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Five9 Reports Second Quarter Revenue Growth of 29% to a Record $99.8 Million

August 3, 2020

33% Growth in LTM Enterprise Subscription Revenue

Eighteenth Consecutive Quarter of Positive Operating Cash Flow at $14.8 Million

Raised 2020 Guidance for both Revenue and Bottom Line

SAN RAMON, Calif.--(BUSINESS WIRE)--Aug. 3, 2020-- Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud contact center software, today reported results for the second quarter ended June 30, 2020.

Second Quarter 2020 Financial Results

  • Revenue for the second quarter of 2020 increased 29% to a record $99.8 million, compared to $77.4 million for the second quarter of 2019.
  • GAAP gross margin was 57.5% for the second quarter of 2020, compared to 59.6% for the second quarter of 2019.
  • Adjusted gross margin was 65.7% for the second quarter of 2020, compared to 65.0% for the second quarter of 2019.
  • GAAP net loss for the second quarter of 2020 was $(16.1) million, or $(0.25) per basic share, compared to GAAP net loss of $(1.9) million, or $(0.03) per basic share, for the second quarter of 2019.
  • Non-GAAP net income for the second quarter of 2020 was $14.1 million, or $0.21 per diluted share, compared to non-GAAP net income of $12.3 million, or $0.20 per diluted share, for the second quarter of 2019.
  • Adjusted EBITDA for the second quarter of 2020 was $18.3 million, or 18.3% of revenue, compared to $14.4 million, or 18.6% of revenue, for the second quarter of 2019.
  • GAAP operating cash flow for the second quarter of 2020 was $14.8 million, compared to GAAP operating cash flow of $6.8 million for the second quarter of 2019.

"We delivered exceptionally strong second quarter results with revenue of $99.8 million. Revenue growth accelerated to 29% year-over-year and 5% sequentially, adjusted EBITDA margin was 18.3%, and we delivered our eighteenth consecutive quarter of positive operating cash flow. We believe the on-premises to cloud and digital transformation trends driving our massive market opportunity are likely to accelerate as work-from-home trends continue and retail sales personnel are increasingly displaced by contact center agents. Our better-than-expected second quarter results and pipeline also demonstrate the strength of our core business and, most importantly, our consistent sales execution. Our increased go-to-market investments are paying dividends, most notably with system integrators and AT&T. Meanwhile, our enhanced product and engineering leadership team is driving faster product innovation at greater scale. We remain focused on driving superb execution and disciplined, balanced growth."

- Rowan Trollope, CEO, Five9

Business Outlook

Five9 provides guidance based on current market conditions and expectations. The Company 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 2020, Five9 expects to report:
    • Revenue in the range of $399.0 to $401.0 million, higher than the prior guidance range of $380.5 to $383.5 million that was previously provided on May 4, 2020.
    • GAAP net loss in the range of $(56.4) to $(54.4) million, or $(0.88) to $(0.85) per basic share, lower than the prior guidance range of $(45.4) to $(42.4) million, or $(0.72) to $(0.67) per basic share, that was previously provided on May 4, 2020. This decline is primarily due to a $12.6 million increase in amortization of discount and issuance costs related to our 2025 convertible senior notes issued in May and June 2020 and the concurrent repurchase of a portion of our 2023 convertible senior notes, along with a $5.8 million loss on early extinguishment of a portion of our 2023 convertible senior notes.
    • Non-GAAP net income in the range of $52.7 to $54.7 million, or $0.77 to $0.80 per diluted share, higher than the prior guidance range of $48.3 to $51.3 million, or $0.72 to $0.76 per diluted share, that was previously provided on May 4, 2020.
  • For the third quarter of 2020, Five9 expects to report:
    • Revenue in the range of $100.5 to $101.5 million.
    • GAAP net loss in the range of $(18.9) to $(17.9) million, or $(0.29) to $(0.28) per basic share.
    • Non-GAAP net income in the range of $11.6 to $12.6 million, or $0.17 to $0.18 per diluted share.

Conference Call Details

Five9 will discuss its second quarter 2020 results today, August 3, 2020, via teleconference at 4:30 p.m. Eastern Time. To access the call (ID 1396522), please dial: 866-248-8441 or 720-452-9102. An audio replay of the call will be available through August 17, 2020 by dialing 888-203-1112 or 719-457-0820 and entering access code 1396522. 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, stock-based compensation and COVID-19 relief bonus for employees. 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, acquisition-related transaction costs and one-time integration costs, non-recurring litigation settlement costs and related indemnification fees, COVID-19 relief bonus for employees and provision for (benefit from) income taxes. We calculate non-GAAP operating income as GAAP operating income (loss) excluding stock-based compensation, intangibles amortization, acquisition-related transaction costs and one-time integration costs, non-recurring litigation settlement costs and related indemnification fees, and COVID-19 relief bonus for employees. We calculate non-GAAP net income as GAAP net loss excluding stock-based compensation, intangibles amortization, amortization of discount and issuance costs on convertible senior notes, acquisition-related transaction costs and one-time integration costs, non-recurring litigation settlement costs and related indemnification fees, gain on sale of convertible note held for investment, COVID-19 relief bonus for employees, loss on early extinguishment of debt, and tax benefit of valuation allowance associated with an acquisition. 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 expectations for market acceleration from on premise contact centers to the cloud and drivers thereof, Five9’s expectations regarding the benefits of its go-to-market investments, Five9's sales pipeline, Five9's faster product innovation and greater scale, and Five9’s growth expectations, and the third quarter and full year 2020 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 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; (ii) 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; (iii) 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; (iv) 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; (v) failure to adequately retain and expand our sales force will impede our growth; (vi) 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; (vii) 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; (viii) 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; (ix) adverse economic conditions may harm our business; (x) security breaches and improper access to or disclosure of our data or our clients’ data, their customers’ data, or other cyber attacks on our systems, could result in litigation and regulatory risk, harm our reputation and our business; (xi) 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; (xii) 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; (xiii) 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; (xiv) 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; (xv) 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; (xvi) we have a history of losses and we may be unable to achieve or sustain profitability; (xvii) 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; (xviii) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xix) we may acquire other companies or technologies or be the target of strategic transactions, which could divert our management’s attention, result in additional dilution to our stockholders and otherwise disrupt our operations and harm our operating results; (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 six billion call minutes annually. Five9 provides end-to-end solutions with omnichannel routing, analytics, WFO and AI to increase agent productivity and deliver tangible business results. The Five9 Genius platform is reliable, secure, compliant and scalable; designed to create exceptional personalized customer experiences. For more information, visit www.five9.com.

FIVE9, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

June 30, 2020

 

December 31, 2019

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

233,235

 

 

$

77,976

 

Marketable investments

 

452,708

 

 

241,973

 

Accounts receivable, net

 

39,607

 

 

37,655

 

Prepaid expenses and other current assets

 

17,529

 

 

10,656

 

Deferred contract acquisition costs

 

16,151

 

 

13,014

 

Total current assets

 

759,230

 

 

381,274

 

Property and equipment, net

 

39,799

 

 

33,190

 

Operating lease right-of-use assets

 

10,006

 

 

8,746

 

Intangible assets, net

 

25,605

 

 

15,533

 

Goodwill

 

34,444

 

 

11,798

 

Marketable investments

 

82,064

 

 

 

Other assets

 

2,789

 

 

1,184

 

Deferred contract acquisition costs — less current portion

 

39,366

 

 

30,655

 

Total assets

 

$

993,303

 

 

$

482,380

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

12,045

 

 

$

10,156

 

Accrued and other current liabilities

 

34,817

 

 

18,385

 

Operating lease liabilities

 

5,247

 

 

5,064

 

Accrued federal fees

 

1,670

 

 

2,303

 

Sales tax liabilities

 

1,565

 

 

1,885

 

Finance lease liabilities

 

2,032

 

 

3,518

 

Deferred revenue

 

26,306

 

 

24,681

 

Total current liabilities

 

83,682

 

 

65,992

 

Convertible senior notes

 

642,203

 

 

209,604

 

Sales tax liabilities — less current portion

 

847

 

 

838

 

Operating lease liabilities — less current portion

 

5,249

 

 

4,329

 

Finance lease liabilities — less current portion

 

100

 

 

809

 

Other long-term liabilities

 

6,814

 

 

4,350

 

Total liabilities

 

738,895

 

 

285,922

 

Stockholders’ equity:

 

 

 

 

Common stock

 

65

 

 

61

 

Additional paid-in capital

 

432,877

 

 

351,870

 

Accumulated other comprehensive income

 

1,004

 

 

576

 

Accumulated deficit

 

(179,538)

 

 

(156,049)

 

Total stockholders’ equity

 

254,408

 

 

196,458

 

Total liabilities and stockholders’ equity

 

$

993,303

 

 

$

482,380

 

 

 

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2020

 

June 30, 2019

 

June 30, 2020

 

June 30, 2019

 

 

 

 

 

 

 

 

 

Revenue

 

$

99,792

 

 

$

77,436

 

 

$

194,880

 

 

$

151,974

 

Cost of revenue

 

42,453

 

 

31,248

 

 

82,490

 

 

62,099

 

Gross profit

 

57,339

 

 

46,188

 

 

112,390

 

 

89,875

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

17,208

 

 

10,811

 

 

32,397

 

 

21,357

 

Sales and marketing

 

32,231

 

 

23,250

 

 

62,391

 

 

44,951

 

General and administrative

 

16,129

 

 

12,042

 

 

30,787

 

 

23,804

 

Total operating expenses

 

65,568

 

 

46,103

 

 

125,575

 

 

90,112

 

Income (loss) from operations

 

(8,229)

 

 

85

 

 

(13,185)

 

 

(237)

 

Other income (expense), net:

 

 

 

 

 

 

 

 

Interest expense

 

(5,734)

 

 

(3,406)

 

 

(9,218)

 

 

(6,802)

 

Interest income and other

 

(4,965)

 

 

1,490

 

 

(3,893)

 

 

3,235

 

Total other income (expense), net

 

(10,699)

 

 

(1,916)

 

 

(13,111)

 

 

(3,567)

 

Loss before income taxes

 

(18,928)

 

 

(1,831)

 

 

(26,296)

 

 

(3,804)

 

Provision for (benefit from) income taxes

 

(2,876)

 

 

29

 

 

(2,807)

 

 

(20)

 

Net loss

 

$

(16,052)

 

 

(1,860)

 

 

$

(23,489)

 

 

$

(3,784)

 

Net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.25)

 

 

$

(0.03)

 

 

$

(0.38)

 

 

$

(0.06)

 

Shares used in computing net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

63,282

 

 

60,058

 

 

62,494

 

 

59,714

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Six Months Ended

 

 

June 30, 2020

 

June 30, 2019

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(23,489)

 

 

$

(3,784)

 

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

 

 

 

 

Depreciation and amortization

 

11,213

 

 

6,553

 

Amortization of operating lease right-of-use assets

 

2,786

 

 

2,147

 

Amortization of premium on marketable investments

 

630

 

 

(883)

 

Provision for doubtful accounts

 

353

 

 

30

 

Stock-based compensation

 

30,585

 

 

19,122

 

Loss on early extinguishment of debt

 

5,794

 

 

 

Gain on sale of convertible note held for investment

 

 

 

(217)

 

Amortization of discount and issuance costs on convertible senior notes

 

8,571

 

 

6,234

 

Tax benefit of valuation allowance associated with an acquisition

 

(2,910)

 

 

 

Others

 

82

 

 

(23)

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

(2,119)

 

 

(3,378)

 

Prepaid expenses and other current assets

 

(7,065)

 

 

(4,053)

 

Deferred contract acquisition costs

 

(11,848)

 

 

(5,488)

 

Other assets

 

(1,604)

 

 

(12,571)

 

Accounts payable

 

2,553

 

 

159

 

Accrued and other current liabilities

 

9,561

 

 

6,516

 

Accrued federal fees and sales tax liability

 

(945)

 

 

(337)

 

Deferred revenue

 

3,292

 

 

2,539

 

Other liabilities

 

(281)

 

 

5,412

 

Net cash provided by operating activities

 

25,159

 

 

17,978

 

Cash flows from investing activities:

 

 

 

 

Purchases of marketable investments

 

(460,899)

 

 

(151,308)

 

Proceeds from maturities of marketable investments

 

167,850

 

 

165,354

 

Purchases of property and equipment

 

(14,891)

 

 

(8,226)

 

Cash paid to acquire Virtual Observer

 

(28,313)

 

 

 

Cash paid to acquire substantially all of the assets of Whendu LLC

 

(100)

 

 

 

Proceeds from sale of convertible note held for investment

 

 

 

217

 

Net cash (used in) provided by investing activities

 

(336,353)

 

 

6,037

 

Cash flows from financing activities:

 

 

 

 

Proceeds from issuance of 2025 convertible senior notes, net of issuance costs

 

728,812

 

 

 

Payments for capped call transactions related to the 2025 convertible senior notes

 

(90,448)

 

 

 

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

 

(181,462)

 

 

 

Proceeds from exercise of common stock options

 

6,080

 

 

4,248

 

Proceeds from sale of common stock under ESPP

 

5,666

 

 

3,996

 

Payments of finance leases

 

(2,195)

 

 

(3,702)

 

Net cash provided by financing activities

 

466,453

 

 

4,542

 

Net increase in cash and cash equivalents

 

155,259

 

 

28,557

 

Cash and cash equivalents:

 

 

 

 

Beginning of period

 

77,976

 

 

81,912

 

End of period

 

$

233,235

 

 

$

110,469

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except percentages)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2020

 

June 30, 2019

 

June 30, 2020

 

June 30, 2019

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

57,339

 

 

$

46,188

 

 

$

112,390

 

 

$

89,875

 

GAAP gross margin

 

57.5

%

 

59.6

%

 

57.7

%

 

59.1

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

3,382

 

 

2,416

 

 

6,232

 

 

4,694

 

Intangibles amortization

 

1,738

 

 

88

 

 

2,828

 

 

176

 

Stock-based compensation

 

2,499

 

 

1,658

 

 

4,488

 

 

2,887

 

COVID-19 relief bonus for employees

 

618

 

 

 

 

618

 

 

 

Adjusted gross profit

 

$

65,576

 

 

$

50,350

 

 

$

126,556

 

 

$

97,632

 

Adjusted gross margin

 

65.7

%

 

65.0

%

 

64.9

%

 

64.2

%

FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(In thousands, except percentages)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2020

 

June 30, 2019

 

June 30, 2020

 

June 30, 2019

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(16,052)

 

 

$

(1,860)

 

 

$

(23,489)

 

 

$

(3,784)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

6,243

 

 

3,361

 

 

11,213

 

 

6,553

 

Stock-based compensation

 

16,791

 

 

10,436

 

 

30,585

 

 

19,122

 

Interest expense

 

5,734

 

 

3,406

 

 

9,218

 

 

6,802

 

Interest income and other

 

4,965

 

 

(1,490)

 

 

3,893

 

 

(3,235)

 

Legal settlement

 

 

 

420

 

 

 

 

420

 

Legal and indemnification fees related to settlement

 

 

 

64

 

 

 

 

356

 

Acquisition-related transaction costs and one-time integration costs

 

1,637

 

 

 

 

1,966

 

 

 

COVID-19 relief bonus for employees

 

1,817

 

 

 

 

1,817

 

 

 

Provision for (benefit from) income taxes

 

(2,876)

 

 

29

 

 

(2,807)

 

 

(20)

 

Adjusted EBITDA

 

$

18,259

 

 

$

14,366

 

 

$

32,396

 

 

$

26,214

 

Adjusted EBITDA as % of revenue

 

18.3

%

 

18.6

%

 

16.6

%

 

17.2

%

 

 

 

 

 

 

 

 

 

FIVE9, INC.

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

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2020

 

June 30, 2019

 

June 30, 2020

 

June 30, 2019

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

(8,229)

 

 

$

85

 

 

$

(13,185)

 

 

$

(237)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

16,791

 

 

10,436

 

 

30,585

 

 

19,122

 

Intangibles amortization

 

1,738

 

 

88

 

 

2,828

 

 

176

 

Legal settlement

 

 

 

420

 

 

 

 

420

 

Legal and indemnification fees related to settlement

 

 

 

64

 

 

 

 

356

 

Acquisition-related transaction costs and one-time integration costs

 

1,637

 

 

 

 

1,966

 

 

 

COVID-19 relief bonus for employees

 

1,817

 

 

 

 

1,817

 

 

 

Non-GAAP operating income

 

$

13,754

 

 

$

11,093

 

 

$

24,011

 

 

$

19,837

 

 

 

 

 

 

 

 

 

 

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, 2020

 

June 30, 2019

 

June 30, 2020

 

June 30, 2019

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(16,052)

 

 

$

(1,860)

 

 

$

(23,489)

 

 

$

(3,784)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

16,791

 

 

10,436

 

 

30,585

 

 

19,122

 

Intangibles amortization

 

1,738

 

 

88

 

 

2,828

 

 

176

 

Amortization of discount and issuance costs on convertible senior notes

 

5,251

 

 

3,155

 

 

8,571

 

 

6,234

 

Legal settlement

 

 

 

420

 

 

 

 

420

 

Legal and indemnification fees related to settlement

 

 

 

64

 

 

 

 

356

 

Acquisition-related transaction costs and one-time integration costs

 

1,637

 

 

 

 

1,966

 

 

 

COVID-19 relief bonus for employees

 

1,817

 

 

 

 

1,817

 

 

 

Loss on early extinguishment of debt

 

5,794

 

 

 

 

5,794

 

 

 

Gain on sale of convertible note held for investment

 

 

 

 

 

 

 

(217)

 

Tax benefit of valuation allowance associated with an acquisition

 

(2,910)

 

 

 

 

(2,910)

 

 

 

Non-GAAP net income

 

$

14,066

 

 

$

12,303

 

 

$

25,162

 

 

$

22,307

 

GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.25)

 

 

$

(0.03)

 

 

$

(0.38)

 

 

$

(0.06)

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.22

 

 

$

0.20

 

 

$

0.40

 

 

$

0.37

 

Diluted

 

$

0.21

 

 

$

0.20

 

 

$

0.38

 

 

$

0.35

 

Shares used in computing GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

63,282

 

 

60,058

 

 

62,494

 

 

59,714

 

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

 

 

 

 

 

 

 

 

Basic

 

63,282

 

 

60,058

 

 

62,494

 

 

59,714

 

Diluted

 

67,171

 

 

62,950

 

 

65,960

 

 

62,843

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

 

June 30, 2020

 

June 30, 2019

 

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

2,499

 

 

$

3,382

 

 

$

1,738

 

 

$

1,658

 

 

$

2,416

 

 

$

88

 

Research and development

 

3,684

 

 

497

 

 

 

 

1,907

 

 

450

 

 

 

Sales and marketing

 

5,265

 

 

2

 

 

 

 

2,749

 

 

1

 

 

 

General and administrative

 

5,343

 

 

624

 

 

 

 

4,122

 

 

406

 

 

 

Total

 

$

16,791

 

 

$

4,505

 

 

$

1,738

 

 

$

10,436

 

 

$

3,273

 

 

$

88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30, 2020

 

June 30, 2019

 

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

4,488

 

 

$

6,232

 

 

$

2,828

 

 

$

2,887

 

 

$

4,694

 

 

$

176

 

Research and development

 

6,491

 

 

963

 

 

 

 

3,377

 

 

890

 

 

 

Sales and marketing

 

9,371

 

 

3

 

 

 

 

4,998

 

 

2

 

 

 

General and administrative

 

10,235

 

 

1,187

 

 

 

 

7,860

 

 

791

 

 

 

Total

 

$

30,585

 

 

$

8,385

 

 

$

2,828

 

 

$

19,122

 

 

$

6,377

 

 

$

176

 

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, 2020

 

December 31, 2020

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(18,938)

 

 

$

(17,938)

 

 

$

(56,402)

 

 

$

(54,402)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

17,618

 

 

17,618

 

 

66,191

 

 

66,191

 

Intangibles amortization

 

1,738

 

 

1,738

 

 

6,232

 

 

6,232

 

Amortization of discount and issuance costs on convertible senior notes

 

8,637

 

 

8,637

 

 

25,975

 

 

25,975

 

Loss on early extinguishment of debt

 

 

 

 

 

5,794

 

 

5,794

 

Acquisition-related transaction costs and one-time integration costs

 

2,545

 

 

2,545

 

 

6,003

 

 

6,003

 

COVID-19 relief bonus for employees

 

 

 

 

 

1,817

 

 

1,817

 

Tax benefit of valuation allowance associated with an acquisition

 

 

 

 

 

(2,910)

 

 

(2,910)

 

Income tax expense effects (1)

 

 

 

 

 

 

 

 

Non-GAAP net income

 

$

11,600

 

 

$

12,600

 

 

$

52,700

 

 

$

54,700

 

GAAP net loss per share, basic and diluted

 

$

(0.29)

 

 

$

(0.28)

 

 

$

(0.88)

 

 

$

(0.85)

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.18

 

 

$

0.19

 

 

$

0.82

 

 

$

0.85

 

Diluted

 

$

0.17

 

 

$

0.18

 

 

$

0.77

 

 

$

0.80

 

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

 

 

 

 

 

 

 

 

Basic

 

64,900

 

 

64,900

 

 

64,200

 

 

64,200

 

Diluted

 

69,100

 

 

69,100

 

 

68,100

 

 

68,100

 

 

 

 

 

 

 

 

 

 

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

 

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.