Five9 Inc.

The Philippines · Technical support, training and other professional services · 26,600 · July 2026

India · Product, engineering, professional services and customer support · 22,200 · February 2031

Portugal · Portions of engineering and operations · 20,600 · August 2028

India · Research and development · 15,900 · January 2028

The hosting of our equipment and software at co-located third-party facilities is also significant to our business. We have entered into lease agreements with third-party hosting facilities in Santa Clara, California; Atlanta, Georgia; and Slough, England, which require monthly payments for a fixed period of time in exchange for certain guarantees of space, and network and telecommunication availability. These agreements expire at various dates through 2031.

We believe our facilities are sufficient for our current needs.

• If we are unable to attract new customers or continue to expand within our installed customer base, our revenue and revenue growth will be harmed.
• If our existing customers terminate their subscriptions or reduce their subscriptions and related usage, our revenues and gross margins will be harmed and we will be required to spend more money to grow our customer base.
• The loss of one or more of our key customers, or a failure to renew our subscription agreements with one or more of our key customers, could harm our ability to market our solution.
• Our customers may fail to comply with the terms of their agreements, necessitating action by us to collect payment, or may terminate their subscriptions for our solution.
• Our business could be harmed if our customers are not satisfied with the professional services and technical support provided by us or our partners.
• Risks Related to the Sale of our Solution
• Failure to adequately retain and expand our direct sales force will impede our growth.
• We have established, and are continuing to increase, our network of technology solution distributors and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues.
• We sell our solution to larger organizations that require longer sales and implementation cycles and often demand more configuration and integration services or customized features and functions that we may not offer, any of which could delay or prevent these sales and harm our growth rates, business and operating results.
• The markets in which we participate involve a high number of competitors that is continuing to increase, and if we do not compete effectively, our operating results could be harmed.
• If we fail to grow our marketing capabilities and develop widespread brand awareness cost effectively, our business may suffer.
• Risks Related to Our Solution
• If we fail to manage our technical operations infrastructure, our existing customers may experience service outages, our new customers may delay or decide against deployment of our solution, existing customers may decide to move to another vendor, and we could be subject to claims for credits, damages or other actions.
• Further development of our AI solutions may not be successful and may result in reputational harm and our future operating results could be materially harmed.
• The AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks.
• The use of AI by our workforce may present risks to our business.
• If our solution fails, or is perceived to fail, to perform properly or if it contains technical defects, our reputation could be harmed, our market share may decline, and we could be subject to product liability claims.
• The contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new features and components of our solution in order to maintain and grow our business.
• Our ability to continue to enhance our solution is dependent on adequate research and development resources. If we are not able to adequately fund our research and development efforts, we may not be able to compete effectively, and our business and operating results may be harmed.
• If we are unable to maintain the compatibility of our software with other solutions and technologies, our business could be harmed.
• We are subject to many hazards and operational risks that can disrupt our business, some of which may not be insured or fully covered by insurance.
• Risks Related to Third-Party Technology Providers
• We rely on third-party telecommunications and internet service providers to provide our customers and their customers with telecommunication services and connectivity to our cloud contact center software and any failure by these service providers to provide reliable services could cause us to lose customers and subject us to claims for credits or damages, among other things.
• Our customers and their customers rely on internet service providers to provide them with access and connectivity to our cloud contact center software and changes in how internet service providers handle and charge for access to the internet could materially harm our customer relationships, business, financial condition and operations results.
• Risks Related to Our International Operations
• We continue to expand our international operations, which exposes us to significant risks.
• Sales to customers outside the United States or with international operations and our international sales efforts and operations support expose us to risks inherent in international sales and operations.
• Other Operational Risks
• Adverse economic conditions may harm our business.
• Security breaches, cybersecurity incidents, and improper access to, use of, or disclosure of our data or our customers’ data, or other cyber- attacks on our systems, or those of third parties on which we rely, could result in litigation and regulatory risk, harm our reputation and our business.
• If we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be adversely affected.
• We may acquire other companies, or technologies or be the target of strategic transactions, or be impacted by transactions by other companies, which could divert our management’s attention, result in additional dilution to our stockholders or use a significant amount of our cash resources, and otherwise disrupt our operations and harm our operating results.
• We may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs.
• If we are unable to maintain and further develop effective internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may decrease.
• Changes in financial accounting standards or practices may cause adverse, unexpected financial reporting fluctuations and affect our reported operating results.
• If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.
• Risks Related to Our Intellectual Property
• Any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand.
• We will likely continue to be subject to third-party intellectual property infringement claims.
• Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement and other losses.
• We employ third-party licensed software, including AI solutions, for use in or with our solution, and the inability to maintain these licenses or errors in the software we license could result in increased costs, or reduced service levels, which could harm our business.
• Our solution utilizes open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business.
• Risks Related to Regulatory and Tax Matters
• Failure to comply with laws and regulations could harm our business and our reputation.
• Alleged or actual failure to comply with the constantly evolving legal and contractual environment surrounding calling consumers and wireless phone numbers by other companies or our competitors or governmental or private enforcement actions related thereto, could harm our business, financial condition, results of operations and cash flows.
• Increased taxes on our service may increase our customers’ cost of using our service and/or increase our costs and reduce our profit margins to the extent the costs are not passed through to our customers, and we may be subject to liabilities for past sales and other taxes, surcharges and fees.
• Our ability to maintain compliance with complex rules and technological requirements intended to prevent robocalls and caller ID spoofing poses a significant business risk due to possible blocking of customer voice traffic.
• Our ability to offer services outside the United States is subject to different regulatory and taxation requirements, which may be complicated and uncertain.
• We are subject to assessments for unpaid USF contributions, as well as interest thereon and civil penalties, due to our prior position that we were not subject to regulation as a USF contributor and as an international carrier.
• If we do not comply with FCC rules and regulations, we could be subject to FCC enforcement actions, fines, loss of licenses and possibly restrictions on our ability to operate or offer certain of our services.
• Compliance with 911 emergency service requirements could result in FCC, state or local enforcement action, including fines and other penalties.
• We may not be able to utilize a significant portion of our net operating loss or research tax credit carryforwards, which could harm our profitability and financial condition.
• Privacy concerns and domestic or foreign laws and regulations may reduce the demand for our solution, increase our costs and harm our business.
• The European Union’s GDPR may continue to increase our costs and the costs of our customers to operate, limit the use of our solution or change the way we operate, exposes us to substantial fines and penalties if we fail to comply, and has led to similar laws being enacted in other jurisdictions.
• U.S. state privacy laws could increase our costs and the costs of our customers to operate, limit the use of our solution or change the way we operate, and expose us to substantial fines and class action risk if we fail to comply, and lead to similar laws being enacted in other states.
• Risks Related to Ownership of Our Convertible Senior Notes
• Servicing our debt may require a significant amount of cash. We may not have sufficient cash flow from our business to pay our indebtedness, and we may not have the ability to raise the funds necessary to settle conversions of the 2029 convertible senior notes in cash or to repurchase the 2029 convertible senior notes for cash upon a fundamental change, which could adversely affect our business and results of operations.
• If triggered, the conditional conversion features of the 2029 convertible senior notes may adversely affect our financial condition and operating results.
• Transactions relating to the 2029 convertible senior notes may dilute the ownership interests of our existing stockholders or adversely affect the market price of our common stock; the trading price of our 2029 convertible senior notes may be affected by volatility in the price of our common stock.
• General Risk Factors
• Our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control.
• If securities or industry analysts discontinue publishing research or reports about our business, or publish negative reports about our business, our share price and trading volume could decline.
• We may not realize the anticipated benefits of share repurchase activity.
• Substantial future sales of shares of our common stock could cause the market price of our common stock and our 2029 convertible senior notes to decline.
• Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.
• Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware is the sole and exclusive forum for certain disputes between us and our stockholders, and our Bylaws provide that the federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action under the Securities Act, each of which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees, or agents.
• We have never paid cash dividends and do not intend to pay dividends for the foreseeable future.