Contact Center Cloud Demand Drives Five9's Growth

Five9 is squarely positioned to benefit from industry tailwinds including the transition of contact center operations to the cloud, and a shift toward digital first customer engagement and automation. While we forecast Five9 will continue to take market share, the firm faces strong competition from contact center as a service, or CCaaS, peers, and communication industry titans competing for a slice of the substantial opportunity arising from contact center cloud transition pie. In this environment, we expect Five9 will need to continue to invest heavily in go-to-market efforts and product innovation to attract and retain new clients, weighing on profitability upside, which in turn informs our no-moat rating.