20% Growth in Subscription Revenue
Record $41 Million in Operating Cash Flow
Raises 2024 Guidance for Revenue and Bottom
Line
Five9, Inc. (NASDAQ:FIVN), the Intelligent CX Platform provider,
today reported results for the third quarter ended September 30,
2024.
Third Quarter 2024 Financial Results
- Revenue for the third quarter of 2024 increased 15% to a record
$264.2 million, compared to $230.1 million for the third quarter of
2023.
- GAAP gross margin was 53.8% for the third quarter of 2024,
compared to 51.7% for the third quarter of 2023.
- Adjusted gross margin was 61.8% for the third quarter of 2024,
compared to 60.6% for the third quarter of 2023.
- GAAP net loss for the third quarter of 2024 was $(4.5) million,
or $(0.06) per basic share, and (1.7)% of revenue, compared to GAAP
net loss of $(20.4) million, or $(0.28) per basic share, and (8.9)%
of revenue, for the third quarter of 2023.
- Non-GAAP net income for the third quarter of 2024 was $50.5
million, or $0.67 per diluted share, and 19.1% of revenue, compared
to non-GAAP net income of $38.0 million, or $0.52 per diluted
share, and 16.5% of revenue, for the third quarter of 2023.
- Adjusted EBITDA for the third quarter of 2024 was $52.4
million, or 19.8% of revenue, compared to $41.3 million, or 17.9%
of revenue, for the third quarter of 2023.
- GAAP operating cash flow for the third quarter of 2024 was
$41.1 million, compared to GAAP operating cash flow of $37.0
million for the third quarter of 2023.
“We are very pleased to report strong third quarter results,
which exceeded our guidance across all key metrics. Subscription
revenue grew 20% year-over-year, and we achieved an adjusted EBITDA
margin of 20%, helping drive robust operating cash flow of $41
million. With the acceleration of AI, CX is at an inflection point.
We believe our AI-powered platform is at the forefront of enabling
a hyper-personalized experience, continuous engagement, and
seamless customer journeys, all while creating a pathway for
durable growth. We are energized by the momentum we are seeing with
our AI products and believe that the market opportunity ahead is
stronger than ever.”
- Mike Burkland, Chairman and CEO, Five9
Business Outlook
Five9 provides guidance based on current market conditions and
expectations. Five9 emphasizes that the guidance is subject to
various important cautionary factors referenced in the section
entitled "Forward-Looking Statements" below, including risks and
uncertainties associated with ongoing impact of macroeconomic
challenges.
- For the full year 2024, Five9 now expects to report:
- Revenue in the range of $1.030 to $1.031 billion.
- GAAP net loss per share in the range of $(0.30) to $(0.23),
assuming basic shares outstanding of approximately 74.5
million.
- Non-GAAP net income per share in the range of $2.36 to $2.38,
assuming diluted shares outstanding of approximately 75.0
million.
- For the fourth quarter of 2024, Five9 expects to report:
- Revenue in the range of $267.0 to $268.0 million.
- GAAP net income per share in the range of $0.03 to $0.08,
assuming diluted shares outstanding of approximately 88.6
million.
- Non-GAAP net income per share in the range of $0.69 to $0.71,
assuming diluted shares outstanding of approximately 76.0
million.
With respect to Five9’s guidance as provided above, please refer
to the “Reconciliation of GAAP Net Loss to Non-GAAP net income -
Guidance” table for more details, including important assumptions
upon which such guidance is based.
Conference Call Details
Five9 will discuss its third quarter 2024 results today,
November 7, 2024, via Zoom webinar at 4:30 p.m. Eastern Time. To
access the webinar, please register by clicking here. 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 live webcast and a replay 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,
stock-based compensation, exit costs related to the closure and
relocation of our Russian operations, acquisition and related
transaction costs and one-time integration costs, lease
amortization for finance leases and costs related to a reduction in
force plan. 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, gain on
early extinguishment of debt, interest income and other, exit costs
related to closure and relocation of our Russian operations,
acquisition and related transaction costs and one-time integration
costs, lease amortization for finance leases, costs related to a
reduction in force plan and provision for income taxes. We
calculate non-GAAP operating income by adding back or removing the
following items to or from GAAP loss from operations: stock-based
compensation, intangibles amortization, exit costs related to the
closure and relocation of our Russian operations, and acquisition
related transaction costs and one-time integration costs, and costs
related to a reduction in force plan. We calculate non-GAAP net
income by adding back or removing the following items to or from
GAAP net loss: stock-based compensation, intangibles amortization,
amortization of discount and issuance costs on convertible senior
notes, exit costs related to the closure and relocation of our
Russian operations, acquisition and related transaction costs and
one-time integration costs, gain on early extinguishment of debt,
impairment charge of an equity investment, costs related to a
reduction in force plan, and tax benefit associated with an
acquired company. For the periods presented, these adjustments from
GAAP net loss to non-GAAP net income do not include any
presentation of the net tax effect of such adjustments given our
significant net operating loss carryforwards. 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. The Company 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 in this release.
Forward-Looking Statements
This news release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including the statements in the quote from our Chairman
and Chief Executive Officer, including statements regarding the
effect of AI on the CX market,
Five9’s AI platform and its market position and expected impact
on the Company's growth, Five9's market opportunity and ability to
capitalize on that opportunity, and the fourth quarter and full
year 2024 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) the impact of adverse economic conditions, including
the impact of macroeconomic challenges, including continued
inflation, increased interest rates, supply chain disruptions,
decreased economic output and fluctuations in currency rates, the
impact of the Russia-Ukraine conflict, the impact of the conflict
in the Middle East, and other factors, may continue to harm our
business; (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) if our existing
clients terminate their subscriptions or reduce their subscriptions
and related usage, or fail to grow subscriptions at the rate they
have in the past or that we might expect, our revenues and gross
margins will be harmed and we will be required to spend more money
to grow our client base; (iv) 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; (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) further
development of our AI solutions may not be successful and may
result in reputational harm and our future operating results could
be materially harmed; (vii) we have established, and are continuing
to increase, our network of technology solution distributors and
resellers to sell our solution; our failure to effectively develop,
manage, and maintain this network could materially harm our
revenues; (viii) 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; (ix) if we are unable
to attract and retain highly skilled leaders and other employees,
our business and results of operations may be adversely affected;
(x) our historical 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; (xi) failure to adequately retain
and expand our sales force will impede our growth; (xii) the AI
technology and features incorporated into our solution include new
and evolving technologies that may present both legal and business
risks; (xiii) the use of AI by our workforce may present risks to
our business; (xiv) the contact center software solutions market is
subject to rapid technological change, and we must develop and sell
incremental and new solutions in order to maintain and grow our
business; (xv) our growth depends in part on the success of our
strategic relationships with third parties and our failure to
successfully maintain, grow and manage these relationships could
harm our business; (xvi) the markets in which we participate
involve a high number of competitors that is continuing to
increase, and if we do not compete effectively, our operating
results could be harmed; (xvii) we continue to expand our
international operations, which exposes us to significant
macroeconomic and other risks; (xviii) security breaches and
improper access to, use of, 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, our
business or financial results; (xix) we may acquire other
companies, or technologies, or be the target of strategic
transactions, or be impacted by transactions by other companies,
which could divert our management’s attention, result in additional
dilution to our stockholders or use a significant amount of our
cash resources and otherwise disrupt our operations and harm our
operating results; (xx) 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; (xxi) 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; (xxii) we have a history of losses and we may
be unable to achieve or sustain profitability; (xxiii) our stock
price has been volatile, may continue to be volatile and may
decline, including due to factors beyond our control; (xxiv) we may
not be able to secure additional financing on favorable terms, or
at all, to meet our future capital needs; (xxv) failure to comply
with laws and regulations could harm our business and our
reputation; (xxvi) we may not have sufficient cash to service our
convertible senior notes and repay such notes, if required, and
other risks attendant to our convertible senior notes and increased
debt levels; and (xxvii) 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 reports 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
The Five9 Intelligent CX Platform provides a comprehensive suite
of solutions for orchestrating fluid customer experiences. Our
cloud-native, multi-tenant, scalable, reliable, and secure platform
includes contact center; omni-channel engagement; Workforce
Engagement Management; extensibility through more than 1,000
partners; and innovative, practical AI, automation and journey
analytics that are embedded as part of the platform. Five9 brings
the power of people, technology, and partners to more than 3,000
organizations worldwide. For more information, visit www.five9.com.
FIVE9, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
September 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
290,959
$
143,201
Marketable investments
675,704
587,096
Accounts receivable, net
116,430
97,424
Prepaid expenses and other current
assets
48,640
34,622
Deferred contract acquisition costs,
net
72,534
61,711
Total current assets
1,204,267
924,054
Property and equipment, net
136,052
108,572
Operating lease right-of-use assets
43,480
38,873
Finance lease right-of-use assets
21,262
4,564
Intangible assets, net
69,731
38,323
Goodwill
365,450
227,412
Other assets
17,765
16,199
Deferred contract acquisition costs, net —
less current portion
149,885
136,571
Total assets
$
2,007,892
$
1,494,568
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
33,876
$
24,399
Accrued and other current liabilities
84,297
62,131
Operating lease liabilities
11,446
10,731
Finance lease liabilities
7,695
1,767
Deferred revenue
80,000
68,187
Convertible senior notes
432,927
—
Total current liabilities
650,241
167,215
Convertible senior notes — less current
portion
730,932
742,125
Operating lease liabilities — less current
portion
39,976
36,378
Finance lease liabilities — less current
portion
13,716
2,877
Other long-term liabilities
7,441
7,888
Total liabilities
1,442,306
956,483
Stockholders’ equity:
Common stock
75
73
Additional paid-in capital
992,905
942,280
Accumulated other comprehensive income
1,828
582
Accumulated deficit
(429,222
)
(404,850
)
Total stockholders’ equity
565,586
538,085
Total liabilities and stockholders’
equity
$
2,007,892
$
1,494,568
FIVE9, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share
data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Revenue
$
264,182
$
230,105
$
763,278
$
671,426
Cost of revenue
121,933
111,080
354,877
320,197
Gross profit
142,249
119,025
408,401
351,229
Operating expenses:
Research and development
42,482
40,391
124,717
117,709
Sales and marketing
78,615
73,366
238,056
223,757
General and administrative
36,575
31,006
101,111
89,741
Total operating expenses
157,672
144,763
463,884
431,207
Loss from operations
(15,423
)
(25,738
)
(55,483
)
(79,978
)
Other income (expense), net:
Interest expense
(4,068
)
(1,972
)
(10,541
)
(5,683
)
Gain on early extinguishment of debt
—
—
6,615
—
Interest income and other
11,144
8,233
35,503
18,477
Total other income (expense), net
7,076
6,261
31,577
12,794
Loss before income taxes
(8,347
)
(19,477
)
(23,906
)
(67,184
)
(Benefit from) provision for income
taxes
(3,868
)
942
466
2,222
Net loss
$
(4,479
)
$
(20,419
)
$
(24,372
)
$
(69,406
)
Net loss per share:
Basic and diluted
$
(0.06
)
$
(0.28
)
$
(0.33
)
$
(0.97
)
Shares used in computing net loss per
share:
Basic and diluted
74,876
72,356
74,192
71,751
FIVE9, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30, 2024
September 30, 2023
Cash flows from operating
activities:
Net loss
$
(24,372
)
$
(69,406
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
38,265
35,553
Amortization of operating lease
right-of-use assets
10,631
9,234
Amortization of deferred contract
acquisition costs
52,152
40,088
Accretion of discount on marketable
investments
(16,833
)
(7,684
)
Provision for credit losses
806
795
Stock-based compensation
127,872
156,721
Amortization of discount and issuance
costs on convertible senior notes
3,991
2,793
Gain on early extinguishment of debt
(6,615
)
—
Impairment charge of an equity
investment
1,250
—
Interest on finance lease obligations
258
77
Deferred taxes
441
438
Tax benefit of valuation allowance
associated with an acquisition
(4,831
)
—
Other
(145
)
592
Changes in operating assets and
liabilities:
Accounts receivable
(15,559
)
(6,661
)
Prepaid expenses and other current
assets
(9,562
)
(6,537
)
Deferred contract acquisition costs
(76,288
)
(68,410
)
Other assets
(1,452
)
(4,892
)
Accounts payable
8,651
5,562
Accrued and other current liabilities
5,380
(1,149
)
Deferred revenue
184
1,544
Other liabilities
(871
)
3,636
Net cash provided by operating
activities
93,353
92,294
Cash flows from investing
activities:
Purchases of marketable investments
(993,483
)
(544,713
)
Proceeds from sales of marketable
investments
93,995
971
Proceeds from maturities of marketable
investments
829,122
415,117
Purchases of property and equipment
(33,097
)
(19,941
)
Capitalization of software development
costs
(14,211
)
(5,820
)
Cash paid to acquire Acqueon Inc.
(167,166
)
—
Cash paid to acquire Aceyus, Inc.
99
(80,588
)
Net cash used in investing activities
(284,741
)
(234,974
)
Cash flows from financing
activities:
Proceeds from issuance of 2029 convertible
senior notes, net of issuance costs
728,843
—
Payments for capped call transactions
associated with the 2029 convertible senior notes
(93,438
)
—
Repurchase of a portion of 2025
convertible senior notes, net of costs
(304,485
)
—
Repayment of outstanding 2023 convertible
senior notes at maturity
—
(169
)
Cash received from the settlement at
maturity of the outstanding capped calls associated with the 2023
convertible senior notes
—
74,453
Cash received from partial termination of
capped calls associated with the 2025 convertible senior notes
539
—
Proceeds from exercise of common stock
options
423
8,315
Proceeds from sale of common stock under
ESPP
9,522
9,444
Payment of holdback related to an
acquisition
—
(500
)
Payment of finance lease liabilities
(2,006
)
(496
)
Net cash provided by financing
activities
339,398
91,047
Net increase (decrease) in cash, cash
equivalents and restricted cash
148,010
(51,633
)
Cash, cash equivalents and restricted
cash:
Beginning of period
144,842
180,987
End of period
$
292,852
$
129,354
FIVE9, INC.
RECONCILIATION OF GAAP GROSS
PROFIT TO ADJUSTED GROSS PROFIT
(In thousands, except
percentages)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
GAAP gross profit
$
142,249
$
119,025
$
408,401
$
351,229
GAAP gross margin
53.8
%
51.7
%
53.5
%
52.3
%
Non-GAAP adjustments:
Depreciation
7,218
6,893
21,956
19,378
Intangibles amortization
3,196
3,182
8,492
8,873
Stock-based compensation
7,512
9,856
22,904
29,077
Exit costs related to closure and
relocation of Russian operations
—
18
—
93
Acquisition and related transaction costs
and one-time integration costs
94
—
219
34
Lease amortization for finance leases
895
492
1,807
492
Costs related to a reduction in force
plan
2,115
—
2,115
—
Adjusted gross profit
$
163,279
$
139,466
$
465,894
$
409,176
Adjusted gross margin
61.8
%
60.6
%
61.0
%
60.9
%
FIVE9, INC.
RECONCILIATION OF GAAP NET
LOSS TO ADJUSTED EBITDA
(In thousands, except
percentages)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
GAAP net loss
$
(4,479
)
$
(20,419
)
$
(24,372
)
$
(69,406
)
Non-GAAP adjustments:
Depreciation and amortization
13,144
12,482
38,265
35,553
Stock-based compensation
39,556
52,611
127,872
156,721
Interest expense
4,068
1,972
10,541
5,683
Gain on early extinguishment of debt
—
—
(6,615
)
—
Interest income and other
(11,144
)
(8,233
)
(35,503
)
(18,477
)
Exit costs related to closure and
relocation of Russian operations (1)
21
659
78
2,070
Acquisition and related transaction costs
and one-time integration costs
4,486
778
9,506
3,110
Lease amortization for finance leases
951
492
1,863
492
Costs related to a reduction in force
plan
9,625
—
9,625
—
(Benefit from) provision for income
taxes
(3,868
)
942
466
2,222
Adjusted EBITDA
$
52,360
$
41,284
$
131,726
$
117,968
Adjusted EBITDA as % of revenue
19.8
%
17.9
%
17.3
%
17.6
%
(1) Exit costs related to the closure and relocation of our
Russian operations were $0.2 million during both the three and nine
months ended September 30, 2024. The $0.0 million and $0.1 million
adjustments presented above were net of $0.2 million and $0.1
million included in “Interest income and other.” Exit costs related
to the closure and relocation of our Russian operations was $0.9
million and $2.7 million during the three and nine months ended
September 30, 2023. The $0.7 million and $2.1 million adjustments
presented above were net of $0.2 million and $0.6 million included
in “Interest income and other.”
FIVE9, INC.
RECONCILIATION OF GAAP
OPERATING LOSS TO NON-GAAP OPERATING INCOME
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Loss from operations
$
(15,423
)
$
(25,738
)
$
(55,483
)
$
(79,978
)
Non-GAAP adjustments:
Stock-based compensation
39,556
52,611
127,872
156,721
Intangibles amortization
3,196
3,182
8,492
8,873
Exit costs related to closure and
relocation of Russian operations
21
659
78
2,070
Acquisition and related transaction costs
and one-time integration costs
4,486
778
9,506
3,110
Costs related to a reduction in force
plan
9,625
—
9,625
—
Non-GAAP operating income
$
41,461
$
31,492
$
100,090
$
90,796
FIVE9, INC.
RECONCILIATION OF GAAP NET
LOSS TO NON-GAAP NET INCOME
(In thousands, except per share
data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
GAAP net loss
$
(4,479
)
$
(20,419
)
$
(24,372
)
$
(69,406
)
Non-GAAP adjustments:
Stock-based compensation
39,556
52,611
127,872
156,721
Intangibles amortization
3,196
3,182
8,492
8,873
Amortization of discount and issuance
costs on convertible senior notes
1,482
954
3,991
2,793
Gain on early extinguishment of debt
—
—
(6,615
)
—
Exit costs related to closure and
relocation of Russian operations
176
854
156
2,705
Acquisition and related transaction costs
and one-time integration costs
4,486
778
9,506
3,110
Impairment charge of an equity
investment
1,250
—
1,250
—
Costs related to a reduction in force
plan
9,625
—
9,625
—
Tax benefit associated with an acquired
company
(4,831
)
—
(4,831
)
—
Income tax expense effects (1)
—
—
—
—
Non-GAAP net income
$
50,461
$
37,960
$
125,074
$
104,796
GAAP net loss per share:
Basic and diluted
$
(0.06
)
$
(0.28
)
$
(0.33
)
$
(0.97
)
Non-GAAP net income per share:
Basic
$
0.67
$
0.52
$
1.69
$
1.46
Diluted
$
0.67
$
0.52
$
1.68
$
1.44
Shares used in computing GAAP net loss per
share:
Basic and diluted
74,876
72,356
74,192
71,751
Shares used in computing non-GAAP net
income per share:
Basic
74,876
72,356
74,192
71,751
Diluted
75,137
73,426
74,653
72,790
- Non-GAAP adjustments do not have a material impact on our
worldwide income tax provision due to the tax treatment of the
non-GAAP adjustments reported, and the Company’s domestic valuation
allowance position.
FIVE9, INC.
SUMMARY OF STOCK-BASED
COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION
(In thousands)
(Unaudited)
Three Months Ended
September 30, 2024
September 30, 2023
Stock-Based
Compensation
Depreciation
Intangibles
Amortization
Stock-Based
Compensation
Depreciation
Intangibles
Amortization
Cost of revenue
$
7,512
$
7,218
$
3,196
$
9,856
$
6,893
$
3,182
Research and development
8,244
721
—
12,980
831
—
Sales and marketing
12,490
32
—
16,404
36
—
General and administrative
11,310
1,977
—
13,371
1,540
—
Total
$
39,556
$
9,948
$
3,196
$
52,611
$
9,300
$
3,182
Nine Months Ended
September 30, 2024
September 30, 2023
Stock-Based
Compensation
Depreciation
Intangibles
Amortization
Stock-Based
Compensation
Depreciation
Intangibles
Amortization
Cost of revenue
$
22,904
$
21,956
$
8,492
$
29,077
$
19,378
$
8,873
Research and development
29,001
2,352
—
38,375
2,571
—
Sales and marketing
40,334
85
—
50,840
38
—
General and administrative
35,633
5,380
—
38,429
4,693
—
Total
$
127,872
$
29,773
$
8,492
$
156,721
$
26,680
$
8,873
FIVE9, INC.
RECONCILIATION OF GAAP NET
LOSS TO NON-GAAP NET INCOME – GUIDANCE(1)
(In thousands, except per share
data)
(Unaudited)
Three Months Ending
Year Ending
December 31, 2024
December 31, 2024
Low
High
Low
High
GAAP net income (loss)
$
2,687
$
7,207
$
(22,000
)
$
(17,500
)
Non-GAAP adjustments:
Stock-based compensation(2)
43,479
41,479
171,351
169,351
Intangibles amortization
2,643
2,643
11,135
11,135
Amortization of discount and issuance
costs on convertible senior notes
1,485
1,485
5,476
5,476
Exit costs related to closure and
relocation of Russian operations
—
—
156
156
Acquisition and related transaction costs
and one-time integration costs(3)
2,146
1,146
11,652
10,652
Gain on early extinguishment of debt
—
—
(6,615
)
(6,615
)
Impairment charge of an equity
investment
—
—
1,250
1,250
Costs related to a reduction in force
plan
—
—
9,625
9,625
Tax benefit of valuation allowance
associated with an acquisition
—
—
(4,831
)
(4,831
)
Income tax expense effects(4)
—
—
—
—
Non-GAAP net income
$
52,440
$
53,960
$
177,199
$
178,699
GAAP net income (loss) per share:
Basic
$
0.04
$
0.10
$
(0.30
)
$
(0.23
)
Diluted
$
0.03
$
0.08
$
(0.30
)
$
(0.23
)
Non-GAAP net income per share:
Basic
$
0.69
$
0.71
$
2.38
$
2.40
Diluted
$
0.69
$
0.71
$
2.36
$
2.38
Shares used in computing GAAP net income
(loss) per share:
Basic
75,600
75,600
74,500
74,500
Diluted
88,600
88,600
74,500
74,500
Shares used in computing non-GAAP net
income per share:
Basic
75,600
75,600
74,500
74,500
Diluted
76,000
76,000
75,000
75,000
- Represents guidance discussed on November 7, 2024. Reader shall
not construe presentation of this information after November 7,
2024 as an update or reaffirmation of such guidance.
- Stock-based compensation expenses are based on a range of
probable significance, assuming market price for our common stock
that is approximately consistent with current levels.
- Acquisition and related transaction costs and one-time
integration costs are based on a range of probable significance for
completed acquisitions, and no new acquisitions assumed.
- Non-GAAP adjustments do not have a material impact on our
worldwide income tax provision due to the tax treatment of the
non-GAAP adjustments reported, and the Company’s domestic valuation
allowance position.
FIVE9, INC.
TAXES AND PURCHASES OF
PROPERTY AND EQUIPMENT – GUIDANCE(1)
(In thousands)
(Unaudited)
Three Months Ending
Year Ending
December 31, 2024
December 31, 2024
Low
High
Low
High
Taxes - Non-GAAP
$
2,500
$
2,700
$
7,797
$
7,997
Purchases of property and equipment
13,000
14,000
46,097
47,097
- Represents guidance discussed on November 7, 2024. Reader shall
not construe presentation of this information after November 7,
2024 as an update or reaffirmation of such guidance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107022115/en/
Investor Relations Contacts:
Five9, Inc. Barry Zwarenstein Chief Financial Officer
925-201-2000 ext. 5959 IR@five9.com
The Blueshirt Group for Five9, Inc. Lisa Laukkanen 415-217-4967
Lisa@blueshirtgroup.com
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