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News Release

Five9 Reports Record Annual Revenue of $200 Million, Up 24% Year-Over-Year

37% Growth in LTM Enterprise Subscription Revenue  

Record Annual Operating Cash Flow of $11.1 Million

Fourth Quarter Record Revenue of $55.4 Million, Up 25% Year-Over-Year

SAN RAMON, Calif. - February 21, 2018 - Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud software for the enterprise contact center market, today reported results for the fourth quarter and full year ended December 31, 2017.

Fourth Quarter 2017 Financial Results

  • Revenue for the fourth quarter of 2017 increased 25% to $55.4 million, compared to $44.2 million for the fourth quarter of 2016.
  • GAAP gross margin was 59.6% for the fourth quarter of 2017, compared to 64.3% for the fourth quarter of 2016. Included in the GAAP results for the fourth quarter of 2016 was a $3.1 million non-recurring item, which increased GAAP gross margin in the fourth quarter of 2016 by 7.0 percentage points from 57.3%.
  • Adjusted gross margin was 63.6% for the fourth quarter of 2017, compared to 61.9% for the fourth quarter of 2016.
  • GAAP net loss for the fourth quarter of 2017 was $(0.6) million, or $(0.01) per basic share, compared to GAAP net income of $0.4 million, or $0.01 per diluted share, for the fourth quarter of 2016. GAAP net loss for the fourth quarter of 2016 was $(2.7) million, or $(0.05) per basic share, excluding the $3.1 million non-recurring item.
  • Non-GAAP net income for the fourth quarter of 2017 was $4.0 million, or $0.07 per diluted share, compared to non-GAAP net income of $0.1 million, or $0.00 per diluted share, for the fourth quarter of 2016.
  • Adjusted EBITDA for the fourth quarter of 2017 was a record $6.9 million, or 12.4% of revenue, compared to $2.9 million, or 6.6% of revenue, for the fourth quarter of 2016.
  • GAAP operating cash flow for the fourth quarter of 2017 was $2.9 million, compared to GAAP operating cash flow of $2.8 million for the fourth quarter of 2016.

2017 Financial Results

  • Total revenue for 2017 increased 24% to a record $200.2 million, compared to $162.1 million in 2016.
  • GAAP gross margin was 58.5% for 2017, compared to 58.7% in 2016. Included in the GAAP results for 2016 was a $3.1 million non-recurring item, which increased GAAP gross margin in 2016 by 1.9 percentage points from 56.8%.
  • Adjusted gross margin was 62.7% for 2017, compared to 61.7% in 2016.
  • GAAP net loss for 2017 was $(9.0) million, or $(0.16) per basic share, compared to a GAAP net loss of $(11.9) million, or $(0.23) per basic share, in 2016. Included in the GAAP results for 2017 were two non-recurring items resulting in a net $0.3 million favorability while 2016 GAAP results included two non-recurring items resulting in a net $2.1 million favorability.
  • Non-GAAP net income for 2017 was $6.3 million, or $0.11 per diluted share, compared to a non-GAAP net loss of $(3.6) million, or $(0.07) per basic share, in 2016.
  • Adjusted EBITDA for 2017 was a record $17.6 million, or 8.8% of revenue, compared to $8.4 million, or 5.2% of revenue, in 2016.
  • GAAP operating cash flow for 2017 was $11.1 million, compared to GAAP operating cash flow of $6.8 million in 2016.

 

“We had a strong finish to the year with better than expected fourth quarter results capping off a record year for Five9. For the year, we grew revenue by 24% to a record $200 million. Our revenue growth continues to be driven by our Enterprise business, which delivered 37% growth in LTM Enterprise subscription revenue. Our strong enterprise growth and the operating leverage in our business model drove strong improvements to our bottom line, including operating cash flow of $11.1 million for the year. Additionally, we set an all-time record for Enterprise bookings in the fourth quarter and full year. We believe that our continued execution combined with our powerful, differentiated cloud contact center software positions Five9 extremely well 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 and first quarter of 2018, we expect no material difference in revenue between ASC 606 and ASC 605. Under ASC 606, we expect to add approximately $5 million to $7 million to GAAP and non-GAAP net income for the full year 2018 and approximately $0.5 million to $1.5 million to GAAP and non-GAAP net income for the first quarter of 2018.

  • For the full year 2018, Five9 expects to report:
  • Revenue in the range of $231 to $234 million.
  • GAAP net loss in the range of $(13.4) to $(10.4) million, or $(0.23) to $(0.18) per basic share.
  • Non-GAAP net income in the range of $12.6 to $15.6 million, or $0.20 to $0.25 per diluted share.


  • For the first quarter of 2018, Five9 expects to report:

  • Revenue in the range of $54.5 to $55.5 million.
  • GAAP net loss in the range of $(4.5) to $(3.5) million, or a loss of $(0.08) to $(0.06) per basic share.
  • Non-GAAP net income in the range of $1.3 to $2.3 million, or $0.02 to $0.04 per diluted share.

 

Conference Call Details

Five9 will discuss its fourth quarter and full year 2017 results today, February 21, 2018, via teleconference at 4:30 p.m. Eastern Time. To access the call (ID 6886112), please dial: 888-427-9411 or 719-325-4940. An audio replay of the call will be available through March 7, 2018 by dialing 888-203-1112 or 719-457-0820 and entering access code 6886112. 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 website, 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, amortization, stock-based compensation expense, and the reversal of accrued federal fees. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net income (loss): depreciation, amortization, interest expense, income tax expense (benefit), stock-based compensation expense, extinguishment of debt, non-recurring litigation settlement costs, the reversal of interest and penalties on accrued federal fees, 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, non-recurring litigation settlement costs, and the reversal of interest and penalties on accrued federal fees. 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, extinguishment of debt, non-recurring litigation settlement costs, the reversal of interest and penalties on accrued federal fees, 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, and the first quarter 2018 and full year 2018 financial projections, including the expected impact of ASC 606, 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 software for the enterprise contact center market, bringing the power of the cloud to thousands of customers and facilitating more than three billion customer interactions annually. Since 2001, Five9 has led the cloud revolution in contact centers, helping organizations transition from legacy premise-based solutions to the cloud. Five9 provides businesses with cloud contact center software that is reliable, secure, compliant and scalable which is designed to create exceptional customer experiences, increase agent productivity and deliver tangible business results. For more information, visit www.five9.com.

FIVE9, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

December 31, 2017

 

December 31, 2016

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

68,947

 

 

$

58,122

 

Accounts receivable, net

 

19,048

 

 

13,881

 

Prepaid expenses and other current assets

 

4,840

 

 

3,008

 

Total current assets

 

92,835

 

 

75,011

 

Property and equipment, net

 

19,888

 

 

14,688

 

Intangible assets, net

 

1,073

 

 

1,539

 

Goodwill

 

11,798

 

 

11,798

 

Other assets

 

2,602

 

 

2,203

 

Total assets

 

$

128,196

 

 

$

105,239

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

4,292

 

 

$

3,366

 

Accrued and other current liabilities

 

11,787

 

 

9,604

 

Accrued federal fees

 

1,151

 

 

2,742

 

Sales tax liability

 

1,326

 

 

1,347

 

Notes payable

 

336

 

 

742

 

Capital leases

 

6,651

 

 

6,230

 

Deferred revenue

 

13,975

 

 

10,047

 

Total current liabilities

 

39,518

 

 

34,078

 

Revolving line of credit — less current portion

 

32,594

 

 

32,594

 

Sales tax liability — less current portion

 

1,044

 

 

1,476

 

Notes payable — less current portion

 

 

 

318

 

Capital leases — less current portion

 

7,161

 

 

5,915

 

Other long-term liabilities

 

1,041

 

 

530

 

Total liabilities

 

81,358

 

 

74,911

 

Stockholders’ equity:

 

 

 

 

Common stock

 

57

 

 

53

 

Additional paid-in capital

 

222,202

 

 

196,555

 

Accumulated deficit

 

(175,421

)

 

(166,280

)

Total stockholders’ equity

 

46,838

 

 

30,328

 

Total liabilities and stockholders’ equity

 

$

128,196

 

 

$

105,239

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2017

 

December 31, 2016

 

December 31, 2017

 

December 31, 2016

Revenue

 

$

55,403

 

 

$

44,207

 

 

$

200,225

 

 

$

162,090

 

Cost of revenue

 

22,363

 

 

15,770

 

 

83,104

 

 

66,934

 

Gross profit

 

33,040

 

 

28,437

 

 

117,121

 

 

95,156

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

6,748

 

 

6,236

 

 

27,120

 

 

23,878

 

Sales and marketing

 

17,358

 

 

14,480

 

 

66,570

 

 

52,748

 

General and administrative

 

8,767

 

 

6,511

 

 

29,151

 

 

25,072

 

Total operating expenses

 

32,873

 

 

27,227

 

 

122,841

 

 

101,698

 

Income (loss) from operations

 

167

 

 

1,210

 

 

(5,720

)

 

(6,542

)

Other income (expense), net:

 

 

 

 

 

 

 

 

Extinguishment of debt

 

 

 

 

 

 

 

(1,026

)

Interest expense

 

(836

)

 

(869

)

 

(3,471

)

 

(4,226

)

Interest income and other

 

164

 

 

54

 

 

490

 

 

(12

)

Total other income (expense), net

 

(672

)

 

(815

)

 

(2,981

)

 

(5,264

)

Income (loss) before income taxes

 

(505

)

 

395

 

 

(8,701

)

 

(11,806

)

Provision for (benefit from) income taxes

 

126

 

 

(14

)

 

268

 

 

54

 

Net income (loss)

 

$

(631

)

 

$

409

 

 

$

(8,969

)

 

$

(11,860

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

0.01

 

 

$

(0.16

)

 

$

(0.23

)

Diluted

 

$

(0.01

)

 

$

0.01

 

 

$

(0.16

)

 

$

(0.23

)

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

 

 

 

 

 

 

 

 

Basic

 

56,034

 

 

53,126

 

 

54,946

 

 

52,342

 

Diluted

 

56,034

 

 

56,633

 

 

54,946

 

 

52,342

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Twelve Months Ended

 

 

December 31, 2017

 

December 31, 2016

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(8,969

)

 

$

(11,860

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

8,314

 

 

8,390

 

Provision for doubtful accounts

 

95

 

 

75

 

Stock-based compensation

 

15,343

 

 

9,643

 

Amortization of debt discount and issuance costs

 

80

 

 

241

 

Loss on extinguishment of debt

 

 

 

1,026

 

Reversal of interest and penalties on accrued federal fees

 

(2,133

)

 

 

Reversal of accrued federal fees

 

 

 

(3,114

)

Non-cash adjustment on investment

 

(366

)

 

 

Accretion of interest

 

21

 

 

20

 

Others

 

(48

)

 

(10

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

(5,163

)

 

(3,389

)

Prepaid expenses and other current assets

 

(1,912

)

 

(859

)

Other assets

 

(33

)

 

203

 

Accounts payable

 

813

 

 

811

 

Accrued and other current liabilities

 

1,061

 

 

2,262

 

Accrued federal fees and sales tax liability

 

90

 

 

(182

)

Deferred revenue

 

3,882

 

 

3,680

 

Other liabilities

 

31

 

 

(99

)

Net cash provided by operating activities

 

11,106

 

 

6,838

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

(2,650

)

 

(1,131

)

Purchases of privately-held company securities

 

 

 

(1,206

)

Decrease (increase) in restricted cash

 

 

 

(60

)

Net cash used in investing activities

 

(2,650

)

 

(2,397

)

Cash flows from financing activities:

 

 

 

 

Proceeds from exercise of common stock options and warrants

 

6,035

 

 

4,286

 

Proceeds from sale of common stock under ESPP

 

4,101

 

 

1,979

 

Proceeds from revolving line of credit

 

 

 

32,594

 

Repayments on revolving line of credit

 

 

 

(12,500

)

Repayments of notes payable

 

(699

)

 

(24,351

)

Payments of capital leases

 

(7,068

)

 

(6,237

)

Payment of prepayment penalty and related fees

 

 

 

(368

)

Payments for debt issuance costs

 

 

 

(206

)

Net cash provided by (used in) financing activities

 

2,369

 

 

(4,803

)

Net increase (decrease) in cash and cash equivalents

 

10,825

 

 

(362

)

Cash and cash equivalents:

 

 

 

 

Beginning of period

 

58,122

 

 

58,484

 

End of period

 

$

68,947

 

 

$

58,122

 

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2017

 

December 31, 2016

 

December 31, 2017

 

December 31, 2016

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

33,040

 

 

$

28,437

 

 

$

117,121

 

 

$

95,156

 

GAAP gross margin

 

59.6

%

 

64.3

%

 

58.5

%

 

58.7

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

1,523

 

 

1,521

 

 

5,949

 

 

6,221

 

Intangibles amortization

 

88

 

 

87

 

 

351

 

 

352

 

Stock-based compensation

 

594

 

 

424

 

 

2,202

 

 

1,375

 

Reversal of accrued federal fees

 

 

 

(3,114

)

 

 

 

(3,114

)

Adjusted gross profit

 

$

35,245

 

 

$

27,355

 

 

$

125,623

 

 

$

99,990

 

Adjusted gross margin

 

63.6

%

 

61.9

%

 

62.7

%

 

61.7

%

 

 

RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2017

 

December 31, 2016

 

December 31, 2017

 

December 31, 2016

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

(631

)

 

$

409

 

 

$

(8,969

)

 

$

(11,860

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

2,068

 

 

2,086

 

 

8,314

 

 

8,390

 

Stock-based compensation

 

4,640

 

 

2,716

 

 

15,343

 

 

9,643

 

Extinguishment of debt

 

 

 

 

 

 

 

1,026

 

Interest expense

 

836

 

 

869

 

 

3,471

 

 

4,226

 

Interest (income) and other

 

(164

)

 

(54

)

 

(490

)

 

13

 

Legal settlement

 

 

 

 

 

1,700

 

 

 

Legal and indemnification fees related to settlement

 

 

 

 

 

135

 

 

 

Reversal of interest and penalties on accrued federal fees (G&A)

 

 

 

 

 

(2,133

)

 

 

Reversal of accrued federal fees (COR)

 

 

 

(3,114

)

 

 

 

(3,114

)

Provision for (benefit from) income taxes

 

126

 

 

(14

)

 

268

 

 

54

 

Adjusted EBITDA

 

$

6,875

 

 

$

2,898

 

 

$

17,639

 

 

$

8,378

 

 

FIVE9, INC.

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

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2017

 

December 31, 2016

 

December 31, 2017

 

December 31, 2016

 

 

 

 

 

 

 

 

 

GAAP operating income (loss)

 

$

167

 

 

$

1,210

 

 

$

(5,720

)

 

$

(6,542

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

4,640

 

 

2,716

 

 

15,343

 

 

9,643

 

Intangibles amortization

 

116

 

 

117

 

 

465

 

 

503

 

Legal settlement

 

 

 

 

 

1,700

 

 

 

Legal and indemnification fees related to settlement

 

 

 

 

 

135

 

 

 

Reversal of interest and penalties on accrued federal fees (G&A)

 

 

 

 

 

(2,133

)

 

 

Reversal of accrued federal fees (COR)

 

 

 

(3,114

)

 

 

 

(3,114

)

Non-GAAP operating income

 

$

4,923

 

 

$

929

 

 

$

9,790

 

 

$

490

 

 

FIVE9, INC.

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

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2017

 

December 31, 2016

 

December 31, 2017

 

December 31, 2016

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

(631

)

 

$

409

 

 

$

(8,969

)

 

$

(11,860

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

4,640

 

 

2,716

 

 

15,343

 

 

9,643

 

Intangibles amortization

 

116

 

 

117

 

 

465

 

 

503

 

Amortization of debt discount and issuance costs

 

20

 

 

20

 

 

80

 

 

241

 

Extinguishment of debt

 

 

 

 

 

 

 

1,026

 

Legal settlement

 

 

 

 

 

1,700

 

 

 

Legal and indemnification fees related to settlement

 

 

 

 

 

135

 

 

 

Reversal of interest and penalties on accrued federal fees (G&A)

 

 

 

 

 

(2,133

)

 

 

Reversal of accrued federal fees (COR)

 

 

 

(3,114

)

 

 

 

(3,114

)

Non-cash adjustment on investment

 

(133

)

 

 

 

(366

)

 

 

Non-GAAP net income (loss)

 

$

4,012

 

 

$

148

 

 

$

6,255

 

 

$

(3,561

)

GAAP net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

0.01

 

 

$

(0.16

)

 

$

(0.23

)

Diluted

 

$

(0.01

)

 

$

0.01

 

 

$

(0.16

)

 

$

(0.23

)

Non-GAAP net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

 

$

 

 

$

0.11

 

 

$

(0.07

)

Diluted

 

$

0.07

 

 

$

 

 

$

0.11

 

 

$

(0.07

)

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

 

 

 

 

 

 

 

 

Basic

 

56,034

 

 

53,126

 

 

54,946

 

 

52,342

 

Diluted

 

56,034

 

 

56,633

 

 

54,946

 

 

52,342

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

56,034

 

 

53,126

 

 

54,946

 

 

52,342

 

Diluted

 

59,905

 

 

56,633

 

 

59,073

 

 

52,342

 

 

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

December 31, 2017

 

December 31, 2016

 

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

594

 

 

$

1,523

 

 

$

88

 

 

$

424

 

 

$

1,521

 

 

$

87

 

Research and development

 

807

 

 

170

 

 

 

 

549

 

 

224

 

 

 

Sales and marketing

 

1,128

 

 

2

 

 

28

 

 

759

 

 

29

 

 

29

 

General and administrative

 

2,111

 

 

257

 

 

 

 

984

 

 

195

 

 

1

 

Total

 

$

4,640

 

 

$

1,952

 

 

$

116

 

 

$

2,716

 

 

$

1,969

 

 

$

117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

December 31, 2017

 

December 31, 2016

 

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

2,202

 

 

$

5,949

 

 

$

351

 

 

$

1,375

 

 

$

6,221

 

 

$

352

 

Research and development

 

3,042

 

 

795

 

 

 

 

2,059

 

 

737

 

 

 

Sales and marketing

 

4,364

 

 

6

 

 

114

 

 

2,363

 

 

107

 

 

114

 

General and administrative

 

5,735

 

 

1,099

 

 

 

 

3,846

 

 

822

 

 

37

 

Total

 

$

15,343

 

 

$

7,849

 

 

$

465

 

 

$

9,643

 

 

$

7,887

 

 

$

503

 

 

 

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, 2018

 

December 31, 2018

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(4,476

)

 

$

(3,476

)

 

$

(13,398

)

 

$

(10,398

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

5,640

 

 

5,640

 

 

25,452

 

 

25,452

 

Intangibles amortization

 

116

 

 

116

 

 

465

 

 

465

 

Amortization of debt issuance costs

 

20

 

 

20

 

 

81

 

 

81

 

Income tax expense effects (1)

 

 

 

 

 

 

 

 

Non-GAAP net income

 

$

1,300

 

 

$

2,300

 

 

$

12,600

 

 

$

15,600

 

GAAP net loss per share, basic and diluted

 

$

(0.08

)

 

$

(0.06

)

 

$

(0.23

)

 

$

(0.18

)

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

0.04

 

 

$

0.22

 

 

$

0.27

 

Diluted

 

$

0.02

 

 

$

0.04

 

 

$

0.20

 

 

$

0.25

 

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

 

 

 

 

 

 

 

 

Basic

 

57,000

 

 

57,000

 

 

58,500

 

 

58,500

 

Diluted

 

61,500

 

 

61,500

 

 

63,000

 

 

63,000

 

 

  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 and 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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