Five9 CEO says growth is accelerating as cloud adoption enters new phase

Five9 shifted into a new gear of growth after cloud services became the standard for businesses, CEO Rowan Trollope said on CNBC Friday.

The digital transformation has forced organizations to rethink their customer relations strategies, he said, leading to a 45% growth in revenue last quarter for Five9, a cloud contact center platform.

“The evangelism phase for cloud software is really over,” he told Jim Cramer on “Mad Money.” “We’re not having to convince customers that cloud is an acceptable option anymore. They’re just diving in.”

Demand for cloud services and technology stocks surged as society switched to remote work and school during Covid-19 restrictions last year. As more businesses went online, they began to transition away from traditional touch-tone call center operations to include automated and text services.

Trollope said Five9 signed two of its largest deals during the period, which is expected to generate more than $20 million together annually.

“AI and automation are leading the day right now with large customers,” who are looking to be more efficient, he said. “The contact center has become the new front door for a lot of companies, especially as they look to leverage digital channels.”

Five9’s business has steadily accelerated since the start of the pandemic. The company reported $137.88 million of revenue in the first quarter, up from 27.6% the year prior. Growth was 38.6% in the fourth quarter and 33.9% in the third quarter.

Shares of Five9 rallied 3% on Friday to close at $164.50. The stock has fallen 17% from its highs in March as part of a broader pullback in tech stocks.