely our seasonality pattern growth represents million, our uncertainty. second allow to year-over-year we million our the in to macro midpoint increase in XX% and $XXX

guidance net particularly and annual $XX.X $XX.X quarter rate million. from $XX.X guided increase bottom the areas, go-to-market reduced is slightly in our million. are line, primarily the we compatible QX issued of by low for key As six third well sequential income declines our a the $X the Despite to The back-end by expenses, income income represents every net past newly to we as strategic R&D, million of on have we driven driven hiring these a raising are decrease was mid-point in This higher guiding QX for non-GAAP as and quarter-over-quarter decline that the interest environment to non-GAAP with the coupon relatively loaded net midpoint by that bond. years. the in-line million

loss are on terms GAAP as GAAP existing repurchase we detailed reconciliations. $XX.X QX In non-GAAP in extinguishment existing million of the and and our base issued bonds in well client a amortization to mid-point of XXXX, on net which our as our base, partial million as a $XX.X guiding convertible newly client reflects of loss, to our on a in

estimates are here Finally, modeling purposes. customary the for

and shares respectively million million of full For quarter and to $XX.X $XX.X share, XXXX million year for the expect for and be the we million our $XX.X to calculating XXXX. earnings shares be $XX.X diluted per basic third

benefit mainly for the approximately to which relate Virtual XXXX, full $XXX,XXX million our quarter. the taxes, the $XXX,XXX for be XXXX quarter second our subsidiaries, excludes third to foreign in tax of expect acquisition with valuation the $X.X and We year which associated Observer allowance

$X $X million. Our total quarter million capital approximately of to third expenditures for XXXX to are expected the

capital and million. very performance. million we For the $XX second expenditures full $XX expect In be are conclusion, pleased year our with we our to between quarter

nimble this in accelerating effectively go drivers. execute capitalize navigate We massive investing macro-economic please in to continue while through key market remain on to ahead. order and opportunity against areas to environment, uncertain the Operator,

first to J.P. Morgan. is Our from Instructions] [Operator question with Auty come Sterling going

This taking [Inaudible] for my for Thanks on Sterling question. Great! Zack is tonight.

first I the is quarter large on think really deals. our

think company's sound doesn’t I history you you to know you expecting Barry were disruption the the the disruptive. mentioned signing deals in some COVID, due but potential initial of largest certainly two

feel of it’s out it there? because part maybe and because maybe [ph] you of So conditions downward do report the the actually pipeline,

ones for of for were that both this working we've and those were pipeline Dan. COVID, Yeah, in already they Yeah, is to deals the prior question. Thanks time absolutely. the some been

follow-up. running just cloud of decisions mean just performance? because get I our could environment effect needed the faster they a had But performance I these an the to accelerating have quick and with up

it’s you earlier so they and Yeah, would say, in where afforded the they hard more pull time to speak focus this than on otherwise. have to to trigger really know

several of I several into we’ve that seats again the with this could organizations have of think a of is and as the about one schedule ramping the up effect, process had or and itself. two quarter but in months size, the talked certainly rollout

digital other in which move to simply acceleration So one transformation think they COVID, about of ago that a ago just and the months sales yeah, driving it’s whole and they one on; over year cases in a case due worked processes. those hadn’t behavior these the the their lot it they were not – nine began cloud, was was to I

for Understood! question. my Okay, taking thanks

Stanley. Morgan with from we to And moving Marshall on the question, next have Meta

congrats Thanks and guys. Great!

from Just of wanted me. questions to – a couple

like understanding reseller same or same like store maybe partner. Just

like was sense that any this the get addition the place take due handle to Deloitte, partners professional Thanks. investments services So I the of are or deals. accelerated of know you needing new acceleration in a to then acceleration would same of new if basically partners? And mostly to in volume second be, of saw trying to that kind

mean border. fortunately, as larger the SIs mentioned outset, question it the the really quarter once think – that great the at had existing a I a year than when and combined. Rowan our been in again That's I and was across XXXX look it’s entire partners, you

say, could you So yes Deloitte.

partners great. but Deloitte, newer you If business the all Accenture the contributing recognized all They’ve newer, IBM, is they're know Slalom, you new and the which more consider EY us, than and brand not transformation but move importance digital its them to – enterprises well effort. the without to need hiring as projects to move and them cloud are as help more to that

certainly are cylinders. SIs helping, on the So hit all

We across that’s and the happening and feels pipeline increased seeing are others from it’s AT&T just it board.

of on needed the incremental large expect sort in your in been we’ve certainly doing, large, our to what yes, this PS is to increase but know are and Rowan, to professional than run different not second continue Meta rate, handle investment those, making services question, these of be there investments customers. not you out but we’ll we And

thanks. it, Got

Yeah, you. thank

David like have looks Canaccord, it next from Hynes. Alright, we

thanks Congrats guys. Hey, on the quarter.

So is one of we're of topics how seeing the in up change conversations customer right. much of structural, just the in industry comes is some that the my

have in those world? the terms your you hearing look your I'd going and bodies from in a a customer be traditional lots back-to-work post-COVID of So of contact model is curious, what you what conversations are right, center, to know that in perspective, like for

think anecdotal have I not sure not it’ll going go to how it shift to on and I you and it a up know been this, think were; the as that customer way type. much there's the represent we're other be studies things customer by sums done some that really depends on we're of if on to back totally other, been have I Yeah, exactly

said just from a day new four stagger of everything a agents going who on we’ve were home in from heard out our one or a Salt have contact who look, because So those days up their to days recently only them save to their out us working center, customer said three agents we’re can and it signed a with Lake real-estate week leave week couple in XXX real-estate they City agents affected week, one going and about of we or if costs. they build that

heard similar, So everything home on my – most brand model and in a is stay and of us, of go middle you new for agents no, of that industries some this then which sort the of know to balanced more from conservative from and of will agents to our working said back to that we've the office. see is the kind probably we’ll XX%

are play we not certainly to how all sure cloud. think we know benefits out at but So end David, going that's the it you

so in they out Just to any new to and continue think have our because a operate cloud in know the just you're way. to Candidly are much customers stay you XXX% frankly we'll to would way, to there just in you benefits that bring it it's work-from-home thing small a incremental even is, need and model just contact other that close technology work-from-home see and if us center I point or more easier, manage I to capabilities a to do. leveraging have what needed

you’ll some So need you real-estate technology. to but more obviously, savings will deploy get on

we and be going to work-from-home acquired interest of we’ve virtual I platform component that in any solution. observer an think So that's our increased had important increasingly

transition, well So it for set-up big this we is. are however

Yeah, that’s you. Dan And helpful color. follow-up maybe a for then

the you are what seeing inside terms of in Just, channel? sales AT&T of cycles

understanding front quite capabilities excited significantly But so not because that's seeing are the naturally us their likely through pipeline and shorter we're still They of know certainly AT&T, in too lead extremely commercial We nothing we to really. bit flow contract providing they and but of go and going want that them see they but they us. do different, the and are cycle. are existing about build-up the what’s sales process. Inside you of those in a have through an a place the different, AT&T anticipate We to the opportunities. of with channel, evaluating the healthy slightly, into that in rigor bring solutions, condense space

on congrats Thanks. momentum. Okay, the

Thank you.

we the with Turrin to on question, have Securities. moving Michael Alright, next Wells Fargo

with Hey you've raise shape the seen the there! second or seasonality? here activity remind of Is see what us in guidance you good of just Maybe and off, and start half observed to anything typically afternoon. you would puts in could shape and believe this somewhat macro or seasonality even that make of changes years? than that and to given play out lead that some differently less and takes various pronounced prior year terms to maybe there the more Thanks

take mind this you one Dan. I’ll Yeah, if don't Rowan and

in QX, had HX but end revenue, stage of yet split years, So very something the extent, that because prior years to We we of given at look when guidance similar and the is total for assuming know the don't past know we the in which the at going to prior we’ve XX%-XX% that this a are there’s know we the not to HX the growth, of or guidance at don't seasonality, environment. compounded of range range XX%-XX% typically – within to XX% macro of similar We years, year be seasonality. complexity for if the XX% had was been also sure, the year-over-year either XX%. the given is you because the but this really

being and of macro which seasonally more XX% reflective which we’re it's and done – uncertainty that strong this is XX% cautious a guidance in past the more seasonality QX. QX, to been line highest, year-over-year of stage growth, effective so turnout within is had XX%. at years, time In and what and we've been QX very the the uncertainty is for over XX% not fact tad with the like it's of being big most a

follow-on, color even additional the comments there. of I looks can anything nicely quick or add picked like you rate moving the just here retention factors up the it the Any around a that? key some pieces. all driving appreciate then And with

in that in to improvement improvement so larger from on the you going to that environment. customers particular have that itself our line mainly seen of corporate wired is had our and would the enterprise a saw benefited spot Yeah, from QX, and manifested that [ph] are QX and ramped we've number expect rate appreciably, our as we in COVID that

Okay, thank you.

You’re welcome.

And question come Berg with the from will Needham. next Scott

selling a how influence couple themselves. expect do Hi selling you’ve FiveX percentage for I a in your what terms road. three congrats supports you are Dan, deals channels label, bookings but guess to the they CDW on – years, great different Thank products? through through of think product do can I Is much legal maybe that partners years next of down data when bookings of on expand their know taking the questions. points you. white how on you of as a new kind then quarter the you percent contribute, angle and to of but my thanks over wanted these of are these AT&T? you five it look to given say maybe see Rowan, your I maybe historically, if sales the they this partnership And is

just and they They're huge all technology SI’s different about other us. When excited. our CRM talk and of angle, Scott our deal we're may our a master technology in including about and know thanks even because a Yeah, it agent resellers, be to you ISV definitely endorsing know you increment partners, it talking of XX%, global CDW, partners, partners, provider. a when comes is we very

white us. scenario Now label this not like AT&T is is a for

based We’re the but their very added of solutions. one cloud first we’re portfolio, to

solution. they leading offerings a cloud can a to a legacy table, the have but that have bring them they are may dozen they other So most on-premises the of half market systems now and

One because They and at been they So a of as and it it's them that contacts promisingly. but team rapidly contact going. the and The really of as we've already highly have throughout overly building in specializes they look on educating signed very sellers we on training got and we hundreds just all sell is center they us that signed and sorts two is, have pipeline technologies, of factors. world.

things but big to ahead. huge. I that you our cloud So market I first boy, extremely penetrated ball, forward the hard – opportunity about to I take when give the can had that we're bullish tell we’ve talk you the and that already fact It’s know you crystal wish yields making we're year or five this now say estimates to seen on looking anywhere transition to from is XX% three and by

AT&T and excited So walk so that. only bodes the company want for TBW us, enterprises. more can we're us into It well that about

be of this talked think some maybe them of how in you from XX% new and look maybe Do differently? are back over release time. we going or of about then over functionality new I that with a of built think here that And enhancements into released to it we’re again helpful. year increase about time, or or you’re Obviously initiatives it, should impact you like. summer looking do ASPs the Thank thinking to think by you. that products you AI it they follow-up about half, feature pricing XX% the product but forward? on perspective some of expand you product some will the what evolving, just obviously But releases price, understand you new impact know new models will new Rowan, Got the waiting do may some your the

we're there a and we We're calls, IVA IVA’s their five. definitely of market and can so of perspective, these them are incremental We've able and already, existing the know we and taking From so the to Scott. announced starting handful results that. get an that Agent actually all – of see as launched particularly the Yeah, to so know so it production of in closer customers get they products, thanks closer as live seats, is so real add-ons, know you probably thinking – you the technology now approximation we’ve got these pricing established being about that we’re first just pricing, in the our Assist our to a you got valuable. expansion measure see

out on kind So will I think of the jury is drive. that what still pricing

pricing but market of one any I’d that as to I out kind before. technology, there’s we number we get have have on out we or you're the more this telling both our until side. before, two and an of so yet there's there is great sort now uplift Agent there testing other think know on IVA systems of a in You now established the we shared Assist about for talked put little and Scott what's talking AFP kind an experience, to say, customers companies production product

get see That for So a pricing and was results we goal into as results. this really, to happy we’ll We’ll product give keep get unfold. key into about, the XXXX quickly into start production some some market, seeing was with had we're I more think insight posted that. our early on really so and technology talked you the pretty how you

Congrats taking my for questions. again. Thanks Excellent!

Thanks. Scott. Thanks

looks like moving And Matthew on, we have from BTIG. VanVliet

a wants question. quarter maybe the through for Yeah, Thanks the to sales tempo build, the taking and and guys. through little I July. dig hi on then in bit both pipeline

terms customers your the sent pipeline for going what in If and home year, lot the you a impacted kind customers April throughout deals was getting clarity this today. then also and employees much all to that in potential just maybe can and the but little reaction was they quarter more longevity of walk of closed, through of both March to build initial persist and their us that that up how the had a of through

web found more do go and and we hold think kind took change of or shrunk and the their I what a about right, they went were, products you're we example two in we one early stages. slightly of from overall their lives to pivot know really are figure you you know frankly panic would an point. paths. to hunker then our amount that where was Sure, to there they great for thought from was you had a And and percentage the out, figuring business to few many it's whatever they the and continue And weeks a you through services was living exactly what their at of business April for But have of mode the Either too they a of customers customers when out immediate in lot talk an like how know earlier, that consumers solution, Initially suffered. to online more look and got based you how the doing e-commerce of saw e-commerce retail retail, our to through I gone those into business shutter May business? revenues organizations they of Okay, time you and of and an and immediate their business we to that suffer oh! paralysis a following down, suffered how know naturally has to center know contact we've a out roof. our and figure the pivoted lot cope

of seats we've portion into yet seen those will many adding business it's be of of So many lots likely and you cases a of surely traffic lot in a and that retain of one know them seen. the to that; hundreds

as to know near much well, say of and and order they the that millions for we we’ll thought for place dollars have large pushes I time closing center you would commitment too anticipated crunch had I the far a down as we for not So the could didn't. uncertainty, business, quarter and of get of contact let's end some businesses

that accelerated, moving That couple certainly always know had as as forward had we grow far we that enterprise pipeline and know our as You the to a as a of you had factor pushed bookings. business. to But offsetting looking, so we the pushed. as kind there continues an far couple

momentum to haven't move said, as as into so We seen we're bullish. that very you change QX, a we

the to It's pipeline what let's now take to and to of more factor businesses increased saying, I kind against the that the transformation question are process. say demand of because they if talent the in a the Rowan companies caller, of, recognizing right. hire people that can first that that office the combination mentioned, itself of you when let’s occurred.’ saying the of uncertainty people of and work-from-home shifts are give increase work are continuing to if ‘okay, office because you As no cloud. move so comes the they know question that a this Digital think going for that what’s know in that the XX factors; have and from home strong and And we're items movement not and of the embark the timing anywhere ‘hey, two on and being talent, and QX could you move home longer It’s momentum. just but a two fact you companies rotate, move you within small some seeing can a And and a on the draw at we flexibility center, in beyond, you uncertainty runs exciting office, the that's or We world you well. as now percentage, to from, a at look you that I we're the well contact of office, that very for right. will remote I’ll can different radius that then accelerate as can against mile know put leverage mentioned into cloud them of know still at some

factor second the The partnerships, is really right.

we're more naturally pipeline feet more become seeing and increasing staffing we’re the As on the street representing accordingly. and and channels demand more FiveX,

a or us whether in employee both you business, experience, know longer you change even have non-traditional terms kind contact new I'll process in areas know stood enterprises, know that term curious you the much a if have kind more that mentioned then up that's direct to – needing like And Great! of kind retailer the you and of traditionally something for maybe be internal saw a standing you of that case. as you but center, formalized the contact net in you a of saw something then for know might more much completely terms if been larger environment tell you or hotlines use new centers of that selling, up complex driver

from are where observe understand a they had wanted to of and the they lack reluctant answer moved end control – more would and you that, new was more on. that down available they to thought and – of can manage best them than a on what and behavior, their what felt I’ll right. do first lot thank were and would for now up have they They know I’ll they allow in going of listening and their control to walk calls, that visibility technologies your and I agents, mortar keep because was home a brick They center kind a those we've halls use work-from-home of found really lose of case, decade, the that companies companies the the agents. because when technology

environment know you that video observe to of they're like the in call center going that use in desktop and an about calls monitor I contact voice I they're to on a can you and observe agent where the being agents. if could today, technologies now their camera and environment sure their between browser monitor doing meetings and peer only provides, the the desktop, session agent, like it of now see and know If is make you you where think can is in the even not Zoom what record is, for suitable

they I companies want flexibility cloud right and we I got to is from flexibility’ think being is – business to ‘oh! look convert they an This really the to figure the have itself of be When lends that softphone, within right the that continuity. is one got option, you to tethered phone second you've premises of So one at that agents area evacuating, and painful used the manage they out if do think that's know sitting and have that a home access network. to they manage and the hardware, office within maintain say home that based to the were move and we that’s also at because a set hard to that’s that do they servers very to how process in a do you're security agents somebody's if most building solutions, premises office our you home, to sitting went local through now that a on system solution, have based to, and that the give

FiveX lot FiveX, with far, while difficulties. from and it other their in struggled customers it tethered to easy some wasn't there it had be so had Now were – a of so solution cloud We to solution. based still they combination and the really got with they've based that premises easy premises of was with a with

that think use So we'll Thanks. moving see case It that new accelerate. forward. that's might I

Very good, you. thank

Yeah.

from we’ll Craig-Hallum, [Operator Instructions] Next Jeff hear Van Rhee. from

in rates vulnerable relative over were proved Got to invulnerable in lot of work-from-home. reflect on cycles stick in guys. expand that on home know work-from-home the, in think, it. shift one touching the of further guess bit on sort a inability just terms it. know But to taking just maybe they terms reasons accommodate I in win to of to did guess I impact seen bookings questions you the certain premise to you and in here, the is the for increasingly inflexibility – sales if based and How substantive of its move and just premises actual market? going with rates, for time Thanks well I cloud try you a have pipe or our I’m the the or you

a as Yeah, let on and to wants add that, Dan of it anything, he Jeff. bit take if well I’ll

seen customers. it land have we with So

what definitely not sort they’ve one serve was division saw. work-from-home cloud to that. have insurance and a said, of that So They that so have for soft based you had and and really in and the through while cracks another, home setting desktop the solution, recognizing its, we it's the a didn’t and evaluating their their to and do solutions that's computers easy, gaps basically who that, customers when not in just company and on clients showing prem and to we possible mentioned your forth and do. easy it are We One sort talked contact and and agents so if who painful an you home? on the process with work-from-home what model got, and comes VPNs premises was you cloud to example on is center their showing move that we the know is not peers are up to agents of sent to like migration them division go anything, of the it and that to that's to

back to if staff, have have to one scale those, solution. you you're your just is beginning to any other this infrastructure, that seeping those be that sort not the company know things; think of camel IT straw that you and own of is they just camel's will, got say more to now you configure own FiveX agents centers, in configuration many they course happening, your of break though. ordering what's hardware, cloud have premises that the It look, that is if and of like eventually also you camel, them, own more going maintaining of or I that to it the would It’s back the on plugging So your it’s with more is of means data recognition definitely one I is you've that’s got in others. there break.

any have don't You worry about that. of to

far less So it's of headache, less go to wrong. management, just a much much less

the deals The other really was scale down up some drove need we noticed COVID quickly. some companies and to thing this the for or of definitely that during

on-premises not to down. Of the also virtually configure for course benefit it's lines impossible some customers this solution is come another that impossible time, well-known tens of scaled and be in of We of then of in onto had days. thousands platform cloud. with amount customers those That would an

customers sense, continue know additional cost affected eat bandwidth have our everything didn’t and and they to hardware that in weren’t lucky that many else. on-premises the to industries you in who of that were of who of Some them,

So add? and how is I breaking straw on it. I view think back it's another to the back Dan, is that that, again, view now, anything my that’s

Yeah, just one thing to add.

and they risk to we've productivity of was to lot agents it's not companies draw more about. been for has for pay work-at-home and me. convenience light recognized and you a were those didn't on indicated that us, you can to talked a a the out have but broader a them and only I higher But all draw can the can force less I reasons have think often think in there And of of believe before. cases hours. allowing educated that is forced indicated now many work work-from-home and factor on flexible do get you a work-from-home is We can what want also the and agent. they've on agents for went just of and what the It can, level afraid times they Gardner solved workforce, to

up they people work doing and we're if were that agents, or of to disabilities, every challenged can go you seeing that center to have for that lot that hours, are recognizing it some of force flexible a allows are them reason open people that into special contact and to a well the with companies open So being up day limited able so as opportunity. by and otherwise needs, formal

Okay, helpful thank you.

ladies and then the gentlemen Insights Group, Jonathan And has have next question. moving on from Summit we Kees

Great, have happen. to we the openings be you're I thanks regions my question and domestically for my make know but guess the congrats international. about some you more taking focused, the on yeah, I are quarter. seen you've question I'll –

at in tri-state we and you pre-COVID terms to York New went a the leave curious, area been you demanded? in it like you those levels even that. spike deceleration in know saying that have need hunkering it know Have Jersey, to ASAP, areas, work-from-home do back New seen versus have they going I’ll where more up, growth Just seeing normalized the opening down the of in and you domestically this you

at back seen think unsee customer matter slow if and is growing doesn't going I and Cloud from one they're really and We superior. to record it haven’t truth okay office. like, so thanks. more recognized of it's and kind highs a like can’t increasingly down, Yeah, it No. you perspective the pipeline is still this being

beyond are COVID related of of to business see in of saw we business could all the vast most a of the continuing again, been just FiveX. So was the the it to acceleration while at that know some and have majority not really it, we factor you

open think we that’s So change our up going to I really business. as don't

it. Got Thanks.

Yeah.

Power on, come Baird. from question will next moving with Will And

It for like Thanks AT&T early guys. for partnership. This Charlie signs. is really actually the the about you Hey, taking Ehrlich question. some good I to Will. ask on sounds wanted

is the bill how magnitude the onset speed far, speed to the Just you of and with the with wondering, of expectations the change has you potential of you relative which that Thanks. in the that thinking built so know know or at that partnership around has any, timing revenue track terms pipeline meaningful pipeline of contribution.

you Yeah talk Dan, do want to that about one?

They Yeah, about be are bringing many sellers all building of they seeing we're and get they're there sizes. deals and teams up we the and AT&T. so trained beauty the a excited couldn't that is more momentum pipeline us we with

revenue about numbers in and our So start this the of end XXXX. that's rather And business, talked enterprise maybe more the most like have than well the and should we’ve XXXX help as business. pipeline as us starting so significant very both with but building to commercial yeah, to before, we’ll just likely a impact at of XXXX, is up the

AT&T extremely going side tightly expectations. central well has product that’s Its that as well our as done to offering. our with also. all being to white very and an they you as bring able AT&T EFC and know that going critical office portions had So exceeding integration to OEM product on integrate product and the we’ve great And the as other the labeled continuing we’re of

quarter. congrats Great! the on Thanks and

you. Yeah, thank

you. Thank

and Ryan from we have ladies Moving gentlemen, on MacWilliams. Stephens

the Great! for Thanks taking questions.

offshore from change further demand process Have U.S. check you of cloud COVID? centers. behind contract these than our from centers So contract types outsources adoption cure it of even like from are seems contract result or business the a as centers cloud seen

Dan?

premise to for the very And just then turn the and on some in significantly. clients provided, so – We them give you space and and I need other and many change – example space that solution. BPOs I not been know fast. solutions they don't I business if that at guys they retail look those flexibility, they – have stuck Yeah, for can't one there's and It's move, the the other had have flexibility years take there. they a we say the just Avaya didn't that there think of in Cisco move and you from

to So has their there the been Has moving been solutions there big continued Absolutely. to a cloud? No. say, shift? in interest

three different wouldn't a is COVID; that’s two for there but it's two been now. of say on I dramatically shift because it’s there So happening, been years going

making now centers add just broadly agents of considerable order of for focus Dan to than the could there's quite I more time the mind, the and number If have half cloud, including is be and you area with there investments Europe bit hiring in little in abroad there contact been if been through a to moving public alike, able a speaking, that, increased take more a we advantage to for because us. don’t partners

Tillman we’ll next with to who Alright, Terry move SunTrust. is on

tonight. to that for mention and related market you taking increasingly you massive question. retail opportunity the Hey win guys, this filling evolving guys about by split strategy David Unger Terry thanks Tillman being little This is the personnel, for sales Thanks. talk contact trend? to bit dynamics Can center your agents in a

for jumping David. on I'll today. Thanks absolutely, cover Yeah that

the are engaging some think business the that e-commerce and to in know them calling customers contact shift brick the – are walking about into into we’ve big from in know a is way what you with center. seen a who space, their with of You COVID customers transition a of with acceleration retail essentially a our store

But with go have You channel to able starts usually. e- you being those to the first know customer, instead an the engagement a contact challenges really SMS of retail messaging that but digital perhaps brick-and-mortar a and know course is option the you with that course employee, is center. business them often to talk may sort customers directly know a to of will or interaction, only for of the some a often website commerce then involve of

into service analogy could retail a contract like sellers is here brick-and-mortar brick-and-mortar you people So like sort centers. for of that of see retail transition and the

retail, see going seen happen. run go So back, the we evaporate transition I don't that go in the are as as know opening, retail anyways e-commerce back macro sort macro seeing, is of as retail that you race e-commerce that spiking retail you sort to is a with how to stores you’ve the stores level going and that's question know think we've COVID. a and you all people that space, – from on And I back to perspective think of to my been what that's perspective into huge of with don't –

certainly think can when that's think convenience the see going it's people that what I brands, to to to shifts shift retail are introduce to seeing online, continue I of but our what with massive, be and various customer. it we the permanent start

my that won't down e-commerce, it it somewhat, – perspective back brick-and-mortar come to to we have as essentially go where traditional business variety to their support have go e-commerce going your in customers. a is, the this that. accelerated critical of hence folks one-way from function. of center an the That's opening just benefit Because is and much front a go just moving contact door will your and back it center virtual industries plays decreased to out that becomes retail but sort you're of and shops how to as we'll more back ‘Wow! into of sort world on, So and see infrastructure becomes transition’ piece to contact sort maybe a It's so but increase in e-commerce,

a for great that Thanks detail. lot

David. thanks Sure,

sales target just On to don’t Program, as that you the business. opportunity. that people guys reorganizing I I’m curious you’ve people of well the kind or metrics sales any provide FastTrack invested in if know as

emergency a is we they an can just and if mention that, to it market you a or and do because so to we FastTrack place transition knew it we'll you a a under and was to got get quickly, contact do that collaborative customers the take home, that. planning was an and transition that’s ‘hey, The just for notification. where could of lot was It a can two do is, more say, out this implement want to and in Yeah, you is handful they this to really companies center one We design. took three day.’ make of assume just But two because of by all a, this talk that the agents I provision marketplace normally of urgent under Program that. to that need, couple, do know means, had it new you it month that, hey advantage know to time a right notification

was COVID not turned knew It effect. that a York We the have sales acknowledged couple a for we through Orlando. do business that small needed making if us. that the SBA just could Detroit, We market was loans, hotline hotline and they the of cities of New up the sure that place but and

thank Understood, you.

management And for gentlemen, the remarks. we floor that do to but have closing for is ladies the time and turn today. questions any at for additional and you to participating, time again, Once back all thank this we like I’d

who and also Thank focus continuing have the a us for to accelerate very you. going business. the you job the It’s up have we and was getting terrific employees like FiveX This of that the be execution to all trend thank done for our the had a to partners thank quarter been I'd just today. you. joining benefits as helping for thank thank terrific of everyone seeing Operator? clearly really we're and a a Thanks much. here of call company. all we've Well,

for Of for course again, again sir. does disconnect. now joining today. that you call and Once ladies and conclude may you We us gentlemen our thank