Asset Manager Investing in Global Technology Sector

We're an asset management firm allocating our capital into asset classes benefiting from technological innovation and applications globally. We serve as a family office of a tech professional who has spent over a decade as an entrepreneur, operator, and venture investor across Asia and the US.

Our small team is made up of diverse investment professionals who research, identify, and execute relevant opportunities. We occasionally share some of our investment memos, insights, and analysis here.

Friday, June 5, 2020

Q2.2020 - Five9: Strong Focus Comes At A Premium

  • The ~18x P/S valuation is reflective of Five9's strong focus and leadership in the contact center software market. It remains the only pure-play CCaaS today.
  • It is a profitable growth story with a deep moat in the enterprise market, driven by its strong channel partner go-to-market.
  • Despite the COVID-19 outbreak in Q1, the company maintained a +27% growth and signed a major deal with AT&T.

We are bullish on Five9 (FIVN), one of the leading players in the CCaaS (Contact Center as a Service) space. Since its IPO in 2014, the share price has appreciated by ~17x to ~$104 per share, to reflect the business' strong moat, fundamentals, and execution. Furthermore, it also operates in a highly attractive $24 billion market with strong positioning. We expect to see more upsides in the business as it continues to maintain its strong focus and execution in the enterprise CCaaS market.

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