## Five9 Hits $1B Revenue Milestone in 2024, AI Momentum Drives Double-Digit Growth

Five9 just dropped impressive numbers for 2024, with total revenue climbing to $1.042 billion—a fresh milestone for the intelligent customer experience platform. But what's really catching eyes is how the company's accelerating growth and AI strategy are reshaping its business fundamentals.

### The Numbers That Matter

Let's break down what Five9 achieved in the final quarter. Q4 revenue hit $278.7 million, marking a solid 17% year-over-year jump. More importantly, subscription revenue—the backbone of Five9's model—grew 19%, signaling strong customer demand and better-than-expected expansion within existing accounts.

The profitability story is equally compelling. Non-GAAP net income for Q4 reached $60.3 million, or $0.79 per diluted share. That's up from $45.1 million ($0.61 per share) in Q4 2023. Adjusted EBITDA hit a record 23.1% margin in the quarter—the highest Five9 has ever achieved—demonstrating the company's improving operational efficiency as it scales.

Operating cash flow in Q4 touched $49.8 million, approaching the $50 million milestone the company highlighted. For the full year, operating cash flow totaled $143.2 million, up from $128.8 million in 2023, showing Five9 is converting growth into actual cash.

### Where the Real Momentum Lives: AI

Here's what CEO Mike Burkland emphasized: Enterprise AI revenue exploded 46% year-over-year in Q4 alone. This isn't just a nice add-on—it's becoming a material driver of Five9's growth story. As contact center interactions increasingly leverage AI, Five9's platform advantage in embedding AI capabilities natively is playing out in real revenue impact.

Gross margins improved across the board. GAAP gross margin expanded to 56.0% in Q4 (from 52.9% a year ago), while adjusted gross margin reached 63.5%—reflecting better unit economics and product mix benefits as more customers adopt AI solutions.

### Full Year 2024 Performance

Zooming out to the full year: Five9 generated $1.041 billion in revenue with a 14% growth rate. While this might seem modest compared to Q4's 17%, it reflects tougher comparisons earlier in the year and the payoff of recent investments. For the full year, non-GAAP net income totaled $185.3 million, or $2.47 per diluted share—a 20% increase from 2023's $2.05.

Adjusted EBITDA for 2024 came in at $196 million, or 18.8% of revenue, up from 18.3% in 2023. The company's improving efficiency means more of every dollar is flowing to the bottom line.

### Looking Ahead: 2025 Guidance

Five9 is guiding for 2025 revenue between $1.140 billion and $1.144 billion, implying roughly 10% growth at the midpoint. That's a deceleration from 2024's 14%, but management is balancing growth with profitability—non-GAAP EPS guidance sits at $2.58 to $2.62, suggesting earnings growth could outpace revenue growth.

For Q1 2025 specifically, Five9 expects revenue of $271.5 to $272.5 million, with non-GAAP EPS between $0.47 and $0.49.

### The Bottom Line

Five9 has crossed an important threshold with its $1 billion revenue run rate. More significantly, the company is proving that AI-native platform features aren't just hype—they're translating into 46% annual growth in enterprise AI revenue. With improving margins, strong cash generation, and a clear pathway to sustainable profitability, Five9 looks well-positioned to sustain momentum into 2025, even as the broader market navigates macroeconomic uncertainty.