Five9 Faces Rising 911 Compliance and Fee Risks Under Kari’s Law and RAY BAUM’s Act

Five9 Inc (FIVN) has disclosed a new risk, in the Regulation category.

Five9 Inc. faces regulatory risk because its virtual contact center offering is analogous to an MLTS and subject to evolving 911 rules under Kari’s Law and the RAY BAUM’s Act. If the FCC ultimately disagrees with Five9 Inc.’s interpretive assumptions about its 911 implementation, the company could face enforcement actions, fines, or other penalties.

The requirement to support direct 911 dialing and dispatchable location also entails operational burdens, such as accurate agent location registration, and exposure to state or local 911 support fee assessments. While current potential assessments appear modest, cumulative fees and compliance costs could pressure margins and reduce the competitiveness of Five9 Inc.’s services versus rivals that have not implemented comparable 911 capabilities.

Overall, Wall Street has a Moderate Buy consensus rating on FIVN stock based on 11 Buys and 4 Holds.

To learn more about Five9 Inc’s risk factors, click here.