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Five9 Reports Fourth Quarter Revenue Growth of 36% to a Record $173.6 Million

February 23, 2022

51% Growth in LTM Enterprise Subscription Revenue

SAN RAMON, Calif.--(BUSINESS WIRE)--Feb. 23, 2022-- Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud contact center software, today reported results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Financial Results

  • Revenue for the fourth quarter of 2021 increased 36% to a record $173.6 million, compared to $127.9 million for the fourth quarter of 2020.
  • GAAP gross margin was 54.1% for the fourth quarter of 2021, compared to 59.9% for the fourth quarter of 2020.
  • Adjusted gross margin was 62.8% for the fourth quarter of 2021, compared to 66.4% for the fourth quarter of 2020.
  • GAAP net loss for the fourth quarter of 2021 was $(3.6) million, or $(0.05) per diluted share, compared to GAAP net loss of $(7.2) million, or $(0.11) per diluted share, for the fourth quarter of 2020.
  • Non-GAAP net income for the fourth quarter of 2021 was $30.1 million, or $0.42 per diluted share, compared to non-GAAP net income of $23.7 million, or $0.34 per diluted share, for the fourth quarter of 2020.
  • Adjusted EBITDA for the fourth quarter of 2021 was $36.9 million, or 21.3% of revenue, compared to $29.2 million, or 22.8% of revenue, for the fourth quarter of 2020.
  • GAAP operating cash flow for the fourth quarter of 2021 was $8.1 million, compared to GAAP operating cash flow of $19.3 million for the fourth quarter of 2020.

2021 Financial Results

  • Total revenue for 2021 increased 40% to a record $609.6 million, compared to $434.9 million in 2020.
  • GAAP gross margin was 55.5% for 2021, compared to 58.5% in 2020.
  • Adjusted gross margin was 63.5% for 2021, compared to 65.5% in 2020.
  • GAAP net loss for 2021 was $(53.0) million, or $(0.79) per basic share, compared to a GAAP net loss of $(42.1) million, or $(0.66) per basic share, in 2020.
  • Non-GAAP net income for 2021 was $82.2 million, or $1.16 per diluted share, compared to a non-GAAP net income of $67.4 million, or $0.99 per diluted share, in 2020.
  • Adjusted EBITDA for 2021 was $110.5 million, or 18.1% of revenue, compared to $85.7 million, or 19.7% of revenue, in 2020.
  • GAAP operating cash flow for 2021 was $28.5 million, compared to GAAP operating cash flow of $67.3 million in 2020.

“We are pleased to report that we finished the year with excellent results for the fourth quarter. Revenue grew 36% year-over-year to a record $173.6 million, driven by the continuing strength of our Enterprise business where LTM subscription revenue grew 51% year-over-year. Our results were driven by the growing market adoption of our AI and Automation offerings, in addition to the success we have made in our march up market, as prospective enterprise customers turn to Five9 for the reliable and innovative platform we have built as a company. We continue to build out our leadership position while delivering on a massive and barely penetrated opportunity, and we plan to continue investing in key strategic initiatives around AI, product innovation, traction with larger enterprises and global expansion to drive growth in the year ahead.”

- Rowan Trollope, 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 the COVID-19 pandemic.

  • For the full year 2022, Five9 expects to report:
    • Revenue in the range of $754.5 to $757.5 million.
    • Non-GAAP net income per share in the range of $1.12 to $1.16, assuming diluted shares outstanding of approximately 73 million.
  • For the first quarter of 2022, Five9 expects to report:
    • Revenue in the range of $170.0 to $171.0 million.
    • Non-GAAP net income per share in the range of $0.12 to $0.14, assuming diluted shares outstanding of approximately 71 million.

With respect to Five9’s guidance as provided above, Five9 has not reconciled its expectations as to non-GAAP net income per share to GAAP net loss per share because stock-based compensation and one-time integration costs cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Conference Call Details

Five9 will discuss its fourth quarter and full year 2021 results today, February 23, 2022, 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 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 and adjusted gross margin by adding back the following items to gross profit: depreciation, intangibles amortization, stock-based compensation, COVID-19 relief bonus for employees and one-time integration costs. 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, loss on early extinguishment of debt, interest income and other (expense), acquisition-related transaction costs and one-time integration costs, COVID-19 relief bonus for employees, contingent consideration expense and provision for (benefit from) income taxes. We calculate non-GAAP operating income by adding back or removing the following items to or from GAAP operating income (loss): stock-based compensation, intangibles amortization, acquisition-related transaction costs and one-time integration costs, COVID-19 relief bonus for employees and contingent consideration expense. 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, loss on early extinguishment of debt, acquisition-related transaction costs and one-time integration costs, COVID-19 relief bonus for employees, contingent consideration expense, and tax benefit associated with acquired companies. 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 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 growth prospects, market momentum, product innovation and go-to-market capabilities, and the first quarter and full year 2022 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. Other 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 retain and expand our sales force will 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) 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; (vii) 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; (viii) the markets in which we participate involve many and an increasing number of competitors, and if we do not compete effectively, our operating results could be harmed; (ix) adverse economic conditions may harm our business; (x) the effects of the COVID-19 pandemic have materially affected how we, our clients and business partners are operating, and the duration and extent to which this will impact our future results of operations and overall financial performance remains uncertain; (xi) 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 our business; (xii) 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; (xiii) 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; (xiv) 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; (xv) 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; (xvi) 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; (xvii) we have a history of losses and we may be unable to achieve or sustain profitability; (xviii) 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; (xix) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xx) failure to comply with laws and regulations could harm our business and our reputation; (xxi) 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 (xxii) 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

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 nine 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)

 

 

 

December 31, 2021

 

December 31, 2020

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

90,878

 

 

$

220,372

 

Marketable investments

 

 

378,980

 

 

 

383,171

 

Accounts receivable, net

 

 

83,731

 

 

 

48,731

 

Prepaid expenses and other current assets

 

 

30,342

 

 

 

16,149

 

Deferred contract acquisition costs, net

 

 

33,295

 

 

 

20,695

 

Total current assets

 

 

617,226

 

 

 

689,118

 

Property and equipment, net

 

 

77,785

 

 

 

51,213

 

Operating lease right-of-use assets

 

 

48,703

 

 

 

9,010

 

Intangible assets, net

 

 

39,897

 

 

 

51,684

 

Goodwill

 

 

165,420

 

 

 

165,420

 

Marketable investments

 

 

147,377

 

 

 

42,127

 

Other assets

 

 

11,871

 

 

 

3,236

 

Deferred contract acquisition costs, net — less current portion

 

 

84,663

 

 

 

51,934

 

Total assets

 

$

1,192,942

 

 

$

1,063,742

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

20,510

 

 

$

17,145

 

Accrued and other current liabilities

 

 

78,577

 

 

 

44,450

 

Operating lease liabilities

 

 

9,826

 

 

 

3,912

 

Accrued federal fees

 

 

2,282

 

 

 

3,745

 

Sales tax liabilities

 

 

2,660

 

 

 

1,714

 

Finance lease liabilities

 

 

 

 

 

612

 

Deferred revenue

 

 

43,720

 

 

 

31,983

 

Total current liabilities

 

 

157,575

 

 

 

103,561

 

Convertible senior notes

 

 

768,599

 

 

 

643,316

 

Sales tax liabilities — less current portion

 

 

877

 

 

 

857

 

Operating lease liabilities — less current portion

 

 

47,088

 

 

 

5,379

 

Other long-term liabilities

 

 

7,671

 

 

 

31,465

 

Total liabilities

 

 

981,810

 

 

 

784,578

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

68

 

 

 

67

 

Additional paid-in capital

 

 

439,787

 

 

 

476,941

 

Accumulated other comprehensive (loss) income

 

 

(287

)

 

 

335

 

Accumulated deficit

 

 

(228,436

)

 

 

(198,179

)

Total stockholders’ equity

 

 

211,132

 

 

 

279,164

 

Total liabilities and stockholders’ equity

 

$

1,192,942

 

 

$

1,063,742

 

 

 

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,
2021

 

December 31,
2020

 

December 31,
2021

 

December 31,
2020

 

 

 

 

 

 

 

 

 

Revenue

 

$

173,599

 

 

$

127,885

 

 

$

609,591

 

 

$

434,908

 

Cost of revenue

 

 

79,764

 

 

 

51,233

 

 

 

271,099

 

 

 

180,284

 

Gross profit

 

 

93,835

 

 

 

76,652

 

 

 

338,492

 

 

 

254,624

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

30,448

 

 

 

18,676

 

 

 

106,897

 

 

 

68,747

 

Sales and marketing

 

 

53,394

 

 

 

37,053

 

 

 

193,929

 

 

 

132,413

 

General and administrative

 

 

21,972

 

 

 

18,258

 

 

 

93,916

 

 

 

65,769

 

Total operating expenses

 

 

105,814

 

 

 

73,987

 

 

 

394,742

 

 

 

266,929

 

(Loss) income from operations

 

 

(11,979

)

 

 

2,665

 

 

 

(56,250

)

 

 

(12,305

)

Other (expense) income, net:

 

 

 

 

 

 

 

 

Interest expense

 

 

(2,024

)

 

 

(9,481

)

 

 

(8,027

)

 

 

(28,348

)

Loss on early extinguishment of debt

 

 

 

 

 

(887

)

 

 

 

 

 

(6,964

)

Other (expense) and interest income

 

 

(43

)

 

 

501

 

 

 

(8

)

 

 

3,034

 

Total other (expense) income, net

 

 

(2,067

)

 

 

(9,867

)

 

 

(8,035

)

 

 

(32,278

)

Loss before income taxes

 

 

(14,046

)

 

 

(7,202

)

 

 

(64,285

)

 

 

(44,583

)

(Benefit from) provision for income taxes

 

 

(10,445

)

 

 

8

 

 

 

(11,285

)

 

 

(2,453

)

Net loss

 

$

(3,601

)

 

$

(7,210

)

 

$

(53,000

)

 

$

(42,130

)

Net loss per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.05

)

 

$

(0.11

)

 

$

(0.79

)

 

$

(0.66

)

Diluted

 

$

(0.05

)

 

$

(0.11

)

 

$

(0.79

)

 

$

(0.66

)

Shares used in computing net loss per share:

 

 

 

 

 

 

 

 

Basic

 

 

68,207

 

 

 

66,133

 

 

 

67,512

 

 

 

64,154

 

Diluted

 

 

68,207

 

 

 

66,133

 

 

 

67,512

 

 

 

64,154

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Twelve Months Ended

 

 

December 31, 2021

 

December 31, 2020

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(53,000

)

 

$

(42,130

)

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

 

 

 

 

Depreciation and amortization

 

 

38,732

 

 

 

25,087

 

Amortization of operating lease right-of-use assets

 

 

8,698

 

 

 

5,687

 

Amortization of deferred contract acquisition costs

 

 

26,050

 

 

 

16,495

 

Amortization of premium on marketable investments

 

 

6,385

 

 

 

3,090

 

Provision for doubtful accounts

 

 

808

 

 

 

754

 

Stock-based compensation

 

 

108,805

 

 

 

64,747

 

Amortization of discount and issuance costs on convertible senior notes (1)

 

 

3,957

 

 

 

25,738

 

Loss on early extinguishment of debt

 

 

 

 

 

6,964

 

Change in fair value of contingent consideration

 

 

5,640

 

 

 

 

Deferred taxes

 

 

(6,907

)

 

 

(178

)

Tax benefit of valuation allowance associated with an acquisition

 

 

 

 

 

(2,910

)

Other

 

 

396

 

 

 

(147

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(35,986

)

 

 

(9,958

)

Prepaid expenses and other current assets

 

 

(14,193

)

 

 

(5,313

)

Deferred contract acquisition costs

 

 

(71,380

)

 

 

(45,454

)

Other assets

 

 

(1,729

)

 

 

(1,911

)

Accounts payable

 

 

4,305

 

 

 

6,181

 

Accrued and other current liabilities

 

 

20,562

 

 

 

9,374

 

Accrued federal fees and sales tax liability

 

 

(497

)

 

 

1,302

 

Deferred revenue

 

 

10,462

 

 

 

7,971

 

Other liabilities

 

 

(22,623

)

 

 

1,913

 

Net cash provided by operating activities

 

 

28,485

 

 

 

67,302

 

Cash flows from investing activities:

 

 

 

 

Purchases of marketable investments

 

 

(680,490

)

 

 

(620,948

)

Proceeds from sales of marketable investments

 

 

44,288

 

 

 

1,899

 

Proceeds from maturities of marketable investments

 

 

527,940

 

 

 

432,579

 

Purchases of property and equipment

 

 

(42,216

)

 

 

(30,422

)

Cash paid to acquire Inference and Virtual Observer

 

 

 

 

 

(165,338

)

Cash paid to acquire substantially all of the assets of Whendu

 

 

 

 

 

(100

)

Net cash used in investing activities

 

 

(150,478

)

 

 

(382,330

)

Cash flows from financing activities:

 

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs

 

 

 

 

 

728,812

 

Payments for capped call transactions

 

 

 

 

 

(90,448

)

Repurchase of a portion of 2023 convertible senior notes, net of costs

 

 

(24,688

)

 

 

(200,350

)

Proceeds from exercise of common stock options

 

 

7,402

 

 

 

11,656

 

Proceeds from sale of common stock under ESPP

 

 

15,397

 

 

 

11,469

 

Payment of holdbacks related to acquisitions

 

 

(5,000

)

 

 

 

Payments of finance leases

 

 

(612

)

 

 

(3,715

)

Net cash (used in) provided by financing activities

 

 

(7,501

)

 

 

457,424

 

Net (decrease) increase in cash and cash equivalents

 

 

(129,494

)

 

 

142,396

 

Cash and cash equivalents:

 

 

 

 

Beginning of period

 

 

220,372

 

 

 

77,976

 

End of period

 

$

90,878

 

 

$

220,372

 

 

 

 

 

 

(1) During the first quarter of 2021, the Company early adopted ASU 2020-06 which resulted in the elimination of amortization of discount on the convertible senior notes from January 1, 2021.

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

93,835

 

 

$

76,652

 

 

$

338,492

 

 

$

254,624

 

GAAP gross margin

 

 

54.1

%

 

 

59.9

%

 

 

55.5

%

 

 

58.5

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

5,354

 

 

 

3,665

 

 

 

19,083

 

 

 

13,330

 

Intangibles amortization

 

 

2,947

 

 

 

2,283

 

 

 

11,787

 

 

 

6,849

 

Stock-based compensation

 

 

6,854

 

 

 

2,331

 

 

 

17,734

 

 

 

9,422

 

COVID-19 relief bonus for employees

 

 

 

 

 

 

 

 

 

 

 

618

 

One-time integration costs

 

 

43

 

 

 

 

 

 

112

 

 

 

 

Adjusted gross profit

 

$

109,033

 

 

$

84,931

 

 

$

387,208

 

 

$

284,843

 

Adjusted gross margin

 

 

62.8

%

 

 

66.4

%

 

 

63.5

%

 

 

65.5

%

 

FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(In thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(3,601

)

 

$

(7,210

)

 

$

(53,000

)

 

$

(42,130

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

10,538

 

 

 

7,337

 

 

 

38,732

 

 

 

25,087

 

Stock-based compensation

 

 

35,601

 

 

 

16,876

 

 

 

108,805

 

 

 

64,747

 

Interest expense

 

 

2,024

 

 

 

9,481

 

 

 

8,027

 

 

 

28,348

 

Other (expense) and interest income

 

 

43

 

 

 

(501

)

 

 

8

 

 

 

(3,034

)

Acquisition related transaction costs and one-time integration costs

 

 

2,351

 

 

 

2,339

 

 

 

13,576

 

 

 

6,335

 

COVID-19 relief bonuses for employees

 

 

 

 

 

 

 

 

 

 

 

1,817

 

Loss on early extinguishment of debt

 

 

 

 

 

887

 

 

 

 

 

 

6,964

 

Contingent consideration expense

 

 

380

 

 

 

 

 

 

5,640

 

 

 

 

(Benefit from) provision for income taxes

 

 

(10,445

)

 

 

8

 

 

 

(11,285

)

 

 

(2,453

)

Adjusted EBITDA

 

$

36,891

 

 

$

29,217

 

 

$

110,503

 

 

$

85,681

 

Adjusted EBITDA as % of revenue

 

 

21.3

%

 

 

22.8

%

 

 

18.1

%

 

 

19.7

%

 

 

 

 

 

 

 

 

 

FIVE9, INC.

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

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

$

(11,979

)

 

$

2,665

 

$

(56,250

)

 

$

(12,305

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

35,601

 

 

 

16,876

 

 

108,805

 

 

 

64,747

 

Intangibles amortization

 

 

2,947

 

 

 

2,283

 

 

11,787

 

 

 

6,849

 

Acquisition related transaction costs and one-time integration costs

 

 

2,351

 

 

 

2,339

 

 

13,576

 

 

 

6,335

 

COVID-19 relief bonus for employees

 

 

 

 

 

 

 

 

 

 

1,817

 

Contingent consideration expense

 

 

380

 

 

 

 

 

5,640

 

 

 

 

Non-GAAP operating income

 

$

29,300

 

 

$

24,163

 

$

83,558

 

 

$

67,443

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(3,601

)

 

$

(7,210

)

 

$

(53,000

)

 

$

(42,130

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

35,601

 

 

 

16,876

 

 

 

108,805

 

 

 

64,747

 

Intangibles amortization

 

 

2,947

 

 

 

2,283

 

 

 

11,787

 

 

 

6,849

 

Amortization of discount and issuance costs on convertible senior notes

 

 

997

 

 

 

8,534

 

 

 

3,957

 

 

 

25,738

 

Acquisition related transaction costs and one-time integration costs

 

 

2,351

 

 

 

2,339

 

 

 

13,576

 

 

 

6,335

 

COVID-19 relief bonus for employees

 

 

 

 

 

 

 

 

 

 

 

1,817

 

Loss on early extinguishment of debt

 

 

 

 

 

887

 

 

 

 

 

 

6,964

 

Contingent consideration expense

 

 

380

 

 

 

 

 

 

5,640

 

 

 

 

Tax benefit associated with acquired companies

 

 

(8,573

)

 

 

 

 

 

(8,573

)

 

 

(2,910

)

Non-GAAP net income

 

$

30,102

 

 

$

23,709

 

 

$

82,192

 

 

$

67,410

 

GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.05

)

 

$

(0.11

)

 

$

(0.79

)

 

$

(0.66

)

Diluted

 

$

(0.05

)

 

$

(0.11

)

 

$

(0.79

)

 

$

(0.66

)

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.44

 

 

$

0.36

 

 

$

1.22

 

 

$

1.05

 

Diluted

 

$

0.42

 

 

$

0.34

 

 

$

1.16

 

 

$

0.99

 

Shares used in computing GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic

 

 

68,207

 

 

 

66,133

 

 

 

67,512

 

 

 

64,154

 

Diluted

 

 

68,207

 

 

 

66,133

 

 

 

67,512

 

 

 

64,154

 

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

 

 

 

 

 

 

 

 

Basic

 

 

68,207

 

 

 

66,133

 

 

 

67,512

 

 

 

64,154

 

Diluted

 

 

70,878

 

 

 

70,320

 

 

 

70,735

 

 

 

68,040

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

December 31, 2021

 

December 31, 2020

 

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

6,854

 

$

5,354

 

$

2,947

 

$

2,331

 

$

3,665

 

$

2,283

Research and development

 

 

9,163

 

 

948

 

 

 

 

3,675

 

 

488

 

 

Sales and marketing

 

 

11,987

 

 

1

 

 

 

 

5,366

 

 

2

 

 

General and administrative

 

 

7,597

 

 

1,288

 

 

 

 

5,504

 

 

899

 

 

Total

 

$

35,601

 

$

7,591

 

$

2,947

 

$

16,876

 

$

5,054

 

$

2,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

December 31, 2021

 

December 31, 2020

 

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

17,734

 

$

19,083

 

$

11,787

 

$

9,422

 

$

13,330

 

$

6,849

Research and development

 

 

29,179

 

 

3,277

 

 

 

 

14,043

 

 

1,964

 

 

Sales and marketing

 

 

35,269

 

 

4

 

 

 

 

20,164

 

 

5

 

 

General and administrative

 

 

26,623

 

 

4,581

 

 

 

 

21,118

 

 

2,939

 

 

Total

 

$

108,805

 

$

26,945

 

$

11,787

 

$

64,747

 

$

18,238

 

$

6,849

 

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

Source: Five9, Inc.