| [August 06, 2018] |
 |
Five9 Reports Second Quarter Revenue Growth of 28% to a Record $61.1 Million
Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud contact center
software for the digital enterprise, today reported results1
for the second quarter ended June 30, 2018.
Second Quarter 2018 Financial Results
-
Revenue for the second quarter of 2018 increased 28% to a record $61.1
million, compared to $47.7 million for the second quarter of 2017.
-
GAAP gross margin was 59.4% for the second quarter of 2018, compared
to 57.5% for the second quarter of 2017.
-
Adjusted gross margin was 63.8% for the second quarter of 2018,
compared to 62.3% for the second quarter of 2017.
-
GAAP net loss for the second quarter of 2018 was $(2.0) million, or
$(0.04) per basic share, compared to GAAP net loss of $(4.0) million,
or $(0.07) per basic share, for the second quarter of 2017. GAAP net
loss for the second quarter of 2018 included $1.7 million in
amortization of discount and issuance costs on our 0.125% convertible
senior notes issued in May 2018.
-
Non-GAAP net income for the second quarter of 2018 was $6.9 million,
or $0.11 per diluted share, compared to non-GAAP net loss of $(0.1)
million, or $(0.00) per basic share, for the second quarter of 2017.
-
Adjusted EBITDA for the second quarter of 2018 was $9.7 million, or a
record 15.8% of revenue, compared to $3.0 million, or 6.2% of revenue,
for the second quarter of 2017.
-
GAAP operating cash flow for the second quarter of 2018 was $5.7
million, compared to GAAP operating cash flow of $0.1 million for the
second quarter of 2017.
"Our second quarter results significantly exceeded our expectations on
both the top and bottom line. Revenue growth accelerated in Q2, up 28%
year-over-year to $61.1 million, and continued to be driven by our
Enterprise business, which delivered 37% growth in LTM Enterprise
subscription revenue. I am excited to be taking the helm at Five9 as
contact centers undergo a massive technology-enabled transformation
driven by the move to the cloud and the rise of artificial intelligence
(AI). Our vision is to create a self-learning, intelligent contact
center delivered through the cloud and powered by AI. Our recently
announced Five9 Genius and partnership with Google, which brings
practical AI enhancements to the contact center, is the first step in
this direction. As Five9 continues to disrupt this massive market, we
are also laser-focused on near-term execution."
- Rowan Trollope, CEO, Five9
Business Outlook
The guidance below includes the expected impact of the adoption of ASC
606.
-
For the full year 2018, Five9 expects to report:
-
Revenue in the range of $244.5 to $246.5 million, up from the
prior guidance range of $235.8 to $238.8 million that was
previously provided on May 1, 2018.
-
GAAP net loss in the range of $(14.0) to $(12.0) million, or
$(0.24) to $(0.20) per basic share, compared to the prior guidance
range of $(13.0) to $(10.0) million, or $(0.22) to $(0.17) per
basic share, that was previously provided on May 1, 2018. GAAP net
loss guidance includes $7.9 million in amortization of discount
and issuance costs on our convertible senior notes, offset by $2.5
million net interest savings from the use of our convertible
proceeds.
-
Non-GAAP net income in the range of $24.0 to $26.0 million, or
$0.39 to $0.42 per diluted share, improved from the prior guidance
range of $15.4 to $18.4 million, or $0.25 to $0.30 per diluted
share, that was previously provided on May 1, 2018. Non-GAAP net
income guidance includes $2.5 million net interest savings from
the use of our convertible proceeds.
-
For the third quarter of 2018, Five9 expects to report:
-
Revenue in the range of $61.0 to $62.0 million.
-
GAAP net loss in the range of $(8.1) to $(7.1) million, or a loss
of $(0.14) to $(0.12) per basic share. GAAP net loss guidance
includes $3.0 million in amortization of discount and issuance
costs on our convertible senior notes, offset by $1.0 million net
interest savings from the use of our convertible proceeds.
-
Non-GAAP net income in the range of $5.1 to $6.1 million, or $0.08
to $0.10 per diluted share. Non-GAAP net income guidance includes
$1.0 million net interest savings from the use of our convertible
proceeds.
1On January 1, 2018, Five9 adopted Accounting Standards
Codification (ASC) 606 "Revenue from Contracts with Customers" using the
modified retrospective transition method. While the financial results
for the second quarter of 2018 are presented under ASC 606, financial
results for the second quarter of 2017 are presented under ASC 605. A
reconciliation of the financial results for the second quarter of 2018
under ASC 606 and ASC 605 is presented in the "Reconciliation of ASC 605
to ASC 606" table included in this release.
Conference Call Details
Five9 will discuss its second quarter 2018 results today, August 6,
2018, via teleconference at 4:30 p.m. Eastern Time. To access the call
(ID 6113370), please dial: 888-204-4368 or 323-794-2423. An audio replay
of the call will be available through August 20, 2018 by dialing
888-203-1112 or 719-457-0820 and entering access code 6113370. A copy of
this press release will be furnished to the Securities and Exchange
Commission on a Current Report on Form 8-K, and will be posted to our
web site, prior to the conference call.
A webcast of the call will be available on the Investor Relations
section of the Company's website at http://investors.five9.com/.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), this press release
and the accompanying tables contain certain non-GAAP financial measures.
We calculate adjusted gross profit by adding back or removing the
following items to gross profit: depreciation, intangibles amortization
and stock-based compensation expense. We calculate adjusted EBITDA by
adding back or removing the following items to or from GAAP net loss:
depreciation, amortization, interest expense, provision for income
taxes, stock-based compensation expense, non-recurring litigation
settlement costs and interest income and other, which consists primarily
of a non-cash adjustment on investment, interest income and foreign
exchange gains and losses. We calculate non-GAAP operating income (loss)
as operating income (loss) excluding stock-based compensation expense,
intangibles amortization and non-recurring litigation settlement costs.
We calculate non-GAAP net income (loss) as GAAP net loss excluding
stock-based compensation expense, 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 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, business momentum, product
positioning and company vision, the state of the cloud customer
experience market, the industry shift to the cloud, and the third
quarter 2018 and full year 2018 financial projections set forth under
the caption "Business Outlook," that are based on our current
expectations and involve numerous risks and uncertainties that may cause
these forward-looking statements to be inaccurate. Risks that may cause
these forward-looking statements to be inaccurate include, among others:
(i) our quarterly and annual results may fluctuate significantly, may
not fully reflect the underlying performance of our business and may
result in decreases in the price of our common stock; (ii) if we are
unable to attract new clients or sell additional services and
functionality to our existing clients, our revenue and revenue growth
will be harmed; (iii) our recent rapid growth may not be indicative of
our future growth, and even if we continue to grow rapidly, we may fail
to manage our growth effectively; (iv) failure to adequately expand our
sales force could impede our growth; (v) if we fail to manage our
technical operations infrastructure, our existing clients may experience
service outages, our new clients may experience delays in the deployment
of our solution and we could be subject to, among other things, claims
for credits or damages; (vi) security breaches and improper access to or
disclosure of our data or our clients' data, or other cyber attacks on
our systems, could result in litigation and regulatory risk, harm our
reputation and adversely affect our business; (vii) the markets in which
we participate are highly competitive, and if we do not compete
effectively, our operating results could be harmed; (viii) if our
existing clients terminate their subscriptions or reduce their
subscriptions and related usage, our revenues and gross margins will be
harmed and we will be required to spend more money to grow our client
base; (ix) our growth depends in part on the success of our strategic
relationships with third parties and our failure to successfully grow
and manage these relationships could harm our business; (x) we are
establishing a network of master agents and resellers to sell our
solution; our failure to effectively develop, manage, and maintain this
network could materially harm our revenues; (xi) we sell our solution to
larger organizations that require longer sales and implementation cycles
and often demand more configuration and integration services or
customized features and functions that we may not offer, any of which
could delay or prevent these sales and harm our growth rates, business
and operating results; (xii) because a significant percentage of our
revenue is derived from existing clients, downturns or upturns in new
sales will not be immediately reflected in our operating results and may
be difficult to discern; (xiii) we rely on third-party
telecommunications and internet service providers to provide our clients
and their customers with telecommunication services and connectivity to
our cloud contact center software, any increase in the cost thereof,
reduction in efficacy or any failure by these service providers to
provide reliable services could cause us to lose customers, increase our
customers' cost of using our solution and subject us to, among other
things, claims for credits or damages; (xiv) we have a history of losses
and we may be unable to achieve or sustain profitability; (xv) we may
not be able to secure additional financing on favorable terms, or at
all, to meet our future capital needs; (xvi) failure to comply with laws
and regulations could harm our business and our reputation; and (xvii)
the other risks detailed from time-to-time under the caption "Risk
Factors" and elsewhere in our Securities and Exchange Commission filings
and reports, including, but not limited to, our most recent quarterly
report on Form 10-Q. Such forward-looking statements speak only as of
the date hereof and readers should not unduly rely on such statements.
We undertake no obligation to update the information contained in this
press release, including in any forward-looking statements.
About Five9
Five9 is a leading provider of cloud contact center software for the
digital enterprise, bringing the power of cloud innovation to customers
and facilitating more than three billion customer interactions
annually. Five9 provides end-to-end solutions with omnichannel routing,
analytics, WFO, and AI to increase agent productivity and deliver
tangible business results. The Five9 platform is reliable, secure,
compliant, and scalable; designed to create exceptional personalized
customer experiences. For more information, visit www.five9.com.
|
FIVE9, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
166,162
|
|
|
$
|
68,947
|
|
|
Marketable investments
|
|
108,140
|
|
|
-
|
|
|
Accounts receivable, net
|
|
20,167
|
|
|
19,048
|
|
|
Prepaid expenses and other current assets
|
|
8,437
|
|
|
4,840
|
|
|
Deferred contract acquisition costs
|
|
8,083
|
|
|
-
|
|
|
Total current assets
|
|
310,989
|
|
|
92,835
|
|
|
Property and equipment, net
|
|
22,019
|
|
|
19,888
|
|
|
Intangible assets, net
|
|
841
|
|
|
1,073
|
|
|
Goodwill
|
|
11,798
|
|
|
11,798
|
|
|
Other assets
|
|
1,026
|
|
|
2,602
|
|
|
Deferred contract acquisition costs - less current portion
|
|
18,393
|
|
|
-
|
|
|
Total assets
|
|
$
|
365,066
|
|
|
$
|
128,196
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
6,035
|
|
|
$
|
4,292
|
|
|
Accrued and other current liabilities
|
|
13,615
|
|
|
11,787
|
|
|
Accrued federal fees
|
|
1,638
|
|
|
1,151
|
|
|
Sales tax liability
|
|
1,201
|
|
|
1,326
|
|
|
Notes payable
|
|
31
|
|
|
336
|
|
|
Capital leases
|
|
7,442
|
|
|
6,651
|
|
|
Deferred revenue
|
|
14,750
|
|
|
13,975
|
|
|
Total current liabilities
|
|
44,712
|
|
|
39,518
|
|
|
Convertible senior notes
|
|
190,615
|
|
|
-
|
|
|
Revolving line of credit
|
|
-
|
|
|
32,594
|
|
|
Sales tax liability - less current portion
|
|
928
|
|
|
1,044
|
|
|
Capital leases - less current portion
|
|
7,869
|
|
|
7,161
|
|
|
Other long-term liabilities
|
|
1,436
|
|
|
1,041
|
|
|
Total liabilities
|
|
245,560
|
|
|
81,358
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock
|
|
58
|
|
|
57
|
|
|
Additional paid-in capital
|
|
273,373
|
|
|
222,202
|
|
|
Accumulated deficit
|
|
(153,925
|
)
|
|
(175,421
|
)
|
|
Total stockholders' equity
|
|
119,506
|
|
|
46,838
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
365,066
|
|
|
$
|
128,196
|
|
|
|
|
FIVE9, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
2018
|
|
June 30,
2017
|
|
June 30,
2018
|
|
June 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
61,120
|
|
|
$
|
47,727
|
|
|
$
|
120,025
|
|
|
$
|
94,741
|
|
|
Cost of revenue
|
|
24,814
|
|
|
20,273
|
|
|
49,516
|
|
|
40,244
|
|
|
Gross profit
|
|
36,306
|
|
|
27,454
|
|
|
70,509
|
|
|
54,497
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
8,367
|
|
|
6,836
|
|
|
16,139
|
|
|
13,683
|
|
|
Sales and marketing
|
|
17,912
|
|
|
16,932
|
|
|
35,390
|
|
|
32,710
|
|
|
General and administrative
|
|
9,833
|
|
|
6,845
|
|
|
18,936
|
|
|
15,705
|
|
|
Total operating expenses
|
|
36,112
|
|
|
30,613
|
|
|
70,465
|
|
|
62,098
|
|
|
Income (loss) from operations
|
|
194
|
|
|
(3,159
|
)
|
|
44
|
|
|
(7,601
|
)
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(2,378
|
)
|
|
(888
|
)
|
|
(3,188
|
)
|
|
(1,770
|
)
|
|
Interest income and other
|
|
206
|
|
|
90
|
|
|
604
|
|
|
208
|
|
|
Total other income (expense), net
|
|
(2,172
|
)
|
|
(798
|
)
|
|
(2,584
|
)
|
|
(1,562
|
)
|
|
Loss before income taxes
|
|
(1,978
|
)
|
|
(3,957
|
)
|
|
(2,540
|
)
|
|
(9,163
|
)
|
|
Provision for income taxes
|
|
64
|
|
|
50
|
|
|
109
|
|
|
99
|
|
|
Net loss
|
|
$
|
(2,042
|
)
|
|
$
|
(4,007
|
)
|
|
$
|
(2,649
|
)
|
|
$
|
(9,262
|
)
|
|
Net loss per share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
$
|
(0.04
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.17
|
)
|
|
Shares used in computing net loss per share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
57,903
|
|
|
54,723
|
|
|
57,453
|
|
|
54,208
|
|
|
|
|
FIVE9, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Six Months Ended
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(2,649
|
)
|
|
$
|
(9,262
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
4,769
|
|
|
4,365
|
|
|
Amortization of premium on marketable investments
|
|
(43
|
)
|
|
-
|
|
|
Provision for doubtful accounts
|
|
66
|
|
|
45
|
|
|
Stock-based compensation
|
|
12,122
|
|
|
6,983
|
|
|
Gain on sale of convertible note held for investment
|
|
(312
|
)
|
|
-
|
|
|
Non-cash adjustment on investment
|
|
(40
|
)
|
|
(161
|
)
|
|
Amortization of debt discount and issuance costs
|
|
40
|
|
|
40
|
|
|
Amortization of discount and issuance costs on convertible senior
notes
|
|
1,733
|
|
|
-
|
|
|
Accretion of interest
|
|
44
|
|
|
10
|
|
|
Others
|
|
(19
|
)
|
|
(14
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(1,114
|
)
|
|
(2,426
|
)
|
|
Prepaid expenses and other current assets
|
|
(3,140
|
)
|
|
(4,106
|
)
|
|
Deferred contract acquisition costs
|
|
(3,338
|
)
|
|
-
|
|
|
Other assets
|
|
4
|
|
|
166
|
|
|
Accounts payable
|
|
1,493
|
|
|
1,187
|
|
|
Accrued and other current liabilities
|
|
2,415
|
|
|
909
|
|
|
Accrued federal fees and sales tax liability
|
|
246
|
|
|
171
|
|
|
Deferred revenue
|
|
1,170
|
|
|
2,025
|
|
|
Other liabilities
|
|
261
|
|
|
311
|
|
|
Net cash provided by operating activities
|
|
13,708
|
|
|
243
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of marketable investments
|
|
(109,506
|
)
|
|
-
|
|
|
Proceeds from maturities of marketable investments
|
|
1,400
|
|
|
-
|
|
|
Purchases of property and equipment
|
|
(1,092
|
)
|
|
(1,178
|
)
|
|
Proceeds from sale of convertible note held for investment
|
|
1,923
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
(107,275
|
)
|
|
(1,178
|
)
|
|
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
|
|
5,821
|
|
|
2,303
|
|
|
Proceeds from sale of common stock under ESPP
|
|
2,884
|
|
|
1,800
|
|
|
Repayments on revolving line of credit
|
|
(32,594
|
)
|
|
-
|
|
|
Payments of notes payable
|
|
(318
|
)
|
|
(400
|
)
|
|
Payments of capital leases
|
|
(4,403
|
)
|
|
(3,741
|
)
|
|
Net cash provided by (used in) financing activities
|
|
190,782
|
|
|
(38
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
97,215
|
|
|
(973
|
)
|
|
Cash and cash equivalents:
|
|
|
|
|
|
Beginning of period
|
|
68,947
|
|
|
58,122
|
|
|
End of period
|
|
$
|
166,162
|
|
|
$
|
57,149
|
|
|
|
|
FIVE9, INC.
|
|
RECONCILIATION OF ASC 605 TO ASC 606 P&L ITEMS - GAAP
|
|
(In thousands, except per share data and percentages)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
June 30, 2018
|
|
|
|
ASC 605
|
|
Adjustments
|
|
ASC 606
|
|
Revenue
|
|
$
|
60,772
|
|
|
$
|
348
|
|
|
$
|
61,120
|
|
|
Cost of revenue
|
|
24,668
|
|
|
146
|
|
|
24,814
|
|
|
GAAP gross profit
|
|
36,104
|
|
|
202
|
|
|
36,306
|
|
|
GAAP gross margin
|
|
59.4
|
%
|
|
|
|
59.4
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and development
|
|
8,367
|
|
|
-
|
|
|
|
8,367
|
|
|
Sales and marketing
|
|
19,588
|
|
|
(1,676
|
)
|
|
|
17,912
|
|
|
General and administrative
|
|
9,833
|
|
|
-
|
|
|
|
9,833
|
|
|
Total operating expenses
|
|
37,788
|
|
|
(1,676
|
)
|
|
36,112
|
|
|
GAAP income (loss) from operations
|
|
(1,684
|
)
|
|
1,878
|
|
|
194
|
|
|
GAAP Operating Margin
|
|
(2.8
|
)%
|
|
|
|
0.3
|
%
|
|
Other income (expense), net
|
|
(2,172
|
)
|
|
-
|
|
|
|
(2,172
|
)
|
|
Loss before income taxes
|
|
(3,856
|
)
|
|
1,878
|
|
|
(1,978
|
)
|
|
Provision for income taxes
|
|
64
|
|
|
-
|
|
|
64
|
|
|
GAAP net loss
|
|
$
|
(3,920
|
)
|
|
$
|
1,878
|
|
|
$
|
(2,042
|
)
|
|
Net loss per share:
|
|
|
|
|
|
|
|
Basic and diluted
|
|
$
|
(0.07
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.04
|
)
|
|
Shares used in computing net loss per share:
|
|
|
|
|
|
|
|
Basic and diluted
|
|
57,903
|
|
|
-
|
|
|
57,903
|
|
|
|
|
FIVE9, INC.
|
|
RECONCILIATION OF ASC 605 TO ASC 606 P&L ITEMS - NON-GAAP
|
|
(In thousands, except per share data and percentages)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30, 2018
|
|
|
|
ASC 605
|
|
Adjustments
|
|
ASC 606
|
|
Revenue
|
|
$
|
60,772
|
|
|
$
|
348
|
|
|
$
|
61,120
|
|
|
Cost of revenue
|
|
21,951
|
|
|
146
|
|
|
22,097
|
|
|
Adjusted gross profit
|
|
38,821
|
|
|
202
|
|
|
39,023
|
|
|
Adjusted gross margin
|
|
63.9
|
%
|
|
|
|
63.8
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and development
|
|
7,070
|
|
|
-
|
|
|
7,070
|
|
|
Sales and marketing
|
|
17,973
|
|
|
(1,676
|
)
|
|
16,297
|
|
|
General and administrative
|
|
5,975
|
|
|
-
|
|
|
5,975
|
|
|
Total operating expenses
|
|
31,018
|
|
|
(1,676
|
)
|
|
29,342
|
|
|
Adjusted EBITDA
|
|
7,803
|
|
|
1,878
|
|
|
9,681
|
|
|
Adjusted EBITDA margin
|
|
12.8
|
%
|
|
|
|
15.8
|
%
|
|
Depreciation
|
|
2,333
|
|
|
-
|
|
|
2,333
|
|
|
Non-GAAP operating income
|
|
5,470
|
|
|
1,878
|
|
|
7,348
|
|
|
Non-GAAP operating margin
|
|
9.0
|
%
|
|
|
|
12.0
|
%
|
|
Other income (expense), net
|
|
(419
|
)
|
|
-
|
|
|
(419
|
)
|
|
Income before income taxes
|
|
5,051
|
|
|
1,878
|
|
|
6,929
|
|
|
Provision for income taxes
|
|
64
|
|
|
-
|
|
|
64
|
|
|
Non-GAAP net income
|
|
$
|
4,987
|
|
|
$
|
1,878
|
|
|
$
|
6,865
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
0.03
|
|
|
$
|
0.12
|
|
|
Diluted
|
|
$
|
0.08
|
|
|
$
|
0.03
|
|
|
$
|
0.11
|
|
|
Shares used in computing non-GAAP net income per share:
|
|
|
|
|
|
|
|
Basic
|
|
57,903
|
|
|
-
|
|
|
57,903
|
|
|
Diluted
|
|
61,105
|
|
|
-
|
|
|
61,105
|
|
|
|
|
FIVE9, INC.
|
|
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT
|
|
(In thousands, except percentages)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
June 30, 2018
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
36,306
|
|
|
$
|
27,454
|
|
|
$
|
70,509
|
|
|
$
|
54,497
|
|
|
GAAP gross margin
|
|
59.4
|
%
|
|
57.5
|
%
|
|
58.7
|
%
|
|
57.5
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
1,776
|
|
|
1,628
|
|
|
3,482
|
|
|
3,116
|
|
|
Intangibles amortization
|
|
88
|
|
|
88
|
|
|
176
|
|
|
176
|
|
|
Stock-based compensation
|
|
853
|
|
|
575
|
|
|
1,531
|
|
|
1,009
|
|
|
Adjusted gross profit
|
|
$
|
39,023
|
|
|
$
|
29,745
|
|
|
$
|
75,698
|
|
|
$
|
58,798
|
|
|
Adjusted gross margin
|
|
63.8
|
%
|
|
62.3
|
%
|
|
63.1
|
%
|
|
62.1
|
%
|
|
|
|
FIVE9, INC.
|
|
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
June 30, 2018
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(2,042
|
)
|
|
$
|
(4,007
|
)
|
|
$
|
(2,649
|
)
|
|
$
|
(9,262
|
)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
2,449
|
|
|
2,270
|
|
|
4,769
|
|
|
4,365
|
|
|
Stock-based compensation
|
|
6,797
|
|
|
3,854
|
|
|
12,122
|
|
|
6,983
|
|
|
Interest expense
|
|
2,378
|
|
|
888
|
|
|
3,188
|
|
|
1,770
|
|
|
Interest income and other
|
|
(206
|
)
|
|
(90
|
)
|
|
(604
|
)
|
|
(208
|
)
|
|
Legal settlement
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,700
|
|
|
Legal and indemnification fees related to settlement
|
|
241
|
|
|
-
|
|
|
241
|
|
|
135
|
|
|
Provision for income taxes
|
|
64
|
|
|
50
|
|
|
109
|
|
|
99
|
|
|
Adjusted EBITDA
|
|
$
|
9,681
|
|
|
$
|
2,965
|
|
|
$
|
17,176
|
|
|
$
|
5,582
|
|
|
|
|
FIVE9, INC.
|
|
RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP
OPERATING INCOME
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
June 30, 2018
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
$
|
194
|
|
|
$
|
(3,159
|
)
|
|
$
|
44
|
|
|
$
|
(7,601
|
)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
6,797
|
|
|
3,854
|
|
|
12,122
|
|
|
6,983
|
|
|
Intangibles amortization
|
|
116
|
|
|
117
|
|
|
232
|
|
|
234
|
|
|
Legal settlement
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,700
|
|
|
Legal and indemnification fees related to settlement
|
|
241
|
|
|
-
|
|
|
241
|
|
|
135
|
|
|
Non-GAAP operating income
|
|
$
|
7,348
|
|
|
$
|
812
|
|
|
$
|
12,639
|
|
|
$
|
1,451
|
|
|
|
|
FIVE9, INC.
|
|
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
June 30, 2018
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(2,042
|
)
|
|
$
|
(4,007
|
)
|
|
$
|
(2,649
|
)
|
|
$
|
(9,262
|
)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
6,797
|
|
|
3,854
|
|
|
12,122
|
|
|
6,983
|
|
|
Intangibles amortization
|
|
116
|
|
|
117
|
|
|
232
|
|
|
234
|
|
|
Amortization of debt discount and issuance costs
|
|
20
|
|
|
20
|
|
|
40
|
|
|
40
|
|
|
Amortization of discount and issuance costs on convertible senior
notes
|
|
1,733
|
|
|
-
|
|
|
1,733
|
|
|
-
|
|
|
Legal settlement
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,700
|
|
|
Legal and indemnification fees related to settlement
|
|
241
|
|
|
-
|
|
|
241
|
|
|
135
|
|
|
Non-cash adjustment on investment
|
|
-
|
|
|
(58
|
)
|
|
(352
|
)
|
|
(161
|
)
|
|
Non-GAAP net income (loss)
|
|
$
|
6,865
|
|
|
$
|
(74
|
)
|
|
$
|
11,367
|
|
|
$
|
(331
|
)
|
|
GAAP net loss per share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
$
|
(0.04
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.17
|
)
|
|
Non-GAAP net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
|
$
|
-
|
|
|
$
|
0.20
|
|
|
$
|
(0.01
|
)
|
|
Diluted
|
|
$
|
0.11
|
|
|
$
|
-
|
|
|
$
|
0.19
|
|
|
$
|
(0.01
|
)
|
|
Shares used in computing GAAP net loss per share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
57,903
|
|
|
54,723
|
|
|
57,453
|
|
|
54,208
|
|
|
Shares used in computing non-GAAP net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
57,903
|
|
|
54,723
|
|
|
57,453
|
|
|
54,208
|
|
|
Diluted
|
|
61,105
|
|
|
54,723
|
|
|
60,741
|
|
|
54,208
|
|
|
|
|
FIVE9, INC.
SUMMARY OF STOCK-BASED COMPENSATION,
DEPRECIATION AND INTANGIBLES AMORTIZATION
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
|
|
Stock-Based
Compensation
|
|
Depreciation
|
|
Intangibles
Amortization
|
|
Stock-Based
Compensation
|
|
Depreciation
|
|
Intangibles
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
$
|
853
|
|
|
$
|
1,776
|
|
|
$
|
88
|
|
|
$
|
575
|
|
|
$
|
1,628
|
|
|
$
|
88
|
|
Research and development
|
|
1,064
|
|
|
233
|
|
|
-
|
|
|
801
|
|
|
237
|
|
|
-
|
|
Sales and marketing
|
|
1,585
|
|
|
2
|
|
|
28
|
|
|
1,224
|
|
|
1
|
|
|
29
|
|
General and administrative
|
|
3,295
|
|
|
322
|
|
|
-
|
|
|
1,254
|
|
|
287
|
|
|
-
|
|
Total
|
|
$
|
6,797
|
|
|
$
|
2,333
|
|
|
$
|
116
|
|
|
$
|
3,854
|
|
|
$
|
2,153
|
|
|
$
|
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
|
|
Stock-Based
Compensation
|
|
Depreciation
|
|
Intangibles
Amortization
|
|
Stock-Based
Compensation
|
|
Depreciation
|
|
Intangibles
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
$
|
1,531
|
|
|
$
|
3,482
|
|
|
$
|
176
|
|
|
$
|
1,009
|
|
|
$
|
3,116
|
|
|
$
|
176
|
|
Research and development
|
|
1,941
|
|
|
427
|
|
|
-
|
|
|
1,438
|
|
|
443
|
|
|
-
|
|
Sales and marketing
|
|
2,947
|
|
|
3
|
|
|
56
|
|
|
2,152
|
|
|
2
|
|
|
58
|
|
General and administrative
|
|
5,703
|
|
|
625
|
|
|
-
|
|
|
2,384
|
|
|
570
|
|
|
-
|
|
Total
|
|
$
|
12,122
|
|
|
$
|
4,537
|
|
|
$
|
232
|
|
|
$
|
6,983
|
|
|
$
|
4,131
|
|
|
$
|
234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2018
|
|
December 31, 2018
|
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(8,126
|
)
|
|
$
|
(7,126
|
)
|
|
$
|
(13,961
|
)
|
|
$
|
(11,961
|
)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
9,966
|
|
|
9,966
|
|
|
29,614
|
|
|
29,614
|
|
|
Intangibles amortization
|
|
116
|
|
|
116
|
|
|
442
|
|
|
442
|
|
|
Amortization of discount and issuance costs on convertible senior
notes
|
|
3,144
|
|
|
3,144
|
|
|
7,881
|
|
|
7,881
|
|
|
Amortization of debt discount and issuance costs
|
|
-
|
|
|
-
|
|
|
135
|
|
|
135
|
|
|
Legal and indemnification fees related to settlement
|
|
-
|
|
|
-
|
|
|
241
|
|
|
241
|
|
|
Non-cash adjustment on investment
|
|
-
|
|
|
-
|
|
|
(352
|
)
|
|
(352
|
)
|
|
Income tax expense effects (1)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Non-GAAP net income
|
|
$
|
5,100
|
|
|
$
|
6,100
|
|
|
$
|
24,000
|
|
|
$
|
26,000
|
|
|
GAAP net loss per share, basic and diluted
|
|
$
|
(0.14
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.24
|
)
|
|
$
|
(0.20
|
)
|
|
Non-GAAP net income per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
0.10
|
|
|
$
|
0.41
|
|
|
$
|
0.44
|
|
|
Diluted
|
|
$
|
0.08
|
|
|
$
|
0.10
|
|
|
$
|
0.39
|
|
|
$
|
0.42
|
|
|
Shares used in computing GAAP net loss per share and non-GAAP net
income per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
59,000
|
|
|
59,000
|
|
|
58,500
|
|
|
58,500
|
|
|
Diluted
|
|
62,500
|
|
|
62,500
|
|
|
62,000
|
|
|
62,000
|
|
|
|
|
(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/20180806005538/en/
[ Back To TMCnet.com's Homepage ]
|
