From SiliconANGLE · Mike Wheatley · · 1m 20s
Five9 Acquires Level AI for $325M
Five9 buys AI contact center startup Level AI after narrow earnings beat.
In brief
Five9 buys AI contact center startup Level AI after narrow earnings beat. Five9 acquired Level AI for $325 million following a narrow earnings beat, though investors reacted negatively with stock dropping over 23%. Originally reported by SiliconANGLE.
Five9 Announces Level AI Acquisition
Five9 Inc. announced a $325 million all-cash deal to buy artificial intelligence-native contact center startup Level AI.
Deal Expected to Close in Q4
The acquisition is expected to close in the fourth quarter, subject to customary closing conditions.
Five9's Cloud Contact Center Platform
Five9 sells cloud-based tools for managing customer service interactions across phone calls, video, email, messaging, and social media.
Level AI's AI-Powered Platform
Level AI develops ai tools to analyze customer service agent calls, provide real-time guidance, and automate simpler customer inquiries.
Five9 Plans to Integrate Level AI
Five9 will continue offering Level AI's tools as standalone products while integrating them with its Genius CX Platform.
Investor Reaction to Deal
Five9's stock fell over 23% after the deal announcement due to the $325 million acquisition cost.
Five9's Narrow Earnings Beat
Five9 reported adjusted earnings of 82 cents per share on $323.3 million revenue, surpassing Wall Street's guidance.
Full-Year Guidance and Wall Street Expectations
Five9 expects full-year earnings of $3.17 to $3.21 per share on $1.27 billion sales, below Wall Street's $3.26 per share target.
What matters most
Five9 acquired Level AI for $325 million following a narrow earnings beat, though investors reacted negatively with stock dropping over 23%.
