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News Release

Five9 Reports Record Revenue and Profitability

22% Growth in Total Revenue

36% Growth in LTM Enterprise Subscription Revenue

Record Quarterly Operating Cash Flow of $8.0M

Raises 2017 Guidance for Revenue and Bottom Line

SAN RAMON, CALIF. - November 8, 2017 - Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud software for the enterprise contact center market, today reported results for the third quarter ended September 30, 2017.

Third Quarter 2017 Financial Results

Revenue for the third quarter of 2017 increased 22% to a record $50.1 million, compared to $41.0 million for the third quarter of 2016.

GAAP gross margin was 59.1% for the third quarter of 2017, compared to 56.6% for the third quarter of 2.

Adjusted gross margin was 63.1% for the third quarter of 2017, compared to 61.5% for the third quarter of 2016.

GAAP net income for the third quarter of 2017 was $0.9 million, or $0.02 per diluted share, compared to a GAAP net loss of $(3.9) million, or $(0.07) per basic share, for the third quarter of 2016.  Included in the GAAP results for the third quarter of 2017 was a $2.1 million reversal of accrued disputed interest and penalties following a favorable ruling by the Universal Service Administration Company.

Non-GAAP net income for the third quarter of 2017 was $2.6 million, or $0.04 per diluted share, compared to a non-GAAP net loss of $(0.2) million, or $(0.00) per basic share, for the third quarter of 2016.

Adjusted EBITDA for the third quarter of 2017 was $5.2 million, or 10.3% of revenue, compared to $2.7 million, or 6.7% of revenue, for the third quarter of 2016.

GAAP operating cash flow for the third quarter of 2017 was $8.0 million, compared to GAAP operating cash flow of $1.7 million for the third quarter of 2016.

"Our third quarter results exceeded expectations, with revenue growing 22% to a record $50.1 million while we delivered record profitability and cash flow.  Our revenue growth continues to be driven by our Enterprise business, which delivered 36% growth in LTM Enterprise subscription revenue.  I am also pleased to report that our Enterprise bookings and sales pipeline reached all-time highs.  Additionally, for the third consecutive year, Five9 has been recognized as a leader in the Gartner Magic Quadrant for Contact Center as a Service and positioned highest for ability to execute.  We believe this continued recognition reinforces our leadership in the market and the value we bring to our enterprise customers.  Given our strong business momentum, we are again raising 2017 guidance."

- Mike Burkland, President and CEO, Five9

Business Outlook

For the full year 2017, Five9 expects to report:

Revenue in the range of $196.5 to $197.5 million, up from the prior guidance range of $193.5 to $195.5 million that was previously provided on August 3, 2017.

GAAP net loss in the range of $(10.5) to $(9.5) million, or $(0.19) to $(0.17) per basic share, improved from the prior guidance range of $(17.3) to $(15.3) million, or $(0.32) to $(0.28) per basic share, that was previously provided on August 3, 2017.

Non-GAAP net income in the range of $4.1 to $5.1 million, or $0.07 to $0.09 per diluted share, improved from the prior guidance range of $(0.2) to $1.8 million, or $(0.00) per basic share to $0.03 per diluted share, that was previously provided on August 3, 2017.

For the fourth quarter of 2017, Five9 expects to report:

Revenue in the range of $51.7 to $52.7 million.

GAAP net loss in the range of $(2.2) to $(1.2) million, or a loss of $(0.04) to $(0.02) per basic share.

Non-GAAP net income in the range of $1.9 to $2.9 million, or $0.03 to $0.05 per diluted share.

Conference Call Details

Five9 will discuss its third quarter 2017 results today, November 8, 2017, via teleconference at 4:30 p.m. Eastern Time.  To access the call (ID 3434541), please dial: 877-440-5807 or 719-325-4842.  An audio replay of the call will be available through November 22, 2017 by dialing 888-203-1112 or 719-457-0820 and entering access code 3434541.  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 the following items to gross profit: depreciation, amortization, and stock-based compensation expense.  We calculate adjusted EBITDA by adding back or removing the following items to or from net income (loss): depreciation, intangibles 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 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 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 Chief Executive Officer, including statements regarding Five9’s market position, enterprise bookings, sales pipeline, business momentum, and the fourth quarter 2017 and full year 2017 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 if we continue to grow rapidly, we may fail to manage our growth effectively; (iv) failure to adequately expand our direct sales force will impede our growth;  (v) if we fail to manage our technical operations infrastructure, our existing clients may experience service outages, security breaches, or other issues, 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) the markets in which we participate are highly competitive, and if we do not compete effectively, our operating results could be harmed;  (vii) 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;  (viii) 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;  (ix) 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;  (x) 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 subject us to, among other things, claims for credits or damages;  (xi) we have a history of losses and we may be unable to achieve or sustain profitability;  (xii) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs;  and (xiii) 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 reliable, secure, compliant and scalable cloud contact center software 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)

 

 

September 30, 2017

 

December 31, 2016

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

63,364

 

 

$

58,122

 

Accounts receivable, net

 

17,231

 

 

13,881

 

Prepaid expenses and other current assets

 

4,809

 

 

3,008

 

Total current assets

 

85,404

 

 

75,011

 

Property and equipment, net

 

17,958

 

 

14,688

 

Intangible assets, net

 

1,190

 

 

1,539

 

Goodwill

 

11,798

 

 

11,798

 

Other assets

 

2,365

 

 

2,203

 

Total assets

 

$

118,715

 

 

$

105,239

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

4,787

 

 

$

3,366

 

Accrued and other current liabilities

 

11,967

 

 

9,604

 

Accrued federal fees

 

1,146

 

 

2,742

 

Sales tax liability

 

1,174

 

 

1,347

 

Notes payable

 

486

 

 

742

 

Capital leases

 

6,057

 

 

6,230

 

Deferred revenue

 

13,699

 

 

10,047

 

Total current liabilities

 

39,316

 

 

34,078

 

Revolving line of credit

 

32,594

 

 

32,594

 

Sales tax liability — less current portion

 

1,207

 

 

1,476

 

Notes payable — less current portion

 

 

 

318

 

Capital leases — less current portion

 

6,867

 

 

5,915

 

Other long-term liabilities

 

959

 

 

530

 

Total liabilities

 

80,943

 

 

74,911

 

Stockholders’ equity:

 

 

 

 

Common stock

 

56

 

 

53

 

Additional paid-in capital

 

212,505

 

 

196,555

 

Accumulated deficit

 

(174,789

)

 

(166,280

)

Total stockholders’ equity

 

37,772

 

 

30,328

 

Total liabilities and stockholders’ equity

 

$

118,715

 

 

$

105,239

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2017

 

September 30, 2016

 

September 30, 2017

 

September 30, 2016

 

 

 

 

 

 

 

 

 

Revenue

 

$

50,081

 

 

$

40,982

 

 

$

144,822

 

 

$

117,883

 

Cost of revenue

 

20,497

 

 

17,790

 

 

60,741

 

 

51,164

 

Gross profit

 

29,584

 

 

23,192

 

 

84,081

 

 

66,719

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

6,689

 

 

6,041

 

 

20,372

 

 

17,642

 

Sales and marketing

 

16,502

 

 

12,925

 

 

49,212

 

 

38,268

 

General and administrative

 

4,679

 

 

6,143

 

 

20,384

 

 

18,561

 

Total operating expenses

 

27,870

 

 

25,109

 

 

89,968

 

 

74,471

 

Income (loss) from operations

 

1,714

 

 

(1,917

)

 

(5,887

)

 

(7,752

)

Other income (expense), net:

 

 

 

 

 

 

 

 

Extinguishment of debt

 

 

 

(1,026

)

 

 

 

(1,026

)

Interest expense

 

(865

)

 

(961

)

 

(2,635

)

 

(3,357

)

Interest income and other

 

118

 

 

12

 

 

326

 

 

(66

)

Total other expense, net

 

(747

)

 

(1,975

)

 

(2,309

)

 

(4,449

)

Income (loss) before income taxes

 

967

 

 

(3,892

)

 

(8,196

)

 

(12,201

)

Provision for (benefit from) income taxes

 

43

 

 

(2

)

 

142

 

 

68

 

Net income (loss)

 

$

924

 

 

$

(3,890

)

 

$

(8,338

)

 

$

(12,269

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

(0.07

)

 

$

(0.15

)

 

$

(0.24

)

Diluted

 

$

0.02

 

 

$

(0.07

)

 

$

(0.15

)

 

$

(0.24

)

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

 

 

 

 

 

 

 

 

Basic

 

55,310

 

 

52,708

 

 

54,579

 

 

52,078

 

Diluted

 

59,441

 

 

52,708

 

 

54,579

 

 

52,078

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

Nine Months Ended

 

 

September 30, 2017

 

September 30, 2016

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(8,338

)

 

$

(12,269

)

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

 

 

 

 

Depreciation and amortization

 

6,246

 

 

6,302

 

Provision for doubtful accounts

 

66

 

 

58

 

Stock-based compensation

 

10,703

 

 

6,927

 

Loss on extinguishment of debt

 

 

 

1,026

 

Reversal of interest and penalties on accrued federal fees

 

(2,133

)

 

 

Non-cash adjustment on investment

 

(233

)

 

 

Amortization of debt discount and issuance costs

 

60

 

 

221

 

Accretion of interest

 

16

 

 

11

 

Others

 

(50

)

 

(9

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

(3,406

)

 

(2,383

)

Prepaid expenses and other current assets

 

(1,861

)

 

(1,927

)

Other assets

 

71

 

 

(25

)

Accounts payable

 

1,409

 

 

1,039

 

Accrued and other current liabilities

 

1,774

 

 

2,749

 

Accrued federal fees and sales tax liability

 

95

 

 

(90

)

Deferred revenue

 

3,676

 

 

2,449

 

Other liabilities

 

131

 

 

(75

)

Net cash provided by operating activities

 

8,226

 

 

4,004

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

(1,809

)

 

(973

)

Increase in restricted cash

 

 

 

(60

)

Net cash used in investing activities

 

(1,809

)

 

(1,033

)

Cash flows from financing activities:

 

 

 

 

Proceeds from exercise of common stock options

 

3,280

 

 

4,050

 

Proceeds from sale of common stock under ESPP

 

1,800

 

 

792

 

Proceeds from revolving line of credit

 

 

 

32,594

 

Repayments on revolving line of credit

 

 

 

(12,500

)

Repayments of notes payable

 

(547

)

 

(23,866

)

Payments of capital leases

 

(5,708

)

 

(4,618

)

Payment of prepayment penalty and related fees

 

 

 

(368

)

Payments for debt issuance costs

 

 

 

(206

)

Net cash used in financing activities

 

(1,175

)

 

(4,122

)

Net increase (decrease) in cash and cash equivalents

 

5,242

 

 

(1,151

)

Cash and cash equivalents:

 

 

 

 

Beginning of period

 

58,122

 

 

58,484

 

End of period

 

$

63,364

 

 

$

57,333

 

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(Unaudited, in thousands, except percentages)

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2017

 

September 30, 2016

 

September 30, 2017

 

September 30, 2016

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

29,584

 

 

$

23,192

 

 

$

84,081

 

 

$

66,719

 

GAAP gross margin

 

59.1

%

 

56.6

%

 

58.1

%

 

56.6

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

1,310

 

 

1,580

 

 

4,426

 

 

4,700

 

Intangibles amortization

 

87

 

 

88

 

 

263

 

 

264

 

Stock-based compensation

 

599

 

 

357

 

 

1,608

 

 

951

 

Adjusted gross profit

 

$

31,580

 

 

$

25,217

 

 

$

90,378

 

 

$

72,634

 

Adjusted gross margin

 

63.1

%

 

61.5

%

 

62.4

%

 

61.6

%

 

 

 

RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA

(Unaudited, in thousands)

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2017

 

September 30, 2016

 

September 30, 2017

 

September 30, 2016

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

924

 

 

$

(3,890

)

 

$

(8,338

)

 

$

(12,269

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

1,881

 

 

2,140

 

 

6,246

 

 

6,302

 

Stock-based compensation

 

3,720

 

 

2,519

 

 

10,703

 

 

6,927

 

Extinguishment of debt

 

 

 

1,026

 

 

 

 

1,026

 

Interest expense

 

865

 

 

961

 

 

2,635

 

 

3,357

 

Interest income and other

 

(118

)

 

(12

)

 

(326

)

 

66

 

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

)

 

 

 

(2,133

)

 

 

Provision for (benefit from) income taxes

 

43

 

 

(2

)

 

142

 

 

68

 

Adjusted EBITDA

 

$

5,182

 

 

$

2,742

 

 

$

10,764

 

 

$

5,477

 

 

FIVE9, INC.

 

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

(Unaudited, in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2017

 

September 30, 2016

 

September 30, 2017

 

September 30, 2016

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

1,714

 

 

$

(1,917

)

 

$

(5,887

)

 

$

(7,752

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

3,720

 

 

2,519

 

 

10,703

 

 

6,927

 

Intangibles amortization

 

115

 

 

129

 

 

349

 

 

384

 

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

)

 

 

 

(2,133

)

 

 

Non-GAAP operating income (loss)

 

$

3,416

 

 

$

731

 

 

$

4,867

 

 

$

(441

)

 

 

 

FIVE9, INC.

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

(Unaudited, in thousands, except per share data)

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2017

 

September 30, 2016

 

September 30, 2017

 

September 30, 2016

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

924

 

 

$

(3,890

)

 

$

(8,338

)

 

$

(12,269

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

3,720

 

 

2,519

 

 

10,703

 

 

6,927

 

Intangibles amortization

 

115

 

 

129

 

 

349

 

 

384

 

Amortization of debt discount and issuance costs

 

20

 

 

43

 

 

60

 

 

221

 

Extinguishment of debt

 

 

 

1,026

 

 

 

 

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

)

 

 

 

(2,133

)

 

 

Non-cash adjustment on investment

 

(72

)

 

 

 

(233

)

 

 

Non-GAAP net income (loss)

 

$

2,574

 

 

$

(173

)

 

$

2,243

 

 

$

(3,711

)

 

 

 

 

 

 

 

 

 

GAAP net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

(0.07

)

 

$

(0.15

)

 

$

(0.24

)

Diluted

 

$

0.02

 

 

$

(0.07

)

 

$

(0.15

)

 

$

(0.24

)

Non-GAAP net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

 

$

 

 

$

0.04

 

 

$

(0.07

)

Diluted

 

$

0.04

 

 

$

 

 

$

0.04

 

 

$

(0.07

)

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

 

 

 

 

 

 

 

 

Basic

 

55,310

 

 

52,708

 

 

54,579

 

 

52,078

 

Diluted

 

59,441

 

 

52,708

 

 

54,579

 

 

52,078

 

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

 

 

 

 

 

 

 

 

Basic

 

55,310

 

 

52,708

 

 

54,579

 

 

52,078

 

Diluted

 

59,441

 

 

52,708

 

 

58,916

 

 

52,078

 

 

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(Unaudited, in thousands)

 

 

Three Months Ended

 

 

September 30, 2017

 

September 30, 2016

 

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

599

 

 

$

1,310

 

 

$

87

 

 

$

357

 

 

$

1,580

 

 

$

88

 

Research and development

 

797

 

 

182

 

 

 

 

547

 

 

204

 

 

 

Sales and marketing

 

1,084

 

 

2

 

 

28

 

 

626

 

 

27

 

 

29

 

General and administrative

 

1,240

 

 

272

 

 

 

 

989

 

 

200

 

 

12

 

Total

 

$

3,720

 

 

$

1,766

 

 

$

115

 

 

$

2,519

 

 

$

2,011

 

 

$

129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30, 2017

 

September 30, 2016

 

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

1,608

 

 

$

4,426

 

 

$

263

 

 

$

951

 

 

$

4,700

 

 

$

264

 

Research and development

 

2,235

 

 

625

 

 

 

 

1,510

 

 

513

 

 

 

Sales and marketing

 

3,236

 

 

4

 

 

86

 

 

1,604

 

 

78

 

 

85

 

General and administrative

 

3,624

 

 

842

 

 

 

 

2,862

 

 

627

 

 

35

 

Total

 

$

10,703

 

 

$

5,897

 

 

$

349

 

 

$

6,927

 

 

$

5,918

 

 

$

384

 

FIVE9, INC.

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

(Unaudited, in thousands, except per share data)

 

 

Three Months Ending

 

Year Ending

 

 

December 31, 2017

 

December 31, 2017

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(2,150

)

 

$

(1,150

)

 

$

(10,488

)

 

$

(9,488

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

3,914

 

 

3,914

 

 

14,617

 

 

14,617

 

Intangibles amortization

 

116

 

 

116

 

 

465

 

 

465

 

Amortization of debt discount and issuance costs

 

20

 

 

20

 

 

81

 

 

81

 

Legal settlement

 

 

 

 

 

1,700

 

 

1,700

 

Legal and indemnification fees related to settlement

 

 

 

 

 

135

 

 

135

 

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

 

 

 

 

 

(2,133

)

 

(2,133

)

Non-cash adjustment on investment

 

 

 

 

 

(233

)

 

(233

)

Non-GAAP net income

 

$

1,900

 

 

$

2,900

 

 

$

4,144

 

 

$

5,144

 

GAAP net loss per share, basic and diluted

 

$

(0.04

)

 

$

(0.02

)

 

$

(0.19

)

 

$

(0.17

)

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

0.05

 

 

$

0.08

 

 

$

0.09

 

Diluted

 

$

0.03

 

 

$

0.05

 

 

$

0.07

 

 

$

0.09

 

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

 

 

 

 

 

 

 

 

Basic

 

56,000

 

 

56,000

 

 

55,000

 

 

55,000

 

Diluted

 

60,300

 

 

60,300

 

 

59,300

 

 

59,300

 

 

 

Investor Relations Contact:

 

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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