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Disclosure: The author holds a long position in FIVN.

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FIVN

Analysis as of: 2025-10-31

Five9, Inc.

Five9 provides cloud contact-center software and AI agents for enterprises, increasingly embedded into leading workflows like ServiceNow and Epic.

ai cloud communications enterprise software

On Yahoo Finance ...

Summary

AI agents push profitable CCaaS up‑market

Enterprise integrations and accelerating AI attach give a credible path to multi‑billion revenue and a moderate multiple re‑rate by 2030. Competition and leadership transition keep the upside disciplined.

Analysis

Thesis

Agentic AI turns contact-center labor into software; with deep enterprise integrations (ServiceNow, Epic, Google Cloud) and rising AI attach, Five9 can compound seats, expand ARPU via AI agents/WEM, and re-rate off scaled, profitable growth by 2030.

Last Economy Alignment

Benefits from AI commoditizing cognition and shifting value to distribution, trust, and workflow control; strong ecosystem hooks and growing AI agent SKUs.

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Growth Outlook

Average Implied Multiple (to 2030)

7.5x (from 5 most recent analyses)

Reasoning

Five9 is executing on seat migrations and AI attach (accelerating AI revenue, partner-led routes, vertical packs). If it scales to multi‑billion revenue with durable margins and stronger ecosystem lock‑in, a moderate EV/revenue re‑rate on a much larger top line yields a mid‑single‑digit multiple of today’s value.

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Risk Assessment

Overall Risk Summary

Main risks: platform substitution by hyperscaler/CRM suites, price pressure from larger rivals, and any hiccups in leadership transition delaying AI productization. Offsetting factors: strong partner routes (Google Cloud Marketplace, ServiceNow), vertical integrations (Epic) and improving cash generation.

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Trends

Key Changes

Q2’25 revenue hit a record with AI revenue up 42% Y/Y; guidance raised.
CEO retirement announced; CFO transition completed.
Fusion for ServiceNow launched; Epic Toolbox integration announced.
Global availability on Google Cloud Marketplace expands co-sell routes.
Genesys secured $1.5B investment from Salesforce and ServiceNow, intensifying competition.

Thesis update

Core thesis intact but execution path shifts toward packaged, turnkey integrations (ServiceNow/Epic) as primary differentiation versus platform breadth alone.

Forecast update

Competitive capital influx (Genesys/NICE) and leadership transition temper re‑rating potential despite stronger AI attach; growth still compelling but less hyperbolic.