Slide 1: Investor Presentation September 14, 2021
Investor Presentation September 14, 2021
Slide 2: Forward-Looking Statements
This communication contains forward-looking information related to Five9, Inc. ("Five9") and Zoom Video Communications, Inc. ("Zoom") and the acquisition of Five9 by Zoom that involves substantial risks, uncertainties and assumptions that could cause actual results to differ materially from those ex
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the proposed merger, Zoom filed with the SEC the Registration Statement and the Prospectus, and Five9 filed with the SEC the Proxy Statement. The Registration Statement was declared effective on August 26, 2021 and the Proxy Statement wa
Slide 4: Executive Summary
Executive Summary On July 18, 2021, Five9 announced an agreement to be acquired by Zoom Video Communications in a 100% stock transaction The transaction allows Five9 shareholders to continue to participate in the upside generated by a company with a stronger competitive position, an expanded TAM and
Slide 5: Overview of Five9 and Zoom
Overview of Five9 and Zoom Leading provider of intelligent cloud software for contact centers, focused on connecting organizations and their customers Leading communications platform, connecting customers through video, phone, chat and content sharing $3.6B LTM Revenue 170% LTM Revenue Growth Rate >
Slide 6: Transaction Rationale
Transaction Rationale 1 Combination with Zoom Significantly Expands the TAM of Both Parties 2 Combines Leaders in Communications and Contact Center 3 Creates Complete Communications Platform with Leadership Across Video Conferencing, UCaaS and CCaaS 4 Accelerates Growth Through Highly Synergistic Co
Slide 7: Transaction Highlights
Transaction Highlights Transaction Consideration Five9 shareholders will receive 0.5533 shares of Zoom Class A common stock for each Five9 share Implied transaction value of $12.1 billion(1) Represents a 21.5x EV / NTM Revenue multiple(2), the second-highest revenue multiple for a public SaaS compan
Slide 8: Combination with Zoom Significantly Expands the TAM of Both Parties
Combination with Zoom Significantly Expands the TAM of Both Parties Source: Zoom TAM as per IDC Research; Five9 TAM based on Five9 estimates, Statista, McKinsey, Gartner and MZA. $62B Zoom TAM $24B Five9 TAM ...Plus $34B TAM from Automation 1 $86B Combined TAM Greater reach and relevance within the
Slide 9: Combines Leaders in Communications and Contact Center
Combines Leaders in Communications and Contact Center 2 As enterprise customers increasingly seek out an integrated video conferencing, unified communications and contact center offering, the combined platform will build upon Zoom and Five9’s existing partnership and facilitate greater sales opportu
Slide 10: Creates Complete Communications Platform Across Video Conferencing, UCaaS and CCaaS
Creates Complete Communications Platform with Leadership Across Video Conferencing, UCaaS and CCaaS Customer Engagement Applications CRM Help Desk Customer Success E-Commerce Marketing Automation Seamlessly Integrated Communication Workflows 3 Complete Platform Video Conferencing Unified Communicati
Slide 11: Accelerates Growth Through Highly Synergistic Combination
Accelerates Growth Through Highly Synergistic Combination Industry first complete best of breed cloud communications portfolio Highly synergistic go-to-market; enabling a combined best-in-class offering to customers and partners Significant cross-sell opportunity for existing products across both cu
Slide 12: Positioning for the Next Phase of the Communications Evolution
Positioning for the Next Phase of the Communications Evolution: Combined Company Provides Enhanced Options for Customers 5 Contact Center Calling (Phone) On Prem Communications Transition Positioned to lead in the next phase of the communications evolution Points of Differentiation Complete + Integr
Slide 13: Scale Will be an Important Factor in the Next Phase
Current Competitors Established Competitors Potential Entrants Scale Will be an Important Factor in the Next Phase of the Communications Evolution 5 Recent and Potential Entrants Source: FactSet as of September 10, 2021. Market Cap.: $2,251.8B LTM Rev.: $168.1B Market Cap.: $21.0B LTM Rev.: $1.4B Ma
Slide 14: The Transaction Represents a Highly Attractive Multiple
The Transaction Represents a Highly Attractive Multiple EV / NTM Revenue Multiple EV / NTM Revenue / NTM Revenue Growth Multiple As of Announce(1) At Present(2) Source: Company press releases, Company filings, Capital IQ, FactSet, 451 Group and Wall Street research. Note: Five9 figures implied by Zo
Slide 15: Enhances Scale, Profitability and Cash Flow for Five9 Shareholders
+ Synergy Potential 11.2% Pro Forma Five9 Ownership(1) Enhances Scale, Profitability and Cash Flow for Five9 Shareholders 12.6% 12.9% Five9 Contribution 2.7% 4.0% Revenue ($MM) FCF ($MM) 7 +22% +18% Note: Estimates based on FactSet consensus as of September 10, 2021. As of Proxy Statement filed on A
Slide 16: Structured to Provide Continued Upside Exposure and Facilitate Integration
Structured to Provide Continued Upside Exposure and Facilitate Post-Close Execution and Integration All-Stock Transaction Benefits Five9 Shareholders Five9 shareholders will own 11.2%(1) of the combined entity, roughly in-line with revenue and significantly greater than Five9’s free cash flow contri
Slide 17: The Market Remains Positive on Zoom's Long-Term Value Proposition
The Market Remains Positive on Zoom’s Long-Term Value Proposition, Despite Recent Volatility Zoom Share Price: $301.50(1) Note: Excludes restricted brokers and brokers which have not updated estimates after August 31, 2021. As of September 10, 2021. Consensus estimates from FactSet as of August 29,
Slide 18: Culmination of a Thoughtful Process Led by a Highly Qualified and Independent Board
Culmination of a Thoughtful Process Led by a Highly Qualified and Independent Board 10 Transaction was the result of both extensive evaluation of Five9’s standalone prospects and our engagement with parties indicating bona fide interest in acquiring the Company The Five9 Board regularly reviews and
Slide 19: Appendix
Appendix
Slide 20: Five9's Highly Qualified Board
Chief Executive Officer, Five9 Extensive operating experience in the technology industry Highly Qualified and Independent Board Led the Process for Five9 Five9’s Board is highly independent (80%) with deep technology, financial and transactional experience The Board empowered its M&A Committee to ov
Slide 21: Selected Analyst Commentary – Compelling Valuation for Five9 Shareholders
Selected Analyst Commentary – Compelling Valuation for Five9 Shareholders “As it stands, FIVN is being taken out at 23x EV/R on C2022E, which is the second highest ever takeout multiple for a public SaaS company. Even if you put more realistic estimates in there for Five9, it’s a hefty price tag, eq
Slide 22: Selected Analyst Commentary – Upside of Combined Platform
Selected Analyst Commentary – Upside of Combined Platform “…from a purely strategic standpoint, the growing scale and gravity of the Zoom platform married with the premier CCaaS technology in the market, makes a truly formidable platform in the cloud communications industry. We are reiterating our B
Slide 23: Forward-Looking Statements
Forward-Looking Statements This communication contains forward-looking information related to Five9, Zoom and the acquisition of Five9 by Zoom that involves substantial risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such s