Five9 has secured a CCaaS "megadeal" with a large U.S. bank, expected to be worth $8 million in annual recurring revenue (ARR) once fully ramped.
Dan Burkland, President and CRO of Five9, shared the news during an earnings call, where he also laid out the vendor’s generative AI strategy and discussed its continued international expansion.
Unfortunately, he didn’t delve deeper into the big customer win, as the contract remains hot off the press. However, Burkland did highlight several other significant deals.
Major CCaaS Wins
Five9’s first win is a legacy replacement deal with a healthcare provider of financial management and patient experience management services and solutions.
The business had worked with Cisco on-premises technology. That environment did not support omnichannel, virtual agents, workforce engagement management (WEM), and several other integrations.
To evolve, the business switched to Five9’s Intelligent CX platform and enabled all of these integrations and applications.
Shedding more light on the inner workings of the deal, Burkland said:
They will be leveraging our AI and automation portfolio to perform authentication with voice biometrics, natural language recognition for call routing, and IVA self-service for checking account balances, payment status, and appointment reminders.
In total, Five9 expects the deal to generate $4.7 million in ARR.
The next deal falls short of that mark, delivering $2.3MN in ARR. Nonetheless, it is with another regional bank, which perhaps underlines Five9’s prowess in this vertical.
Operating across several U.S. states, the business wanted to move on from legacy contact center technology and develop a more agile, comprehensive ecosystem.
As such, it turned to Five9 to deliver omnichannel, conversational analytics, and performance management solutions, alongside several AI and automation tools.
Yet, the vendor did not only secure the deal due to its deep tech portfolio. As Burkland explained:
They were looking for a partner with the professional services expertise who could best deliver and tailor all of these applications to enhance the customer experience improve their efficiency, cut costs, and increase revenue.
These wins are just two of many seven-digit deals, with Five9 enjoying its strongest-ever bookings quarter for Q1.
Meanwhile, the vendor also reports to have doubled its pipeline – which may help generate many more megadeals in the near future.
Generative AI Plans
During the earnings call, Mike Burkland, CEO of Five9, also broke down Five9’s AI strategy, which has generative AI very much front and center.
That strategy has three pillars. First is taking an agnostic approach to the large language models (LLMs) it leverages. These underpin generative AI innovation.
Sharing why he believes this is mission-critical, Burkland stated:
This allows us to rapidly innovate and consistently be at the forefront of delivering meaningful solutions to our customers that are leveraging the most innovative technology available.
The CEO also suggests that this is a more sustainable approach than the route some of its competitors have raced down.
Second, Five9 is placing emphasis on the delivery of practical AI solutions that generate ROI.