Thank you for joining us today. Some of the statements made during this call that are not historical facts, including our expectations about future financial performance, cash position, anticipated improvements in various metrics, projected annual recurring revenue from specific customers, changes in revenue mix, customer growth forecasts, potential benefits from our solutions, including AI, our AI and CCaaS revenue opportunities, and current estimates related to those areas are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are predictions and should not be overly relied upon by investors. Actual events or results may differ significantly, and the company has no obligation to update these statements. There are substantial risks and uncertainties that could negatively impact Five9's future results, which could render these forward-looking statements inaccurate. These include adverse economic conditions, macroeconomic challenges such as inflation, consumer spending uncertainty, high interest rates, fluctuations in currency rates, and decreased growth among our existing customer base, as discussed under Risk Factors in our annual and quarterly reports filed with the Securities and Exchange Commission. Management will reference non-GAAP financial measures during this call, and information about why we use these measures and a reconciliation of our GAAP and non-GAAP results is available in our press release issued earlier today and in the appendix of our investor presentation on Five9's website. Please note that the information provided during this call reflects management's views as of today and may not be accurate at the time of a replay. Additionally, unless stated otherwise, the financial figures discussed are non-GAAP. Now, I will turn the call over to Five9's Chairman, Mike Burkland.

Thanks, Tony, and thanks, everyone, for joining our call this afternoon. Before we discuss our strong finish to the year, I want to acknowledge that this is my final earnings call at Five9 after 18 years with the company. It has been the privilege of my career to lead this organization, and I'm incredibly proud of what we've accomplished together. We've grown Five9 from approximately $10 million in annual revenue to a $1.2 billion run rate, while enabling some of the largest brands in the world to transform their customer experience. These achievements are a testament to the talented team of Five9ers and our vision to be the leader in AI-powered CX. As you know, Amit Mathradas started as CEO on February 2. And before we dive into the business results, I want to take a moment to formally welcome Amit to his first earnings call. After a comprehensive search process, we selected Amit for his deep experience in product innovation, AI and operational excellence at scale. His leadership style and his proven track record of leading through evolving market conditions align perfectly with Five9's culture and the tremendous opportunity ahead of us. I have the utmost confidence in Amit's leadership and all of us here at Five9 are extremely excited to start this new chapter with Amit at the helm. With that, Amit, I'll turn it over to you to share a few of your initial thoughts on Five9 and our opportunity ahead.

Thanks, Mike. I am thrilled to join my first Five9 conference call and would like to express my gratitude to the leadership team and the Board for putting their trust in me as Five9's next CEO. I officially started on February 2. And in the past 2 weeks, I have spent time meeting partners, customers, listening to employees, reviewing road maps and getting deeper into the operational cadence. And what I have seen so far has reinforced why I took this role. I joined Five9 for a simple reason: I believe we have a large opportunity in front of us and that we have the right foundation to capture more of it. I strongly believe that over the long term, customers will look to Five9 for a unified CX platform that can solve their agentic and traditional human needs. This multi-agent world uniquely positions Five9 to drive efficiency and elevate customer experience for all our customers. From a communication standpoint, you should know that I will be clear on what's working, what is not and what we are doing to improve it. And with that, I'll turn it back to Mike to discuss our fourth quarter and full year performance. Mike?

Thanks, Amit. We're pleased to report solid Q4 results. We had an exceptional bookings quarter, achieving a Q4 record, highlighted by enterprise AI bookings more than doubling year-over-year, contributing to healthy increases in backlog. In terms of top line, we finished the year strong with fourth quarter total revenue coming in at $300 million. Subscription revenue, which now makes up 82% of total, accelerated to 12% year-over-year growth in Q4. This was driven by enterprise AI revenue growth accelerating from 41% to 50% year-over-year and core CCaaS subscription revenue growth accelerating from 7% to 8% year-over-year. I'm also excited to report that our enterprise AI annual run rate revenue surpassed $100 million in the fourth quarter. On the bottom line, we achieved all-time records in the fourth quarter with adjusted EBITDA increasing to a margin of 26% and free cash flow more than doubling year-over-year to a margin of 22%. These results demonstrate our commitment to balanced growth and operational excellence. I'm incredibly proud of our team's execution. And with our strong positioning in AI-powered CX, we believe we're set up for continued success in 2026 and beyond. Turning now to our business updates. Today, I'd like to focus on 3 key topics: first, our large and growing market opportunity; second, our differentiated position in AI-driven CX; and third, our strong partner momentum. We are in the early stages of a long-term transition in the CX industry with multiple secular growth vectors driving a significantly expanding addressable market for our platform. As a reminder, Gartner forecasts the market for traditional CCaaS to grow at a 9% CAGR and the gen AI customer service market to grow at a 34% CAGR through 2029 to a combined annual spend of $48 billion. We believe that both of these growth drivers will create a powerful tailwind for Five9 as we continue to execute against this durable multi-year opportunity. Importantly, we believe Five9 is well positioned to lead in this new era of AI-powered CX. At the core of our advantage is data, more specifically, conversational data. We capture every customer interaction across voice, digital and AI-driven channels. Therefore, our platform remembers every conversation, whether it was with a human agent or with an AI agent through voice or digital. This creates what we call a relationship-based experience where every engagement feels personal, contextual and connected. Our end-to-end platform serves as a real-time orchestration engine for customer interactions, whether handled by a human agent or by an AI agent, enabling seamless collaboration between the two. Each interaction strengthens the next, and this continuous learning loop compounds over time, creating a powerful data flywheel that drives higher performance, accuracy and personalization. This is a significant advantage that only an end-to-end platform can deliver. Our platform advantages are also driving significant momentum in product innovation. At our CX Summit in November, we announced a suite of new AI-powered solutions designed to help enterprises elevate their CX, including our AQM, which is a next-generation Agentic Quality Management solution, our AI-powered Genius Routing engine, our OneVue unified analytics and reporting platform, and our no-code Adaptive Digital Engagement solution. These innovations showcase how Five9 continues to lead in AI-driven CX and further strengthen the power of our end-to-end platform. In addition to our product innovations, we continue to double down on partnerships as a key driver of differentiation in both our products and our go-to-market. That's why we're excited about the expansion of our partnership with Google Cloud and the launch of our joint Enterprise CX AI solution, which we announced in January. We were an early adopter of Google's AI technology, and it continues to pay off for us by accelerating innovation across our CX and AI portfolio. Our joint solution brings together the Five9 AI-infused intelligent CX platform and Google Cloud's Gemini for customer experience, to deliver faster time to value, seamless end-to-end orchestration across the customer journey, and more personalized interactions. Customers can move beyond pilots and deploy AI in production faster, grounded in real customer context and built for enterprise scale. That's why we're already seeing strong traction with some of the largest brands in the world leaning into the combined power of Five9 and Google. And before I turn it over to Andy, I want to thank our incredible team of Five9 for your passion, dedication and commitment to excellence throughout my tenure as CEO. Together, we've built something truly special. As I transition the CEO role to Amit, I'm more excited than ever about Five9's future. We have a differentiated platform, proven expertise, strong customer momentum and the right leadership to capitalize on the significant opportunity ahead. And with that, I'll turn it over to our President, Andy Dignan, to share more details on our go-to-market performance. Andy?

Thank you, Mike, and congratulations on your well-earned retirement. And Amit, I look forward to working with you as we build on Five9's strong foundation. We were pleased to deliver an exceptional quarter of bookings. As Mike mentioned, total bookings represented a Q4 record, driven by enterprise AI bookings more than doubling year-over-year and our installed base bookings achieving another all-time high for the third consecutive quarter, driven by ongoing strength in upsell and cross-sell activities. In addition to strong execution by our sales teams, a key driver of our success is our partner strategy. Partners expand our reach. They bring us into more enterprise buying motions and speed up time to value for customers. Five9 has been partner-first for years. And today, more than 80% of our business is partner influenced. Our balanced route-to-market model is working. Partners are leading complex transformations, accelerating AI adoption, and delivering outcomes faster than ever. In 2025, Five9 doubled year-over-year the number of partners certified to implement Five9 services, showing just how mature and essential our ecosystem has become. Building on Mike's comments about the multiple secular growth vectors expanding our market, we're seeing customers lean into both sides of that transition at once, modernizing on CCaaS while accelerating adoption of AI. The first example is a global power management company with over 85,000 employees that selected Five9 to modernize from an on-prem platform to a CCaaS foundation. They chose us based on our native integrations with Salesforce and ServiceNow and our AI Agent and Agent Assist capabilities to improve self-service and drive higher agent productivity. We expect this initial order to result in approximately $2.8 million in ARR. Another example is a life, health and financial services provider that chose Five9 to move from on-prem to cloud and improve work performance. They selected Five9 for our tight integration with their health care CRM and our comprehensive suite of AI solutions. We expect this initial order to result in approximately $1.1 million in ARR. The third example is a hospitality technology company migrating off of a cloud competitor. They chose Five9 for our open platform approach, which allows deep integration with their hospitality platform, their core business. They view this integration as a differentiator for their customers, including some of the highest-end hospitality brands in the world. They also chose Five9 because of our joint partnership with Google Cloud to accelerate AI-driven CX. We expect this initial order to result in approximately $3.4 million in ARR. In addition to customers choosing us as their core CX solution, we continue to see our customers expand their use of Five9's AI capabilities and make long-term commitments to Five9 as their CX AI provider. One example is a health care provider that expanded their Five9 commitment from approximately $6 million to over $10 million in ARR, along with a 3-year commitment. They are doubling down on AI with a clear focus on leveraging AI agents to drive meaningful cost savings across the business. Looking ahead, we remain encouraged by the momentum of our business, fueled by pipeline and RFP activities sustaining elevated levels. And with that, I'll turn it over to Bryan to take you through the financials. Bryan?

Thank you, Andy. Before I dive into the financials, I want to thank you, Mike, for your exceptional leadership and incredible partnership over the years. Your vision and execution have positioned the company well for the future. And Amit, welcome aboard. I'm excited to work with you as we advance Five9 to the next chapter. Now turning to our financial performance for the fourth quarter. We're pleased to report strong Q4 results with total revenue coming in at $300 million, representing 8% growth year-over-year. Subscription revenue growth accelerated to 12% year-over-year in the fourth quarter, primarily driven by: first, enterprise AR revenue growth accelerating to 50% year-over-year, now making up 12% of enterprise subscription revenue; second, core CCaaS growth accelerating to 8% year-over-year; and third, continued momentum in a market where 228 of our million-plus ARR customers grew subscription revenue 24% year-over-year, now making up 59% of subscription revenue. Additionally, our concurrent seat count continued to grow at a healthy rate, both quarter-over-quarter and year-over-year, relatively in line with our core CCaaS revenue growth. Subscription revenue represented 82% of total revenue, up from 79% a year ago. And we expect this mix shift to continue as we focus on high-margin subscription revenue, increasingly led by our AI solutions. Telecom usage represented 11% of revenue and professional services made up the remaining 7%. With regard to seasonality, as expected, the sequential uptick in our consumer and health care verticals in Q4 was meaningfully less than last year for telecom usage. For subscription revenue, sequential growth was better than anticipated, but still less than Q4 of last year. Our enterprise business represented approximately 91% of total revenue on an LTM basis. Within this category, LTM enterprise subscription revenue grew 15% year-over-year. Our commercial business represented the remaining 9%. As a reminder, this part of our business underperformed in Q3, but the immediate actions we implemented drove favorable results in Q4, and we expect LTM year-over-year growth to return to normal historical levels next quarter. With regard to our dollar-based retention rate, our spot rate increased sequentially, while the LTM rate stepped down from 107% in Q3 to 105% in Q4 as anticipated. This is primarily due to tough compares as Q4 '24 benefited from strong seasonality and our largest customer completing its multiyear ramp. In 2026, we expect LTM DBRR to remain range-bound within a small band in the first half and inflect upward in the second half. Turning now to profitability. Q4 adjusted gross margin was 63%, down by approximately 40 basis points year-over-year, primarily driven by lower gross margins in telecom usage and professional services. Adjusted EBITDA margin increased by approximately 260 basis points year-over-year to 26% as we continue to focus on disciplined expense management. Additionally, we continue to boost productivity as demonstrated by our revenue per employee increasing 14% year-over-year. Q4 GAAP EPS was $0.23 per diluted share, representing 5 consecutive quarters of positive GAAP earnings, while non-GAAP EPS came in at $0.80 per diluted share. In terms of cash flow, we generated $84 million or 28% of revenue in operating cash flow. Additionally, we generated free cash flow of $67 million or 22% of revenue, which represented over 10 percentage points of margin improvement year-over-year. As a result, we ended the quarter with total cash and investments of $697 million. And now for a closer look at key full year 2025 income statement metrics. 2025 total revenue came in at $1.15 billion, growing 10% year-over-year, with subscription revenue growing 13% year-over-year. 2025 adjusted gross margin expanded by approximately 110 basis points year-over-year to 63%, while 2025 adjusted EBITDA margin expanded by approximately 470 basis points to 23%. 2025 GAAP EPS was positive for the first time on an annual basis at $0.45 per diluted share, while non-GAAP EPS came in at $2.96 per diluted share. 2025 operating cash flow finished at $226 million, and free cash flow came in at $162 million. Now turning to our full year 2026 and first quarter guidance. For 2026 revenue, we're initiating our guidance at a midpoint of $1.254 billion, which is in line with the high-level outlook we provided last quarter. For Q1 revenue, we're guiding to a midpoint of $299.5 million, which is also consistent with the high-level outlook of relatively flat sequential change we shared last quarter. In terms of quarterly progression, we expect Q2 revenue to increase slightly quarter-over-quarter, followed by momentum building further throughout the year. As a result, we continue to expect revenue to return to double-digit growth in the second half of 2026, driven by our strong backlog of both new logo and installed base bookings. With regard to the bottom line, we're guiding 2026 non-GAAP EPS to a midpoint of $3.18 per diluted share, which is higher than the high-level outlook of $3.14 per diluted share that we provided during our last earnings call. We're also guiding to continued GAAP profitability in 2026 with a midpoint of $0.91 per diluted share for GAAP EPS. For Q1 non-GAAP EPS, we're guiding to a midpoint of $0.68, which reflects a typical sequential decline in the first quarter of the year. As for the remainder of the year, we expect relatively flat sequential moves in the second quarter and large improvements in the second half. Also, for other key profitability metrics, we expect at least 24% in annual adjusted EBITDA margin and approximately $175 million in annual free cash flow. Additionally, we plan to host an Investor Day in late 2026, where we will provide additional details on our strategic priorities and long-term financial outlook. We look forward to sharing more with you at that time. Finally, on our share repurchase program, we completed a $50 million accelerated share repurchase on February 2, buying back approximately 2.6 million shares. We have $100 million remaining under our authorization through December 2027. This reflects our strong cash generation and confidence in Five9's value creation opportunity. In closing, 2025 was a transformational year for Five9. We delivered strong financial performance, expanded our AI capabilities and strengthened our strategic partnerships, and we believe we have positioned the company well for sustained profitable growth. With Amit now leading the team, we're energized about our opportunities ahead and committed to executing our strategy to deliver long-term shareholder value. And with that, operator, please open the line for questions.

Our first question comes from Raimo Lenschow from Barclays.

This is Damon Coggin on for Raimo. Congrats on your retirement, Mike, and congrats, Amit, as well for the new role. Great to hear the continued strength with the AI portfolio, reaching $100 million ARR, accelerating 50% year-over-year. Can you help us understand some of the breakdown between what is greenfield and then what is within your existing customer base? And then what is factored into the 2026 guidance just from that portfolio?

I'll start, and Bryan, feel free to chime in. But look, this is a combination of us having a lot of success with new logo attaches of AI and also penetration into our installed base. I don't think we quantified the breakdown between the two, but I can tell you both are growing at a significant rate and very strong. Bryan?

Yes. And if you think about the 2026 revenue guidance, we've kind of given you the shape of the curve on a total revenue basis. And this is the first time we've given you the breakout of growth rates between enterprise AI as well as core CCaaS. So core CCaaS, obviously, that's a big portion today, and that's going to follow the shape of the curve for the total revenue guide, which means that if you back into the enterprise AI, it's still going to be growing at a very fast clip, but it will ebb and flow through the quarters, but it's still going to be the fastest part of our portfolio.

Our next question comes from Sitikantha Panigrahi from Mizuho.

Great. Mike, it was great working with you and wish you good luck for your next phase. And Amit, congratulations and I look forward to working with you. Great. Amit, I want to ask you, you have great product experience operation and when you look at AI outside the industry. As you look into Five9, and I know you talked about opportunities being huge, how do you see navigating Five9 when it comes to product? Or where do you think you can bring some changes? Or where do you think it's working? Or do you think it is too early to talk about that?

Thank you, Siti, for that question. Look, I think the answer is a combination of what you laid out a little bit. One of the reasons I took this role is I am really bullish on the transformation that's going to happen within the CX space. As humans, agents, systems, and software all come together, I actually think this turns allows our end users and customers to have more efficiency, greater experiences, and in some cases, new experiences that haven't even been factored in as yet, right, just like how the Internet per se transforms retail. And so for me, I am really looking forward to unlocking that, which is how do we actually increase the TAM by doing new things with AI and traditional CCaaS and providing customers new opportunities. To the second part of the question on where do we go from here and which pieces, it's a little bit early. I'm still getting my feet around our product and our road maps. But what is really exciting is the stat we put out, which is we've already done $100 million in ARR of AI, and it's growing. So we have proof points to back up this thesis that AI is growing. It's happening fast, and it's happening both in our new logo and in the existing base.

Our next question comes from Ryan MacWilliams of Wells Fargo.

Excellent. This one is for Mike. Mike, I mean, what a great run and congrats. I mean I just think back to probably 15 years ago when people said that the biggest contact centers in the world would never move to the cloud, right? And now you guys have customers that are over 10,000 seats and some of the largest Fortune 50 companies that are out there. So people have been wrong before in the contact center industry about what's coming next. I mean, as you kind of take a step back today, what do you think people are missing right now in terms of the contact center opportunity? Like I know it feels like the seats are a question and like where some of these interactions will be. But like what do you think the contact center of 5 years from now means for Five9?

Thank you, Ryan. I appreciate your comments. You're absolutely right. I remember when we went public in 2014, there were doubts about whether large enterprises would move to the cloud. Currently, we are at 40% cloud adoption and 60% on-premise, and this presents a multi-year opportunity for us to continue this trend. However, things have changed significantly. The potential in AI is enormous. We made early investments with our Inference acquisition and have developed many capabilities from that. I believe people are starting to realize this, although I think we're just beginning to see this realization among investors. Our customers are already aware, but the investor community is catching on to the end-to-end platform advantage that we and some other companies possess. Consider Five9 as a system of engagement, interaction, and action, in contrast to a CRM system, which is primarily a system of record. It's crucial to understand that we are on the front lines during pivotal moments with customers and brands, giving us a competitive edge. We provide both AI-driven and human agent solutions in a coordinated manner. That is the strength of our platform, leading to personalized, contextual, and connected experiences that only Five9 can offer. This is reflected in our numbers, and we're beginning to discuss them more openly. Our core CCaaS revenue growth has accelerated from 7% to 8%, and our AI revenue growth has increased from 41% to 50%. This is the formula for success. I will stop there.

You really want to trust the system to give you the right answer because it's not fun to be on the other side of a wrong answer.

Our next question comes from Terry Tillman of Truist.

It's Giancarlo on for Terry, and I appreciate the question. Congrats on a strong quarter. And I think that you guys were talking about the strong adoption for the newer features that you guys rolled out. And I was just wondering what sectors were seeing the highest uptake for those features? And maybe can you talk about what customers are kind of saying was their biggest pain point? And like how has that changed over the last few months?

I'll move to Andy?

Yes, I’ll take that. We’re experiencing significant success in the healthcare and retail sectors, and we’ve discussed our expansion within our customer base. What we’re witnessing is customers looking to advance their customer experience strategy to include AI. Historically, many have faced challenges because their data isn’t in an optimal state. We’ve highlighted that your AI strategy depends on a solid data strategy. Thus, we’ve dedicated considerable effort to ensuring our customers understand the necessary data conditions to effectively implement those use cases. Over time, as illustrated by the customer example we mentioned today about expanding their AI, we have consistently demonstrated this over the past few years. Now, they are making long-term commitments for 3- and 5-year renewals based on the successes we've shown and their growing confidence in us moving forward.

Our next question comes from Catharine Trebnick of Rosenblatt.

Congratulations, Mike and Amit and back to the AI question. So what percentage of your enterprise base is adopting the AI, especially looking at AI Agent Assist and Genius Routing? What I'm trying to really understand is what's the runway going forward for enterprise adoption?

Yes, I'm glad to begin. Catharine, it's still early in terms of fully integrating our offerings across our customer base. Almost all of our customers are exploring AI and making decisions regarding its use. However, the implementation is still in the early stages for many. I've mentioned our comprehensive platform and how customers are deploying our AI and CCaaS in real production environments rather than just in proofs of concept or flashy demos. Nonetheless, we're still in the initial phase of this opportunity. As I mentioned earlier, we've surpassed $100 million in annual recurring revenue from AI, but we're just beginning this journey.

Our next question comes from Peter Levine of Evercore.

Mike, best of luck, and Amit, welcome aboard. Maybe how do you think about the risk that the LLM native platforms bypass the traditional CCaaS architecture entirely, right? Like in what scenario does an enterprise build their own AI Agent directly on top of like an OpenAI and Anthropic, right? And I guess the question is like what core functionality does Five9 provide that can't be replicated, meaning like what's the hardest to kind of disintermediate from you guys? Is it the workflow, the infrastructure, the compliance, the data? Like help us think through like the risk that these platforms are going to come in overnight to replace you guys?

Yes. Very good question, Peter, and I'll start, and you guys feel free to chime in. Again, we talk about our platform advantages, mainly the data advantage is number one, and it's conversational data and its historical and real-time conversational data. It's also this orchestration capability across all channels and across any backend, whether it's AI on the backend handling this interaction or whether it's a human agent, being able to orchestrate across this entire interaction set is an absolute competitive moat. And look, we're going to continue to have advancements by LLMs, but I've said this even 2 years ago, you cannot run a customer service organization on an LLM. LLMs are a foundational technology that we're all leveraging to deliver applications, solutions for customer experience. And the bar is set. The bar is always going to be there's an orchestration capability of these on-premise solutions that we replace. They're supporting thousands of human agents and now thousands of AI agents in the future. And that orchestration capability is really isolated to these end-to-end platforms like Five9.

Maybe, Bryan, can you just help us understand the $100 million in AI revenue, what percentage of that is like seat-based, usage-based? But just help us understand what makes up that $100 million.

Yes. So our $100 million of enterprise AI revenue is all consumption or capacity based. So the way it works is that we charge for a block of committed units, whether that's minutes or gigabytes or whatever it may be. And then anything above that would be overage. So it is absolutely consumption-based and yes, and gaining a lot of traction there.

Our next question comes from Samad Samana from Jefferies.

I'll echo the words of my peers. So congrats, Mike, and great to be working with you, Amit. Just I guess a question, Bryan, as I think about the guidance and how you're thinking about the kind of the first half versus the second half, how much of that is influenced by the timing of either large logos that were still in the backlog, whether let's call it the large pharmaceutical company or the large logistics company being fully live versus how much of that is AI revenue ramping? And have you made any adjustment to the guidance algorithm to account for maybe the change in revenue being more consumption-based versus seat-based? Just help us understand kind of the guidance mechanics.

Yes, we are guiding for 2026 revenue to reach a midpoint of $1.254 billion, which represents an increase of $105 million for the year. I’ll break that down into contributions from our DBRR, backlog, and new logo bookings. Starting with DBRR, we exited 2025 with an annualized rate of 105%, and we anticipate that will stabilize in the first half, with only slight fluctuations. We expect it to increase in the second half, which will account for about two-thirds of the $105 million in incremental revenue. The remaining third will be covered by our backlog, which includes contingencies, meaning we won't rely on new logo bookings for revenue this year. Our backlog consists of bookings we've secured from new logos and those from our existing customer base, both of which are generating revenue throughout the year. We have clear visibility into this backlog, but each customer has a unique ramp-up schedule. This year, revenue is more heavily weighted toward the latter half, contributing to an acceleration in growth. Regarding our AI portfolio, it is entirely based on consumption and capacity, which will continue to be a significant growth driver throughout the year. It may fluctuate, but it is expected to be the fastest growing segment of our offerings.

And then maybe just a follow-up. On the AI revenue, the $100 million for enterprise AI revenue is very impressive. Can you just maybe help us understand how much of that is maybe allocated towards, let's call it, like next-gen solutions that you guys have rolled out in maybe like, call it, the last 12 to 18 months versus maybe what was foundationally from like an Inference or something that you had kind of in a prior period? Just to help understand where the momentum is inside of the portfolio.

I'm glad to begin, and then others can add their thoughts. When we examine the makeup of our AI revenue, the largest components are our AI Agents and Agent Assist. Following those are Workflow Automation and several smaller products that are experiencing rapid growth, though they are still relatively minor in scale. AI Agents, in particular, are gaining significant traction with the generative AI base, as is Agent Assist. We haven't specified the exact breakdown, but there is definitely strong momentum and acceleration happening across the board.

Our next question will come from DJ Hynes of Canaccord.

Well deserved, Mike. We'll miss you on these calls, but I know you still have an impact on the business from the Chairman seat, and I look forward to that. Amit, good to see you again, and I look forward to working with you. I have two questions. Bryan, I'll start with you. The acceleration in AI revenue growth seems to be a result of what we discussed last quarter, specifically the lag between bookings and when it affects the P&L. If that's accurate, AI bookings have indeed been growing much faster, with an increase of 80% last quarter and 100% this quarter. This suggests that AI revenue growth should continue to accelerate. Is that correct? The second question is for either you, Mike, or Andy. Can you elaborate on the Google partnership? What potential impact could it have on the business? What are they utilizing from you, and what role does Gemini play in that? How do the components fit together, and what might it signify?

Yes. So I'll start, DJ. So thanks for the question. So yes, you're exactly right. We've been talking about enterprise AI bookings growing either 80% plus for the last 3 quarters. And we said if we string together multiple quarters like that, we'll start to see the acceleration happen, and we are starting to see that in Q4, where it accelerated from 41% to 50%. Now going forward, as I mentioned earlier, there will be ebbs and flows, but we do anticipate that if we can continue that momentum on the bookings side, they sit in backlog for a little bit and then they start converting into revenue, and that's what's baked into our guidance. And the acceleration that we're seeing in the back half of 2026 is driven by not just AI, though, also by core CCaaS in our backlog that's converting to revenue as well. So we're seeing momentum on both sides.

I'll start on Google, and Andy, please join in. I want to make a high-level comment. Thank you, DJ, for your insights as well. It has been a pleasure collaborating with you and the analyst community. In my view, the partnership with Google is highly significant for Five9. What I appreciate about this partnership is that it emerged from our shared success in the market with large enterprises. It’s more than just a paper alignment; it was driven by the market success we’ve had together. Those are the kinds of partnerships that truly thrive in the long run. So, Andy, feel free to join in...

Yes. From a technical standpoint, the solution is truly collaborative. This involves engineers from Google and Five9 working closely together on this joint offering. We've already experienced success, as Mike mentioned, and we see a strong opportunity to enhance our pipeline through this collaboration. It's going to be part of our CCaaS environment. We are utilizing Google and Gemini’s applications and foundational models to develop our own AI products, and we will continue to expand what this joint solution entails.

Our next question comes from Will Power of Baird.

This is Yanni Samoilis on for Will Power. And I'll echo the congratulations to Mike and Amit. And I'd love to hear a little bit about what you're seeing across the different verticals that you serve. If you could just discuss if any are strengthening more than others or if there are any that you expect to help power that second half acceleration more than others. And in particular, like for some of your bigger verticals like your health care vertical or maybe consumer, it would be great to get an update on what you're seeing and then what you're factoring into the guide for 2026.

Yes, thanks for the question, Yanni. Looking at our consumer and health care verticals in Q4, which are typically the two strongest seasonally, we had expected only a minimal seasonal uptick in Q4. In reality, the uptick was slightly more favorable than anticipated, though still weaker compared to Q4 of 2024. If we break that down by subscription and telecom usage revenue, the telecom usage revenue was much weaker than last year, which resulted in a 1 percentage point decline in revenue percentage quarter-to-quarter compared to Q4 2024, where it actually increased as a percentage of revenue. This means that the typical seasonal decline we see in Q1 for those two verticals is expected to be a bit more subdued than last year. This is reflected in our guidance for Q1, where we are projecting flat sequential change this year, as opposed to a negative 2% change a year ago. For the rest of 2026, we anticipate that both seasonality and macro conditions will remain consistent with what we experienced in Q4. Also, for the other 15 verticals we track, they are aligning with typical sequential growth rates for Q4.

I can elaborate on some of the segments. Our three largest verticals are financial services, health care, and retail, where we are seeing significant adoption. This highlights the platform advantage we possess. In health care and financial services, the regulatory considerations and security concerns add complexity to CCaaS deployment, which typically involves 24 integrations on average, and can reach up to 100 integrations at times. Consequently, the threshold for adopting AI is quite high in these sectors. This demonstrates that we are developing truly scalable enterprise AI solutions, reflecting the success our team has achieved in creating these products.

Our next question comes from Jackson Ader of KeyBanc.

I was wondering if you could talk about new logo large customer pipeline and how influential Five9's AI features help land new customers? And then as a follow-up, could you talk about how AI helps dollar-based gross retention and then the dynamics of upselling in renewal contracts?

Yes, we feel good about our large deal pipeline, and we believe the levels will continue to be strong. AI plays a significant role in why customers are choosing Five9. This is evident in our efforts to land new clients, as well as the $10 million-plus deals we've seen in the past few quarters where customers are increasing their spending with us. I think this trend is occurring across both segments.

Yes. And I'll just say from a financial perspective for DBRR, when we talk about enterprise AI bookings doubling during the quarter, it wasn't just on the new logo side. It was both new logos and installed base. So we're seeing a lot of momentum there. And that's part of what's going into the backlog and then driving that acceleration on a total revenue basis, but also from a DBRR perspective in terms of the inflection upward in the second half.

Our next question comes from Arjun Bhatia.

I have two quick questions. First, regarding the increase in net revenue retention, when do you expect to see improvement in the latter half of the year? This is typically based on a trailing 12-month metric. Where specifically are you seeing upsell and cross-sell opportunities? Is it on the AI side, with core CCaaS gaining traction, or are there migrations from legacy systems like Cisco and Avaya? Secondly, about your partnership with Google, is it exclusive to Gemini or are you utilizing multiple models? Can you explain how you've constructed your technology stack?

Yes, Arjun, I'll address the first part of your question. In Q4, the spot rate actually increased from Q3 to Q4, driven by the conversion of our backlog's installed base bookings into revenue during the quarter. Although the last 12 months have shown a rounded decline from 107% to 105%, it only amounted to just over 1 percentage point. This was largely due to a calculation based on the last twelve months, particularly influenced by the strong seasonality and our largest customer's completion of a multi-year ramp during that period. We began the year with an increase from Q3 to Q4, and while we expect some stabilization and slight fluctuations, the upward trend is primarily attributed to both core CCaaS and AI. We noticed momentum in Q4, with notable acceleration on both fronts. In terms of our backlog, AI has demonstrated significant growth, consistently representing more than 20% of enterprise net new bookings. However, it is predominantly linked to core CCaaS in most deals, which is also part of our backlog. Therefore, the acceleration will derive from both areas.

And on the LLM question, the Gemini, I mean, we made a decision 7 years ago, and that brings true that we believe that sort of a multiple engine, multiple LLM is the way to build the products. We sort of saw where this was going, which is these LLMs are continuing to kind of one-up each other, right? And the other thing that's really important is each one of them sometimes delivers specific capabilities, right? You could have a single use case and use multiple LLMs as part of that. Now certainly, as part of the joint go-to-market with Google, we're going to be leveraging Gemini, right? There's a lot of very strong performance. We have a team within engineering and our services teams that are constantly benchmarking these LLMs as well. And so that brings us really to allow us to really continue to innovate on top of what's going on in the market.

Our next question comes from Elizabeth Porter of Morgan Stanley.

I just want to echo the congratulations to Mike and Amit. I guess the question from our side is like I think in the past, you guys have described kind of an AI fog among enterprise customers that having kind of lifted through 2025. And I guess just in light of some of the splashy announcements from the Frontier Labs or some of the upstarts in the space, has that fog stayed clear as we enter 2026? Or are you seeing any sort of lengthening in sales cycles as a result?

Yes, I'll start, Andy, please join in. It's clear that every company globally is focusing on their AI strategies, and that trend is here to stay. The uncertainty we experienced in the middle of '24 was mainly due to a slowdown in CCaaS decision-making. However, every enterprise is now considering AI as a top priority, and we are involved in those discussions. It's crucial for us to be at the forefront of the customer experience aspect of these AI choices. Our sales team has become well-versed in this area, and we have AI solutions that we can promote effectively. This presents a strong opportunity for us in a market that is highly interested in AI.

Yes. And in terms of the lengthening of sales cycles, I mean, outside of that fog, which was a lot of times, customers were coming off of doing a lot of proof of concepts, right, that weren't successful. We kind of saw that as an opportunity, like Mike said, to really up our game in terms of enabling our teams, but really more so very focused on having specific vertical-driven outcomes that we have customers who deployed it before. And so that really kind of came through. And so that's allowed us to, in my opinion, sort of accelerate some of our sales cycles, both on the new logo side and obviously, the installed base of customers continuing to just buy more of our AI.

Our next question comes from Gil Luria of D.A. Davidson.

Can you give us a medium-term financial framework? You already are effectively in line with all the metrics, excluding gross margins and revenue growth. How do you think about the impact of AI adoption on revenue growth and the inferencing costs that can weigh on gross margins going forward?

Yes. When considering the growth of enterprise AI revenue, we believe there is a significant opportunity available. We have experienced strong bookings growth, and if that trend continues, it represents an upside to our revenue forecasts and guidance. This is a major growth area for us, and we are performing very well in this sector. Regarding margins, our AI Agents, which are the largest segment of our enterprise AI portfolio, have gross margins in the high 70s and 80s. As the AI segment becomes a larger portion of our revenue, we anticipate it will positively impact our overall gross margin trajectory moving forward.

This concludes the Q&A portion of our call. I will now hand the call back over to Chairman Mike Burkland for closing remarks.

Amit is our new CEO. And look, I just want to thank everybody for joining us. And I also want to just say personally thank you to all the analysts and all our shareholders. It's been a pleasure, my pleasure to work with all of you. And Amit, welcome aboard again. I am so bullish on our future and a big part of that bullishness is because you're here as our next CEO. So welcome.

Thank you.

Thanks, everyone.

Thank you.