Mad Money

Coronavirus is powering the rush for web-based contact centers, Five9 CEO says

Key Points
  • Contact centers have become the "only front door" for businesses forced to close their office and stores due to the coronavirus pandemic, Five9 CEO Rowan Trollope said.
  • "It's web based, so it's very easy for your agents to log in" and "allows agents to work from home very easily," he said in a "Mad Money" interview.
  • "Since the Covid crisis, we definitely have seen acceleration, you know, of new companies that are seeing this as an option for them to continue to do business," he said.
VIDEO3:0403:04
Five9 CEO on remote work trends and web-based contact centers

Contact centers have become even more critical due to the coronavirus pandemic and businesses have rushed to adopt web-based systems to connect with customers, Five9 CEO Rowan Trollope told CNBC Tuesday.

The contact centers, which go beyond traditional call center operations to include digital chats and text messaging channels, have become the "only front door" for companies that were forced to close their stores and offices temporarily, he said in an interview with Jim Cramer.

The cloud-based contact center software provider saw enterprise demand surge last quarter as businesses equipped themselves with work-from-home capabilities.

"It's web based, so it's very easy for your agents to log in" and "allows agents to work from home very easily," Trollope said in a "Mad Money" appearance. "Frankly, in a lot of cases, that's a reasonably good — even a better — experience, in some ways. That is what I think is driving, frankly, this rush toward the contact center."

Five9, who counts DoorDash and Teladoc among its clients, recorded record revenue in the quarter that ended in March. Revenue for the three-month period, which issued in coronavirus-induced lockdown globally, rose 28% to $95.1 million, topping estimates of $90 million.

"Since the Covid crisis, we definitely have seen acceleration, you know, of new companies that are seeing this as an option for them to continue to do business," Trollope explained.

Five9 is also looking to leverage emerging work-from-home trends. About 75% of the cloud software maker's more than 2,000 clients plan to continue improving their remote work capabilities, he said.

Web-based contact centers provide cheaper operations, flexibility and more access to talent, he added.

"If you can access the whole country, you know, not just the place where you happen to build your call center or your contact center, you get access to more talent and I think, frankly, this is a very interesting opportunity for us to put America back to work," he said.

Shares of Five9 inched up 0.14% to $103.80 in Tuesday's session. The stock is up 58% year to date.

VIDEO8:0408:04
Five9 CEO: Coronavirus has accelerated the adoption of contact center software

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