1、Equity Research Technology 5 June 2023U.S.Software Contact Center By The Numbers;AI Implications For Interactions/Agents We show AI improves contact center efficiency with software pricing/cloud adoption benefiting,as labor costs are reduced We believe organizations could pull-forward cloud contact

2、center software purchasing to improve efficiency as AI-based interactions accelerate.Cloud is generally required for AI features,and less than 30%of seats are cloud today.Paying for productivity.New automation historically favors software purchasing as labor costs($30k/agent/yr;70%of total contact c

3、enter spend)far outpace software spend($1.5k/agent/yr;500 seats,multiple geographies and lines of FiguRe 3.given an estimated 6 minute call time,we calculate that FiVNs annual call volume grew 17%in FY22 and 29%in FY21(given management commentary around call minutes)11%40%29%17%0%10%20%30%40%50%000

4、mil.500 mil.1,000 mil.1,500 mil.2,000 mil.20182019202020212022FIVN#of Annual Calls and YoY Growth in Annual Calls#of Annual CallsYoY Growth in#of Annual CallsSource:FIVN company reports;Barclays Research EstimatesFiguRe 4.We estimate that Ai/automations could drive down total contact center spend(wi

5、th total labor spend decreasing by 47%in our example),and enhance overall contact center software spend Source:Barclays Research Estimates,NICE and FIVN Management Commentary5 June 20234Barclays|U.S.Softwarebusiness often come into place.In these situations,integrating contact center solutions for u

6、nique use cases such as CRM,ERP,and quality management becomes even more challenging,furthering the need for software vendors and human interaction.Professional services as a barrier to entry.We believe the professional services required to deploy cloud contact centers,maintain ongoing feature funct