Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 31, 2019
FIVE9, INC.
(Exact name of Registrant as specified in its charter)
 
 
 
 
Delaware
001-36383
94-3394123
(State or other jurisdiction
of incorporation)
(Commission
File No.)
(I.R.S. Employer
Identification No.)
 
 
Bishop Ranch 8
4000 Executive Parkway, Suite 400
San Ramon, California 94583
(Address of principal executive offices and Zip Code)
Registrant’s telephone number, including area code: (925) 201-2000
Not Applicable
(Former name or former address if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicated by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging Growth Company
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   o    






Item 2.02 Results of Operations and Financial Condition.
On July 31, 2019, Five9, Inc. (the “Company”) announced its financial results for the fiscal quarter ended June 30, 2019. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1 furnished herewith) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
 
Exhibit No.
  
Description
 
 
  





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
 
 
 
 
FIVE9, INC.
 
 
 
 
 
Date: July 31, 2019
 
 
 
 
 
By:
 
/s/ Barry Zwarenstein
 
 
 
 
 
 
 
 
Barry Zwarenstein
 
 
 
 
 
 
 
 
Chief Financial Officer




Exhibit
Exhibit 99.1
https://cdn.kscope.io/8c5f7b9f7bfe5ca03b63df90a4cb79e6-five9logoprimaryrgba03a20.jpg

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. - July 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

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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,

2


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

3


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.

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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

 
 
 
 
 

5


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

 
 
 
 
 
 
 
 
 



6


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

 
 
 
 
 

7




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
%
 
 
 
 
 
 
 
 
 


8


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

 
 
 
 
 
 
 
 
 


9


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

 
 
 
 
 
 
 
 
 

10


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

 
 
 
 
 
 
 
 
 
 
 
 
 


11


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.





12


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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