What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-02-24 compared with 2022-02-28 · 99 added, 106 removed, 243 unchanged (46% of the section changed)

3 unchanged sentences

Our mission is to empower organizations to transform their contact centers into customer engagement centers of excellence, while improving business agility and significantly lowering the cost and complexity of their contact center operations.

Our purpose-built, highly scalable and secure Virtual Contact Center, or VCC, cloud platform delivers a comprehensive suite of easy-to-use applications that enable the breadth of contact center-related customer service, sales and marketing functions.

We have become an established leader in the cloud contact center market, facilitating more than nine billion call minutes between our more than 2,500 clients and their customers per year.

Our purpose-built, reliable, scalable and secure Virtual Contact Center, or VCC, cloud platform delivers a comprehensive suite of easy-to-use applications that enable the breadth of contact center-related customer service, sales and marketing functions.

We have become an established leader in the cloud contact center market with more than 2,500 clients.

We believe our ability to combine software and telephony into a single unified platform that is delivered in the cloud creates a significant advantage.

6 unchanged sentences

These systems are also often inflexible, complex, and require significant duplication of effort and integration across multiple sites.

In addition, the COVID-19 pandemic has increased the prevalence of agents working remotely which presents a challenge to premise-based systems that, by design, are focused on a particular physical location.

In addition, commencing during the COVID-19 pandemic, agents have increasingly worked remotely, which presents a challenge to premise-based systems that, by design, are focused on a particular physical location.

This creates substantial challenges for clients with on-premise contact center systems.

6 unchanged sentences

For example, real-time, accurate and increasingly cost-effective automatic speech recognition and natural language processing are increasingly allowing mundane contact center tasks to be handled efficiently and effectively by virtual agents, allowing live agents to focus on more complex issues.

Our solution, comprised of our VCC cloud platform, AI and automation portfolio, including Interactive Virtual Agent, or IVA, Agent Assist, Workflow Automation, or WFA, and Workforce Optimization, or WFO, allows simultaneous management and optimization of customer interactions across voice, chat, email, web, social media and mobile channels, either directly or through our application programming interfaces, or APIs.

Our solution, comprised of our VCC cloud platform with native AI and automation capabilities, including Interactive Virtual Agent, or IVA, Agent Assist, Workflow Automation, or WFA, and Workforce Optimization, or WFO, allows simultaneous management and optimization of customer interactions across voice, chat, email, web, social media and mobile channels, either directly or through our application programming interfaces, or APIs.

Our VCC cloud platform matches each customer interaction with an appropriate agent resource and delivers relevant customer data to the agent in real-time through integrations with adjacent enterprise applications, such as CRM software, to optimize the customer experience and improve agent productivity.

1 unchanged sentence

Delivered on-demand, our solution enables our clients to quickly deploy agent seats in any geographic location with only a computer, headset and broadband internet connection, and rapidly adjust the number of contact center agent seats in response to changing business requirements.

Unlike legacy on-premise contact center systems, our solution requires limited up-front investment, can be rapidly deployed and are maintained by us in the cloud.

Unlike legacy on-premise contact center systems, our solution requires limited up-front investment, can be rapidly deployed and is maintained by us in the cloud.

Our sales model consists of a field sales team that sells our solution into larger opportunities and a telesales team that sells our solution into smaller opportunities.

We have developed a proven, high velocity, metrics-driven sales and marketing strategy, designed to effectively identify, qualify and close sales opportunities.

To complement this go-to-market strategy, we have developed a large ecosystem of technology and system integrator partners and independent software vendors to help increase awareness of our solution in the market and drive additional sales opportunities with new and existing clients.

We have also established, and are continuing to increase, our network of master sales agents, which provide sales leads and resellers that sell our solution to new clients.

This network has helped us attract additional clients.

Our resellers have assisted us in expanding in both domestic and international markets.

To complement this go-to-market strategy, we have developed a large ecosystem of technology and system integrator partners, which also provide sales leads, and independent software vendors to help increase awareness of our solution in the market and drive additional sales opportunities with new and existing clients.

We have also established, and are continuing to increase, our network of technology solution brokers who provide sales leads and resellers that integrate our solution into their service offerings to new clients.

Our partner ecosystem has helped us access new routes to market and gain market share both in domestic and international markets.

We provide our solution through a software-as-a-service, or SaaS, business model with recurring revenue made up of subscription revenue, based primarily on the number of agent seats, and usage, based on minutes, as well as the specific functionalities and applications our clients deploy such as virtual agents.

1 unchanged sentence

For the years ended December 31, 2022, 2021 and 2020, our revenue was $778.8 million, $609.6 million and $434.9 million, respectively, representing year-over-year growth of 28% and 40%, respectively.

We incurred net losses of $53.0 million, $42.1 million and $4.6 million for the years ended December 31, 2021, 2020 and 2019, respectively, as a result of increased investment in our growth, along with higher stock-based compensation and interest expense.

We incurred net losses of $94.7 million, $53.0 million and $42.1 million for the years ended December 31, 2022, 2021 and 2020, respectively, primarily as a result of increased investment in our growth, along with higher stock-based compensation.

As of December 31, 2022, 2021 and 2020, our total assets were $1,244.5 million, $1,192.9 million and $1,063.7 million, respectively.

5 unchanged sentences

Risk Factors.”

We deliver a comprehensive, end-to-end cloud software solution for contact centers, which includes cloud software that allows automation of customer interactions leveraging technologies such as natural language processing and automatic speech recognition.

Our solution enables organizations of all sizes to enhance customer experience through voice as well as digital engagement channels, improve customer service and retain loyal customers.

Our solution is designed to enable our customers to increase their sales performance and improve the efficiency of their operations.

Our solution is designed to enable our customers to comprehensively and seamlessly engage through voice, video, website, mobile, chat, email, click-to-call, callback, social and messaging.

Our agent interface is an intuitive modern browser-based design that provides easy visualization of customer profile, context and cross channel history.

This solution is built on a modern SaaS architecture, leveraging both our own data centers and the public cloud.

We deliver a comprehensive, end-to-end cloud software solution for contact centers.

Our solution is designed to enable our customers to increase and improve the efficiency of their operations, increase revenue opportunities and business agility, and provide insights into the behaviors of their workforce and customers as it relates to customer experience.

The platform facilitates this through key capabilities such as interaction routing and prioritization across channels, automation and integration of back and front end systems and the ability to leverage the power of AI through IVA and more.

Our solution also empowers agents and supervisors through WFO.

Organizations of a broad variety of sizes use our solution to improve customer service and create customer loyalty.

These capabilities are offered across a wide variety of engagement channels from chat and SMS to e-mail and voice.

Consumers are able to engage using their channel of choice and clients are able to facilitate fluid experiences that drive digital transformation.

Our agent interface is an intuitive modern browser-based design that provides easy visualization of customer profiles, context and cross channel history.

Our solution is built on a modern SaaS architecture, leveraging both our own global data centers and public cloud deployments in a scalable, secure, and redundant manner.

Our VCC platform is based on a modern micro services-based open enterprise architecture built with representational state transfer, or REST, APIs and software development kits, or SDKs, that enable customers, partners and developers to bridge any operational gaps within their unique systems.

We provide high voice quality at low cost with our Agent Connect service and our call-by-call carrier optimization routing.

AI is an embedded part of our platform.

We provide high quality inbound and outbound voice services leveraging our global network infrastructure, key strategic carrier partnerships, complex real time call routing, and wide range of customer connectivity options for secure, resilient interconnectivity to our network.

Our complete end-to-end capabilities include Computer-Telephony Integration, or CTI, IVA, Interactive Voice Response, or IVR, WFA, Agent Assist, Automatic Call/Contact Distribution, or ACD, with skills-based routing, reporting, dashboards, agent and supervisor desktops, outbound dialer, pre-built third-party integrations, quality management, speech and desktop analytics, customer surveys and workforce management.

Our cloud contact center solution, which we refer to as our solution, provides the following key elements:

Our solution provides the following advantages:

• Rapid implementation, seamless updates and pre-built integrations.

1 unchanged sentence

The pre-built integrations with leading CRM and other enterprise applications reduce the complexity and burden of integrating with the client’s business applications.

Our solution is designed to be seamlessly updated so that clients are always operating on the latest version of the software, while maintaining their existing configurations, ensuring minimal disruption to the client’s contact center operations.

Our solution is designed to be seamlessly updated so that clients are

always operating on the latest version of the software, while maintaining their existing configurations, ensuring minimal disruption to the client’s contact center operations.

• Highly flexible platform.

3 unchanged sentences

Our solution is designed to provide the following key benefits to clients:

• Higher agent productivity.

Our solution empowers agent productivity and effectiveness by allowing agents to handle both inbound and outbound calls and interact with customers across multiple digital engagement channels, including voice, chat, email, web, social media and mobile.

Our solution gives agents the ability to switch between media channels through an easy-to-use, unified interface that provides agents with all of the relevant content and tools needed to complete the task at hand.

Furthermore, our AI enabled automation features enable agent efficiency and other cost reductions, including by utilization of natural language processing, or NLP.

• Improved customer experience.

2 unchanged sentences

Using the rich contact history and additional context through integrations with CRM applications, agents have immediate access to the most current, relevant and accurate information about the customer, resulting in increased first contact resolutions and a more satisfying experience for the customer.

• Higher agent productivity.

Furthermore, our AI enabled automation features are designed to enable agent efficiency and cost reductions, including through the utilization of natural language processing, or NLP.

• Enhanced end-to-end visibility.

1 unchanged sentence

Clients can also extract reporting data from our solution for further analysis using a spreadsheet application or using the sophistication of an enterprise business intelligence application.

This insight provides an organization-wide view of customer engagement performance and allows clients to quickly determine the appropriate actions required to address changing circumstances.

This insight provides an organization-wide view of customer engagement performance and allows clients to quickly address changing circumstances.

• Greater operational efficiency.

3 unchanged sentences

• Compelling value proposition.

We provide a unified cloud-based software and telephony platform for contact center operations, including software applications, technology infrastructure, maintenance, monitoring, storage, security, client support and upgrades, which enables our clients to simplify their technology infrastructure and streamline IT costs.

We provide a unified cloud-based software platform for contact center operations, including software applications, technology infrastructure, maintenance, monitoring, storage, security, client support and upgrades, which enables our clients to simplify their technology infrastructure and streamline IT costs.

We manage upgrades and deployments remotely, resulting in lower total cost of operations relative to legacy on-premise contact center systems that often require in-house technical support staff.

1 unchanged sentence

We believe that our position as a leading provider of cloud contact center software results from several key competitive strengths, including:

• Cloud-based, enterprise-grade platform and end-to-end application suite.

• Global Cloud-based, enterprise-grade platform and end-to-end application suite.

We deliver a cloud-based enterprise-grade platform and applications suite with multi-channel capabilities that allows our clients to manage their entire contact center operation.

Our highly scalable, secure and multi-tenant architecture enables us to serve large, distributed enterprises with complex contact center requirements, as well as smaller organizations, all from a single cloud platform.

Our highly scalable, secure and multi-tenant architecture enables us to serve large multi-national enterprises with complex contact center requirements, regional or national enterprises in countries around the world, as well as smaller organizations, all from our platform comprised of physical data centers around the world and globally distributed public cloud regions, all interconnected with a robust, redundant, private WAN and diverse regionalized Internet connectivity.

• Rapid deployment and support of our comprehensive solution.

Our high-touch engagement model for larger implementations accelerates agent activation and targets desired business outcomes by leveraging a proven lifecycle approach including detailed discovery, design, testing, training and optimization.

Through the use of tools and processes that have been refined over thousands of customers, we can also efficiently

meet the needs of our smaller clients.

Through the use of tools and processes that have been refined over thousands of customers, we can also efficiently meet the needs of our smaller clients.

We offer flexibility and integrate with a number of leading CRM vendors, including:

1 unchanged sentence

We also offer integrations into UC partners such as Microsoft Teams, Nextiva, RingCentral, Zoom Video Communications, or Zoom, and others.

We combined these comprehensive integrations with out-of-the-box application adapters that allow our customers to easily build workflow integrations without the need for dedicated developers.

We combine these comprehensive integrations with out-of-the-box application adapters that allow our customers to easily build workflow integrations without the need for dedicated developers.

Once operational, we offer a high touch premium support service where we assign a technical account manager who has intimate knowledge of the customers’ operations so we can quickly resolve issues and fine tune the solution.

19 unchanged sentences

system integrators such as Accenture PLC, Deloitte Consulting LLP, IBM, PwC LLP and Slalom Consulting, LLC;

master agents and value-added resellers such as AT&T Inc.

technology solution brokers, value-added resellers such as AT&T Inc.

and CDW Corporation;

independent software vendors;

and telephony providers globally.

and telephony providers.

We believe this ecosystem has enabled us to increase our brand awareness and enhance the functionality and value of our solution for our clients.

6 unchanged sentences

We believe that AI is having, and is likely to have, an increasingly profound impact in how businesses deliver service to their customers.

We have a large and diverse client base comprised of more than 2,500 organizations as of December 31, 2021, with no single client representing more than 10% of our revenues in 2021, 2020 or 2019.

We have a large, diverse and global client base comprised of more than 2,500 organizations as of December 31, 2022, with no single client representing more than 10% of our revenues in 2022, 2021 or 2020.

Our client base spans organizations of all sizes across multiple industries, including banking and financial services, business process outsourcers, retail, healthcare, technology and education.

Sales and Marketing

To build client awareness and adoption of our solution, our lead generation activities consist primarily of search engine marketing, internet advertising, digital marketing campaigns, social media, trade shows, industry events, co-marketing with strategic partners, account-based marketing, client referrals and out-of-home campaigns.

We have adapted to various COVID-19 restrictions by converting our user group meeting from in-

person to virtual and switching from in-person to fully virtual or hybrid attendance at various trade shows.

To build client awareness and adoption of our solution, our lead generation activities consist of a mix of organic activities such as social, digital presence and search engine optimization, and paid for activations such as search engine marketing, internet advertising, digital marketing campaigns, trade shows, industry events, co-marketing with strategic partners, account-based marketing, client referrals and out-of-home campaigns.

We have adapted to various COVID-19 restrictions by converting our user group meeting from in-person to virtual and switching from in-person to fully virtual or hybrid attendance at various trade shows.

In 2022, we returned to an almost fully in-person mode for our annual CX Summit and saw attendance increase by approximately 30% from the last fully in-person event in 2019.

In addition, our industry analyst, press and media outreach programs, and web site marketing initiatives are designed to build brand awareness and preference for our solution.

We offer online self-service demos to allow prospective clients to learn about the features and functionality of our VCC cloud platform in more detail.

We also offer proof of concept service packages to allow prospects to experience the quality and ease-of-use of our cloud solution and quantify the potential benefits of our deployment.

We offer online self-service demos to allow prospective clients to learn about the features and functionality of our cloud platform in more detail.

We also offer proof of concept service packages, which include return-on-investment analyses conducted by third parties, to allow prospects to experience the quality and ease-of-use of our cloud solution and quantify the potential benefits of our deployment.

Direct Sales.

2 unchanged sentences

Indirect Sales.

We have cultivated strong partner relationships with master sales agents, system integrators and resellers to drive sales of our solution.

We have established, and continue to increase, our network of master sales agents, which provide sales leads, system integrators, which also provide sales leads and help integrate our solution with our client systems, and resellers, which sell our solution to new clients.

We have cultivated strong partner relationships with technology solution brokers, system integrators and resellers to drive sales of our solution.

We have established, and continue to increase, our network of technology solution brokers, which provide sales leads, system integrators, which also provide sales leads and help integrate our solution with our client systems, and resellers, which sell our solution to new clients.

This network has helped us attract additional clients.

Professional Services

We offer comprehensive professional services to our clients to assist in the successful implementation and optimization of our solution.

We offer global comprehensive professional services to our clients to assist in the successful implementation and optimization of our solution.

Our professional services include application configuration, system integration, and education and training.

4 unchanged sentences

Our ability to compete depends in large part on our continuous commitment to research and development and our ability to improve the functionality of, and add new features to, our VCC cloud platform.

Our core research and development center is based in our San Ramon, California headquarters, with additional engineers located in Australia and Russia, which allows us to benefit from relatively low-cost and highly skilled software developers.

Our core research and development center is based in our San Ramon, California headquarters, with additional engineers located in Australia and Portugal, which allows us to benefit from relatively low-cost and highly skilled software developers.

In January 2023, we announced the opening of our new European Research and Development Hub in Porto, Portugal, which will serve as our European engineering headquarters.

Our engineering team has deep software and telecommunications skills, and works closely with our sales team to identify our clients’ product requirements.

6 unchanged sentences

We currently deliver our services globally from third-party co-location data center facilities located in the United States, the United Kingdom, Europe and Australia and from public cloud locations in Canada, the United Kingdom and Europe.

We also host some of our voice services on the public cloud in Europe, Asia, South America and Australia.

Our infrastructure, including our third-party co-location facilities, is designed to support real-time mission-critical telecommunications, applications and operational support systems.

We also host some of our voice services on the public cloud in Europe, Asia, South America and Australia as well as additional core services in Europe.

Our infrastructure, including our third-party co-location

facilities, is designed to support real-time critical telecommunications, applications and operational support systems.

Our infrastructure is built with redundant, fault-tolerant components divided into distinct security zones forming protective layers for our applications and customer data.

We have designed and maintain an operations, capacity and security program to monitor and maintain our platform, ensure efficient utilization of our platform capacity and protect against security threats or data breaches.

Our operations team monitors our data centers for potential performance issues, unauthorized attempts to access secure data or applications and the overall integrity of the platform.

The market for contact center software is fragmented, highly competitive and evolving rapidly in response to shifting consumer behavior, especially the rapid adoption of mobile devices and new channels of engagement, such as social media.

Our global operations team monitors our data centers for potential performance issues, unauthorized attempts to access secure data or applications and the overall integrity of the platform.

The market for contact center software is fragmented, highly competitive and evolving rapidly in response to shifting consumer behavior, especially the transition to mobile devices and use of different channels of engagement, such as social media.

The proliferation of each is driving change in contact center technology, as customers expect companies to give them the option of seamless communication across all channels without losing the overall context of customer interactions according to their preference and needs.

9 unchanged sentences

Because CRM integration and partnerships are critical to the success of our solution, these factors could harm our revenue and results of operations.

Our actual and potential competitors may enjoy competitive advantages over us, including greater name recognition, longer operating histories and larger marketing and product development budgets, as well as greater financial and technical resources.

Our actual and potential competitors may enjoy competitive advantages over us, including greater name recognition, longer operating histories, broader product offerings, larger marketing and product development budgets, as well as greater financial and technical resources.

With the introduction of new technologies and market entrants, we expect competition to continue to intensify in the future.

14 unchanged sentences

• ability to offer multiple channels of engagement;

• size and financial stability of operations.

• size and financial stability.

We believe we currently compete effectively with respect to each of the factors identified above.

3 unchanged sentences

We also rely on a number of registered and unregistered trademarks to protect our brand.

In addition, we

require our employees and independent contractors involved in development of intellectual property on our behalf to enter into agreements acknowledging that all works, or other intellectual property generated or conceived by them on our behalf, are our property, and assigning to us any rights, including intellectual property rights, that they may claim or otherwise have in those works or property, to the extent allowable under applicable law.

In addition, we require our employees and independent contractors involved in development of intellectual property to enter into agreements acknowledging that all works, or other intellectual property generated or conceived by them on our behalf, are our property, and assigning to us any rights, including intellectual property rights, that they may claim or otherwise have in those works or property, to the extent allowable under applicable law.

As of December 31, 2022, our intellectual property portfolio included three registered U.S.

trademarks, 15 issued U.S.

patents, two pending U.S.

patent application, two pending international Patent Cooperation Treaty, or PCT, patent applications and one registered U.S.

patents, one pending U.S.

patent application and one registered U.S.

As of December 31, 2022, outside the U.S.

we also had five issued patents and 10 trademark registrations.

we also had 10 trademark registrations, five issued patents and two pending international Patent Cooperation Treaty, or PCT, patent applications.

The expiration dates of our issued patents range from 2030 to 2041.

11 unchanged sentences

Our employee turnover for the last three years has averaged 8.1%.

The key human capital measures and objectives that we focus on in managing our business are maintaining our company culture, increasing our diversity and inclusion, our compensation philosophy and our employees’ safety, including as a result of COVID-19, and our talent development.

Company Culture

We have built a culture of high performance based upon our values:

Always do the right thing for the customer.

Good enough isn’t good enough.

We value diversity.

We are relentless learners.

We bias toward action, “kick the bolt”.

We treat it like we own it.

A spirit of service guides us.

We believe in the servant leader.

We act with integrity and humility and as a team.

We keep it simple.

Less is more.

Our values are woven through the entire employee lifecycle and used in the interview process to ensure we hire candidates that have personal values that align with ours.

The key human capital measures and objectives that we focus on in managing our business are maintaining our company values, increasing our diversity and inclusion, our compensation philosophy, our talent development, and our employees’ safety and wellness.

Five9 Values - Bringing Passion and Purpose

At Five9 we are focused on delivering success for our customers, partners and employees.

Living our values everyday results in a unique and powerful culture that we call “winning culture” in which every member on our team is passionately committed to achieve this collective success.

This powerful team-first culture enables us to overcome any adversity or obstacle and win year after year while enjoying the journey together.

Our values are woven throughout the entire employee lifecycle and used in the interview process to ensure we hire candidates that have personal values that align with ours.

Our values are instrumental in the semi-annual employee performance self-reflection cycle, and we request that employees share how they have lived our values.

In addition, we regularly celebrate employees that live our values through recognition and rewards.

We introduce new employees to our values during new hire orientation and our values are visible in the offer package as well as company employee resources pages.

Our CEO also weaves these values into quarterly company meetings and regular meet ups, such as “Thursdays in the Cloud” where one of the values may be highlighted through a story and employee example.

We introduce new employees to our values during new hire orientation and our values are visible in the offer package as well as company employee resource pages.

Our CEO also weaves these values into quarterly company meetings and regular smaller meetings, such as “Thursdays in the Cloud” where one of the values may be highlighted through a story and employee example.

We regularly collect feedback to better understand and improve the employee experience and identify opportunities to continually strengthen our culture.

76% of employees participated in our most recent employee

survey in 2021.

Last year we achieved the highest level of employee engagement according to our vendor, Culture Amp, as noted in its Engagement and Inclusion benchmark (top quartile) based upon responses from approximately 2,000 companies.

81% of our employees participated in our most recent employee survey in 2022.

Last year we maintained the highest level of employee engagement according to our vendor, Culture Amp, as noted in its Engagement and Inclusion benchmark (top quartile) based upon responses from approximately 2,000 companies.

Employees’ highest rated areas were the following:

contribution to broader purpose (96%) and diversity (91%).

work & life blend (92%), management (91%) and inclusion (91%).

Diversity & Inclusion at Five9

We value diversity and hold ourselves accountable to create a culture where our employees represent humanity.

We value diversity and hold ourselves accountable to create a culture where our employees represent the communities in which we operate.

We embrace authenticity and trust and lead with transparency, empowering our employees to have a voice that's heard.

3 unchanged sentences

In addition, we have several Employee Resource Groups, or ERGs, that are committed to diversity and creating and fostering a culture of inclusion.

Our ERGs include Women In Tech, Blatinx, Five9 Faith and Pride @ Five9.

Our ERGs include Women In Tech, Blatinx, Veterans, Five9 Faith and Pride @ Five9.

We are currently working with Black Girls Code to offer an online educational session for underserved girls enlisted in their program and our female employees are facilitating the class.

4 unchanged sentences

employees as of December 31, 2022.

Women and ethnic minorities represent 30% and 17%, respectively, of our leadership team and Board as of December 31, 2021.

Women and ethnic minorities each represent 22% and 11%, respectively, of our executive leadership team and 33% and 22%, respectively, of our Board of Directors as of December 31, 2022.

Compensation Philosophy

1 unchanged sentence

Our competitive rewards packages include cash, bonus programs dependent upon the position, equity awards and benefits aligned to prevailing market practices, and in cases where business demands are unique, we may lead the competitive market.

Full-time employees and their family members enjoy comprehensive benefits programs and perks.

In an effort to attract and retain the best talent, we strive to offer benefit programs that will enable our employees to thrive both at work and at home.

Full-time employees and their family members enjoy comprehensive benefits programs and perquisites.

In an effort to attract and retain the best talent, we strive to offer benefit programs that will enable our employees to thrive

both at work and at home.

We cover 100% of the employee portion of our healthcare benefits and share a high portion of the dependent costs.

Our competitive global benefits include a Parental Leave Policy, flexible schedules, financial and physical wellness programs, fertility benefits and 401(k) matching.

COVID-19 and Employee Safety

During the COVID-19 pandemic our primary focus has been the health and safety of our employees and their families.

We enabled all of our global employees to transition to a work from home environment and we provided two COVID-19 relief bonuses to all employees Sr.

Director and below to help offset the financial impact of the pandemic.

In addition, we assisted employees with a work from home stipend that employees could use to make their home office more conducive to comfortably working from home.

During the fourth quarter of 2021, we also provided a wellness cash benefit for our global employees.

We also offered our employees’ health and wellness resources such as yoga, meditation and counseling resources if needed.

Our competitive global benefits include a Parental Leave Policy, flexible schedules, financial and physical wellness programs, fertility benefits and Section 401(k) plan employer matching contributions.

Talent Development

6 unchanged sentences

This development series aims to provide educational opportunities for leadership and growth for our employees.

We also have a succession planning

program that focuses on identifying employees that are high potential and high performing and plans for developing them into future leadership roles by creating action plans and a path for the employee’s progression.

We also have a succession planning program that focuses on identifying employees that are high potential and high performing and plans for developing them into future leadership roles by creating action plans and a path for the employee’s progression.

Workplace Practices and Policies

1 unchanged sentence

We are an equal opportunity employer committed to inclusion and diversity.

Environmental Sustainability

We are committed to reducing workplace-related resource consumption through our site selection, facilities design and energy procurement practices through our landlords, to ensure our corporate responsibility goals are achieved.

We participate in building sustainability by occupying LEED certified and 5-Star NABERS Energy Rated multi-tenant buildings.

Our corporate headquarters offers a transportation program to cut down on emissions.

We have made strides in reducing energy consumption by upgrading our lighting system and installing motion sensors for lighting and convenience electrical outlets.

To reduce waste, we use source compostable/recyclable kitchen products, centralized waste collection with an emphasis on recycling, established an E-waste program, implemented software tools to minimize printing waste and reduce equipment and toner purchases, and expanded our battery recycling program to include work-related and personal battery recycling.

The following summarizes important, but not all, federal, state and foreign regulations that could impact our operations.

3 unchanged sentences

We are classified as a telecommunications service provider for federal regulatory purposes.

Since our business is regulated by the FCC, we are subject to existing or potential FCC regulations relating to privacy, disability access, porting of numbers, automatic number dialing, contributions to the federal Universal Service Fund and related funds, or USF, and other requirements.

Since our business is regulated by the FCC, we are subject to existing or potential FCC regulations relating to privacy, disability access, Enhanced 911 access, porting of numbers, automatic number dialing, contributions to the federal Universal Service Fund and related funds, or USF, and other requirements.

If we do not comply with FCC rules and regulations, we could be subject to FCC enforcement actions, fines and possibly restrictions on our ability to operate or offer certain of our services.

Any enforcement action by the FCC, which may be a public process, would hurt our reputation in the industry, possibly impair our ability to sell our services to clients and could harm our business and results of operations.

The FTC also has jurisdiction over some of our business practices, including advertising, trade practices, privacy and telemarketing.

The Federal Trade Commission, or FTC, also has jurisdiction over some of our business practices, including advertising, trade practices, privacy and telemarketing.

If we do not comply with FTC rules and regulations, we could be subject to an FTC enforcement action, fines or restrictions on our business practices.

1 unchanged sentence

• Telephone Consumer Protection Act of 1991, or TCPA, which regulates the use of automatic dialing equipment and pre-recorded messages to contact consumers, and the Telemarketing Sales Rule, which has similar obligations as to telemarketing activities;

• The TRACED Act and corresponding regulations from the FCC, which requires carriers to authenticate incoming calls using the STIR/SHAKEN caller ID framework and correspondingly compels providers of telecommunications services to implement capabilities to certify as authentic the traffic they provide to those carriers;

• The TRACED Act and corresponding regulations from the FCC, which require carriers to authenticate incoming calls using the STIR/SHAKEN caller ID framework and correspondingly compels providers of telecommunications services to implement capabilities to certify as authentic the traffic they provide to those carriers;

• CALEA, which requires telecommunications service providers to assist law enforcement in undertaking electronic surveillance;

• KARI’s Law and RAY BAUM’s Act, which require telecommunications carriers to ensure their users can directly dial 911 emergency services and, if technically feasible, automatically convey dispatchable location information with the call;

• contributions to the USF, which requires that we pay a percentage of our revenues resulting from the provision of interstate telecommunications services to support certain federal programs;

• enhanced 911 rules, KARI’s Law and RAY BAUM’s Act, which, in certain circumstances, require telecommunications service providers to ensure their users can directly dial 911 emergency services and, if technically feasible, automatically convey dispatchable location information with the call;

• contributions to the USF, which requires that we pay a percentage of our revenues resulting from the provision of interstate and some international telecommunications services to support certain federal programs;

• payment of annual FCC regulatory fees based on our interstate and international revenues;

• rules pertaining to access to our services by people with disabilities and contributions to the Telecommunications Relay Services fund;

• FCC rules regarding Customer Proprietary Network Information, or CPNI, which require that we not use certain information received from customers as a result of a service provider/customer relationship without customer approval, subject to certain exceptions;

• FCC rules regarding Customer Proprietary Network Information, or CPNI, which require that we limit disclosure of certain information received from customers as a result of a service provider/customer relationship without customer approval, subject to certain exceptions;

• Federal Trade Commission Act and rules promulgated thereunder, which generally relate to avoiding unfair and deceptive trade practices, our advertising, and privacy practices;

• State privacy laws require compliance with privacy frameworks and include disclosure obligations to consumers for whom we hold or process personal data including:

◦ The California Consumer Privacy Act of 2018, or the CCPA,

◦ The California Privacy Rights Act of 2020, or the CPRA, which will take effect on January 1, 2023;

◦ Virginia Consumer Data Protection Act, or the VCDPA, which will take effect on January 1, 2023;

◦ The California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act of 2020, or the CCPA, which took effect on January 1, 2023;

◦ Virginia Consumer Data Protection Act, or the VCDPA, which took effect on January 1, 2023;

◦ Colorado Privacy Act, or the CPA, which will take effect on July 1, 2023;

◦ Connecticut Data Privacy Act, or CDPA, which will take effect on July 1, 2023;

◦ Utah Consumer Privacy Act, or the UCPA, which will take effect on December 31, 2023.

In addition, we must make contributions and other payments on our usage-based fees to state and local governmental entities.

4 unchanged sentences

Compliance with these regulations may also make us less competitive with those competitors who are not subject to, or choose not to comply with, these regulations.

See Note 10 of the notes to consolidated financial statements under ITEM 8 of this Form 10-K for a discussion of our liabilities related to USF matters.

See Note 10 of the notes to the consolidated financial statements under ITEM 8 of this Form 10-K for a discussion of our potential liability related to USF matters.

As we expand internationally, we will be subject to laws and regulations in the countries in which we offer our services.

1 unchanged sentence

varies from country to country, is often unclear, and may be more onerous than those imposed on our services in the U.S.

For example, the European Union adopted a law governing data protection and privacy called the General Data Protection Regulation, or the GDPR, which became effective on May 25, 2018.

The law requires companies to meet new and extended requirements regarding the processing of personal data.

For example, in the European Union, the General Data Protection Regulation, or the GDPR, requires companies to meet new and extended requirements regarding the processing of personal data.

Non-compliance with the GDPR can trigger steep fines of up to €20 million or 4% of total worldwide annual turnover, whichever is higher.

In addition, among other comprehensive privacy laws, we are subject to Canada’s Personal Information Protection and Electronic Documents Act, or PIPEDA, and the analogous provincial laws, which similarly impose data privacy and security obligations on our processing of personal data.

In addition, among other comprehensive privacy laws, we are subject to the UK’s Data Protection Act, Canada’s Personal Information Protection and Electronic Documents Act, or PIPEDA, and analogous provincial laws, emerging U.S.

state privacy laws, which collectively impose similar data privacy and security obligations on our processing of personal data.

Our regulatory obligations in foreign jurisdictions could impact the use or cost of our solution in international locations as data protection and privacy laws and regulations around the world continue to evolve.

1 unchanged sentence

It is not possible to predict how such evolution and changes will affect our business or our industry.

If we do not comply with current or future rules or regulations that apply to our business, we could be subject to substantial additional fines and penalties, we may have to restructure our service offerings, exit certain markets, accept lower margins or raise the price of our services, any of which could harm our business and results of operations.

If we do not comply with current or future rules or regulations that apply to our business, we could be subject to substantial fines and penalties, we may have to restructure our service offerings, exit certain markets, accept lower margins or raise the price of our services, any of which could harm our business and results of operations.

See “Risk Factors — Risks Related to Regulatory Matters” under ITEM 1A of this Form 10-K for more information.

7 unchanged sentences

In addition, we own or have the rights to copyrights, trade secrets and other proprietary rights that protect the content of our solution.

Solely for convenience, some of the copyrights, trademarks and trade names referred to in this annual report on Form 10-K are listed without ©, ® and ™ symbols, but we will assert, to the fullest extent under applicable law, our rights to our copyrights, trademarks and trade names.

Solely for convenience, some of the copyrights, trademarks and trade names referred to in this annual report on Form 10-K are listed without ©, ® and ™ symbols, but we own and will assert, to the fullest extent under applicable law, our rights to our copyrights, trademarks and trade names.

Available Information

1 unchanged sentence

The SEC maintains a website at https://www.sec.gov that contains reports, proxy and information statements and other information regarding Five9 and other companies that file materials with the SEC electronically.

Copies of our reports on Form 10-K, Forms 10-Q and Forms 8-K, may be obtained, free of charge, electronically through our internet website, http://investors.five9.com/sec.cfm as soon as reasonably practicable after such material is filed

electronically with, or furnished to, the SEC.

Copies of our reports on Form 10-K, Forms 10-Q and Forms 8-K, and amendments thereto, may be obtained, free of charge, electronically through our internet website, http://investors.five9.com/sec.cfm as soon as reasonably practicable after such material is filed electronically with, or furnished to, the SEC.

The information on our website is not a part of, or incorporated by reference into, this Annual Report on Form 10-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business