Five9, Inc. reported a revenue of $1,041.9 million for the fiscal year ending December 31, 2024, marking a 14% increase from $910.5 million in 2023. The company continues to operate at a loss, with a net loss of $12.8 million for 2024, an improvement from losses of $81.8 million in 2023 and $94.7 million in 2022. The increase in revenue is attributed to a growing customer base, which now exceeds 3,000, and enhanced sales and marketing efforts aimed at larger enterprises. The company's Annual Dollar-Based Retention Rate stood at 108% as of December 31, 2024, indicating strong customer loyalty and revenue growth from existing clients.
In terms of operational developments, Five9 has made significant strides in expanding its product offerings and geographic reach. The company completed the acquisition of Acqueon in August 2024, which is expected to enhance its AI-powered customer experience platform by adding omnichannel proactive customer engagement capabilities. This acquisition follows the earlier purchase of Aceyus in August 2023, which aimed to facilitate the migration of large enterprises from on-premises to cloud solutions. The company has also invested in its research and development, with expenses rising to $166.2 million in 2024, reflecting a commitment to innovation in its cloud contact center solutions.
Five9's workforce has seen a reduction of approximately 6% as part of a restructuring plan aimed at driving balanced, profitable growth. As of December 31, 2024, the company employed 3,073 full-time staff, with a focus on maintaining a diverse and skilled workforce. The company’s operational metrics indicate a strong engagement with its solutions, as evidenced by the increase in subscription and usage-based revenues, which accounted for 92% of total revenue in 2024.
Looking ahead, Five9 anticipates continued revenue growth despite macroeconomic challenges, including inflation and geopolitical tensions. The company plans to leverage its strategic partnerships and expand its international operations, particularly in markets outside the U.S. The management remains focused on enhancing its AI capabilities and improving customer experience, which are seen as critical to maintaining competitive advantage in the rapidly evolving contact center software market. However, the company acknowledges the risks associated with its growth strategy, including the need to effectively manage its technical operations and the potential impact of economic conditions on customer demand.
About Five9, Inc.
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