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News Release

Five9 Reports First Quarter Revenue Growth of 25% to a Record $58.9 Million

38% Growth in LTM Enterprise Subscription Revenue

Operating Cash Flow of $8.0 million; Ninth Consecutive Quarter of Positive Operating Cash Flow

Raises 2018 Guidance for Revenue and Bottom Line

SAN RAMON, Calif. - May 1, 2018 - Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud contact center software for the digital enterprise, today reported results for the first quarter ended March 31, 2018.

First Quarter 2018 Financial Results

  • Revenue for the first quarter of 2018 increased 25% to a record $58.9 million, compared to $47.0 million for the first quarter of 2017. Under ASC 605, revenue for the first quarter of 2018 would have increased 24% to a record $58.2 million.
  • GAAP gross margin was 58.1% for the first quarter of 2018, compared to 57.5% for the first quarter of 2017. Under ASC 605, GAAP gross margin for the first quarter of 2018 would have been 57.9%.
  • Adjusted gross margin was 62.3% for the first quarter of 2018, compared to 61.8% for the first quarter of 2017. Under ASC 605, adjusted gross margin for the first quarter of 2018 would have been 62.2%.
  • GAAP net loss for the first quarter of 2018 was $(0.6) million, or $(0.01) per basic share, compared to a GAAP net loss of $(5.3) million, or $(0.10) per basic share, for the first quarter of 2017. Under ASC 605, GAAP net loss for the first quarter of 2018 would have been $(2.8) million, or $(0.05) per basic share.
  • Non-GAAP net income for the first quarter of 2018 was $4.5 million, or $0.08 per diluted share, compared to a non-GAAP net loss of $(0.3) million, or $(0.00) per basic share, for the first quarter of 2017. Under ASC 605, non-GAAP net income for the first quarter of 2018 would have been $2.3 million, or $0.04 per diluted share.
  • Adjusted EBITDA for the first quarter of 2018 was $7.5 million, or 12.7% of revenue, compared to $2.6 million, or 5.6% of revenue, for the first quarter of 2017. Under ASC 605, adjusted EBITDA for the first quarter of 2018 would have been $5.3 million, or 9.2% of revenue.
  • GAAP operating cash flow for the first quarter of 2018 was $8.0 million, compared to GAAP operating cash flow of $0.2 million for the first quarter of 2017.

 

“We had a strong start to the year with both bottom and top line results significantly exceeding our expectations. Revenue grew by 25% year over year to a record $58.9 million. Our revenue growth continues to be driven by our Enterprise business, which delivered 38% growth in LTM Enterprise subscription revenue. Our strong enterprise growth and the operating leverage in our business model drove substantial improvements to our bottom line. Additionally, we set a first quarter record for Enterprise bookings and the pipeline reached an all-time high. Customer experience has become more strategic to enterprises as customers have become more empowered, more mobile and more digital.  We believe our powerful, differentiated cloud contact center software, combined with our continuing execution, places Five9 in a great position in the customer experience market that is still in the early days of a massive shift to the cloud.”

 

- Barry Zwarenstein, Interim CEO and Chief Financial Officer, Five9

 

Business Outlook

On January 1, 2018, Five9 adopted Accounting Standards Codification (ASC) 606 “Revenue from Contracts with Customers” using the modified retrospective transition method. The guidance below includes the expected impact of the adoption of this new revenue standard, which replaced ASC 605.

  • For the full year 2018, Five9 expects to report:
  • Revenue in the range of $235.8 to $238.8 million, up from the prior guidance range of $231.0 to $234.0 million that was previously provided on February 21, 2018.
  • GAAP net loss in the range of $(13.0) to $(10.0) million, or $(0.22) to $(0.17) per basic share, improved from the prior guidance range of $(13.4) to $(10.4) million, or $(0.23) to $(0.18) per basic share, that was previously provided on February 21, 2018.
  • Non-GAAP net income in the range of $15.4 to $18.4 million, or $0.25 to $0.30 per diluted share, improved from the prior guidance range of $12.6 to $15.6 million, or $0.20 to $0.25 per diluted share, that was previously provided on February 21, 2018.
  • For the second quarter of 2018, Five9 expects to report:
  • Revenue in the range of $55.8 to $56.8 million.
  • GAAP net loss in the range of $(5.9) to $(4.9) million, or a loss of $(0.10) to $(0.08) per basic share.
  • Non-GAAP net income in the range of $1.7 to $2.7 million, or $0.03 to $0.04 per diluted share.

 

Conference Call Details

Five9 will discuss its first quarter 2018 results today, May 1, 2018, via teleconference at 4:30 p.m. Eastern Time. To access the call (ID 7507925), please dial: 888-211-0353 or 719-457-2642. An audio replay of the call will be available through May 15, 2018 by dialing 888-203-1112 or 719-457-0820 and entering access code 7507925. 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 by adding back or removing the following items to gross profit: depreciation, intangibles amortization and stock-based compensation expense. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net income (loss): depreciation, amortization, interest expense, provision for income taxes, stock-based compensation expense, non-recurring litigation settlement costs and interest income and other, which consists primarily of a non-cash adjustment on investment, interest income and foreign exchange gains and losses. We calculate non-GAAP operating income (loss) as operating income (loss) excluding stock-based compensation expense, intangibles amortization and non-recurring litigation settlement costs. We calculate non-GAAP net income (loss) as GAAP net income (loss) excluding stock-based compensation expense, intangibles amortization, amortization of debt discount and issuance costs, non-recurring litigation settlement costs, and non-cash adjustments on 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 Interim Chief Executive Officer and Chief Financial Officer, including statements regarding Five9’s market position, business momentum, product positioning, the state of the cloud customer experience market, the industry shift to the cloud and the second quarter 2018 and full year 2018 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, 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 expand our sales force could 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) security breaches and improper access to or disclosure of our data or our clients’ data, or other cyber attacks on our systems, could result in litigation and regulatory risk, harm our reputation and adversely affect our business; (vii) the markets in which we participate are highly competitive, and if we do not compete effectively, our operating results could be harmed; (viii) 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; (ix) our growth depends in part on the success of our strategic relationships with third parties and our failure to successfully grow and manage these relationships could harm our business; (x) we are establishing a 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; (xi) 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; (xii) 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; (xiii) 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, any increase in the cost thereof, reduction in efficacy or any failure by these service providers to provide reliable services could cause us to lose customers, increase our customers’ cost of using our solution and subject us to, among other things, claims for credits or damages; (xiv) we have a history of losses and we may be unable to achieve or sustain profitability; (xv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xvi) failure to comply with laws and regulations could harm our business and our reputation; and (xvii) 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 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 digital enterprise, bringing the power of cloud innovation to customers, and facilitating more than three billion customer interactions annually. Five9 provides end-to-end solutions with omnichannel routing, analytics, WFO, and AI to increase agent productivity and delivers tangible business results. The Five9 platform is reliable, secure, compliant, and scalable; designed to create exceptional personalized customer experiences. 

For more information visit www.five9.com.

Engage with us @Five9, LinkedIn, FacebookBlog.

FIVE9, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

March 31, 2018

 

December 31, 2017

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

80,676

 

 

$

68,947

 

Accounts receivable, net

 

18,534

 

 

19,048

 

Prepaid expenses and other current assets

 

7,150

 

 

4,840

 

Deferred contract acquisition costs

 

7,562

 

 

 

Total current assets

 

113,922

 

 

92,835

 

Property and equipment, net

 

20,876

 

 

19,888

 

Intangible assets, net

 

957

 

 

1,073

 

Goodwill

 

11,798

 

 

11,798

 

Other assets

 

1,120

 

 

2,602

 

Deferred contract acquisition costs — less current portion

 

17,238

 

 

 

Total assets

 

$

165,911

 

 

$

128,196

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

5,482

 

 

$

4,292

 

Accrued and other current liabilities

 

14,132

 

 

11,787

 

Accrued federal fees

 

1,331

 

 

1,151

 

Sales tax liability

 

1,097

 

 

1,326

 

Notes payable

 

180

 

 

336

 

Capital leases

 

6,810

 

 

6,651

 

Deferred revenue

 

13,700

 

 

13,975

 

Total current liabilities

 

42,732

 

 

39,518

 

Revolving line of credit

 

32,594

 

 

32,594

 

Sales tax liability — less current portion

 

979

 

 

1,044

 

Capital leases — less current portion

 

7,654

 

 

7,161

 

Other long-term liabilities

 

1,500

 

 

1,041

 

Total liabilities

 

85,459

 

 

81,358

 

Stockholders’ equity:

 

 

 

 

Common stock

 

58

 

 

57

 

Additional paid-in capital

 

232,277

 

 

222,202

 

Accumulated deficit

 

(151,883

)

 

(175,421

)

Total stockholders’ equity

 

80,452

 

 

46,838

 

Total liabilities and stockholders’ equity

 

$

165,911

 

 

$

128,196

 

 

 

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

 

March 31, 2018

 

March 31, 2017

 

 

 

 

 

Revenue

 

$

58,905

 

 

$

47,014

 

Cost of revenue

 

24,702

 

 

19,971

 

Gross profit

 

34,203

 

 

27,043

 

Operating expenses:

 

 

 

 

Research and development

 

7,772

 

 

6,847

 

Sales and marketing

 

17,478

 

 

15,778

 

General and administrative

 

9,103

 

 

8,860

 

Total operating expenses

 

34,353

 

 

31,485

 

Loss from operations

 

(150

)

 

(4,442

)

Other income (expense), net:

 

 

 

 

Interest expense

 

(810

)

 

(882

)

Interest income and other

 

398

 

 

118

 

Total other income (expense), net

 

(412

)

 

(764

)

Loss before income taxes

 

(562

)

 

(5,206

)

Provision for income taxes

 

45

 

 

49

 

Net loss

 

$

(607

)

 

$

(5,255

)

Net loss per share:

 

 

 

 

Basic and diluted

 

$

(0.01

)

 

$

(0.10

)

Shares used in computing net loss per share:

 

 

 

 

Basic and diluted

 

56,399

 

 

53,688

 

 

 

 

 

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

March 31, 2018

 

March 31, 2017

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(607

)

 

$

(5,255

)

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

 

 

 

 

Depreciation and amortization

 

2,320

 

 

2,095

 

Provision for doubtful accounts

 

48

 

 

24

 

Stock-based compensation

 

5,325

 

 

3,129

 

Gain on sale of convertible notes held for investment

 

(312

)

 

 

Non-cash adjustment on investment

 

(40

)

 

(103

)

Amortization of debt discount and issuance costs

 

20

 

 

20

 

Accretion of interest

 

16

 

 

5

 

Others

 

(10

)

 

(8

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

519

 

 

(1,595

)

Prepaid expenses and other current assets

 

(1,833

)

 

(2,129

)

Deferred contract acquisition costs

 

(1,662

)

 

 

Other assets

 

(90

)

 

30

 

Accounts payable

 

1,181

 

 

(95

)

Accrued and other current liabilities

 

2,791

 

 

3,119

 

Accrued federal fees and sales tax liability

 

(115

)

 

(11

)

Deferred revenue

 

121

 

 

909

 

Other liabilities

 

325

 

 

24

 

Net cash provided by operating activities

 

7,997

 

 

159

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

(433

)

 

(514

)

Proceeds from sale of convertible notes held for investment

 

1,923

 

 

 

Net cash provided by (used in) investing activities

 

1,490

 

 

(514

)

Cash flows from financing activities:

 

 

 

 

Proceeds from exercise of common stock options

 

4,751

 

 

793

 

Payments of notes payable

 

(157

)

 

(258

)

Payments of capital leases

 

(2,352

)

 

(1,850

)

Net cash provided by (used in) financing activities

 

2,242

 

 

(1,315

)

Net increase (decrease) in cash and cash equivalents

 

11,729

 

 

(1,670

)

Cash and cash equivalents:

 

 

 

 

Beginning of period

 

68,947

 

 

58,122

 

End of period

 

$

80,676

 

 

$

56,452

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF ASC 605 TO ASC 606 STATEMENTS OF OPERATIONS ITEMS - GAAP

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

March 31, 2018

 

 

ASC 605

 

Adjustments

 

ASC 606

Revenue

 

$

58,152

 

 

$

753

 

 

$

58,905

 

Cost of revenue

 

24,457

 

 

245

 

 

24,702

 

GAAP gross profit

 

33,695

 

 

508

 

 

34,203

 

GAAP gross margin

 

57.9

%

 

 

 

58.1

%

Operating expenses:

 

 

 

 

 

 

Research and development

 

7,772

 

 

 

 

$

7,772

 

Sales and marketing

 

19,140

 

 

(1,662

)

 

$

17,478

 

General and administrative

 

9,103

 

 

 

 

$

9,103

 

Total operating expenses

 

36,015

 

 

(1,662

)

 

34,353

 

GAAP loss from operations

 

(2,320

)

 

2,170

 

 

(150

)

GAAP operating margin

 

(4.0

)%

 

 

 

(0.3

)%

Other income (expense), net

 

(412

)

 

 

 

$

(412

)

Loss before income taxes

 

(2,732

)

 

2,170

 

 

(562

)

Provision for income taxes

 

45

 

 

 

 

45

 

Net loss

 

$

(2,777

)

 

$

2,170

 

 

$

(607

)

Net loss per share:

 

 

 

 

 

 

Basic and diluted

 

$

(0.05

)

 

$

0.04

 

 

$

(0.01

)

Shares used in computing net loss per share:

 

 

 

 

 

 

Basic and diluted

 

56,399

 

 

 

 

56,399

 

 

 

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF ASC 605 TO ASC 606 STATEMENTS OF OPERATIONS ITEMS - NON-GAAP

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

March 31, 2018

 

 

ASC 605

 

Adjustments

 

ASC 606

Revenue

 

$

58,152

 

 

$

753

 

 

$

58,905

 

Cost of revenue

 

21,985

 

 

245

 

 

22,230

 

Adjusted gross profit

 

36,167

 

 

508

 

 

36,675

 

Adjusted gross margin

 

62.2

%

 

 

 

62.3

%

Operating expenses:

 

 

 

 

 

 

Research and development

 

6,701

 

 

 

 

6,701

 

Sales and marketing

 

17,749

 

 

(1,662

)

 

16,087

 

General and administrative

 

6,392

 

 

 

 

6,392

 

Total operating expenses

 

30,842

 

 

(1,662

)

 

29,180

 

Adjusted EBITDA

 

5,325

 

 

2,170

 

 

7,495

 

Adjusted EBITDA margin

 

9.2

%

 

 

 

12.7

%

Depreciation

 

2,204

 

 

 

 

2,204

 

Non-GAAP operating income

 

3,121

 

 

2,170

 

 

5,291

 

Non-GAAP operating margin

 

5.4

%

 

 

 

9.0

%

Other income (expense), net

 

(744

)

 

 

 

(744

)

Income before income taxes

 

2,377

 

 

2,170

 

 

4,547

 

Provision for income taxes

 

45

 

 

 

 

45

 

Non-GAAP net income

 

$

2,332

 

 

$

2,170

 

 

$

4,502

 

 

 

 

 

 

 

 

Non-GAAP net income per share:

 

 

 

 

 

 

Basic

 

$

0.04

 

 

$

0.04

 

 

$

0.08

 

Diluted

 

$

0.04

 

 

$

0.04

 

 

$

0.08

 

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

 

 

 

 

 

 

Basic

 

56,399

 

 

 

 

56,399

 

Diluted

 

59,744

 

 

 

 

59,744

 

 

 

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except percentages)

(Unaudited)

 

 

Three Months Ended

 

 

March 31, 2018

 

March 31, 2017

 

 

 

 

 

GAAP gross profit

 

$

34,203

 

 

$

27,043

 

GAAP gross margin

 

58.1

%

 

57.5

%

Non-GAAP adjustments:

 

 

 

 

Depreciation

 

1,706

 

 

1,488

 

Intangibles amortization

 

88

 

 

88

 

Stock-based compensation

 

678

 

 

434

 

Adjusted gross profit

 

$

36,675

 

 

$

29,053

 

Adjusted gross margin

 

62.3

%

 

61.8

%

 

 

 

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

March 31, 2018

 

March 31, 2017

 

 

 

 

 

GAAP net loss

 

$

(607

)

 

$

(5,255

)

Non-GAAP adjustments:

 

 

 

 

Depreciation and amortization

 

2,320

 

 

2,095

 

Stock-based compensation

 

5,325

 

 

3,129

 

Interest expense

 

810

 

 

882

 

Interest income and other

 

(398

)

 

(118

)

Legal settlement

 

 

 

1,700

 

Legal and indemnification fees related to settlement

 

 

 

135

 

Provision for income taxes

 

45

 

 

49

 

Adjusted EBITDA

 

$

7,495

 

 

$

2,617

 

 

 

 

 

 

 

FIVE9, INC.

 

RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP OPERATING INCOME

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

March 31, 2018

 

March 31, 2017

 

 

 

 

 

Loss from operations

 

$

(150

)

 

$

(4,442

)

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

5,325

 

 

3,129

 

Intangibles amortization

 

116

 

 

117

 

Legal settlement

 

 

 

1,700

 

Legal and indemnification fees related to settlement

 

 

 

135

 

Non-GAAP operating income

 

$

5,291

 

 

$

639

 

 

 

 

 

 

 

 

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

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

 

March 31, 2018

 

March 31, 2017

 

 

 

 

 

GAAP net loss

 

$

(607

)

 

$

(5,255

)

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

5,325

 

 

3,129

 

Intangibles amortization

 

116

 

 

117

 

Amortization of debt discount and issuance costs

 

20

 

 

20

 

Legal settlement

 

 

 

1,700

 

Legal and indemnification fees related to settlement

 

 

 

135

 

Non-cash adjustment on investment

 

(352

)

 

(103

)

Non-GAAP net income (loss)

 

$

4,502

 

 

$

(257

)

GAAP net loss per share:

 

 

 

 

Basic and diluted

 

$

(0.01

)

 

$

(0.10

)

Non-GAAP net income (loss) per share:

 

 

 

 

Basic

 

$

0.08

 

 

$

 

Diluted

 

$

0.08

 

 

$

 

Shares used in computing GAAP net loss per share:

 

 

 

 

Basic and diluted

 

56,399

 

 

53,688

 

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

 

 

 

 

Basic

 

56,399

 

 

53,688

 

Diluted

 

59,744

 

 

53,688

 

 

 

 

 

 

 

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

March 31, 2018

 

March 31, 2017

 

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

678

 

 

$

1,706

 

 

$

88

 

 

$

434

 

 

$

1,488

 

 

$

88

 

Research and development

 

877

 

 

194

 

 

 

 

637

 

 

206

 

 

 

Sales and marketing

 

1,362

 

 

1

 

 

28

 

 

928

 

 

1

 

 

29

 

General and administrative

 

2,408

 

 

303

 

 

 

 

1,130

 

 

283

 

 

 

Total

 

$

5,325

 

 

$

2,204

 

 

$

116

 

 

$

3,129

 

 

$

1,978

 

 

$

117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

June 30, 2018

 

December 31, 2018

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(5,864

)

 

$

(4,864

)

 

$

(13,042

)

 

$

(10,042

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

7,428

 

 

7,428

 

 

28,248

 

 

28,248

 

Intangibles amortization

 

116

 

 

116

 

 

465

 

 

465

 

Amortization of debt discount and issuance costs

 

20

 

 

20

 

 

(271

)

 

(271

)

Income tax expense effects (1)

 

 

 

 

 

 

 

 

Non-GAAP net income

 

$

1,700

 

 

$

2,700

 

 

$

15,400

 

 

$

18,400

 

GAAP net loss per share, basic and diluted

 

$

(0.10

)

 

$

(0.08

)

 

$

(0.22

)

 

$

(0.17

)

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

0.05

 

 

$

0.27

 

 

$

0.32

 

Diluted

 

$

0.03

 

 

$

0.04

 

 

$

0.25

 

 

$

0.30

 

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

 

 

 

 

 

 

 

 

Basic

 

57,500

 

 

57,500

 

 

58,000

 

 

58,000

 

Diluted

 

61,000

 

 

61,000

 

 

61,500

 

 

61,500

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

Investor Relations Contact:

 

Five9, Inc.

Barry Zwarenstein

Interim CEO & 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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