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News Release

Five9 Reports Second Quarter Revenue Growth of 27% to a Record $77.4 Million

36% Growth in LTM Enterprise Subscription Revenue

Fourteenth Consecutive Quarter of Positive Operating Cash Flow

Raises 2019 Guidance for Both Revenue and Bottom Line

SAN RAMON, Calif.--Jul. 31, 2019-- Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud contact center software, today reported results for the second quarter ended June 30, 2019.

Second Quarter 2019 Financial Results

  • Revenue for the second quarter of 2019 increased 27% to a record $77.4 million, compared to $61.1 million for the second quarter of 2018.

  • GAAP gross margin was 59.6% for the second quarter of 2019, compared to 59.4% for the second quarter of 2018.

  • Adjusted gross margin was 65.0% for the second quarter of 2019, compared to 63.8% for the second quarter of 2018.

  • GAAP net loss for the second quarter of 2019 was $(1.9) million, or $(0.03) per basic share, compared to GAAP net loss of $(2.0) million, or $(0.04) per basic share, for the second quarter of 2018.

  • Non-GAAP net income for the second quarter of 2019 was $12.3 million, or $0.20 per diluted share, compared to non-GAAP net income of $6.9 million, or $0.11 per diluted share, for the second quarter of 2018.

  • Adjusted EBITDA for the second quarter of 2019 was $14.4 million, or 18.6% of revenue, compared to $9.7 million, or 15.8% of revenue, for the second quarter of 2018.

  • GAAP operating cash flow for the second quarter of 2019 was $6.8 million, compared to GAAP operating cash flow of $5.7 million for the second quarter of 2018.

“We delivered strong second quarter results. Revenue of $77.4 million grew 27% year-over-year and continued to be driven by our Enterprise business, which delivered 36% growth in LTM Enterprise subscription revenue. To further strengthen our position in this massive market, we have made a meaningful investment in our engineering and technical leadership and added several key industry leaders to expand our channel development. Our strong enterprise ecosystem continues to grow, most recently with the announcement of our partnership with Microsoft Teams, further demonstrating our momentum. Overall, we are making excellent progress on product innovation and enterprise traction and have a strong team in place, including an awesome go-to-market machine, to continue this momentum.”

Rowan Trollope, CEO, Five9

Business Outlook

  • For the full year 2019, Five9 expects to report:

    • Revenue in the range of $312.5 to $314.5 million, up from the prior guidance range of $304.0 to $307.0 million that was previously provided on May 1, 2019.

    • GAAP net loss in the range of $(12.0) to $(10.0) million or $(0.20) to $(0.16) per basic share, improved from the prior guidance range of $(17.3) to $(14.3) million or $(0.29) to $(0.24) per basic share, that was previously provided on May 1, 2019.

    • Non-GAAP net income in the range of $44.7 to $46.7 million or $0.70 to $0.73 per diluted share, improved from the prior guidance range of $39.3 to $42.3 million or $0.61 to $0.66 per diluted share, that was previously provided on May 1, 2019.

  • For the third quarter of 2019, Five9 expects to report:

    • Revenue in the range of $78.0 to $79.0 million.

    • GAAP net loss in the range of $(6.3) to $(5.3) million, or a loss of $(0.10) to $(0.09) per basic share.

    • Non-GAAP net income in the range of $8.8 to $9.8 million, or $0.14 to $0.15 per diluted share.

Conference Call Details

Five9 will discuss its second quarter 2019 results today, July 31, 2019, via teleconference at 4:30 p.m. Eastern Time. To access the call (ID 7619063), please dial: 800-263-0877 or 323-794-2094. An audio replay of the call will be available through August 14, 2019 by dialing 888-203-1112 or 719-457-0820 and entering access code 7619063. 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 web-site 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 loss: depreciation and amortization, stock-based compensation, interest expense, interest (income) and other, non-recurring litigation settlement costs and related indemnification fees, and provision for (benefit from) income taxes. We calculate non-GAAP operating income as operating income (loss) excluding stock-based compensation, intangibles amortization, and non-recurring litigation settlement costs and related indemnification fees. We calculate non-GAAP net income as GAAP net loss excluding stock-based compensation, intangibles amortization, amortization of debt discount and issuance costs, amortization of discount and issuance costs on convertible senior notes, 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 market position, enterprise ecosystem, our go-to-market capabilities, product innovation and enterprise traction, business momentum, expectations for future growth, and the third quarter and full year 2019 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 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 involve numerous competitors and 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 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; (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 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; (xiv) we have a history of losses and we may be unable to achieve or sustain profitability; (xv) 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; (xvi) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xvii) failure to comply with laws and regulations could harm our business and our reputation; (xviii) we may not have sufficient cash to service our convertible senior notes and repay such notes, if required; and (xix) 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 five 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)

 

 

 

June 30, 2019

 

December 31, 2018

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

110,469

 

 

$

81,912

 

Marketable investments

 

197,007

 

 

209,907

 

Accounts receivable, net

 

28,153

 

 

24,797

 

Prepaid expenses and other current assets

 

12,036

 

 

8,014

 

Deferred contract acquisition costs

 

10,954

 

 

9,372

 

Total current assets

 

358,619

 

 

334,002

 

Property and equipment, net

 

28,255

 

 

25,885

 

Operating lease right-of-use assets

 

10,219

 

 

 

Intangible assets, net

 

455

 

 

631

 

Goodwill

 

11,798

 

 

11,798

 

Other assets

 

1,000

 

 

836

 

Deferred contract acquisition costs — less current portion

 

25,421

 

 

21,514

 

Total assets

 

$

435,767

 

 

$

394,666

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

7,534

 

 

$

7,010

 

Accrued and other current liabilities

 

14,925

 

 

13,771

 

Operating lease liabilities

 

5,132

 

 

 

Accrued federal fees

 

1,577

 

 

1,434

 

Sales tax liabilities

 

1,266

 

 

1,741

 

Finance lease liabilities

 

5,545

 

 

6,647

 

Deferred revenue

 

19,991

 

 

17,391

 

Total current liabilities

 

55,970

 

 

47,994

 

Convertible senior notes

 

203,051

 

 

196,763

 

Sales tax liabilities — less current portion

 

836

 

 

841

 

Operating lease liabilities — less current portion

 

5,707

 

 

 

Finance lease liabilities — less current portion

 

2,402

 

 

4,509

 

Other long-term liabilities

 

1,231

 

 

1,811

 

Total liabilities

 

269,197

 

 

251,918

 

Stockholders’ equity:

 

 

 

 

Common stock

 

61

 

 

59

 

Additional paid-in capital

 

321,644

 

 

294,279

 

Accumulated other comprehensive income (loss)

 

146

 

 

(93

)

Accumulated deficit

 

(155,281

)

 

(151,497

)

Total stockholders’ equity

 

166,570

 

 

142,748

 

Total liabilities and stockholders’ equity

 

$

435,767

 

 

$

394,666

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

 

 

 

Revenue

 

$

77,436

 

 

$

61,120

 

 

$

151,974

 

 

$

120,025

 

Cost of revenue

 

31,248

 

 

24,814

 

 

62,099

 

 

49,516

 

Gross profit

 

46,188

 

 

36,306

 

 

89,875

 

 

70,509

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

10,811

 

 

8,367

 

 

21,357

 

 

16,139

 

Sales and marketing

 

23,250

 

 

17,912

 

 

44,951

 

 

35,390

 

General and administrative

 

12,042

 

 

9,833

 

 

23,804

 

 

18,936

 

Total operating expenses

 

46,103

 

 

36,112

 

 

90,112

 

 

70,465

 

Income (loss) from operations

 

85

 

 

194

 

 

(237

)

 

44

 

Other income (expense), net:

 

 

 

 

 

 

 

 

Interest expense

 

(3,406

)

 

(2,378

)

 

(6,802

)

 

(3,188

)

Interest income and other

 

1,490

 

 

206

 

 

3,235

 

 

604

 

Total other income (expense), net

 

(1,916

)

 

(2,172

)

 

(3,567

)

 

(2,584

)

Loss before income taxes

 

(1,831

)

 

(1,978

)

 

(3,804

)

 

(2,540

)

Provision for (benefit from) income taxes

 

29

 

 

64

 

 

(20

)

 

109

 

Net loss

 

$

(1,860

)

 

$

(2,042

)

 

$

(3,784

)

 

$

(2,649

)

Net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.03

)

 

$

(0.04

)

 

$

(0.06

)

 

$

(0.05

)

Shares used in computing net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

60,058

 

 

57,903

 

 

59,714

 

 

57,453

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Six Months Ended

 

 

June 30, 2019

 

June 30, 2018

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(3,784

)

 

$

(2,649

)

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

 

 

 

 

Depreciation and amortization

 

6,553

 

 

4,769

 

Amortization of operating lease right-of-use assets

 

2,147

 

 

 

Amortization of premium on marketable investments

 

(883

)

 

(43

)

Provision for doubtful accounts

 

30

 

 

66

 

Stock-based compensation

 

19,122

 

 

12,122

 

Gain on sale of convertible note held for investment

 

(217

)

 

(312

)

Amortization of discount and issuance costs on convertible senior notes

 

6,234

 

 

1,733

 

Others

 

(23

)

 

25

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

(3,378

)

 

(1,114

)

Prepaid expenses and other current assets

 

(4,053

)

 

(3,140

)

Deferred contract acquisition costs

 

(5,488

)

 

(3,338

)

Other assets

 

(12,571

)

 

4

 

Accounts payable

 

159

 

 

1,493

 

Accrued and other current liabilities

 

6,516

 

 

2,415

 

Accrued federal fees and sales tax liability

 

(337

)

 

246

 

Deferred revenue

 

2,539

 

 

1,170

 

Other liabilities

 

5,412

 

 

261

 

Net cash provided by operating activities

 

17,978

 

 

13,708

 

Cash flows from investing activities:

 

 

 

 

Purchases of marketable investments

 

(151,308

)

 

(109,506

)

Proceeds from maturities of marketable investments

 

165,354

 

 

1,400

 

Purchases of property and equipment

 

(8,226

)

 

(1,092

)

Proceeds from sale of convertible note held for investment

 

217

 

 

1,923

 

Net cash provided by (used in) investing activities

 

6,037

 

 

(107,275

)

Cash flows from financing activities:

 

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs paid of $7,946

 

 

 

250,804

 

Payments for capped call transactions

 

 

 

(31,412

)

Proceeds from exercise of common stock options

 

4,248

 

 

5,821

 

Proceeds from sale of common stock under ESPP

 

3,996

 

 

2,884

 

Repayments on revolving line of credit

 

 

 

(32,594

)

Payments of notes payable

 

 

 

(318

)

Payments of finance leases

 

(3,702

)

 

(4,403

)

Net cash provided by financing activities

 

4,542

 

 

190,782

 

Net increase in cash and cash equivalents

 

28,557

 

 

97,215

 

Cash and cash equivalents:

 

 

 

 

Beginning of period

 

81,912

 

 

68,947

 

End of period

 

$

110,469

 

 

$

166,162

 

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

46,188

 

 

$

36,306

 

 

$

89,875

 

 

$

70,509

 

GAAP gross margin

 

59.6

%

 

59.4

%

 

59.1

%

 

58.7

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

2,416

 

 

1,776

 

 

4,694

 

 

3,482

 

Intangibles amortization

 

88

 

 

88

 

 

176

 

 

176

 

Stock-based compensation

 

1,658

 

 

853

 

 

2,887

 

 

1,531

 

Adjusted gross profit

 

$

50,350

 

 

$

39,023

 

 

$

97,632

 

 

$

75,698

 

Adjusted gross margin

 

65.0

%

 

63.8

%

 

64.2

%

 

63.1

%

FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(In thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(1,860

)

 

$

(2,042

)

 

$

(3,784

)

 

$

(2,649

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

3,361

 

 

2,449

 

 

6,553

 

 

4,769

 

Stock-based compensation

 

10,436

 

 

6,797

 

 

19,122

 

 

12,122

 

Interest expense

 

3,406

 

 

2,378

 

 

6,802

 

 

3,188

 

Interest income and other

 

(1,490

)

 

(206

)

 

(3,235

)

 

(604

)

Legal settlement

 

420

 

 

 

 

420

 

 

 

Legal and indemnification fees related to settlement

 

64

 

 

241

 

 

356

 

 

241

 

Provision for (benefit from) income taxes

 

29

 

 

64

 

 

(20

)

 

109

 

Adjusted EBITDA

 

$

14,366

 

 

$

9,681

 

 

$

26,214

 

 

$

17,176

 

Adjusted EBITDA as % of revenue

 

18.6

%

 

15.8

%

 

17.2

%

 

14.3

%

FIVE9, INC.

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

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

85

 

 

$

194

 

 

$

(237

)

 

$

44

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

10,436

 

 

6,797

 

 

19,122

 

 

12,122

 

Intangibles amortization

 

88

 

 

116

 

 

176

 

 

232

 

Legal settlement

 

420

 

 

 

 

420

 

 

 

Legal and indemnification fees related to settlement

 

64

 

 

241

 

 

356

 

 

241

 

Non-GAAP operating income

 

$

11,093

 

 

$

7,348

 

 

$

19,837

 

 

$

12,639

 

FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(1,860

)

 

$

(2,042

)

 

$

(3,784

)

 

$

(2,649

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

10,436

 

 

6,797

 

 

19,122

 

 

12,122

 

Intangibles amortization

 

88

 

 

116

 

 

176

 

 

232

 

Amortization of debt discount and issuance costs

 

 

 

20

 

 

 

 

40

 

Amortization of discount and issuance costs on convertible senior notes

 

3,155

 

 

1,733

 

 

6,234

 

 

1,733

 

Legal settlement

 

420

 

 

 

 

420

 

 

 

Legal and indemnification fees related to settlement

 

64

 

 

241

 

 

356

 

 

241

 

Gain on sale of convertible note held for investment

 

 

 

 

 

(217

)

 

(352

)

Non-GAAP net income

 

$

12,303

 

 

$

6,865

 

 

$

22,307

 

 

$

11,367

 

GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.03

)

 

$

(0.04

)

 

$

(0.06

)

 

$

(0.05

)

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.20

 

 

$

0.12

 

 

$

0.37

 

 

$

0.20

 

Diluted

 

$

0.20

 

 

$

0.11

 

 

$

0.35

 

 

$

0.19

 

Shares used in computing GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

60,058

 

 

57,903

 

 

59,714

 

 

57,453

 

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

 

 

 

 

 

 

 

 

Basic

 

60,058

 

 

57,903

 

 

59,714

 

 

57,453

 

Diluted

 

62,950

 

 

61,105

 

 

62,843

 

 

60,741

 

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

June 30, 2019

 

June 30, 2018

 

 

Stock-Based 
Compensation

 

Depreciation

 

Intangibles 
Amortization

 

Stock-Based 
Compensation

 

Depreciation

 

Intangibles 
Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

1,658

 

 

$

2,416

 

 

$

88

 

 

$

853

 

 

$

1,776

 

 

$

88

 

Research and development

 

1,907

 

 

450

 

 

 

 

1,064

 

 

233

 

 

 

Sales and marketing

 

2,749

 

 

1

 

 

 

 

1,585

 

 

2

 

 

28

 

General and administrative

 

4,122

 

 

406

 

 

 

 

3,295

 

 

322

 

 

 

Total

 

$

10,436

 

 

$

3,273

 

 

$

88

 

 

$

6,797

 

 

$

2,333

 

 

$

116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30, 2019

 

June 30, 2018

 

 

Stock-Based 
Compensation

 

Depreciation

 

Intangibles 
Amortization

 

Stock-Based 
Compensation

 

Depreciation

 

Intangibles 
Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

2,887

 

 

$

4,694

 

 

$

176

 

 

$

1,531

 

 

$

3,482

 

 

$

176

 

Research and development

 

3,377

 

 

890

 

 

 

 

1,941

 

 

427

 

 

 

Sales and marketing

 

4,998

 

 

2

 

 

 

 

2,947

 

 

3

 

 

56

 

General and administrative

 

7,860

 

 

791

 

 

 

 

5,703

 

 

625

 

 

 

Total

 

$

19,122

 

 

$

6,377

 

 

$

176

 

 

$

12,122

 

 

$

4,537

 

 

$

232

 

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

 

 

September 30, 2019

 

December 31, 2019

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(6,313

)

 

$

(5,313

)

 

$

(11,981

)

 

$

(9,981

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

11,775

 

 

11,775

 

 

42,983

 

 

42,983

 

Intangibles amortization

 

88

 

 

88

 

 

351

 

 

351

 

Amortization of discount and issuance costs on convertible senior notes

 

3,250

 

 

3,250

 

 

12,788

 

 

12,788

 

Legal settlement

 

 

 

 

 

420

 

 

420

 

Legal and indemnification fees related to settlement

 

 

 

 

 

356

 

 

356

 

Gain on sale of convertible note held for investment

 

 

 

 

 

(217

)

 

(217

)

Income tax expense effects (1)

 

 

 

 

 

 

 

 

Non-GAAP net income

 

$

8,800

 

 

$

9,800

 

 

$

44,700

 

 

$

46,700

 

GAAP net loss per share, basic and diluted

 

$

(0.10

)

 

$

(0.09

)

 

$

(0.20

)

 

$

(0.16

)

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.14

 

 

$

0.16

 

 

$

0.73

 

 

$

0.76

 

Diluted

 

$

0.14

 

 

$

0.15

 

 

$

0.70

 

 

$

0.73

 

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

 

 

 

 

 

 

 

 

Basic

 

61,500

 

 

61,500

 

 

61,100

 

 

61,100

 

Diluted

 

64,500

 

 

64,500

 

 

64,200

 

 

64,200

 

 

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20190731005886/en/

Source: Five9, Inc.

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