Five9 at Cantor Fitzgerald: AI Strategy and 2025 Guidance

On Tuesday, 11 March 2025, Five9 (NASDAQ: FIVN) presented at the Cantor Fitzgerald Global Technology Conference, offering insights into its strategic direction for 2025. The company highlighted its AI initiatives and financial guidance, noting both achievements and challenges. While Five9 celebrated growth in AI revenue, it also acknowledged a cautious outlook due to macroeconomic uncertainties.

Key Takeaways

• Five9 reported a 46% revenue growth in its AI products, now making up 9% of total enterprise subscription revenue.
• The company restructured its sales team in 2024 to enhance AI expertise and focus on existing customers.
• Five9 expects a more muted seasonal uptick in 2025 and plans for prudent financial guidance.
• Gross margins are projected to expand in 2025, driven by a revenue mix shift and tighter expense management.
• A 5% to 7% reduction in human agents is anticipated due to AI’s impact on labor.

Financial Results

• Largest quarter for install base bookings in eight quarters during Q4 2024.
• 50% growth in new enterprise logos and a 26% year-over-year increase in $1,000,000+ ARR customers.
• Q4 adjusted gross margin improved to 63.5%, showing sequential and year-over-year expansion.
• AI SKUs saw a 50% increase in the installed base year-over-year, with more than 20% of enterprise bookings attributed to AI.

Operational Updates

• Five9 revamped its sales structure in Q2 2024 to prioritize AI expertise.
• The company launched AI Blueprint to identify high-ROI use cases for existing clients.
• Expanded infrastructure with new locations in India and introduced AI Insights to analyze customer interactions.
• Strengthened partnerships with CRM providers like Salesforce and ServiceNow.

Future Outlook

• Five9 anticipates a stronger downtick in Q1 2025 due to seasonality and a cautious outlook for the second half.
• The company expects continued momentum in AI, contributing to an increase in DBRR.
• Long-term gross margin expansion is projected from a revenue mix shift and AI momentum.
• AI Insights is expected to become self-service for most clients, enhancing efficiency.

Q&A Highlights

• AI is seen as a driver for expanding NRR in the next 12 months.
• Large customers and partners bring their telephony solutions, enhancing flexibility.
• ServiceNow acknowledged its partnership with Five9 in its earnings call, highlighting the strategic collaboration.

In conclusion, Five9’s presentation at the Cantor Fitzgerald Global Technology Conference provided a comprehensive view of its AI strategy and financial outlook for 2025. For further details, readers are encouraged to refer to the full transcript.

Full transcript - Cantor Fitzgerald Global Technology Conference:

Andy, Five9: Business. And so we had to kind of retool and change our sales structure to be able to make sure that we’re hiring the right AI experts that were showing up with our customers and explaining the real ROI of specific use cases. And so we made that change in Q2. Actually in Q1, we made some major changes to like the changes we made in Q2 are more on the new logo side. Q1, we made some changes to how we focus on our install base.

And if you look at our Q4 results, we had the largest install base bookings quarter we’ve had in eight quarters. So kind of had almost like three quarters of a year of those changes in place. And then Q3 had a strong quarter and then certainly Q4, which we just talked about. And so, it’s kind of that was the navigation of 2024, which kind of set us up for 2025.

Brian, Five9: Yes. And I can talk about the guidance piece of it, Tom. So if you think about 2024, there are two key factors that sort of took place from a revenue perspective. So we had our largest customer who was ramping, and it’s a multiyear journey. And the contribution to revenue is typically much larger on the back part of that ramp cycle versus the beginning.

So that customer has significant growth throughout the year. That was one. Number two is in Q4 specifically, our seasonal verticals, consumer and healthcare, actually grew much stronger than what we saw a year ago and stronger than what we anticipated. And so while those are positive tailwinds last year, now coming into 2025, that does create tough comparison. By that, what I mean is, I’ll talk about seasonality first.

You’re going to have a downtick in Q1 that’s stronger than what we saw a year ago. And also looking further out in 2025, given all the uncertainty around macro, given the fact that data points like retail sales being at the lowest point in the last two years in January, we’re assuming that the seasonal uptick is more muted in the second part of ’twenty five. So that’s one thing. The second thing is on that point of the largest customer ramping last year, we do have a strong backlog of customers that we have great visibility in for 2025. And one of our largest customers will start ramping in 2025.

However, it’s that multiyear journey I talked about. The beginning part is always smaller, so you create a tough comparison. But having said all that, what I will emphasize is the fact that our guidance philosophy is prudent and it’s consistently been that way. But I also want to emphasize that in 2025, we’re not in this environment, we’re not expecting big beats throughout the year.

Tom: Right. That’s interesting. Can you just this consumer part that and we’ve been talking about credit card data, Barry, for a while. We have to take that over, Brian. But walk us through in terms of like that second half guide that sounds like it’s a little bit more conservative.

I don’t want to misspeak in terms of maybe because this is a going into the third year, right? This will be the third year in a row that the consumer was a headwind, starting with the 4Q ’twenty three that we started talking about this. How where in terms of the relative size of the business is this consumer part now?

Barry, Five9: So it’s a third biggest vertical and it’s important. It’s more seasonal than most. The key thing for us is that data that you referred to from JPMorgan. It tracks our internal data very, very closely. And the data is clear.

When you look at Q3, I’m going to give you by month the nominal year of the year growth. So one, one, two in July, August and September of this past year. And then three, four, four. So much stronger in the fourth quarter than we expected, and I think many expected. And the first real growth that we’ve had in that consumer discretionary spending for, since the beginning of twenty twenty three when it was, and get this, January, February, March of ’20 ’20 ’3, those numbers were 12.85.

That’s growth. That’s when you see 20% overall corporate growth, but that’s not what we had right now. And as Brian said, and I just want to emphasize this, when we set the guidance for 2025, we were very cognizant, as Brian said, worst retail sales in almost two years, Walmart numbers. And in retrospect, as the weeks have unfolded, we’re very happy we took the stance we did in terms of that guidance.

Tom: Interesting. Thank you for that color, Barry. We’re lucky you mentioned, Andy, and AI monetization. We have the head the CTO and the head of AI, Jonathan Rosenberg here from Five9. Could you just maybe walk us through where you kind of see AI monetization, say, even out a year, maybe even two years?

Right now, Five9 was early with IVA, Intelligent Virtual Assistant, and obviously was quick to capitalize. I think it was in the first half of ’twenty three on Gen AI services like agent assist and summaries. Where there’s some really large opportunities that you laid out in the most recent call that are data driven, like related to voice

Andy, Five9: stream.

Tom: Just walk us through where how this business is going to evolve for Five9 and how large it can become? And before if you don’t mind, before

Barry, Five9: Justin jumps in and gives you the wonderful color around our AI story, I want to level set it. I know you want to talk about the future, but the future starts now, this just completed quarter. We are talking about considerable momentum. If you talk about revenue, so a little bit backward looking, we had revenue growth of 46% in our 10 AI SKUs, an acceleration from the 40% that we had in Q3. It is now taking there’s no hand waving about this.

9% of our total enterprise subscription revenue comes from those 10 AI SKUs. Looking at bookings as a sort of precursor to what might happen down the road, we had 50% growth in our enterprise new logos. We had more than 20% of our enterprise bookings was from AIs. We had 100% attach rate on our $1,000,000 plus customers again. And if you look at the installed base, we had coincidentally also a 50% increase year over year in terms of AI SKUs.

So if that’s an AI loser, I’d hate to see what an AI winner looks like. There’s

Brian, Five9: a lot of name calling in 2023 there.

Tom: I guess, he’s taken some of

Jonathan Rosenberg, CTO and head of AI, Five9: the jelly out of the doughnut there, Jonathan. No, no. Maybe AI will be a higher percentage of the product. I think it’s important for Jonathan

Andy, Five9: to talk about sort of our why. What are the ingredients of why are we winning and what’s the future

Jonathan Rosenberg, CTO and head of AI, Five9: of our portfolio? I think that’s the main thing to think about is which segments are going to see the biggest growth and success in AI, right? And how are vendors like us positioned against hyperscalers, against point AI vendors, against CRMs in this emerging battlefield. And here is sort of the calculus that I think about how this adds up. No matter who does it, if you want a chatbot, you need four things.

Let’s start with the chatbot, like or sorry, an AI agent that’s over voice and digital. So if you want an AI agent, you need four things. You need four things to build on this. Anyone needs software, not just us, anyone. You need a large language model.

Great. They’re commodity, right. And I’ll talk about that a little bit more in a moment. The second thing you need and this is really important, but I think underappreciated in many communities is you need the communication channel, the ability to send voice calls back and forth with the consumer for a voicebot, ability to send them chat messages on the website for a web chat user, the ability to reach them on SMS on their mobile phone or if they’re WhatsApp user to connect them over WhatsApp. In our industry, we call those the channels.

You have to have that. And if you don’t have that, there’s no customer in the customer service part of of the equation. So like that is an essential ingredient in doing this. The third ingredient that you have to have is you have to have what we call contextual data. That stuff like the customer’s account balance, if you want to build a chatbot to answer questions about their account, right?

That stuff optimally is spread over tons of systems in the that are different databases and third party SaaS products that have been built in enterprises over years and years. And the fourth ingredient is the history of previous conversations between the customer and the consumer and the brand. And that’s an essential ingredient for personalization. This is the reason why people hate these thoughts today is they don’t remember that you were there like yesterday and you had a conversation with an agent about this, that or the other thing. People really going to use these things, it has to know that stuff.

You have to have those four things. And so when I look at those things, the CCaaS vendors and Five9 in particular, we own outright two of them. Like we are the channel source, that’s the gatekeeper. Our platform is the gatekeeper in essence of the communication in and out to consumers. So that means that we have we can integrate it directly for differentiated product value or we monetize it when third parties sit on top of our platform.

And so we have products, you mentioned VoiceStream and TranscriptStream. Those are products that when customers choose third party AI vendors for an AI agent, we monetize by selling those SKUs to the customer. And then, we ourselves of course build a powerful AI agent with the same tech. So, we own the channel, we own the conversation history that literally the core data here, the communications between the customer and the brand and all the past chats and voice transcripts, our platform is a system of record for that. So again, that gives us direct access to it that we can use it in our product or monetize third party access.

And then for integrating third party data, that’s what our platform has done for twenty years. And we’re really good at that. We have services team that Andy’s team runs. We have great technology for it. And the LMS, they become commodity.

And that’s good because Five9 picked. When I started here about six years ago, everyone was like, oh, you got to build your own speech recognition model from scratch. That’s what the market wants. Go build it. That’s the only differentiator.

I’m like, no. This stuff is going to get commoditized. The hyperscaler is going to build this thing out. It’s a race to zero on price. It’s madness to build something when the race to zero is on.

Thank goodness, we made that decision six years ago and we continue to make it when LMS came out. It’s been completely vindicated. You can’t even build your own LMS, only the massive hyperscares can even do it. So what everyone is doing now is what we did all along, which is you plug into these things, their commodity as their price points decline, our prices go down and we get to do things we couldn’t do before. So our engine agnostic strategy, as we call it, has proven to be very prescient and has given us a step ahead in our ability to ride the economic wave to zero on this model.

So that’s the calculus on this thing and that’s why I think we’re in a pretty good position. And if you don’t believe it, well, he just gave us some pretty compelling numbers that show like it’s worth it. So, that’s my story.

Tom: And back maybe to the higher level way we look at this, there’s been success with IVA and some Gen AI solutions. Is there going to be a mix shift maybe looking out a year or two to to more of a consumption based model related to that data the data streams that you control? Yes. I can go ahead

Andy, Five9: and take that one. So, if you look at I think, there’s two things that are going to sort of accelerate our AI business is. So, we have IVA. We have 10 of these SKUs. I think, what you’re going to see is, we have a solution like AI Insights, which we can talk about.

We obviously have our IVA, we have Agent Assist. And you start to bring these together from a bundling perspective, package them in a way from a consumption perspective. And let’s be clear, our 10 AI SKUs today are all either consumption or capacity based, right? Different than the seat based model that we have, and we can talk about that as well. So I think you’re going to see a lot of the bundling of these things come together and how they integrate.

And back to the monetization point, we get about $40 to $50 per AI agent when you talk about the voice stream and the transcript stream. So, it’s still obviously, we want to land the CCaaS platform. And then ultimately, we’re going to continue to win our fair share of our AI solutions. But certainly, the CRM is the road, Salesforce, they announced AgentForce, they’re going to have some success. And I think we can talk about that when we talk about partnerships.

But I think that’s where a lot of the future AI is going to come from is the coming together of these applications.

Jonathan Rosenberg, CTO and head of AI, Five9: Yes. And also on this too, like if I can, like I’d also characterize this as like big misconception number two about AI in the contact center is, it’s either you have a human agent or if you have AI, there’s an AI agent and that’s your AI story. It’s from making self-service AI agents.

Brian, Five9: False.

Jonathan Rosenberg, CTO and head of AI, Five9: There is a lot we have 10 SKUs that do AI things associated with the contact center. Some of them apply when there’s a human agent, some of them don’t like this thing he just mentioned AI insights. That’s a product we just went generally available on. It’s amazing. And by the way, it works whether or not there’s a human agent or an AI agent in the story.

It analyzes the conversations. Remember, I talked about our channel is the our platform is the egress point for all these communication channels. When you have that data, we use Gen AI to analyze it. And as long as there’s people talking to somebody, whether it’s chat or voice or an AI or in a human, it doesn’t matter, as long as there’s stuff happening, we have value to add on that plan.

Andy, Five9: And then most importantly, if you look at any customer journey, you’re going to go back and forth potentially from you might start with a chatbot and then escalate to a human. To be able to go back and forth between platforms, that’s hard to do. It’s hard to do. It’s one

Brian, Five9: of our strengths.

Tom: We’ve been talking about the medium of voice is not going away. We are talking right here. You mentioned partners, that’s where I was going to go, Andy. So talk to and Jonathan mentioned system of record. That’s a strong word in the software world.

So, what does Five9’s relationship look like in terms of that term system of record when you go to market with ServiceNow and Salesforces of the world?

Andy, Five9: Yes. So, you can add on, Jonathan. But one of the things I think Mike mentioned this, there is system of record, right? And I think maybe the term we’ve been starting to say is system of interaction history, right? When you look at the conversations that happen within a contact center or sales contact center, we have all of that history from the voice to all the different channels that Jonathan talked about.

That’s what we are. If you look at the classic term of system of record, it’s the knowledge of the customer information around them. The key is you need both of that data to be able to deliver strong NIACC. And so, when you look at who’s got the upper hand, I think in order to build any of these things, you have to have both sides of it. And so, I think that will continue to be the case even when some of the CRM start to have more success on some of the areas that we’re at.

You’re still going to have to have that data.

Jonathan Rosenberg, CTO and head of AI, Five9: And on the engineering side, we use the term system of record to just mean the platform that produces the data. If you produce the data, you own the data, right? It’s that simple, right? And so, the CRMs, they are the system of record for like your account number and your last product you purchased and how hot is your lead, how much did you buy last year, right? There are systems that produce that data.

They collect and they produce it and they analyze it. There is other systems like a billing system or provisioning system that’s a system record for like what your cable modem is. Five nine is a system of record for the conversation data, the interaction history. And that is one of the critical ingredients for building one of these AI agents. And that’s why our platform, the CCaaS platforms are in a really strong position.

Tom: And just maybe just one more or maybe couple more on the partners. We talked about I think on the call about maybe from using the partner channel as a channel for core CCaaS. Can you maybe illuminate us in terms of is that Like what

Jonathan Rosenberg, CTO and head of AI, Five9: the partnership strategy is

Barry, Five9: kind of Yes,

Tom: the partnership strategy, if they are retired if they can retire quota

Andy, Five9: and stuff

Tom: like that and selling the actual core Five9 product. Because I think we’ve been over with Barry and Jonathan that these data led AI solutions are going to be important going forward. Now, we’re just trying to double click exactly on what else the partners can bring to Five9.

Andy, Five9: Yes. So, just maybe one minute on so our partner strategy, we have a strong leader named Jake Butterbaugh. We call it our balanced route to market strategy. And what that means is we’re broken up into two categories. Number one, we have the service provider.

So, I think the AT and T, BTs of the world, They bring us leads as well as they’re also our service provider routes to market. Then, we have the global GSIs. So, the Deloitte’s of the world, they were our partner of the year. We partner with them on a lot of these large enterprise deals. They bring a lot of data into these conversations and they help walk us into opportunities.

And then, we have our ISVs. These are some of the AI point solutions like Cresta. We have a lot of these partners that are calling us up every day and want to be part of our marketplace. And they would get access to the Five9 platform through voice And then, we have our very strategic partnerships, which are the CRMs as an example. And so, we are of the CCaaS partners out there, we’re the only partner that’s at Summit status with Salesforce, just means that we have more customers together than anyone else in terms of CCaaS and CRM together.

We are also and the history of Five9 has always been to really lean in, especially with the CRM players. Some of our competitors have kind of gone back and forth on this. But in the end, it’s really a mutual partnership. When we walk into an opportunity with Salesforce, our sales teams and the Salesforce sales teams are in the same meeting, having the same level of conversations. And so, it does retire their quota on the Salesforce side.

Each of these partners, like let’s take ServiceNow. ServiceNow called our partnership out on their earnings call, this last earnings call. And so, we’re getting really deep with them. They have more of a marketplace approach. But at the end of the day, all of them are leaning in very heavily with us in terms of wanting to bring us into the conversations.

And then with all the APIs that the product teams are building, we believe we’ve made it easier to integrate to us from a CRM to CCaaS perspective than our competitors. And so we’re leaning in on the go to market side, making big investments with them and continue to lean in on the technology side.

Tom: Were there any specific changes made on the go to market side heading into calendar twenty five post the recent sales kick off?

Andy, Five9: Yes. So, on the ServiceNow side, they opened up kind of some beta integrations. And so I think we were the first to market with ServiceNow and some of their focuses on the sales force side. Obviously, there was the agent force announcement, right, which created a lot of buzz. We’re working on some specific things with them in terms of how we integrate to them.

And then that will occur to probably Q3 this year, you’ll see more announcements around our partnership with them.

Tom: It’s Paul here for a second. Is there any questions from the audience?

Andy, Five9: Yes. Yes. So, first thing, back to the kind of that labor arbitrage ROI that everyone is looking at, right, hey, if I deploy AI, I can reduce humans. Look, there’s a lot of sort of bare thesis out there that humans are going away. We’re not seeing that in our customer base, both in terms of the actual metrics.

And we track these things just kind of in real time. Customers deploy AI, we can kind of keep a track on their seats. We’re seeing like maybe goals of like 5% to 7% is kind of what’s playing out. And even in the areas where we do have a high ROI use case that deflects a lot of calls or takes calls out with self-service, they deploy those agents into other parts of the business where they where you need more human empathy. But then back to the other question around the actual proving out of the ROI, how do we monetize that?

We mentioned earlier that our all of our AI products are consumption based. Most customers in the context in the world still kind of think of seat based, right? And so usually what they do is they do a little bit of math on the consumption and go, hey, where does this generally fit from a seat perspective? But then as they deploy it, if the use case is there and we deliver for them with our services team, then ultimately they’re willing to continue to pay more money for that consumption because the value is there. So it’s kind of a it’s a good blend.

We still have seat based products and we have the consumption model. But at the end of the day, we have customers come to us and we think a differentiator for us is our flexibility and price. And then the last thing I would say back to how we sell and position, one of the things that we really recognized in Q2 was customers really asking a lot more questions around the ROI. So we put some pretty high powered teams together to put together just changing our motion of how we engage with our customers and bring them the use cases that we know that will deliver high ROI that we’ve proven it, we’ve invested in it. And then the last piece is our existing customers.

A lot of times existing customers, think we need to help them build the ROI to go make these investments. So we’ve launched something called AI Blueprint, which what we do is we turn on VoiceStream and we listen into our existing customers’ conversations. And then what that does is we then open up AI Insights, which is the new product that the team has built. And we can actually identify where some of the highest like, hey, 70% of our calls are calling because they’re returning this particular product. Well, they can spot that in real time and then we can go and update there and build a new self-service application.

So it’s kind of in real time continually tuning and training that. We do a lot of the heavy lifting on the front end, but the application the team has built has been pretty simple to allow customers to continue to change and tune and moderate that.

Jonathan Rosenberg, CTO and head of AI, Five9: And that particular product, for example, is AI insights that you turn on to start listening has been that particular one has been self-service by the majority of the customers that have put that product in because Gen AI has made this. It’s a new product category, GenX. It’s not possible to do this product before Gen AI and it has made it possible to self-service. So, we’re seeing more of that. So

Brian, Five9: I can help answer that. So couple of quarters ago, we gave a hypothetical example of if a customer were to achieve 15% automation then it translates to 30% increase in ARR for us. Now we actually gave three concrete examples of just that, right? We’re not the customer actually implemented IBAs. And in those cases, they actually did not reduce their agent count.

It was more of they slowed down the growth. And ARR uplift for us overall portfolio of that customer was somewhere in the range of 25% to 40% plus, right? So to your point, it’s still AI is, as Barry mentioned earlier, 9% of enterprise subscription revenue, but that grew from 7% a year ago in Q4 ’twenty three. So we had acceleration in the growth rate of 40% going to 46% quarter over quarter. We while we haven’t quantified exactly what the future looks like, it’s going to continue to be the fastest growing part of our product portfolio.

And while it makes up a smaller portion today, so it doesn’t show up as dramatically, it will continue to be a very strong support for our subscription growth going forward.

Jonathan Rosenberg, CTO and head of AI, Five9: We’re a billion dollars company, man. It takes a while to move the needle on it.

Tom: Maybe as an extension to that, net retention has stabilized recently, Barry or Brian. I agree as a percentage of total revenue too. I mean, it’s less than 9% in terms of AI, but it is growing so dynamically relative to the maybe double digit percentage top line growth. And as you anniversary, it seems like with the $1,000,000 Dolphin wins and these are new customers taking on AI. So maybe it might take a little bit more time to the gentleman’s question on lapping these deals from an NRR perspective.

But I guess multi part question, would you assume AI could be an expander for NRR sometime in the next twelve months? And if not, what are the other levers that you’re seeing that could expand that?

Brian, Five9: So Tom, I’m happy to answer that. And I’ll take it for 2025 and then beyond as well. So there are a couple of factors, tailwinds, headwinds. On the headwind side, we already talked about it related to guidance and that impacts the DVR as well. On the tailwind side, exactly to your point, the AI momentum we expect to continue and that’s going to be while it’s a smaller portion today, it’s going to continue to contribute towards DVR increase as well.

And of course, we have our 1,000,000 plus ARR customers who represented 56% of subscription revenue in Q4, and they grew 26% year over year. And their DBRR compared to the 108% that we just reported is significantly higher. So when you net all of that out in 2025, we haven’t given specifics around where it ends up, but DVRR at the total level will continue to fluctuate in small bands. But going forward, longer term, because of those two tailwinds that are going to continue and especially if macro health becomes more healthy where installed base is really poised to accelerate given all this very strong retention that we’ve had of our customers, we see there a big opportunity in terms of DVR going higher in the long run. Maybe one more check with

Tom: the audience. Okay. I think we have time for maybe one more question, maybe two. Jonathan, you mentioned the $1,000,000,000 run rate here. That is a great achievement.

Brian O’Barry, back to the financials, just maybe remind us and again timing would be very helpful in terms of what the levers are to expand gross margins, which are and you’ve been very open about this, that these are subscale. And just maybe kind of remind us about the timing and the levers there.

Brian, Five9: Yes. So I’ll start with Q4 first. So we had 63.5% gross margin, adjusted gross margin. That was a nice expansion both sequentially and year over year. Really three key drivers.

There was revenue growing against fixed and same fixed cost. We had the full quarter benefit of the RIF and then just tighter management of expenses across the board. So those will continue into 2025. And what we’ve said is that on an annual basis, gross margin is expected to expand year over year in ’twenty five. But there are two other factors that I want to talk about.

Both of them have to do with a mix shift in revenue. So our telecom usage revenue, typically about one to three percentage points of that make shift toward subscription. And the reason is by design because our larger customers tend to bring their own telephony and our largest partners offer their own telephony. So and telecom usage gross margin today is in the 50s versus subscription in the low 70s. So that mix shift will naturally help total gross margin.

And similarly, on the professional services side, by design, we’re enabling our partners to take on more implementations. So the revenue on average should grow slower than subscription. And today, professional services gross margin is near breakeven, again shifting toward 70% plus for subscription. So that’s why we’re confident that the gross margin will continue to increase. And longer term, of course, those same factors and the fact that we have momentum in AI, which has great gross margins, those are all going to be helping us to continue expanding margins.

Barry, Five9: Is there an

Tom: update on India there by chance in the margins, the gross margins in that region?

Brian, Five9: So

Tom: I was just surprised we didn’t hear it.

Brian, Five9: Yes, absolutely. So we’ve stamped out many locations internationally. We’re not done yet, but we’re aggressively expanding our infrastructure, India being one of them. We do expect to start gaining leverage in these locations, but it won’t be it will be over the long run, right? And yes, that’s absolutely going to be a gross margin expander going forward.

Tom: I will try to squeeze one into the next thirty seconds. Thank you guys very much for your time. It’s great to hear the story.

Andy, Five9: Thank you.

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