Cloud contact center vendor Five9 reached a milestone on Friday, April 4, with its debut on NASDAQ under ticker FIVN. The IPO price was $7 per share and went up as much as 16% to finally settle at about a 9% gain at the end of the day.
Not bad for a contact center company in its early teenage years boasting 2,000 customers.
Five9 has been one of the fastest growing companies in the contact center segment. This IPO not only raises $70 million for the company, but also will maximize shareholder value (Hummer Winblad Venture Partners owns about 18% and Adams Street Partners 15.5%). More importantly, Five9 financials is now an open book, and interested parties can now gauge a better picture of how much the business is worth. This comes in handy during talks of a merger or acquisition, as stocks are the most common currency in such a case.
Prior to the IPO in October 2013, the company had made a strategic acquisition of SoCoCare, a company focused on social engagement in the customer service and sales areas. Because we all know these days you cannot have a contact center platform without hooks into social channels.
The other interesting aspect of Five9’s strategy is its wide range of other software partners. One of the greatest challenges of being a cloud-centric software provider is the ability to integrate with other enterprise software. Five9 has made third party integration easy with an extensive API set that’s also based on web services. Its list of integration partners is also impressive: Salesforce.com, NetSuite, Microsoft, Oracle, and NICE are just some of the more notable names.
Definitely keep an eye on this company, especially with its growth trajectory…