Five9 (FIVN) 9 Nov 212021 Q3 Earnings call transcript

Thank you for joining us today.

On the call are Rowan Trollope, CEO, Dan Burkland, President, and Barry Zwarenstein, CFO. Certain statements made during the course of this conference call that are not historical facts, including those regarding the future financial performance of the Company, industry trends, Company initiatives, and other future events 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. impact to future and forward-looking Commission. discussed result be filed including Securities subject adversely that statements the under are pandemic with annual inaccurate, FiveX's COVID-XX and Factors affect and the in the statements caption substantial other Exchange and uncertainties risks could to and Risk These the the elsewhere risks FiveX's of and cause reports these quarterly

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

Thanks, today, thanks am be the this quarter. to call very to excited for afternoon. here you Lauren, third joining all I'm strong results I pleased report for and and our of

and our to industry-leading our the execution. beat skipped haven't following the driving growth are excited by engagement. And Company entire and customer momentum decision see, a built, leadership the you'll terminate As we've acquisition teams proposed and transforming the on Zoom, team continue to

I'm on growth driven by our to to a on XX% numbers, great same against enjoying time, the we a we enterprise XX% new bookings Zoom third the more year-over-year. later customer call. business buyers business, both saw as massive report this a channel our forward. subscription as growth expansion deals, from record excited in us highlight well continues executing 's which are targeting enhancing strategy LTM going their going the than benefiting $XXX.X us revenue, in Under enterprise our grew to Dan success commercial demonstrated At grew pleased Revenue And that are and in by execute quarter, focused million. experience, to as revenue opportunity. are tremendous be expansion. to continue from commercial year-over-year XX% market quarter and We business approached logos strategy to more the When are who leverage

as are driven market momentum, Now, remain our and product machine. FiveX's continued innovation, illustrate, these results strong fundamentals go-to-market and by

to the [Indiscernible] central efficiency with is deploying paramount. to The intelligent strength and our market customers Summit solutions partners, customers, with annual easier with our AI are towards shifts from in by for in expect momentum prospects. for So over interactions, by these the to We cloud, these turn, and digital AI-powered largest market. virtual growing which of digital channels, I'm seeing that recently, transformation. And be in most by technologies and helping our driven abate the the self-service, digital Enabled shift discuss and demand continues the digital like full We're AI was we're our going to demand to automate, each The future. drive agents. agents in date businesses for and do X,XXX necessity year the of at with immutable to by increasing with display center automation for market was foreseeable starting to This Summit CX contact CX customer on and we're September. trends don't themes. the the and automation. scale increasing on-premises

the lead launch it product AI-powered IVA recently, growth the Seven, with as continued our our our next taken enhancements live-end of of in on to workflow platform delivery features digital drive providing than over on into with are across and with the also of digital WFO, the tremendous embedded automation, including our We in stream, solutions making XXX hyperscale coupled architecture, focus new technologies. products, channels, shown which virtual voice with driver, our Studio highlighted self-service, leads innovation. to through We've of and our growth automation adoption evidence focus before. usage intelligent agents. assist across this And IVA and easier agent These, agents most efficiencies ever

intelligent of to messaging, release environment. over and digital enable labor a earlier IVA on more customers - human solutions the we the right than inference announced amongst the acquired July, of are web November exceeded development you to platform. inference IVA key to studio We event, of than supporting we cloud world. earning talking business, international FiveX routine seeing We is go-to-market in XX our of re In including the use-case more a IVAs to FiveX X machine. now and go-to-market acquisition, customers center, deploy and enterprises, Enterprise that the last engaging a agents. We've forward and FiveX redesigned and workforce segment. thus calls at about. these context numerous can is our help award focus to Application AI and deployments. more phone, that And highlight now capital. agents. Best additional as and for platform tight and trends we've our make IVA, platform around a cases, industry FiveX Connect. customer the acceleration interactions recent to of success digital AI awards, the studio analysts As like to to finally, this ongoing it provide in look has global the we And aware, channel's of leader Penetration seamless usage adoption million of SMS. been automation processed the use is businesses efficient market mentioned and center and we're strategy IVAs automate into and XXX more continuing an the the the We in enterprise-grade up powerful contact the with have architected invest our believe continued even performance AI practical amplified solutions, larger mobile low-code alongside latest our expectations managing chat, is experience that inference contact integrated live IVAs more with market The leader has I'd the -powered our since support allowing optimize FiveX with between increased And presence. in live XXX% tightly expansion omni-channel better driven industry

pace. larger and continue not to but part larger their as adopting record only we digital also First, see of at cloud embracing solutions automation transformation, enterprises,

new purchasing initial are Now more enterprise IVAs of their customers XX% strategic of than as deployment. part

cloud ACV our on more as well is grow increasing. FiveX, expand leading business. internationally, to bookings taken And and To we continue And some customers services investments. we've made presence, to momentum our partners channel significant as channel are starting solutions large our our with global third, plus deals. are from million help international include implementation Second, our and

quadrupled we last up years. especially First, in EMEA, more stepped of hiring has the where headcount two than our

up a in and will operations. headquartered Global team we international London expand cloud telco lead to continue instances. We've public our Next, set to also expanded

within And programs our to signed partners right accounts. our and contact we're additional in various local we invested key better and so able Next, outbound finally, people countries database additional. in that we've on target grow to markets. awareness with regionally and increase connect digital the focused

wrap I'd where paying U.S. the and investment the mark international investment, revenue quarter, year-over-year the landscape. XX% the up, dividends. last And before of international XX%. this Company's Clearly in from is X outside focus out like to our result I headquarters rate on third a fourth our crystallize grew of of ed opportunity As quarter the the decision growth exceeded views increase our to market and

centers. conclusion, digital by And larger transition can technology on-premises the to led growth customers of performance by our modernize practical who market, combination enabled and their to initiatives. transformation seeking they of enterprises, strength the we automation a We've We quarter the embracing for market are centers. decision of to leadership transformation and the afford driven continue to of in The efficiently building In transform this is around XX% business by to platform. represent value customer line AI position and momentum underscores and our our In see delivered our almost digital cloud. platform end their the purchasing a these of scale higher differentiated experience. made invest leader from the automation our by buyers. contact contact the enterprises in

enterprise Our XX'. Burkland, and subscription our the product revenue sharing innovation growth strategy, LTM, out the in Dan like I'd gives continue that, additional day I'd turn thanks us growth our continued at to industry employees partners. confidence and execution, a strong on But to our on the in go-to-market President, our our forward to huge profitable grow and to customer ability With doing information plans share virtual November to before deliver upcoming performance wins. it analyst to look give financial of We like some to specific over of durability now and XXth. to to all so,

each progress Dan, is their hard to of work today of over the and we result I everyone And Our where and and stand you. dedication. thank them.

Thank you, Rowan.

record larger also leveraging of any even now solutions call once reflected some our to in momentum As logos, to as This our upmarket our quarter earnings is presence from record bookings I'd size influenced our QX of superior setting existing of mentioned, well backed and the expansions who record enterprises, opportunities. history, again up of last levels, while strong pipeline FiveX as then we with partner in positioning in having significant And higher. two-thirds larger quarters. key wins our over and consecutive grow new some two our customers. largest our executing automation from and in to continue expanding QX And successfully that our quantity continues both by and international ecosystem deals deals. and like channels share being since

omni-channel a complete We self-service, order they with their is powered a logo bringing self-service all along provider for hypercare, position to our type in new using with services no the a to Southeast FiveX. first $X.X And of this maintained ARR to now initial suite, their in XX/X and users. full Avaya The systems our for offerings. the in anticipate full WFO and previously help over our automate result by is partnered million variance. opted with FiveX who who modernize customer have helped Avaya health IVA We had They to from solution desk reseller experience. insurance

an I'd also They share reduce call over Company. to their valuable results medical have our e-mail, ARR to IVA platinum reminders, to solution, entire full and full voice chat, deliver more as recipients self-service, state. ID. and enrolled million to ordered than steering, timely information a as X gaining that The They visual times, This biometrics portfolio status using to within from the WFO, of they workflow is handle includes to caller's schedule to have and to IVR, initial updates. which (ph) well They were as transportation requirements wanted logistics this lapped We SMS, offer the agent second new and example order as FiveX. logo automation and to suite on-premises including help the omni-channel FiveX innovation assist well Genesys appointment system, like the the to anticipate chose provide intelligent-call changes, solutions. and trigger million our Wendo automation and of Medicaid in $X.X agents nearly FiveX authenticate of

and I'd XXX new distributes to be premises the the call handle over IVAs. customer and older Cisco is a significantly a an with $X.X normally million analytics. now up conversations in performance like QM, third suite this AI our our the voice them management, like initial full transcribe FiveX, as anticipate time they'll dashboards, the The into business and over examples that Avaya expanded well FiveX. Company times of great order share we experience. manufacturers speech using and WFO assumptions, customers biometrics, in re-imagining win They We and example using to share we're systems. of CRM, applications, of With nationwide. to FiveX. global recent This automobiles to as multilingual based including omni-channel workforce reducing wrap And to their ARR dealerships as existing through logo result brand insert I'd do, significantly, and some

additional delivery over year. this expansion initial ARR to now us year, of in $XX to Also, parcel SI an who with placed with global with of have order placed us orders who FiveX to over $XX placed this are over their the ARR million. million. FiveX subsequent their of You'll spun anticipated who desk outsourcing function now million orders ARR anticipated total large in you'll so off help and $X order their to that initial Company, an QX to with over ARR which far in FiveX They've bring million QX with recall place recall service of in $XX FiveX, total bring

device for ARR divisions all We years globally $X in also with became their have has will expanded IVAs, ago, a that was a manufacturer generating million X FiveX now $X.X medical customer ARR million. of total added approximately and who over anticipated their which other to and bring

these over $XX combined, can ARR you in represent As see, X customers FiveX. now anticipated to million

over to you to are businesses a And customers, experience goals momentum. can adoption continue at the deliver gather that, see, and with and we to Barry. and we're continue As re-imagined seeing develop, which I'll execute, provide the of of to to forefront it technologies Barry? innovative solutions, these hand their

that will in to results financial unless are are our of indicated, appendix Reconciliations the non-GAAP. Thank our reminder you, otherwise website. on discuss from into before GAAP specifics, I investor presentation included Dan, figures going non-GAAP

had X% growth As sequential XX% primarily revenue of quarter revenue XX% underlying earlier, ongoing year-over-year, business. the I'm year-over-year. where our revenue reflecting by business, mentioned increased to Rowan the driven we with durability revenue report strong a LTM subscription pleased also enterprise growing

me a amplify on bit. Let this

trended mid-single-digit, half the extended that benefit 'XX. data, the disclosed Now experienced second COVID through QX of actually that we we XXXX, of in have multiple estimate quarters we that one-time previously

This in came sequential thought been growth the of strong which X% and rates third COVID mentioned, our both is retain in second It of levels. of pre retain the However, whereas X% benefit. one-time quarter the the the all turns of we to evidenced before, the we at just quarter, only of would that by in low-single-digits we pandemic virtually out have high-end able benefit. -pandemic

due will another through like the rates not tough Given that naturally to growth QX COVID, benefit be of we lower one-time year-over-year year do compares. have next

sequential true to the the in strength However, of compared our our be reflected will levels. of -pandemic pre business health continue to rates growth

business revenue In XX%. professional of quarter, LTM for represented of the terms revenue composition, X% our of made of the in services. commercial and comprised our revenue was XX% third up the enterprise remaining revenue accounted and XX% Recurring

remained at rate XXX%. retention dollar-based LTM Our a

and As a is reminder, our retention fluctuations customers cause enterprise continued larger our success in in expected winning dollar-based larger rate. to

due ramp high customers, to DVRR despite different inevitable different As I come especially larger onto and and we to time, the quarterly from a rates, mix enterprise higher at ones, at fluctuations, platform times the expect our automation of trend offerings. upwards ARPU and other

adjusted basis footprint. more driven. quarter gross in XXX were margins ongoing to XX.X%, enterprise our investments of Third services our decrease in of global cloud primarily And efficiently momentum the year-over-year, business. By approximately public to support points investments a professional expand

investments lower decrease adjusted points by increase in go-to-market quarter of EBITDA initiatives. basis million. the Third R&D the margin. a XXX $XX.X A approximately Representing and year-over-year, was XX.X% driven somewhat margins, both, strategic and gross

share, a $X.XX was a diluted per net diluted share. per penny quarter year-over-year $X.X or million or Third increase income million non-GAAP $XX of

at coming performance XX continued Our days. strong in DSO

cash of payments quarter. million during in operating QX $X.Xmillion the transaction-related driven, was $X.X cash by Our part, outflow

meaningfully expect to We at operating longer-term substantial LTM expand leverage, increase our the NLOLs, cash currently that margins, low X%, and in ability our margin, DSOs. flow to operating given gross increase our

points few Before in initial highlight share and XXXX, provide merger would remainder the on the I outlook about a like to of model I financial comments for the year proxy. the

and like affirm in setting margin. long-term XX% our would to billion the XXXX in line I at with all, $X.X targets of new proxy EBITDA in First model we are the that revenue

Financial ability see, execute. strategy, to market on and the we opportunities will Analyst our regarding additional demonstrated ay D we XXth, provide our our considerable investment During November details

the the will that numbers, with in inevitably Also Whereas long-term, us goals. of near-term. model proxy with the top towards extrapolated, All respect quarterly were an new please and keep to they in will including reality, which fluctuations, annual in on mind consistent be drive they down linearity. based -

extrapolated model it between down and guidance, I view new attainability model on the our Lastly, versus make attainability a before like guidance. the was quarterly clear long-term of The fairway the model. sharing long-term the to annual of would our our distinction

XX-XX proxy have a failing ease so. as but communication, a also of of it that of to consider do meaning making model, For the model chance a XX% we XX% chance

guidance and quarter other for On followed change. we successfully as like full-year on the and XXXX, have XXXX. quarterly annual to of many guidance prudent will high-level the with hand, for fourth commentary that the finish definitely prepared discussion not that, well today's I'd philosophy as providing our years a remarks the With

guiding we to represents in fourth revenue and which rates QX the XX% year-over-year and our we a quarter-over-quarter For any guided million, a highest $XXX respectively. midpoint to X% of at are quarter, have growth

For a of XX%. growth represents to revenue XXXX, year-over-year $XXX we're million, guiding of record midpoint annual rate a which

fourth-quarter midpoint per the an we bottom guided increase highest the $X.XX per which As we share of sequential net for are to representing annual income have non-GAAP quarter, ever net line, I a guiding current for on to quarter-over-quarter now preliminary is in $X.XX, increase, commentary thinking some level share of guidance high a provide a would resulting any midpoint to income our XXXX. in non-GAAP $X.XX. like

you looking like so, share would we upcoming have Before year. been at doing investment our stands however, with I the for to overall how

set and further and market to amply the operating on capitalize global drive our to is in including returns. growth enhance believe position upmarket, both areas, expansion. now and and leading our automation continuing opportunities to We of we these acceleration on in temporary a Dan warrants initiatives, much time which the we demonstrated, future market are in opportunity many This massive have investments high enjoy of sustained number Rowan believe As a a years is growth.

and that XXXX for revenue, This is responsible a mind not With this however, a born in conditions Company. we're does -at-all-cost emphasize, becoming mean of decision market me growth. this Let growth comfortable are growth. follow seasonally second the of we XX% Revenue stronger slightly half. XX% were our consensus in of revenue once pattern typical more again, with a with currency our year-over-year than

share of of expect despite We the midpoint embarked income same come guidance, non-GAAP as the net to a in per accelerate we the $X.XX level at XXXX XXXX our have upon. approximately investments

we to of In on an would our our quarterly line. provide the addition, bottom job like profile

case our quarter. you of the first the this historical income per expect net look coming the always be share year. at to weakest If amongst non-GAAP the in especially year this we is And financials,

slightly improve improve to earnings Please additional Investor expect estimate expenditures. In website fourth remain to half, and pleased on and to ahead. very Operator, We capital laser-focused the second our in presentation Relations deliver including the go quarter. share especially refer we're in count, to We taxes, the quarter [Indiscernible] meaningfully in our on second for the summary, third executing growth. quarter sustained, durable with please performance. posted

this to ask I their like the analysts ahead of at go and on time, And all cameras. would turn to

Okay.

Hynes DJ We Canaccord. our question from have with first

just you in are there to about has sell and mega talk going over congrats could of Hey, your happened out QX. in against see that these Can I changed the you guys. great Great massive closed using QX at expansion what's mega for competitors Are of results. one guys the go-to-market. to It's on you start months? to you all, that on that everyone the pipeline and narrative see maybe there deals forward? with have the X last for and Dan, them light, the deals the more on the

perspective, continue I grow. absolutely appreciate DJ. Thanks, a from to And the deals, it. pipeline Great. mega

to go to market that complex most of up the want market. a global continue can requirements Part that innovative basis, seen now experience. the on deliver they up, customer They've the cloud the right? re-imagine it is We in opening

teams, coverage In shoot over we number's end the generally XXX. meaning strategic high pipeline anticipated closer that of handles accounts, for XX the a which XX our multiple, enterprise the the quota. to So the

and So deals, we more about to the fortunate feel more very speak. so and future mega

one to get I confirm kind of to about XXXX your I'm Yeah. Barry talk come it's follow-up you target, you needs Great. there? in can and if target. long-term go And expect said honest, the then right a what with Understanding you out maybe I being didn't can to XX/XX view for just Barry.

Thanks, DJ.

As that And that will say it's distinguishing annual provide, quarterly will you did down prudent remain alluded which we target guidance, just fairway, to, and typical conservative. our XX/XX strive guidance towards. from we it the clearly we

the is trends driven Our It's comes no Rowan near-term we investment. that commitments from that particular our spear, of $X.X truly confidence? and has new some would be committed have confidence billion on So goal the It's sharp what this and business of this is massive every demonstrated that that market. the us we but as would a considerable the do that management DJ we point the certainties, customer opened do will There this same. mission-critical. that our and our march past a is to one continue, about, the hit we there's accelerate from obviously fact door level talked exactly fact mutable that towards take front confidence repeatedly in what towards the inevitably engagement. and team with is fluctuations is But is by we in of coming

We low over before, And across by employees the as support the who has year-out all rankings. love said center door that aspects year-in, at and execute. expert to implementation, we rates demonstrated repeatedly world, the sales, Rowan attrition team under glass from have working witnessed of FiveX and design, our ability I as in have X,XXX contact leadership

color. you the Thank Great. we're this. for glad I'm And guys doing still

from Meta Next Morgan Stanley. Marshall question with is

me. of for questions couple A thanks. Great,

some X-figure of year some take the might those of the seen yet, won noting for or First, you're of till on earlier of you that some year-end you those expansion roll of were kind had of deals. year, out. the to deals But in already it beginning

wondering, question for what's then that so upside just And early? going causing second faster or so the me. implementation is And just

like just the post customers, with that deal of conversations maybe post process or [Indiscernible]. the circle customers has with during conversations been and the to the of dealer solution Just what up solution

Yeah.

first part the I'll of that, Rowan. take

ahead. go Yeah, Yeah.

I they deals, larger right on be more that as more want many anticipated, to involved. part much they're complexity, absolutely have track. the groups mean, on First

there If we they is such hurting you they internal a long and support customers customer and what to large the reason, It's decide discussions. in most ask the together create consistent serving implement, these imagine, revamp -- a customer certain the lead on revenue, a would customers, to if to yet lot time one, faster. of how the sure before their get their and be almost they there's it and I delay. that can trying and it's groups how People why think a exactly the our want this they are profitably innovative companies just to caps outset. launch pulling of within of making cases, to But lots designed way is of and that's at primarily new like want the all

Yeah.

well. I think up that sums really it

some actually some think some look, take I quick -- and fairly move a while.

to there a part mean the it's and Zoom And customers down some to question, your understand balanced related Meta, of acquisition. relating security on over were so second on the wanting all front. implications to Zoom's -- But the response the of fairly that slow were who map some

the of side. some was enterprise there So especially that, on large

table. either or the dissolution. the And questions taken way got particularly, then itself And beyond off so we those deal, from negative really when nothing on that move obviously, customers, the on transaction

not or and say, would I balanced, relatively been another. in one way it's noticeable So

deal million mean $XX follow-up with I got just million. it. $XX that quick. upsized, Dan the the was to on I I real mean,

as had like was So moved referring customer customer is what that of faster. to -- kind a that Rowan

And so to was or? already starting upsize

across different Part theaters of or it of was the regions decision-making world.

independently orders decisions far, and just ready. allowed final process, tie to so of that prepared ready, we was contract final and other it Somewhere our of we're contracts script, timing. I in I a not wouldn't were that to some place, the weren't done implementation the negotiate mentioned their send quite It's And the so matter make negotiations. geographies to

Great. you. Thank

JPMorgan. Ader Next is question from Jackson of

guys. to Sterling on for I'm Auty Thanks, you. tonight. Great. see Good

deals have gone impact time, things deal if is of those while we merger had? by did hold first any And question were wayside? from period The or the that those our it closed put has did the that discussions that people since side being so, on Zoom

I'll that discussions had support had wanted put hold. meetings intended separate accounts a we they different and we explained swim us earlier We for to that in, very and security of on business focus the to one with companies very more operate around multiple them, how it. we for several have but were start that buyer implementation as Rowan it to been alluded maintain really as but business on our incremental we've changes, whether on where done entity all needed clearly our two and these lanes nothing line would that the it to Zoom, would've was and to was we along, the were be support way always

have were And largely intact remain took so the I going we we that fact way been. think they great comfort in to the

had a really the few we QX the just we a of remained in two both remarks, in our bookings meetings It largest and So quarters we I track, beat. off extra table. longer discussions and on items ever and matter taken mentioned extra there. prepared But a or got as everything pushed We, miss nothing was just didn't QX.

upward. So onward and

that comps Barry, difficult for platform? or the guys have Gotcha. number just seats the on against there reopening you, the we that up actually of quick any coming about tailwind the reason you a might the you're live is Thanks. talking headwind. And then impact commentary follow-up that a as just users or clarification flipping why quarter, maybe get on a pandemic Could of and first to in

in of it [Indiscernible] of Yeah. picked the COVID the 'XX. tailwind, said one-time we've that should percentage X in tailwind, recorders incremental QX 'XX, as And basically I to 'XX, the that and you prepared consider X points remarks, QX to sequentially those QX up Jacksonville is -- revenue quarters of the

abate in levels. quarter-over-quarter respectively end the QX QX the second starting pre are high are the started starting But quarter. at of increases in to second and started the abate residual the to X% in it Has -pandemic X% -- in and now

to Because really way tough comparison sequential at QX the So of we're true look we look our growth the at keeping to that. [Indiscernible]. rate. the all year is next is lap those that's But business through of until

guys. right, see again. All you good great. to Thanks

have Barclays. Ryan MacWilliams Next we with

to see good Hey, you guys.

So seeing the pleased larger to hear pipeline. that more in and you're deals deals

the your see also bookings, enterprise pricing of seeing improved new to Now frequent addition enterprise wins? you with are for inference

prevalent a see primarily number for, of that's are to and IVA so add effective applications opt-in to ARPU, are all seat, some uptick starting just opting and have will. right, for in that them best workflow [Indiscernible] what that in the be the most the more very that's where small you use the if cases it's optimization that the in you applications you when an And deliver test our buyers of get we the portfolio, We're uplift. the can from not they'll they see but workforce other grow and automation across ROI, the most going and enterprise

We detail. an into we're we at talk to uptick. So can that see starting Financial more Day more about Analyst dig when the

booking the do There's more then you and see think shift returned to started you guys. for in just Barry we more the Thanks and booking And as Rowan, how enterprise, to Barry. quarter? to two fourth for centers will Rowan quick see more move seats contact and ones you person. seasonality,

Dan seeing XX% of it just by for they think, know We're I seeing In what I color. office into office, with in-person, country. similar by anecdotal. mandate. example, the only On employees Ryan. we're varies their more work, ordered back government I which Thanks has Philippines, the to have something

And map. I to it's think generalize So over now. hard all right to it's the say

talk Dan seasonal actually be question, to are actually to or I'm now, more [Indiscernible] not about on you to but whether would I'm the that would ask quarter fourth differ going Ryan bookings. the typically with And -- to enterprises me going I'm quarter. stronger

your we've stance. folks there's for numbers off future, to reaching great in completed. but Typically, that budgets place put get optimism we end, the on. you that nicely There's talk much about Generally want the see QX started too to and our projects very in

Because the you results. on guys again. Congrats

[Indiscernible] Thanks

question Needham. from Berg with is Next Scott

guess in particular, said around that back of channel -scripted you different to and I something those have, but can you that there at a as good ACV on congrats specifically end, deals are customers single deals helping deals that higher mentioned drive ask In look help partner that pre thanks you comments you'd -- little you than partners your questions. or to same your in million-dollar up the everyone in made maybe the is are high-end X-figure ACV. go down-market high partners of the taking to reason in I Hi, think both million some my certainly a $X traction. of couple those pipelines? contributes any quarter wanted bit, a to remarks, you'd at for greater Rowan market, as the

Maybe Dan, take one. that you could

bringing our referring you they Well, are partners plus Scott, and are. resellers to Yeah. opportunities? million-dollar us

Yes.

are seen already, several channel Rowan Yeah, as We've The that's now. is of mentioned. channel think coming I those happening the that through growing. business

make and bookings. referral up our alone over partners XX% of resellers Just

So it's giving us great reach.

more endorsing and the of brings FiveX, globally bear. you think market it got to and we've out opportunities If in about representing it, now people thousands just

started large we about and getting as talked when early we're talked they industry. mega at the underpenetrated the just high regularly. so we're of this are seeing are we about very last deals, market, And as go to high-end really about adopters earlier And [Indiscernible] end of the I of the the some mentioned so market, the folks enterprise. an these with They that the

and area whole growth. largest we've most it's our accelerating So area of we talked a -- strategic clearly of our growing about our pipeline investment our accounts, got when largest and and

So all positive, there.

to the Great. you're merger seen from assumptions maybe years? should large years. space change of certainly you. What's up win [Indiscernible]? the this it XX about inflection environment deals X will that's where in But about hit we'd function going was going we function general the over rate But or or of of in your in Barry Company that talked there, you the a as And defer revenue driving proxy. that targets select think Because the follow-up, Is just rate this what the deal point cloud? in last driving because step everything's or Is more X just is Thank more reiterating well. a how not your X, one is growth that? comments. it's a my then X, X on take to next guess over that

front will [Indiscernible] it's been FiveX public, with it enterprise [Indiscernible] at talking evidenced march-up think, consistently, against away to handle it. Rowan more important contact compare has becoming And excuse Scott or contact I'm the one got subscription the agents. those in the very revenue, this area, confidence and but I the been help. The time that for, in an got to an the Cisco, retail an we X rates in increase our that comes new focus if becoming post-pandemic, and agents it's business -- against on of, It's each And be. this Avaya center it win a And Dan Yeah, market in of about occasional happy us. can Company Company case. comes story every now very year-over-year. the it a have now all tough that And selling. them. becoming only X will I it's years world, And needs if X me, growth XX% are around year-upon-year to the X growth. that win rates And well-respected plus from is door. is contact of in We've to high. Think strengthening mining environment delighted not be that center we to it's runway America, minus, saying basically, same from or of competitors happen taking contact XX and us. and take Rowan XX% of sales in go can aside really are fact at taking more to ahead And the responsible stab when a appreciate least. center that increase over has [Indiscernible] that too. areas I'd by ahead I'd we've boring it is leaders in LTM the international Or automation But fishing Well that be basically, picked Scott. is in business

Nice Okay. everyone again. to see

see Scott. you. Thanks, to Good

Next question Samad with from Jefferies. Samana is

noise evening. is in all of which lot a FiveX. executing echo appreciate think the good in congrats of I lot background, the Hi, a we with on what I'll

about maybe customers. once about been with start conversation we So we partners. Rowan, your [Indiscernible] you, you how partners, for other talked talk has could how off that Maybe

you're back been that go and your does reacted course conversation partners what how like on Now to there? it alone, maybe just the have

Yeah.

continued dialogue backed And never the through seen breakup And further all that. partners in Zoom, We really to post to on a our that's continue right? by we've thing, of off good leaning partners conversations we connected stay the the with -- frankly some announcements.

was course And there. And of our the Switzerland of was and to out -- positive support that's so vendors that's that of before see. been kind all be strategy to

So to from partners I you has front, know help the other who great need offers. does the think YouCast really on that us that's seek continue momentum see

So it's been positive

Great.

too. the helpful You kind plan, wise, that then and great and recruiting count, ahead of can for shape Company go was it curious, clearly own of how the how recruiting hear I'm your headcount in was you attrition. be quarter numbers as just as perspective, just at are see plan would a about far you from that had that the to for companies low if for would

Yeah.

now little been, a Company X,XXX also So really low at world, culture think haven't to corner employees and work seen is we've we've we and at record least fairly and FiveX we've people renowned, with in come having the want over we Barry attrition. been hiring are for our challenge as the the of mentioned, of

a ones that at with really this been the are behind employees think Company, saw our the headlines and with when the time and today. and the filled believe [Indiscernible], you in the Great stuck results the vision have really I Resignation mission, have the

have of So deep reflection commitment a the and I team. for gratitude team's just our that's the

if Barry, you. a great. one for That's quick just sort of slip could in

cadence On trends have that over the revenue that around the around from you you the online about, usage seasonality quarterly evidence coming is the comfort more that quarters? talked more several implementations subscription last of now enough or

the typically always until because you have calls the But they that's as an agent sometimes Not don't you in much -- it moving precedes call We but call seats seats tandem. get recurring move the why they [Indiscernible], tandem. Dan we've No, in and there. revenue. pretty the into usage, them hire

Great.

always, I so and quarter great Thank it really As you guys. much. appreciate

Our next Taylor is McGinnis UBS. from with question

the and quarter so question. thanks Hi. Congrats Yeah. much on my for taking

guess comfort you on in are of some about what what does about guys risks to and guess, in the guide, lot compare drivers, that, talked you to that billion. of split the I seeing causing the side what's today? a $X.X to flip I you that that achieving talk guess, So are how I maybe get the of some the But pipeline can

want to that Barry, grab please? you

Yeah.

of So execution. there's over-simplifying basically the communication, the for the X ingredients market, there's competition, and Taylor; ease I'm and

And humbly so submit and so good were that execution. is we market there it's self-evident the that to we

at do do able you've have example, at the this is X In got [Indiscernible] done, that Interactive to to was combination telephony what years phone, for time software before to that money that, witness takes to it's around lot as in the Genesys. really a this they Intelligence potential something of that. and were bought be to regard, And develop a competitors. full [Indiscernible] So by

part who more replacing I'm a and look you especially, the the way Switch, about that's of the you -- Cisco Avaya buyer back if or the that is companies consider really So for enterprise buying there's the talking at And if decade. level. being and line-of-business than three

been no so words, industry And into of in new scale other there's in entrants, the years.

the to with this. may assume product to So tailor. be, not be it's We'll be but competition. going not I'm also there conclude there well -- It's also wouldn't arrogant just that

well-positioned the may we five to all think but with next partners and from to and able got and from the be pretty build. the to takes long from the to complete welcome, years. support, world that Competition that it still time across do ourselves match You've services we a over implantation

how about some of the question That's talk are been And just maybe caused where activity. to in there cycle assumptions could but last into might about $X.X growth could what and half the today of year, being any you high the XXXX maybe really this of with pandemic billion than pace low durable out seeing you but embedded strong guys my guide. but it. migration Got then Growth you lower be is, growth, kind terms forward, Is talk some XX' in as look maybe – several the of have first quarters, future? obviously part you last here and of bridge sales has year more these more the that very helpful. activity, lower of can bumping guide the

take to want the you latter Barry that? part of

Yeah.

So first the this terms that reasonably year. still Show It's evidence as COVID that. most of of ended of in will but X not basically strong as strong, the show quarter that quarters. in COVID [Indiscernible] bumps,

up pattern cruel. that consistent XXXX, the sounds terms In pandemic -- always benefit. But we when you say for I of pattern hesitate if benefit exclude you have pretty a pandemic I It exclude normally, if going always the the saw first stronger, strongest. half clearly quarter that, second but you also is is the us about the especially the as second XXXX. And on the fourth quarter then quarter, and we're to

just to I way with is to As the that on is to open And if line, that the I and I the I going one said, about call, talking top-line prominently on the quarters case mentioned, as coming respect quarter always quarter. number. stressed add, bottom respect, was our fluctuations, be will of our first could weakest with the but continue we'll and be there's

Thanks. it. Got

is with Truist. question Mirrors Joe from Next

for is some are trends in just quickly, give strong larger, customers taking guys Hey on what I'm expanding just being Mirrors markets, on Joe growth caused for us guys, there? are Thanks that's mostly have if really the the you Terry. international this question. Obviously, underlying landing so wondering more details they by had

that, take I'll Joe. Yeah.

and And customers. signing in up. and the but from from and half far new international as on brand logos awareness used well. Not up staffed our to our local markets, That those buying companies differences the SCs, we've clearly bringing sales folks, channels market. it's teams. also that as a entities only new presales, local big landing makes As are But

mostly up Europe in we we our always, And London. just region. the in new America been in accounts. outside but big Western Latin set operations the primarily like landing And hub well. We then expansions And have that's Some prominence the as countries. then primarily just it's have throughout EMEA a surrounding UK,

as obviously Canada well. a are our North main international We excluding two as market big those have So America. markets,

for it. it me. Thanks, That's guys. Appreciate

Thanks guy.

question from Piper Next with Sandler is Jim Fish

guys. keeping here with Hi going FiveX. it Enjoy

relationship getting Just you announced integration really actually and for to ago, Microsoft shake with XXX touch [Indiscernible] from Dynamics desire landscape you're where wanted that [Indiscernible] kind this about how some upon low-to-mid guess, especially that solution of for does announced starting voice how out together? that view, while and will with to the your a as change news I month teams. also see a recently a guys,

it. with ago had Yeah, to I'll with take to think They similar Talk sometime And way Zendesk channel. similar I partnership what, was but it, added also the did at what Amazon, read done what the call that announced sure their one, what to Zendesk Zendesk Zendesk. voice similar least Salesforce they I'm frankly, to very very Fish. with not much Good is you. I What or more straightforward. they see It's pretty Voice.

channels, have didn't for capability digital but the had any already dynamics voice. So they

that. So Azure think added And they API. voice services using added They that. they I said they're

but this, Dynamics kind interesting Teams it's it think of it that keeping that the I group the it's Microsoft and in did did wasn't -- activity that with teams this. group that was

you -- leveraging going we've with sentence need sort They it. the look, a time. think some but going some our center So the that's as ones capability. I of least is, partnership lightweight And continue there they etc. they partners, we're recognition had to be still full need long solution, their in said But for -- the for built-in I a second think with I of Dynamics way light announcement, sort -- there's contact at talk to read the the FiveX same who relationships in also are really a

just little quarter a Assist upon Maybe IVA attach sense. of Makes know the maybe having talk AI we Connect, really Enterprise talked And quarter this in AI how last enterprise. -- guys. been, that and has a can the guys post touched as especially not the we with you but I product? quarter, X Thanks, best where months, strong were the bit momentum about really about last

thanks. Yeah,

won and interest. front we've So frankly, on we're is [Indiscernible] traction of seeing the IVA, that couple of most seeing strong but are a around words quite

of nobody I technology -- one I any bullet problems. enterprises these can in to think think fits in parts silver technologies like sees they all solve no a in size the here, there's all in various playing one the that terms of especially see one you're larger -- want because

sight for can the we've little had is what to seeing solution direct So very, IVA investment perspective. on looking on the That's complete traction the easier we're a of line they it's more return they're -- very just where customer from that from assist, see a a we're buy, because strong to much saying really return and agent bookings.

share front. actually We that on details stay Analyst continue Financial that in more to work on on and our we're this going Day, so tuned to

guys. Thanks,

Thanks.

from ISI. question with Evercore Levine is Next Peter

or to relationship, came up the into to for going delays the Thanks first during for expectations are baking Mitel get mentioned deal taking update if one the on an my 'XX? questions Mitel there are any 'XX quarter. that Zoom some in. or what into Can the just transaction trying gauge good in hiccups we and perhaps [Indiscernible] you I

upside have signed. don't there. any really baked expectations And We've we There's that. from in

few been I bigger partners. early their would progress So We've a say of good. signed about has up

we've so that backseat. the and I this But conversations, yeah, of actually think still Financial a that during on bit front, And Zoom candidly, you a transactions early Analyst seen more one And conversation on already give Day very but others. days. some we'll took at

we up more Maybe I so current today up to but some [Indiscernible] move I you today, you of it's market, drive kind back customers on today, further discounting to balance that? deals seat have would you ability seen sales, higher per want there assume, as for pricing there's how I'm lot that do the or just your is obviously you were longer-term one I guess go just of a if you, your maintaining Rowan have

core what Accounting -- this But portfolio. them, discounting enterprises offer. wrap finally the the [Indiscernible] is on these thesis you buy this is that your find they full

So to real a those labor they their efficiency need have in strategics, spend. drive specialty

additional rest add-ons of And it's added frankly, where see there's starting add-ons that actually the It's we've you being driven to the so $XXX, by are the that's go there bias upward ARPU. $XXX up. where that and customer. And actually portfolio maintaining IVA larger the an

enterprise. that exceeding we the sales actually we customer our a larger do service, in all things how lot So -- a primarily activity on help our and can more looking all that conversation different because they're a can It's so to a proceed driven about to been companies. and -- get you the there's Digitalization base price talk do businesses. us it's for spend lower not the just grinding for customers, price When price. about hasn't these is customers, us really this not outbound is it's the improve and cost-savings is efficiency, up our we evident into pressure even for not

you. Thank

from KeyBanc. is Enders question Next with Steve

investments Thanks I to guidance. EPS here. thanks. flat my Great, you're more for is making year into keeping next the that bit versus little touch question on a taking just I want guess the

biggest on. the Just going that where wondering and investment what's of primarily areas those focused making dollars you're to are incremental are [Indiscernible] be

take to one? want Barry, you that do

Yeah.

march top and expanding terms the automation, incremental product keep It's on maintenance. So takes macro in to amount a both But in explosive that finished. go completely still of -- that, Steve, and markets that things, fair R&D are terms of our automation, We turn. X volumes of need hardware the remarks. international There's level. seeing these them the ever a and it's of people and taking given in it's the we're the ahead is that in of inside that capacity and

the out talking the market, some actually team. way, of the ones And that, by especially that about we've of of terms and but that recently we is -- in And moment The companies. the then of fish capabilities satisfy lastly That's the and [Indiscernible] extra Company the handling channels second is different and the more lastly, services also extra importantly need is requirements. global a then to kettle international. It a the some of one march-up -- of versus professional size the smaller and features market. of same building

time. and host the into be Going of expenses, that then new involves a to legal, startup admin, takes a you've country to able got find people, recruiting, right

You might the people don't get right always around. the time first

money. the those make of these a across takes All for deals global things world

Okay. Perfect. you. Thank Proceed the questions.

time have only for more We one question.

last is Will question from next Power with Our and Baird.

all Good here on afternoon. Right. see you Great again. to

So bundled you of probably UC in third sure much reasons business? guess all those fit? look make still of how What UC the of as or like pipeline, seeing at is that had how could capture I line it CC interest and to the you it. some one kind of solidify that, CC some if a in you bulk of I Rowan Ucast interest solution, and at were CC that you assume interest, UC, are the hard agreed piece wondered because now you you a that's I like still a or I guess and do it's of something of terms any seems increased of I you qualitatively longer-term guess the as pursued comment record efforts. levels, And relationships? just piece that wasn't interest Zoom which Dan, or transaction, seeing still might

one things the about of are LOB base and Barry, pipe XX% buyers our the one our pick LOB almost buyers and really I'll that the our of I'll in you in said cherry base. in buyers. take

the majority, presentation and was the Zoom with IT the look Zoom the and almost -- opportunity if LOB buyer and opportunity of an [Indiscernible] vast really was buyer fact in UC that is So UC on to a they very it much they of that than XX% why bundle IT. for the offensive there were interested you grab different are selling FiveX, a are and to was they it at based, swim new And about buyer. contact solution typically all ours. were can buyer solution center a their was lane the rationale they the It's mainly,

it's seeing drive not we're their our business don't not buyers business lot they And -- of those buyers see so a and business. drive

CRM digitization to a or experience. customer not often and for standalone Ucast And your an when think contact seeing we Eric. forward We're reflected Company business we integration, that and well driving conversations center that's any CX, the you In about fact more. leader talked we line got a to I that that And we and opportunity. upgrade then We're really we upgrade away because nothing of way go-to-market, our I the effort move -- seeing had a pretty that results that who's in that were keep about upgrade. to FiveX real the from and a the is so us anyways, kind in go-to-market. the with that it see because We here, as we're completely conversation. part as walked of separate a really very, happened incredible different it -- Frankly, going still business is tech savvy had to of was separate very growth benefit keep

total UC platform. Voice-over That a replacement I not declining. It's are down, the we're us. at way, the in confidence model telephones incredible So for the we stepping market, and a headline, legacy baked into there's It's UC momentum as next here that long-term going I the space drive cycle the mean, thing. into think generation the market long-term IP that. to to is continue as end-all-be-all. shared going as not good a right? a And the reflects all. for market, is And by no model,

Thank you.

Thanks, Will.

for Rowan pass our I'd it our Before to we remarks. back like close closing call, to

for to joining an We have be Great. upcoming Well, XXth. to That's going we and that. Financial to excited on it. Barry, very supporting share correct us me call our market, the that, of about we and D for Please our by we just be I'd so where And thanks employee And and heading. long-term our afternoon ay this Analyst really Wall to partners. to FiveX. is of as wrong. able execution I'm numerous appreciate FiveX all if join as reiterated everybody close Street for more times. I'm of November and base. on The well-known crisp like our of have the all real of thanking Company, heroes the been with employees prospects that the result is delivery a

close And out so I just want it to of our all by and to employees saying thanks partners.

very See all bye financial analyst day. much. you now. you Bye thank So on