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News Release

Five9 Reports Fourth Quarter Revenue Growth of 28% to a Record $92.3 Million

34% Growth in LTM Enterprise Subscription Revenue

Fourth Quarter GAAP Net Income of $0.8 Million

Fourth Quarter Adjusted EBITDA of $19.6 Million, or 21.2% of Revenue

SAN RAMON, Calif. - February 19, 2020 - Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud contact center software for the digital enterprise, today reported results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019 Financial Results

  • Revenue for the fourth quarter of 2019 increased 28% to a record $92.3 million, compared to $72.3 million for the fourth quarter of 2018.

  • GAAP gross margin was 58.9% for the fourth quarter of 2019, compared to 60.8% for the fourth quarter of 2018.

  • Adjusted gross margin was 64.4% for the fourth quarter of 2019, compared to 65.1% for the fourth quarter of 2018.

  • GAAP net income for the fourth quarter of 2019 was $0.8 million, or $0.01 per diluted share, compared to GAAP net income of $3.7 million, or $0.06 per diluted share, for the fourth quarter of 2018.

  • Non-GAAP net income for the fourth quarter of 2019 was $17.0 million, or $0.27 per diluted share, compared to non-GAAP net income of $14.5 million, or $0.23 per diluted share, for the fourth quarter of 2018.

  • Adjusted EBITDA for the fourth quarter of 2019 was $19.6 million, or 21.2% of revenue, compared to $16.4 million, or 22.7% of revenue, for the fourth quarter of 2018.

  • GAAP operating cash flow for the fourth quarter of 2019 was $15.6 million, compared to GAAP operating cash flow of $15.5 million for the fourth quarter of 2018.

2019 Financial Results

  • Total revenue for 2019 increased 27% to a record $328.0 million, compared to $257.7 million in 2018.

  • GAAP gross margin was 59.0% for 2019, compared to 59.6% in 2018.

  • Adjusted gross margin was 64.2% for 2019, compared to 63.9% in 2018.

  • GAAP net loss for 2019 was $(4.6) million, or $(0.08) per basic share, compared to a GAAP net loss of $(0.2) million, or $(0.00) per basic share, in 2018.

  • Non-GAAP net income for 2019 was $52.1 million, or $0.82 per diluted share, compared to a non-GAAP net income of $37.0 million, or $0.60 per diluted share, in 2018.

  • Adjusted EBITDA for 2019 was $60.8 million, or a record 18.5% of revenue, compared to $46.4 million, or 18.0% of revenue, in 2018.

  • GAAP operating cash flow for 2019 was $51.2 million, compared to GAAP operating cash flow of $38.6 million in 2018.

“We delivered very strong fourth quarter results, leading to a great close of the year. Fourth quarter revenue was $92.3 million, up 28% year-over-year, and was driven by our success in our Enterprise business. In 2019, we believe we set the foundation for our next decade of growth. We significantly strengthened the leadership team and expanded our product and platform to deliver the best-of-breed experiences for large enterprises. We made strides in further improving our bottom line and operating cash flow despite increased investments in R&D and go-to-market. We believe these investments position us well to continue to deliver sustained profitable growth as we execute in this massive, underpenetrated market that is being driven by two trends: the migration of premise to the cloud and the increasing focus on improving customer experience as part of overall digital transformation.”
 

- Rowan Trollope, CEO, Five9

Business Outlook

  • For the full year 2020, Five9 expects to report:

  • Revenue in the range of $380.5 to $383.5 million.

  • GAAP net loss in the range of $(30.9) to $(27.9) million, or $(0.48) to $(0.43) per basic share.

  • Non-GAAP net income in the range of $55.5 to $58.5 million, or $0.83 to $0.87 per diluted share.

  • For the first quarter of 2020, Five9 expects to report:

  • Revenue in the range of $89.0 to $90.0 million.

  • GAAP net loss in the range of $(9.9) to $(8.9) million, or a loss of $(0.16) to $(0.14) per basic share.

  • Non-GAAP net income in the range of $9.5 to $10.5 million, or $0.15 to $0.16 per diluted share.

 

Conference Call Details

Five9 will discuss its fourth quarter and full year 2019 results today, February 19, 2020, via teleconference at 4:30 p.m. Eastern Time. To access the call (ID 2305392), please dial: 800-263-0877 or 786-460-7199. An audio replay of the call will be available through March 4, 2020 by dialing 888-203-1112 or 719-457-0820 and entering access code 2305392. A copy of this press release will be furnished to the Securities and Exchange Commission on a Current Report on Form 8-K, and will be posted to our web site, prior to the conference call.

A webcast of the call will be available on the Investor Relations section of the Company’s website at http://investors.five9.com/

Non-GAAP Financial Measures


In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. We calculate adjusted gross profit and adjusted gross margin by adding back the following items to gross profit: depreciation, intangibles amortization and stock-based compensation. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net income (loss): depreciation and amortization, stock-based compensation, interest expense, interest (income) and other, acquisition related transaction costs, non-recurring litigation settlement costs and related indemnification fees, and provision for income taxes. We calculate non-GAAP operating income as GAAP operating income excluding stock-based compensation, intangibles amortization, acquisition related transaction costs, and non-recurring litigation settlement costs and related indemnification fees. We calculate non-GAAP net income as GAAP net income (loss) excluding stock-based compensation, intangibles amortization, amortization of debt discount and issuance costs, amortization of discount and issuance costs on convertible senior notes, acquisition related transaction costs, non-recurring litigation settlement costs and related indemnification fees, and gain on sale of convertible note held for investment. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Five9 considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what we consider to be our core operating performance, as well as unusual events. The Company’s management uses these measures to (i) illustrate underlying trends in the Company’s business that could otherwise be masked by the effect of income or expenses that are excluded from non-GAAP measures, and (ii) establish budgets and operational goals for managing the Company’s business and evaluating its performance. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented only as supplemental information for purposes of understanding the Company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP. Please see the reconciliation of non-GAAP financial measures set forth herein and attached to this release.

Forward-Looking Statements

This news release contains certain forward-looking statements, including the statements in the quote from our Chief Executive Officer, including statements regarding Five9’s expectations for future growth and profitability, market position, business momentum, product advantages and positioning, expected benefits from recent acquisitions and vision for the future, the Company’s long-term goals, and the first quarter and full year 2020 financial projections set forth under the caption “Business Outlook,” that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock; (ii) if we are unable to attract new clients or sell additional services and functionality to our existing clients, our revenue and revenue growth will be harmed; (iii) our recent rapid growth may not be indicative of our future growth, and even if we continue to grow rapidly, we may fail to manage our growth effectively; (iv) failure to adequately retain and expand our sales force will impede our growth; (v) if we fail to manage our technical operations infrastructure, our existing clients may experience service outages, our new clients may experience delays in the deployment of our solution and we could be subject to, among other things, claims for credits or damages; (vi) our growth depends in part on the success of our strategic relationships with third parties and our failure to successfully maintain, grow and manage these relationships could harm our business; (vii) we have established, and are continuing to increase, our network of master agents and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues; (viii) adverse economic conditions may harm our business; (ix) security breaches and improper access to or disclosure of our data or our clients’ data, their customers’ data, or other cyber attacks on our systems, could result in litigation and regulatory risk, harm our reputation and our business; (x) the markets in which we participate involve numerous competitors and are highly competitive, and if we do not compete effectively, our operating results could be harmed; (xi) if our existing clients terminate their subscriptions or reduce their subscriptions and related usage, our revenues and gross margins will be harmed and we will be required to spend more money to grow our client base; (xii) we sell our solution to larger organizations that require longer sales and implementation cycles and often demand more configuration and integration services or customized features and functions that we may not offer, any of which could delay or prevent these sales and harm our growth rates, business and operating results; (xiii) because a significant percentage of our revenue is derived from existing clients, downturns or upturns in new sales will not be immediately reflected in our operating results and may be difficult to discern; (xiv) we rely on third-party telecommunications and internet service providers to provide our clients and their customers with telecommunication services and connectivity to our cloud contact center software and any failure by these service providers to provide reliable services could cause us to lose clients and subject us to claims for credits or damages, among other things; (xv) we have a history of losses and we may be unable to achieve or sustain profitability; (xvi) the contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new products in order to maintain and grow our business; (xvii) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xviii) we may acquire other companies or technologies or be the target of strategic transactions, which could divert our management’s attention, result in additional dilution to our stockholders and otherwise disrupt our operations and harm our operating results; (xix) failure to comply with laws and regulations could harm our business and our reputation; (xx) we may not have sufficient cash to service our convertible senior notes and repay such notes, if required; and (xxi) the other risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent annual report on Form 10-K and quarterly report on Form 10-Q. Such forward-looking statements speak only as of the date hereof and readers should not unduly rely on such statements. We undertake no obligation to update the information contained in this press release, including in any forward-looking statements.

About Five9


Five9 is a leading provider of cloud contact center software for the intelligent contact center space, bringing the power of cloud innovation to customers and facilitating more than six billion call minutes annually. Five9 provides end-to-end solutions with omnichannel routing, analytics, WFO and AI to increase agent productivity and deliver tangible business results. The Five9 Genius platform is reliable, secure, compliant and scalable; designed to create exceptional personalized customer experiences. For more information, visit www.five9.com.


FIVE9, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

December 31, 2019

 

December 31, 2018

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

77,976 

 

 

$

81,912 

 

Marketable investments

 

241,973 

 

 

209,907 

 

Accounts receivable, net

 

37,655 

 

 

24,797 

 

Prepaid expenses and other current assets

 

10,656 

 

 

8,014 

 

Deferred contract acquisition costs

 

13,014 

 

 

9,372 

 

Total current assets

 

381,274 

 

 

334,002 

 

Property and equipment, net

 

33,190 

 

 

25,885 

 

Operating lease right-of-use assets

 

8,746 

 

 

— 

 

Intangible assets, net

 

15,533 

 

 

631 

 

Goodwill

 

11,798 

 

 

11,798 

 

Other assets

 

1,184 

 

 

836 

 

Deferred contract acquisition costs — less current portion

 

30,655 

 

 

21,514 

 

Total assets

 

$

482,380 

 

 

$

394,666 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

10,156 

 

 

$

7,010 

 

Accrued and other current liabilities

 

18,385 

 

 

13,771 

 

Operating lease liabilities

 

5,064 

 

 

— 

 

Accrued federal fees

 

2,303 

 

 

1,434 

 

Sales tax liabilities

 

1,885 

 

 

1,741 

 

Finance lease liabilities

 

3,518 

 

 

6,647 

 

Deferred revenue

 

24,681 

 

 

17,391 

 

Total current liabilities

 

65,992 

 

 

47,994 

 

Convertible senior notes

 

209,604 

 

 

196,763 

 

Sales tax liabilities — less current portion

 

838 

 

 

841 

 

Operating lease liabilities — less current portion

 

4,329 

 

 

— 

 

Finance lease liabilities — less current portion

 

809 

 

 

4,509 

 

Other long-term liabilities

 

4,350 

 

 

1,811 

 

Total liabilities

 

285,922 

 

 

251,918 

 

Stockholders’ equity:

 

 

 

 

Common stock

 

61 

 

 

59 

 

Additional paid-in capital

 

351,870 

 

 

294,279 

 

Accumulated other comprehensive income (loss)

 

576 

 

 

(93)

 

Accumulated deficit

 

(156,049)

 

 

(151,497)

 

Total stockholders’ equity

 

196,458 

 

 

142,748 

 

Total liabilities and stockholders’ equity

 

$

482,380 

 

 

$

394,666 

 

 

 

 

 

 

 


FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

 

 

 

 

 

 

 

 

 

Revenue

 

$

92,263 

 

 

$

72,335 

 

 

$

328,006 

 

 

$

257,664 

 

Cost of revenue

 

37,940 

 

 

28,339 

 

 

134,511 

 

 

104,034 

 

Gross profit

 

54,323 

 

 

43,996 

 

 

193,495 

 

 

153,630 

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

12,168 

 

 

8,451 

 

 

45,190 

 

 

34,172 

 

Sales and marketing

 

25,627 

 

 

18,793 

 

 

95,592 

 

 

72,001 

 

General and administrative

 

13,496 

 

 

10,766 

 

 

49,446 

 

 

40,448 

 

Total operating expenses

 

51,291 

 

 

38,010 

 

 

190,228 

 

 

146,621 

 

Income from operations

 

3,032 

 

 

5,986 

 

 

3,267 

 

 

7,009 

 

Other income (expense), net:

 

 

 

 

 

 

 

 

Interest expense

 

(3,506)

 

 

(3,462)

 

 

(13,794)

 

 

(10,245)

 

Interest income and other

 

1,384 

 

 

1,359 

 

 

6,079 

 

 

3,315 

 

Total other income (expense), net

 

(2,122)

 

 

(2,103)

 

 

(7,715)

 

 

(6,930)

 

Income (loss) before income taxes

 

910 

 

 

3,883 

 

 

(4,448)

 

 

79 

 

Provision for income taxes

 

74 

 

 

150 

 

 

104 

 

 

300 

 

Net income (loss)

 

$

836 

 

 

$

3,733 

 

 

$

(4,552)

 

 

$

(221)

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.01 

 

 

$

0.06 

 

 

$

(0.08)

 

 

$

— 

 

Diluted

 

$

0.01 

 

 

$

0.06 

 

 

$

(0.08)

 

 

$

— 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

61,253 

 

 

58,926 

 

 

60,371 

 

 

58,076 

 

Diluted

 

65,962 

 

 

62,071 

 

 

60,371 

 

 

58,076 

 

 

 

 

 

 

 

 

 

 

 

 


FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Twelve Months Ended

 

 

December 31, 2019

 

December 31, 2018

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(4,552)

 

 

$

(221)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

14,374 

 

 

10,274 

 

Amortization of operating lease right-of-use assets

 

4,735 

 

 

— 

 

Amortization of premium on marketable investments

 

(1,108)

 

 

(670)

 

Provision for doubtful accounts

 

90 

 

 

90 

 

Stock-based compensation

 

42,065 

 

 

28,484 

 

Amortization of discount and issuance costs on convertible senior notes

 

12,788 

 

 

7,881 

 

Gain on sale of convertible note held for investment

 

(217)

 

 

(312)

 

Others

 

448 

 

 

160 

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

(12,935)

 

 

(5,829)

 

Prepaid expenses and other current assets

 

(2,671)

 

 

(2,806)

 

Deferred contract acquisition costs

 

(12,783)

 

 

(7,748)

 

Other assets

 

(348)

 

 

193 

 

Accounts payable

 

2,549 

 

 

2,418 

 

Accrued and other current liabilities

 

(544)

 

 

1,865 

 

Accrued federal fees and sales tax liability

 

1,010 

 

 

495 

 

Deferred revenue

 

8,695 

 

 

3,956 

 

Other liabilities

 

(375)

 

 

392 

 

Net cash provided by operating activities

 

51,221 

 

 

38,622 

 

Cash flows from investing activities:

 

 

 

 

Purchases of marketable investments

 

(360,958)

 

 

(220,704)

 

Proceeds from maturities of marketable investments

 

330,228 

 

 

11,293 

 

Purchases of property and equipment

 

(19,228)

 

 

(9,261)

 

Cash paid to acquire substantially all of the assets of Whendu, LLC

 

(13,890)

 

 

— 

 

Proceeds from sale of convertible note held for investment

 

217 

 

 

1,923 

 

Net cash used in investing activities

 

(63,631)

 

 

(216,749)

 

Cash flows from financing activities:

 

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs paid of $8,039

 

— 

 

 

250,711 

 

Payments for capped call transactions

 

— 

 

 

(31,412)

 

Proceeds from exercise of common stock options

 

7,705 

 

 

7,779 

 

Proceeds from sale of common stock under ESPP

 

7,823 

 

 

5,730 

 

Payments of employee taxes related to vested common stock

 

— 

 

 

(260)

 

Repayments on revolving line of credit

 

— 

 

 

(32,594)

 

Payments of notes payable

 

— 

 

 

(318)

 

Payments of finance leases

 

(7,054)

 

 

(8,544)

 

Net cash provided by financing activities

 

8,474 

 

 

191,092 

 

Net increase (decrease) in cash and cash equivalents

 

(3,936)

 

 

12,965 

 

Cash and cash equivalents:

 

 

 

 

Beginning of period

 

81,912 

 

 

68,947 

 

End of period

 

$

77,976 

 

 

$

81,912 

 

 

 

 

 

 

 


 

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except percentages)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

54,323 

 

 

$

43,996 

 

 

$

193,495 

 

 

$

153,630 

 

GAAP gross margin

 

58.9 

%

 

60.8 

%

 

59.0 

%

 

59.6 

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

2,766 

 

 

2,041 

 

 

9,974 

 

 

7,456 

 

Intangibles amortization

 

618 

 

 

88 

 

 

882 

 

 

352 

 

Stock-based compensation

 

1,745 

 

 

942 

 

 

6,334 

 

 

3,333 

 

Adjusted gross profit

 

$

59,452 

 

 

$

47,067 

 

 

$

210,685 

 

 

$

164,771 

 

Adjusted gross margin

 

64.4 

%

 

65.1 

%

 

64.2 

%

 

63.9 

%

 

 

FIVE9, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands, except percentages)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

836 

 

 

$

3,733 

 

 

$

(4,552)

 

 

$

(221)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

4,324 

 

 

2,838 

 

 

14,374 

 

 

10,274 

 

Stock-based compensation

 

11,868 

 

 

7,493 

 

 

42,065 

 

 

28,484 

 

Interest expense

 

3,506 

 

 

3,462 

 

 

13,794 

 

 

10,245 

 

Interest (income) and other

 

(1,384)

 

 

(1,359)

 

 

(6,079)

 

 

(3,315)

 

Legal settlement

 

— 

 

 

— 

 

 

420 

 

 

— 

 

Legal and indemnification fees related to settlement

 

— 

 

 

93 

 

 

356 

 

 

592 

 

Acquisition related transaction costs

 

338 

 

 

— 

 

 

338 

 

 

— 

 

Provision for income taxes

 

74 

 

 

150 

 

 

104 

 

 

300 

 

Adjusted EBITDA

 

$

19,562 

 

 

$

16,410 

 

 

$

60,820 

 

 

$

46,359 

 

Adjusted EBITDA as % of revenue

 

21.2 

%

 

22.7 

%

 

18.5 

%

 

18.0 

%

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

 

 

 

 

 

 

 

 

 

GAAP operating income

 

$

3,032 

 

 

$

5,986 

 

 

$

3,267 

 

 

$

7,009 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

11,868 

 

 

7,493 

 

 

42,065 

 

 

28,484 

 

Intangibles amortization

 

618 

 

 

93 

 

 

882 

 

 

442 

 

Legal settlement

 

— 

 

 

— 

 

 

420 

 

 

— 

 

Legal and indemnification fees related to settlement

 

— 

 

 

93 

 

 

356 

 

 

592 

 

Acquisition related transaction costs

 

338 

 

 

— 

 

 

338 

 

 

— 

 

Non-GAAP operating income

 

$

15,856 

 

 

$

13,665 

 

 

$

47,328 

 

 

$

36,527 

 

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

836 

 

 

$

3,733 

 

 

$

(4,552)

 

 

$

(221)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

11,868 

 

 

7,493 

 

 

42,065 

 

 

28,484 

 

Intangibles amortization

 

618 

 

 

93 

 

 

882 

 

 

442 

 

Amortization of debt discount and issuance costs

 

— 

 

 

— 

 

 

— 

 

 

129 

 

Amortization of discount and issuance costs on convertible senior notes

 

3,304 

 

 

3,099 

 

 

12,788 

 

 

7,881 

 

Legal settlement

 

— 

 

 

— 

 

 

420 

 

 

— 

 

Legal and indemnification fees related to settlement

 

— 

 

 

93 

 

 

356 

 

 

592 

 

Acquisition related transaction costs

 

338 

 

 

— 

 

 

338 

 

 

— 

 

Non-cash adjustment on investment

 

— 

 

 

— 

 

 

(217)

 

 

(352)

 

Non-GAAP net income

 

$

16,964 

 

 

$

14,511 

 

 

$

52,080 

 

 

$

36,955 

 

GAAP net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.01 

 

 

$

0.06 

 

 

$

(0.08)

 

 

$

— 

 

Diluted

 

$

0.01 

 

 

$

0.06 

 

 

$

(0.08)

 

 

$

— 

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.28 

 

 

$

0.25 

 

 

$

0.86 

 

 

$

0.64 

 

Diluted

 

$

0.27 

 

 

$

0.23 

 

 

$

0.82 

 

 

$

0.60 

 

Shares used in computing GAAP net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

61,253 

 

 

58,926 

 

 

60,371 

 

 

58,076 

 

Diluted

 

65,962 

 

 

62,071 

 

 

60,371 

 

 

58,076 

 

Shares used in computing non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

61,253 

 

 

58,926 

 

 

60,371 

 

 

58,076 

 

Diluted

 

63,853 

 

 

62,071 

 

 

63,245 

 

 

61,428 

 

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(In thousands)

(Unaudited) 

 

 

Three Months Ended

 

 

December 31, 2019

 

December 31, 2018

 

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

1,745 

 

 

$

2,766 

 

 

$

618 

 

 

$

942 

 

 

$

2,041 

 

 

$

88 

 

Research and development

 

2,259 

 

 

461 

 

 

— 

 

 

1,010 

 

 

331 

 

 

— 

 

Sales and marketing

 

3,353 

 

 

 

 

— 

 

 

1,747 

 

 

 

 

 

General and administrative

 

4,511 

 

 

477 

 

 

— 

 

 

3,794 

 

 

372 

 

 

— 

 

Total

 

$

11,868 

 

 

$

3,706 

 

 

$

618 

 

 

$

7,493 

 

 

$

2,745 

 

 

$

93 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

December 31, 2019

 

December 31, 2018

 

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

6,334 

 

 

$

9,974 

 

 

$

882 

 

 

$

3,333 

 

 

$

7,456 

 

 

$

352 

 

Research and development

 

7,658 

 

 

1,801 

 

 

— 

 

 

5,303 

 

 

1,036 

 

 

— 

 

Sales and marketing

 

11,368 

 

 

 

 

— 

 

 

6,307 

 

 

 

 

90 

 

General and administrative

 

16,705 

 

 

1,711 

 

 

— 

 

 

13,541 

 

 

1,335 

 

 

— 

 

Total

 

$

42,065 

 

 

$

13,492 

 

 

$

882 

 

 

$

28,484 

 

 

$

9,832 

 

 

$

442 

 

 

 


FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME – GUIDANCE

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ending

 

Year Ending

 

 

March 31, 2020

 

December 31, 2020

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(9,916)

 

 

$

(8,916)

 

 

$

(30,933)

 

 

$

(27,933)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

13,977 

 

 

13,977 

 

 

62,289 

 

 

62,289 

 

Intangibles amortization

 

1,084 

 

 

1,084 

 

 

4,265 

 

 

4,265 

 

Amortization of discount and issuance costs on convertible senior notes

 

3,238 

 

 

3,238 

 

 

13,338 

 

 

13,338 

 

One-time integration costs and expenses

 

1,117 

 

 

1,117 

 

 

6,541 

 

 

6,541 

 

Income tax expense effects (1)

 

— 

 

 

— 

 

 

— 

 

 

— 

 

Non-GAAP net income

 

$

9,500 

 

 

$

10,500 

 

 

$

55,500 

 

 

$

58,500 

 

GAAP net loss per share, basic and diluted

 

$

(0.16)

 

 

$

(0.14)

 

 

$

(0.48)

 

 

$

(0.43)

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.15 

 

 

$

0.17 

 

 

$

0.86 

 

 

$

0.91 

 

Diluted

 

$

0.15 

 

 

$

0.16 

 

 

$

0.83 

 

 

$

0.87 

 

Shares used in computing GAAP net loss per share and non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

62,500 

 

 

62,500 

 

 

64,400 

 

 

64,400 

 

Diluted

 

65,200 

 

 

65,200 

 

 

67,100 

 

 

67,100 

 

 

 

 

 

 

 

 

 

 

 

  1. Non-GAAP adjustments do not have an impact on our income tax provision due to past losses and valuation allowance.

 

 

 

 

Investor Relations Contacts:

 

Five9, Inc.

Barry Zwarenstein

Chief Financial Officer

925-201-2000 ext. 5959

IR@five9.com

 

The Blueshirt Group for Five9, Inc.

Lisa Laukkanen

415-217-4967

Lisa@blueshirtgroup.com

 

 

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