Five9, Inc. (FIVN): PESTLE Analysis [Nov-2025 Updated]

You're looking for the definitive external view on Five9, Inc. (FIVN), and honestly, their success comes down to two things: navigating a maze of global data laws and capitalizing on the explosive, high-margin growth in AI-powered customer experience (CX). This PESTLE analysis maps the near-term risks and opportunities so you can make a smarter decision.

The political landscape for Five9 is a double-edged sword. On one hand, the US regulatory environment is defintely supportive of cloud communication innovation, which helps Five9 move fast. But the increasing government focus on robust cybersecurity and data protection standards means compliance costs are always rising. You have to watch the fragmented US state-level privacy laws; they necessitate constant, costly compliance updates.

Also, don't ignore the global picture. Geopolitical risks, like the Russia-Ukraine and Middle East conflicts, create real uncertainty in international sales cycles. A global company like Five9 can see a quarter's revenue projection shift based on instability in key regions. It's a risk that slows down enterprise decisions.

The economic story is strong, but the macro headwinds are real. Five9's guidance for full-year 2025 revenue is between $1.1435 billion and $1.1495 billion. That's solid growth, but high interest rates are a drag, lengthening large enterprise sales cycles. Deals take longer to close when capital is expensive.

The good news is the focus on efficiency is paying off. Non-GAAP EPS for FY2025 is projected at $2.92 to $2.96. This reflects margin expansion, and the proof is in the numbers: Adjusted EBITDA margin reached 25% in Q3 2025. That's a powerful sign of improved operating efficiency and a clear path to profitability that investors like to see.

The people-side of the business is driving massive change. Growing demand for remote and hybrid contact center agent deployment globally is a direct tailwind for Five9's cloud model. Their platform inherently supports a diverse, globally distributed workforce, which is what companies need to attract talent.

Plus, consumer expectations have fundamentally changed. They now demand personalized, seamless, and immediate AI-driven customer experiences (CX). This is pushing enterprises to adopt Five9's solutions faster. But this shift isn't just about tech; it's about people. AI adoption is changing agent roles from simple transactional tasks to complex problem-solving, so new training and upskilling are absolutely critical for their customers.

Technology is Five9's core engine, and AI is the fuel. Enterprise AI revenue grew a staggering 41% year-over-year in Q3 2025. This proves AI is not a side project; it's a core growth driver. They are a leader in the competitive Contact Center as a Service (CCaaS) market-a position validated by Gartner-which gives them a strong advantage.

They are not standing still. The November 2025 launch of new AI-powered tools like Agentic Quality Management (AQM) and Genius Routing shows they are pushing the frontier. To be fair, maintaining this leadership requires a multi-cloud strategy (like using Google Cloud and AWS) to ensure platform scalability and redundancy. You can't afford downtime in this business.

Legal risk is high and complex. Five9 must maintain mandatory compliance with a laundry list of global data privacy laws: GDPR (Europe's General Data Protection Regulation), CCPA/CRPA (California Consumer Privacy/Rights Act), HIPAA (Health Insurance Portability and Accountability Act), and PCI DSS (Payment Card Industry Data Security Standard). This is a non-negotiable cost of doing business globally.

Also, the industry is facing increased scrutiny on the ethical use and governance of Artificial Intelligence (AI) in customer interactions. This is a new, evolving risk. Still, they also have the ongoing risk from shareholder litigation, such as the class action filed in early 2025. Plus, telecommunications regulations (like FCC rules) govern voice services and call routing quality, adding another layer of complexity they must manage.

The environmental factor is mostly an indirect positive. Five9's cloud-native platform inherently replaces energy-intensive, legacy on-premise hardware systems. This is a clear environmental benefit for their customers. They indirectly benefit from the aggressive renewable energy targets set by their hyperscaler cloud providers like AWS and Google Cloud.

Their commitment is formalized. The Board-level oversight of Sustainability and Governance is delegated to a dedicated committee, showing it's a priority. Furthermore, their Supplier Code of Conduct requires partners to comply with environmental laws and minimize climate impact. It's not a direct revenue driver, but it's defintely a factor in winning large, ESG-focused enterprise contracts.

Five9, Inc. (FIVN) - PESTLE Analysis: Political factors

US regulatory environment supports cloud communication innovation.

You might think government regulation is all about roadblocks, but honestly, for a company like Five9, the US political environment is defintely an accelerator for cloud communication innovation. The shift to the cloud is now a national priority, not just a business trend. This is evident in the projected growth of the Contact Center as a Service (CCaaS) market, which is expected to grow at a compound annual rate of 19% between 2025 and 2032, expanding from an estimated $6.08 billion to $24.45 billion. This macro tailwind is a direct result of a policy environment that encourages digital transformation and cloud adoption across all sectors, including government agencies.

Five9 is capitalizing on this push, especially with its focus on Artificial Intelligence (AI). In the second quarter of 2025, Five9's Enterprise AI revenue grew a massive 42% year-over-year, now accounting for 10% of its enterprise subscription revenue. This growth signal shows that the regulatory landscape, while demanding in terms of security, is not stifling the innovation needed to drive Five9's full-year 2025 revenue guidance of $1.1435 billion to $1.1495 billion. The government wants better, smarter, and more secure communication, and Five9 is delivering on that mandate.

Increased government focus on robust cybersecurity and data protection standards.

The political focus on cybersecurity has never been sharper, and this is a double-edged sword for cloud providers. The US government is actively strengthening its digital infrastructure security, which means higher compliance costs for Five9, but also a competitive moat against less secure platforms. For instance, Executive Order 14144, issued in early 2025, mandates greater accountability for software and cloud service providers and pushes for the adoption of industry-proven security practices like phishing-resistant authentication.

This scrutiny translates into concrete, near-term deadlines. By December 1, 2025, the Cybersecurity and Infrastructure Security Agency (CISA) must release a list of product categories that support Post-Quantum Cryptography (PQC), preparing the Federal Government for a transition away from vulnerable cryptographic systems. Five9 must ensure its platform and data processing addendums (DPAs) meet or exceed these evolving standards, including the regular updates to the National Institute of Standards and Technology (NIST) Special Publication 800-53. Compliance is a cost, but it's also a sales pitch to large, security-conscious enterprise customers.

• Compliance is a cost, but it's also a sales pitch.

Geopolitical risks (e.g., Russia-Ukraine, Middle East conflicts) create international sales cycle uncertainty.

Geopolitical turbulence is a significant, non-financial risk that directly impacts sales cycles and international expansion. The ongoing conflicts in regions like Russia-Ukraine and the Middle East, coupled with intensified US-China trade tensions, mean that global business is increasingly vulnerable to sudden regulatory and reputational risks. This uncertainty causes large enterprise customers to delay major technology decisions, a trend Five9 acknowledged in its Q2 2025 guidance, citing 'some lengthening of large deal sales cycles' as a factor in its prudent full-year forecast.

While Five9's core market is the US, its global footprint is growing. For example, in Q2 2025, the company secured a $1.1 million contract from a global veterinary services provider with over 2,000 branches in 20 countries. These international deals are great, but they are subject to increased political risk, which can be seen in the rising cost of political risk insurance for US companies in certain regions, with some capacity costs increasing to around 150 basis points. You need to factor in this friction when modeling international revenue growth.

Fragmented US state-level privacy laws necessitate constant compliance updates.

The absence of a comprehensive federal privacy law means Five9 must navigate a complex, fragmented patchwork of US state-level privacy regulations, which is a major operational challenge. In 2025 alone, eight new state privacy laws took effect, including those in Delaware, Iowa, Nebraska, New Hampshire, New Jersey, Tennessee, Minnesota, and Maryland. Each law has unique thresholds, consumer rights, and enforcement mechanisms, requiring continuous, state-by-state compliance updates.

This fragmentation is not just an administrative hassle; it carries significant financial risk. State Attorneys General and privacy agencies are actively setting precedents through aggressive enforcement actions. In California, for instance, a landmark settlement of $1.55 million was announced in July 2025 for alleged violations of the California Consumer Privacy Act (CCPA) related to failing to honor consumer opt-out requests. For Five9, which processes vast amounts of sensitive customer interaction data, this means dedicating substantial resources to ensure its data processing agreements and compliance frameworks are constantly updated to cover everything from the California Privacy Rights Act (CPRA) to the new Maryland Online Data Privacy Act.

Here's the quick math: the cost of a single major privacy violation settlement can wipe out a significant portion of quarterly GAAP net income, which was $17.97 million in Q3 2025. That risk alone justifies the investment in a robust, multi-state compliance team. Next step: Legal and Compliance should draft a 12-month compliance roadmap detailing the rollout for the eight new state privacy laws by Friday.

Five9, Inc. (FIVN) - PESTLE Analysis: Economic factors

Full-year 2025 revenue is guided to be between $1.1435 billion and $1.1495 billion.

You're looking for a clear read on Five9's top-line health, and the 2025 full-year revenue guidance gives us that picture: it's solid, but the growth rate is moderating. The company is projecting revenue to land between $1.1435 billion and $1.1495 billion for the full fiscal year 2025. This range, maintained after the Q3 2025 earnings release, signals a degree of prudence from management, acknowledging the slower pace of large-scale enterprise decisions in the current economic climate. Still, hitting the midpoint of $1.1465 billion represents a respectable year-over-year increase from 2024's $1.042 billion. The core of this revenue is subscription-based, which was 81% of total revenue in Q3 2025, giving the company high revenue visibility and stability.

The revenue story is really about quality over sheer speed right now.

Non-GAAP EPS for FY2025 is projected at $2.92 to $2.96, reflecting margin expansion.

The real highlight for Five9 this year isn't just revenue; it's the dramatic improvement in profitability. The full-year 2025 Non-GAAP Earnings Per Share (EPS) guidance was actually raised, now projected to be between $2.92 and $2.96. This is a defintely strong signal of operational leverage kicking in. This margin expansion is driven by a combination of factors, including cost discipline-like the workforce reduction enacted earlier in the year-and a favorable shift toward higher-margin subscription and AI-driven revenue streams. The market is rewarding this pivot to profitable growth, which is exactly what you want to see when the macro environment is challenging.

Adjusted EBITDA margin reached 25% in Q3 2025, showing improved operating efficiency.

Five9's focus on efficiency is crystal clear in its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin. For the third quarter of 2025, the Adjusted EBITDA margin hit a record 25.1%, a significant jump from 19.8% in the same quarter last year. This 5.3 percentage point expansion is a testament to management's execution. For the full year 2025, the company lifted its Adjusted EBITDA margin outlook to approximately 23%, up from a prior outlook of 22%. This operational success is translating directly into cash generation, with GAAP operating cash flow surging 44% year-over-year in Q3 2025 to $59.2 million.

Here's the quick math on profitability for 2025:

Macroeconomic challenges, like high interest rates, can lengthen large enterprise sales cycles.

The economic reality is that high interest rates and broader macroeconomic uncertainty are not just abstract concepts; they directly affect Five9's deal flow. Management has explicitly noted that these conditions, including continuing inflation, are causing large enterprise sales cycles to lengthen. When capital is more expensive, Chief Financial Officers become more cautious, subjecting major software purchases-like a new Contact Center as a Service (CCaaS) platform-to far greater scrutiny and longer approval processes. This caution is the primary headwind tempering the overall revenue growth rate for 2025.

What this estimate hides is that while sales cycles are longer, the underlying demand is still there, especially for AI-driven solutions which promise cost savings and efficiency. This is a key distinction. The economic pressure is driving enterprises to seek platforms like Five9's to automate customer interactions, which is why Enterprise AI revenue grew 41% year-over-year in Q3 2025. The economic challenges are actually accelerating the need for their core value proposition: efficiency.

• High interest rates increase capital costs for buyers.
• Macro uncertainty leads to greater scrutiny on large deals.
• Sales cycles for major enterprise contracts are elongating.
• Demand for AI-driven efficiency remains strong.

Five9, Inc. (FIVN) - PESTLE Analysis: Social factors

Growing demand for remote and hybrid contact center agent deployment globally.

You've seen the shift: the office-based call center model is defintely a relic now. The move to cloud-based Contact Center as a Service (CCaaS) platforms like Five9, Inc.'s is fundamentally driven by the social demand for work flexibility.

This isn't just a pandemic hangover; it's a permanent structural change. As of Spring 2023, 69% of contact centers still had remote work programs, and a projected 73% plan to maintain a remote or hybrid program into 2025. This trend is critical for a cloud provider because their platform inherently supports a globally distributed workforce, letting companies tap into a wider talent pool and lower facilities costs. Plus, remote work can increase employee happiness by as much as 20%, directly impacting agent retention and service quality.

Consumer expectations for personalized, seamless, and immediate AI-driven customer experiences (CX).

Customers are less patient and more demanding than ever, and they expect AI to be the engine of speed. Today, 71% of customers feel most valued by companies that respect their time and don't make them wait. This demand for instant resolution means AI isn't a bonus; it's the baseline for CX. You need to deliver hyper-personalization at scale.

The good news for Five9, Inc. is that consumers are open to this technology. A significant 72% of consumers are open to AI-powered interactions, provided they can still escalate to a human agent when necessary. This is why Five9, Inc.'s focus on its Intelligent CX Platform is paying off: its Enterprise AI revenue grew a robust 42% year-over-year in Q2 2025, now accounting for 10% of enterprise subscription revenue. The risk is high, though: nearly 40% of consumers say they will stop doing business with a company after just one bad experience.

AI adoption is shifting agent roles from transactional to complex problem-solving, requiring new training.

AI is not replacing the agent; it's upgrading the job description. By automating routine tasks-like answering FAQs or providing after-call summaries-AI frees up human agents to focus on complex, emotionally charged, or high-value conversations. This is the shift from a call-taker to a 'Customer Experience (CX) Champion.'

This means the core skills required are changing from speed and efficiency to critical thinking and empathy. Companies are already adapting: 88% of businesses increased their focus on the agent experience in 2025, often through real-time AI support tools embedded in the platform. For agents using AI, 95% report they can resolve customer issues quickly and efficiently. This augmentation is a massive productivity lever; AI-driven quality assurance, for example, can reduce manual review time by nearly 50% and boost agent performance by up to 20%.

The cloud model inherently supports a diverse, globally distributed workforce.

The cloud is the enabler for the social trend of distributed work. Five9, Inc.'s CCaaS model is a pure play on this, allowing businesses to hire agents outside of expensive metropolitan areas or even across borders, which naturally increases workforce diversity and resilience.

This model addresses a key operational challenge: agent turnover. By offering flexibility, contact centers can improve retention and access a wider global talent pool. The underlying technology-the cloud-makes this seamless. This is a clear strategic advantage for Five9, Inc. over legacy, on-premises contact center systems that are geographically rigid.

• Cloud enables global talent pool access.
• Flexibility boosts agent retention and happiness.
• Distributed teams improve business resilience.
• CCaaS model reduces overhead costs dramatically.

Five9, Inc. (FIVN) - PESTLE Analysis: Technological factors

Enterprise AI Revenue Grew 41% Year-over-Year in Q3 2025, Proving AI is a Core Growth Driver

You need to see the numbers to understand the shift happening in the Contact Center as a Service (CCaaS) space. Five9 is defintely leading with its Artificial Intelligence (AI) strategy, and the Q3 2025 results prove it. Enterprise AI revenue surged by a massive 41% year-over-year.

This isn't just a pilot program; it's a core revenue stream. For context, the company's total Q3 2025 revenue was $285.8 million, so AI is giving the overall growth a hefty boost. Enterprise AI now accounts for 11% of the total enterprise subscription revenue, and enterprise AI bookings saw even stronger momentum, growing over 80% year-over-year. This momentum shows that customers are moving past experimentation and committing capital to AI-powered customer experience (CX) tools.

Here's the quick math on the AI impact:

• Enterprise AI Revenue Growth (YoY Q3 2025): 41%
• Enterprise AI Bookings Growth (YoY Q3 2025): Over 80%
• Total Q3 2025 Revenue: $285.8 million

November 2025 Launch of New AI-Powered Tools Like Agentic Quality Management (AQM) and Genius Routing

The company is not slowing down on product development, which is crucial for maintaining a tech edge. Just this November 2025, Five9 unveiled a powerful suite of new AI innovations at its CX Summit, designed to accelerate what they call 'Agentic CX.'

These tools embed AI deeper into the contact center workflow, moving it from a peripheral feature to a central operating layer. The two most significant launches are Agentic Quality Management (AQM) and Genius Routing. AQM is a game-changer because it can be configured to evaluate up to 100% of customer interactions, giving you a complete, unbiased view of agent performance. That's a huge leap from the traditional 1-5% sample review. Genius Routing is a dynamic matching engine that connects customers with the best-fit agent based on real-time data, attributes, and proficiency levels, helping with faster resolutions and better experiences.

The new products show a clear focus on using AI to improve both customer and agent experiences.

Leader Position in the Competitive Contact Center as a Service (CCaaS) Market, Validated by Gartner

In a crowded market, external validation matters. Five9 solidified its position as a clear leader in the Contact Center as a Service (CCaaS) space, confirmed by the September 2025 release of the 2025 Gartner Magic Quadrant for CCaaS.

This marks the eighth time Five9 has been recognized as a Leader in this report. This consistent placement validates their strategy of building an Intelligent CX Platform powered by their proprietary Genius AI. They were specifically recognized for both their Completeness of Vision and their Ability to Execute. This isn't just about having a good product; it's about having a clear roadmap and the operational muscle to deliver it globally.

The CCaaS market is fiercely competitive, with other major players like Genesys and Talkdesk also positioned as Leaders in the 2025 report. This forces Five9 to maintain a high pace of innovation, especially in AI-driven automation and analytics, to stay ahead.

Multi-Cloud Strategy (e.g., Google Cloud, AWS) Ensures Platform Scalability and Redundancy

The underlying infrastructure is the backbone of a cloud platform, and Five9's multi-cloud strategy provides both resilience and global reach. They deliberately use multiple public cloud providers, primarily Google Cloud and Amazon Web Services (AWS), to avoid vendor lock-in and ensure maximum uptime.

This approach is critical for enterprise customers who demand high availability and disaster recovery. For instance, they leverage Google Cloud for data centers and platform availability, with the global availability of Five9 solutions on the Google Cloud Marketplace announced in February 2025. This simplifies procurement and deployment for joint customers. Plus, they use AWS to power strategically placed voice Points of Presence (PoPs) to keep voice traffic close to the customer and agent, ensuring the highest possible call quality and low latency. This dual-cloud strategy is a smart move for future-proofing their technology stack and supporting their global customer base of over 3,000 customers.

Five9, Inc. (FIVN) - PESTLE Analysis: Legal factors

Mandatory compliance with global data privacy laws: GDPR, CCPA/CRPA, HIPAA, and PCI DSS

The core of Five9's business-handling customer interactions-makes it a central target for global data privacy regulations. Honestly, this isn't a check-the-box exercise anymore; it's a fundamental cost of doing business, especially in 2025. Five9 must maintain its status as a compliant service provider (or data processor) under a complex web of laws, including the European Union's General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA) as amended by the California Privacy Rights Act (CPRA), the Health Insurance Portability and Accountability Act (HIPAA) for healthcare clients, and the Payment Card Industry Data Security Standard (PCI DSS) for payment processing.

The risk of non-compliance is staggering. For instance, CCPA violations can cost up to $7,500 per incident, with no cap on total penalties, and the average GDPR fine in 2024 was already up 30% from the prior year, reaching €2.8 million (approximately $3.05 million). Five9 has updated its Global Data Processing Addendums (DPAs) in 2025 to reflect its role as a service provider, contractually committing to these standards.

Here's a snapshot of the critical compliance areas Five9 constantly manages:

Increased scrutiny on the ethical use and governance of Artificial Intelligence (AI) in customer interactions

The rapid rollout of Five9's AI-powered solutions, like their new AI Agents introduced at Customer Contact Week (CCW) in June 2025, puts them directly in the crosshairs of emerging AI governance legislation. The global trend, spearheaded by the EU AI Act, is moving toward classifying AI systems by risk, demanding transparency, human oversight, and accountability. This isn't just about avoiding bias; it's about proving your AI is making fair, explainable decisions when it handles a customer's loan application or insurance claim.

Five9 is responding by embedding governance into its structure. The company's Corporate Governance Guidelines, re-adopted in February 2025, specifically delegate primary oversight, implementation, and review of Five9's artificial intelligence and machine learning strategies, policies, and risk assessment to the Audit Committee. That's a clear signal that AI risk is now a boardroom-level financial and legal concern. They are defintely trying to get ahead of the curve.

Key AI Governance Mandates for Five9's Platform:

• Implement security guardrails to prevent misuse of AI Agents.
• Ensure AI systems do not circumvent fundamental rights.
• Provide human oversight and control over agentic AI actions.
• Maintain transparency in AI disclosures and strategies.

Ongoing risk from shareholder litigation, such as the class action filed in early 2025

Five9 is currently navigating a significant legal headwind from a securities class action lawsuit filed in the United States District Court for the Northern District of California. This litigation, which saw the Lead Plaintiff and Counsel appointed on March 18, 2025, and an amended complaint filed on May 30, 2025, alleges the company made false or misleading statements regarding its business strength.

The core claim is that Five9 misrepresented the strength of its net new business bookings and visibility into its customer base between June 4, 2024, and August 8, 2024. The financial impact was immediate and material: when the company disclosed cuts to its annual revenue guidance on August 8, 2024, the stock price fell over 26%, dropping from $42.47 per share to $31.22 per share the next day. This case represents a near-term financial risk due to potential settlement costs and ongoing legal expenses, which will be a drag on 2025 fiscal results. The legal process is ongoing, but the cost of defense alone is substantial.

Telecommunications regulations (e.g., FCC rules) govern voice services and call routing quality

As a provider of cloud contact center services, Five9 operates under the purview of the Federal Communications Commission (FCC) in the US, which is actively tightening rules to combat illegal robocalls and enhance consumer privacy. The FCC's new rules, particularly the Eighth Report and Order adopted in February 2025, significantly expanded call blocking requirements.

This means Five9, and its underlying voice service providers, must now actively and obligatorily block calls from numbers on a Do-Not-Originate (DNO) list. This shift from optional to mandatory enforcement for all carriers in the call path creates a higher bar for quality and compliance. Also, the new FCC rule under the Telephone Consumer Protection Act (TCPA), effective in January 2025, requires explicit, one-to-one consent for direct communications like calls and texts. This forces Five9's customers to overhaul their consent management processes, which in turn requires Five9 to provide compliant platform features. Failure to adhere to these new FCC rules could result in significant fines and, more importantly, service interruptions for Five9's clients.

Other key 2025 regulatory pressures include:

• Continuous monitoring and maintenance of Robocall Mitigation Database submissions.
• Increased focus on georouting for emergency services (like 988 Suicide & Crisis Lifeline) to ensure calls and texts are routed based on the user's location, not just the area code.

Five9, Inc. (FIVN) - PESTLE Analysis: Environmental factors

Cloud-Native Platform Replaces Energy-Intensive, Legacy On-Premise Hardware Systems

You're looking at Five9, Inc.'s environmental footprint, and the first thing to grasp is that their core business model is inherently an environmental positive. They don't run massive, proprietary data centers; they offer a cloud-native contact center solution (CCaaS) that replaces legacy, on-premise hardware. This shift is a huge factor in reducing energy consumption and e-waste for their customers.

Moving a contact center from a client's own server room to a highly efficient public cloud infrastructure translates to significant environmental gains. Industry data for 2025 suggests that by migrating to Infrastructure-as-a-Service (IaaS), companies can reduce their carbon emissions by up to 84% and their energy consumption by up to 64% compared to running the same workloads on-premise. That's not a small difference; it's a structural advantage, defintely a core part of their value proposition in a climate-aware market.

Indirectly Benefits from Hyperscaler Cloud Providers' Aggressive Renewable Energy Targets

Five9 operates on hyperscale cloud platforms like Amazon Web Services (AWS) and Google Cloud, so their environmental performance is tied directly to the massive clean energy investments of these partners. This is a critical, indirect benefit. Hyperscalers have been aggressively pursuing carbon-free energy goals, and the latest 2025 reports show they are making serious progress.

Here's the quick math: as of 2025, hyperscalers now use renewable sources for approximately 91% of their total energy needs. This means nearly all of the power consumed by Five9's platform is covered by renewable energy credits or direct purchases. This high percentage gives Five9 a near-zero Scope 2 emissions profile (emissions from purchased electricity) without having to build a single solar farm themselves. Still, this reliance also creates a risk: if a key hyperscaler fails to meet its net-zero targets, Five9's own indirect carbon footprint rises immediately.

Supplier Code of Conduct Requires Partners to Comply with Environmental Laws and Minimize Climate Impact

To be fair, a company's environmental impact goes beyond its own operations, extending into its supply chain. Five9 addresses this through its Supplier and Partner Code of Conduct, which was re-adopted and effective as of July 1, 2024. This code is not just a suggestion; it's a non-negotiable requirement for all partners.

The Code mandates that suppliers must operate in an environmentally responsible and efficient manner. Specifically, it requires partners to:

• Comply with all applicable environmental laws and regulations.
• Minimize their negative impact on biodiversity, climate change, and environmental resources.
• Raise awareness and provide training to their workers on environmental matters.

This commitment helps mitigate Scope 3 emissions (indirect emissions from the value chain) and ensures that their vendors are also held to a high standard of environmental stewardship.

Board-Level Oversight of Sustainability and Governance is Delegated to a Dedicated Committee

Environmental, Social, and Governance (ESG) performance isn't just a management task at Five9; it has direct Board-level oversight. The Board of Directors, in their Corporate Governance Guidelines re-adopted on February 12, 2025, delegates the primary responsibility for ESG to the Nominating and Governance Committee. This is a strong signal that sustainability is viewed as a core governance and risk issue, not just a marketing effort.

The Nominating and Governance Committee is tasked with the primary oversight, implementation, and review of Five9's sustainability programs, principles, disclosures, strategies, policies, and risk assessments. They report back to the full Board periodically. This structure ensures that environmental risks, such as regulatory changes or supply chain disruptions due to climate events, are consistently monitored at the highest level of the organization.

Here is a summary of the key environmental factors and their quantifiable impacts: