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): October 31, 2016
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))






Item 2.02 Results of Operations and Financial Condition.
On November 1, 2016, Five9, Inc. (the “Company”) announced its financial results for the fiscal quarter ended September 30, 2016. 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 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On October 31, 2016, the Compensation Committee of the Board of Directors of the Company (the “Committee”) promoted Daniel Burkland, the Company’s Executive Vice President of Sales and Business Development, to a newly created position of Executive Vice President of Global Sales and Services. In this new role, Mr. Burkland will additionally assume the duties and responsibilities previously performed by Michael Crane, who had been the Company’s Executive Vice President of Services.

In connection with Mr. Burkland’s promotion, on October 31, 2016, the Committee also approved the termination of Michael Crane as the Company’s Executive Vice President of Services. Subject to the satisfaction of certain conditions, Mr. Crane will receive the severance benefits to which he is entitled under the Company’s Key Employee Severance Benefit Plan, comprised of (i) a lump sum cash payment equal to six months of his base salary ($129,230.77 in the aggregate), and (ii) either payment of the premiums for his continued post-termination health insurance coverage or continued coverage under the Company’s health insurance plan for up to six months after his termination.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
 
Exhibit No.
  
Description
 
 
99.1
  
Press Release issued by the Company on November 1, 2016





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: November 1, 2016
 
 
 
 
 
By:
 
/s/ Barry Zwarenstein
 
 
 
 
 
 
 
 
Barry Zwarenstein
 
 
 
 
 
 
 
 
Chief Financial Officer





INDEX TO EXHIBITS
 
Exhibit No.
  
Description
 
 
99.1
  
Press Release issued by the Company on November 1, 2016


Exhibit
Exhibit 99.1
https://cdn.kscope.io/277d8fb8e95c41eb207d7e92889ed248-five9logoprimaryrgba03a08.jpg
Five9 Reports Third Quarter Total Revenue Growth of 27%
LTM Enterprise Subscription Revenue Growth Accelerates to 43%
YTD GAAP Operating Cash Flow Improves by $16.9M
Raises 2016 Guidance for Revenue and Bottom Line

SAN RAMON, CALIF. - November 1, 2016 - Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud software for the enterprise contact center market, today reported results for the third quarter 2016 ended September 30, 2016.

Third Quarter 2016 Financial Results
Total revenue for the third quarter of 2016 increased 27% to a record $41.0 million, compared to $32.3 million for the third quarter of 2015
GAAP gross margin was 56.6% for the third quarter of 2016, compared to 54.1% for the third quarter of 2015
Adjusted gross margin was 61.5% for the third quarter of 2016, compared to 59.4% for the third quarter of 2015
GAAP net loss for the third quarter of 2016 was $(3.9) million, or $(0.07) per share, compared to a GAAP net loss of $(6.0) million, or $(0.12) per share, for the third quarter of 2015
Non-GAAP net loss for the third quarter of 2016 was $(0.2) million, or $(0.00) per share, compared to a non-GAAP net loss of $(3.9) million, or $(0.08) per share, for the third quarter of 2015
GAAP operating cash flow for the third quarter of 2016 was $1.7 million, compared to a GAAP operating cash outflow of $(3.2) million for the third quarter of 2015
Adjusted EBITDA for the third quarter of 2016 was $2.7 million, or 6.7% of revenue, compared to a loss of $(1.1) million, or (3.4)% of revenue, for the third quarter of 2015


1


“Our third quarter results were once again outstanding. Our revenue grew 27% year-over-year resulting in record revenue of $41.0 million. This revenue growth was driven primarily by the continued acceleration in our enterprise business, which delivered 43% growth in LTM enterprise subscription revenue and which drives high marginal profitability. Additionally, Five9 was once again named a leader in this year’s Gartner Magic Quadrant for Contact Center as a Service, North America, published on October 24th, and we were positioned highest on ability to execute. We see this as further validation of our leadership position in the enterprise market. We believe we are still in the early days of a massive push towards modernization of customer service and contact center technologies. Given our leadership position in this market and the strong momentum in our business, we are again raising 2016 guidance.”
- Mike Burkland, President and CEO, Five9


Q3 Business Highlights
Third quarter record for enterprise bookings
LTM enterprise subscription revenue grew 43% year-over-year, up from 35% in the year ago period
LTM enterprise revenue increased to 68% of total revenue, up from 63% in the year ago period
Annual dollar-based retention rate was 100%, up from 95% in the year ago period

Business Outlook
For the full year 2016, Five9 expects to report:
Revenue in the range of $159.2 to $160.2 million, up from the prior guidance range of $155.8 to $157.8 million that was previously provided on August 3, 2016
GAAP net loss in the range of $(15.8) to $(16.8) million, including a $1.0 million write-off of unamortized fees and discounts as well as a prepayment penalty from the termination of our prior term debt facility, or a loss of $(0.30) to $(0.32) per share, improved from the prior guidance range of $(17.8) to $(19.8) million, or a loss of $(0.34) to $(0.38) per share, that was previously provided on August 3, 2016
Non-GAAP net loss in the range of $(4.5) to $(5.5) million, or $(0.09) to $(0.11) per share, improved from the prior guidance range of $(6.5) to $(8.5) million, or $(0.12) to $(0.16) per share, that was previously provided on August 3, 2016

2


For the fourth quarter of 2016, Five9 expects to report:
Revenue in the range of $41.3 to $42.3 million
GAAP net loss in the range of $(3.5) to $(4.5) million, or a loss of $(0.07) to $(0.09) per share
Non-GAAP net loss in the range of $(0.8) to $(1.8) million, or a loss of $(0.02) to $(0.03) per share

Conference Call Details
Five9 will discuss its third quarter 2016 results today, November 1, 2016, via teleconference at 4:30 p.m. Eastern Time. To access the call (ID 2120093), please dial: 888-437-9362 or 719-325-2492. An audio replay of the call will be available through November 15, 2016 by dialing 888-203-1112 or 719-457-0820 and entering access code 2120093. 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 the following items to gross profit: depreciation, amortization, and stock-based compensation expenses. We calculate adjusted EBITDA by adding back the following items to net loss: depreciation, amortization, interest expense, income tax expense, stock-based compensation expense, and interest and other, which consists primarily of interest income and foreign exchange gains and losses. We calculate non-GAAP operating income (loss) as operating loss excluding stock-based compensation, amortization of acquisition intangibles and an immaterial one time out of period adjustment for sales taxes. We calculate non-GAAP net loss as net loss excluding stock-based compensation, amortization of acquisition intangibles, extinguishment of debt, amortization of debt discount and issuance costs, and an immaterial one time out of period adjustment for sales taxes. 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

3


operating performance of the Company, exclusive of unusual events, as well as factors that do not directly affect what we consider to be our core operating performance. 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, customer service and contact center market trends, increasing demand for Five9’s solutions, and the fourth quarter 2016 and full year 2016 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) we may be unable to attract new clients or sell additional services and functionality to our existing clients or could experience a reduction in seats or revenues from existing clients; (iii) our recent rapid growth may not be indicative of our future growth and we may fail to manage our growth effectively; (iv) we may not be able to grow our sales and support staff sufficiently to continue to grow our business; (v) the markets in which we participate are highly competitive and we may be unable to compete effectively; (vi) we may be unable to manage our technical operations infrastructure, which could cause our existing clients to experience service outages, cause our new clients to experience delays in the deployment of our solution and subject us to, among other things, claims for credits or damages; (vii) a decline in our dollar-based retention rate could cause our revenues and gross margins to decrease and our net loss to increase and we may be required to spend more money to grow our client base to maintain our revenues; (viii) sales of our solutions to larger organizations may require longer sales and implementation cycles and we may be unable to offer the configuration and integration services or

4


customized features and functions required by larger organizations, which could delay or prevent sales of our solution to them; (ix) downturns or upturns in new sales will not be immediately reflected in our operating results and may be difficult to discern; (x) third-party telecommunications and internet service providers on which we rely may fail to provide our clients and their customers with reliable telecommunication services and connectivity to our cloud contact center software; (xi) we may be unable to achieve or sustain profitability; (xii) we may be unable to secure additional financing on favorable terms, or at all, to meet our future capital needs; and (xiii) 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 software for the enterprise contact center market, bringing the power of the cloud to thousands of customers and facilitating over three billion customer interactions annually. Since 2001, Five9 has led the cloud revolution in contact centers, helping organizations transition from legacy premise-based solutions to the cloud. Five9 provides businesses with cloud contact center software that it reliable, secure, compliant and scalable which is designed to create exceptional customer experiences, increase agent productivity and deliver tangible business results. For more information visit www.five9.com.



5


FIVE9, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
 
 
September 30, 2016
 
December 31, 2015
 
 
(Unaudited)
 
 
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
57,333

 
$
58,484

Accounts receivable, net
 
12,899

 
10,567

Prepaid expenses and other current assets
 
4,097

 
2,184

Total current assets
 
74,329

 
71,235

Property and equipment, net
 
13,690

 
13,225

Intangible assets, net
 
1,657

 
2,041

Goodwill
 
11,798

 
11,798

Other assets
 
1,225

 
934

Total assets
 
$
102,699

 
$
99,233

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
3,609

 
$
2,569

Accrued and other current liabilities
 
10,500

 
7,911

Accrued federal fees
 
5,873

 
5,684

Sales tax liability
 
1,307

 
1,262

Revolving line of credit
 

 
12,500

Notes payable
 
1,070

 
7,212

Capital leases
 
5,634

 
4,972

Deferred revenue
 
8,838

 
6,413

Total current liabilities
 
36,831

 
48,523

Revolving line of credit — less current portion
 
32,594

 

Sales tax liability — less current portion
 
1,591

 
1,915

Notes payable — less current portion
 
470

 
17,327

Capital leases — less current portion
 
4,902

 
4,606

Other long-term liabilities
 
532

 
582

Total liabilities
 
76,920

 
72,953

Stockholders’ equity:
 
 
 
 
Common stock
 
53

 
51

Additional paid-in capital
 
192,415

 
180,649

Accumulated deficit
 
(166,689
)
 
(154,420
)
Total stockholders’ equity
 
25,779

 
26,280

Total liabilities and stockholders’ equity
 
$
102,699

 
$
99,233




6


FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2016
 
September 30, 2015
 
September 30, 2016
 
September 30, 2015
 
 
 
 
 
 
 
 
 
Revenue
 
$
40,982

 
$
32,287

 
$
117,883

 
$
92,835

Cost of revenue
 
17,790

 
14,812

 
51,164

 
43,860

Gross profit
 
23,192

 
17,475

 
66,719

 
48,975

Operating expenses:
 
 
 
 
 
 
 
 
Research and development
 
6,041

 
5,473

 
17,642

 
17,079

Sales and marketing
 
12,925

 
10,797

 
38,268

 
31,322

General and administrative
 
6,143

 
6,087

 
18,561

 
19,389

Total operating expenses
 
25,109

 
22,357

 
74,471

 
67,790

Loss from operations
 
(1,917
)
 
(4,882
)
 
(7,752
)
 
(18,815
)
Other income (expense), net:
 
 
 
 
 
 
 
 
Interest expense
 
(961
)
 
(1,235
)
 
(3,357
)
 
(3,529
)
Extinguishment of debt
 
(1,026
)
 

 
(1,026
)
 

Interest income and other
 
12

 
119

 
(66
)
 
72

Total other income (expense), net
 
(1,975
)
 
(1,116
)
 
(4,449
)
 
(3,457
)
Loss before income taxes
 
(3,892
)
 
(5,998
)
 
(12,201
)
 
(22,272
)
Provision for (benefit from) income taxes
 
(2
)
 
50

 
68

 
48

Net loss
 
$
(3,890
)
 
$
(6,048
)
 
$
(12,269
)
 
$
(22,320
)
Net loss per share:
 
 
 
 
 
 
 
 
Basic and diluted
 
$
(0.07
)
 
$
(0.12
)
 
$
(0.24
)
 
$
(0.45
)
Shares used in computing net loss per share:
 
 
 
 
 
 
 
 
Basic and diluted
 
52,708

 
50,369

 
52,078

 
49,931




7


FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 
 
Nine Months Ended
 
 
September 30, 2016
 
September 30, 2015
Cash flows from operating activities:
 
 
 
 
Net loss
 
$
(12,269
)
 
$
(22,320
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
Depreciation and amortization
 
6,302

 
5,525

Provision for doubtful accounts
 
58

 
157

Stock-based compensation
 
6,927

 
6,010

Loss on disposal of property and equipment
 
1

 
10

Loss on extinguishment of debt
 
1,026

 

Amortization of debt discount and issuance costs
 
221

 
260

Accretion of interest
 
11

 

Others
 
(10
)
 
40

Changes in operating assets and liabilities:
 
 
 
 
Accounts receivable
 
(2,383
)
 
(1,149
)
Prepaid expenses and other current assets
 
(1,927
)
 
(957
)
Other assets
 
(25
)
 
(178
)
Accounts payable
 
1,039

 
(1,329
)
Accrued and other current liabilities
 
2,749

 
788

Accrued federal fees and sales tax liability
 
(90
)
 
161

Deferred revenue
 
2,449

 
192

Other liabilities
 
(75
)
 
(83
)
Net cash provided by (used in) operating activities
 
4,004

 
(12,873
)
Cash flows from investing activities:
 
 
 
 
Purchases of property and equipment
 
(973
)
 
(689
)
(Increase) Decrease in restricted cash
 
(60
)
 
806

Purchase of short-term investments
 

 
(20,000
)
Proceeds from maturity of short-term investments
 

 
40,000

Net cash (used in) provided by investing activities
 
(1,033
)
 
20,117

Cash flows from financing activities:
 
 
 
 
Proceeds from exercise of common stock options
 
4,050

 
419

Proceeds from sale of common stock under ESPP
 
792

 
680

Repayments of notes payable
 
(23,866
)
 
(2,622
)
Proceeds from revolving line of credit
 
32,594

 

Payment of prepayment penalty and related fees
 
(368
)
 

Payments for debt issuance costs
 
(206
)
 

Payments of capital leases
 
(4,618
)
 
(4,509
)
Repayments on revolving line of credit
 
(12,500
)
 

Net cash used in financing activities
 
(4,122
)
 
(6,032
)
Net (decrease) increase in cash and cash equivalents
 
(1,151
)
 
1,212

Cash and cash equivalents:
 
 
 
 
Beginning of period
 
58,484

 
58,289

End of period
 
$
57,333

 
$
59,501


8


FIVE9, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT
(Unaudited, in thousands, except percentages)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2016
 
September 30, 2015
 
September 30, 2016
 
September 30, 2015
 
 
 
 
 
 
 
 
 
GAAP gross profit
 
$
23,192

 
$
17,475

 
$
66,719

 
$
48,975

GAAP gross margin
 
56.6
%
 
54.1
%
 
56.6
%
 
52.8
%
Non-GAAP adjustments:
 
 
 
 
 
 
 
 
Depreciation
 
1,580

 
1,382

 
4,700

 
4,203

Intangibles amortization
 
88

 
88

 
264

 
264

Stock-based compensation
 
357

 
233

 
951

 
639

Adjusted gross profit
 
$
25,217

 
$
19,178

 
$
72,634

 
$
54,081

Adjusted gross margin
 
61.5
%
 
59.4
%
 
61.6
%
 
58.3
%



RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(Unaudited, in thousands)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2016
 
September 30, 2015
 
September 30, 2016
 
September 30, 2015
 
 
 
 
 
 
 
 
 
GAAP net loss
 
$
(3,890
)
 
$
(6,048
)
 
$
(12,269
)
 
$
(22,320
)
Non-GAAP adjustments:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
2,140

 
1,840

 
6,302

 
5,525

Stock-based compensation
 
2,519

 
1,945

 
6,927

 
6,010

Interest expense
 
961

 
1,235

 
3,357

 
3,529

Extinguishment of debt
 
1,026

 

 
1,026

 

Interest income and other
 
(12
)
 
(119
)
 
66

 
(72
)
Provision for (benefit from) income taxes
 
(2
)
 
50

 
68

 
48

Out of period adjustment for sales tax liability (G&A)
 

 

 

 
765

Adjusted EBITDA
 
$
2,742

 
$
(1,097
)
 
$
5,477

 
$
(6,515
)


9


FIVE9, INC.

RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP OPERATING INCOME (LOSS)
(Unaudited, in thousands)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2016
 
September 30, 2015
 
September 30, 2016
 
September 30, 2015
 
 
 
 
 
 
 
 
 
Loss from operations
 
$
(1,917
)
 
$
(4,882
)
 
$
(7,752
)
 
$
(18,815
)
Non-GAAP adjustments:
 
 
 
 
 
 
 
 
Stock-based compensation
 
2,519

 
1,945

 
6,927

 
6,010

Intangibles amortization
 
129

 
128

 
384

 
$
384

Out of period adjustment for sales tax liability (G&A)
 

 

 

 
765

Non-GAAP operating income (loss)
 
$
731

 
$
(2,809
)
 
$
(441
)
 
$
(11,656
)



RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
(Unaudited, in thousands, except per share data)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2016
 
September 30, 2015
 
September 30, 2016
 
September 30, 2015
 
 
 
 
 
 
 
 
 
GAAP net loss
 
$
(3,890
)
 
$
(6,048
)
 
$
(12,269
)
 
$
(22,320
)
Non-GAAP adjustments:
 
 
 
 
 
 
 
 
Stock-based compensation
 
2,519

 
1,945

 
6,927

 
6,010

Intangibles amortization
 
129

 
128

 
384

 
384

Amortization of debt discount and issuance costs
 
43

 
89

 
221

 
260

Extinguishment of debt
 
1,026

 

 
1,026

 

Out of period adjustment for sales tax liability (G&A)
 

 

 

 
765

Non-GAAP net loss
 
$
(173
)
 
$
(3,886
)
 
$
(3,711
)
 
$
(14,901
)
 
 
 
 
 
 
 
 
 
GAAP net loss per share:
 
 
 
 
 
 
 
 
Basic and diluted
 
$
(0.07
)
 
$
(0.12
)
 
$
(0.24
)
 
$
(0.45
)
Non-GAAP net loss per share:
 
 
 
 
 
 
 
 
Basic and diluted
 
$

 
$
(0.08
)
 
$
(0.07
)
 
$
(0.30
)
Shares used in computing GAAP and non-GAAP net loss per share:
 
 
 
 
 
 
 
 
Basic and diluted
 
52,708

 
50,369

 
52,078

 
49,931



10


SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION
(Unaudited, in thousands)
 
 
Three Months Ended
 
 
September 30, 2016
 
September 30, 2015
 
 
Stock-Based Compensation
 
Depreciation
 
Intangibles Amortization
 
Stock-Based Compensation
 
Depreciation
 
Intangibles Amortization
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 
$
357

 
$
1,580

 
$
88

 
$
233

 
$
1,382

 
$
88

Research and development
 
547

 
204

 

 
475

 
126

 

Sales and marketing
 
626

 
27

 
29

 
448

 
23

 
29

General and administrative
 
989

 
200

 
12

 
789

 
181

 
11

Total
 
$
2,519

 
$
2,011

 
$
129

 
$
1,945

 
$
1,712

 
$
128

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
September 30, 2016
 
September 30, 2015
 
 
Stock-Based Compensation
 
Depreciation
 
Intangibles Amortization
 
Stock-Based Compensation
 
Depreciation
 
Intangibles Amortization
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 
$
951

 
$
4,700

 
$
264

 
$
639

 
$
4,203

 
$
264

Research and development
 
1,510

 
513

 

 
1,389

 
315

 

Sales and marketing
 
1,604

 
78

 
85

 
1,430

 
67

 
85

General and administrative
 
2,862

 
627

 
35

 
2,552

 
556

 
35

Total
 
$
6,927

 
$
5,918

 
$
384

 
$
6,010

 
$
5,141

 
$
384


11


FIVE9, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS – GUIDANCE
(Unaudited, in thousands, except per share data)
 
 
Three Months Ending
 
Year Ending
 
 
December 31, 2016
 
December 31, 2016
 
 
Low
 
High
 
Low
 
High
 
 
 
 
 
 
 
 
 
GAAP net loss
 
$
(3,520
)
 
$
(4,520
)
 
$
(15,789
)
 
$
(16,789
)
Non-GAAP adjustments:
 
 
 
 
 
 
 
 
Stock-based compensation
 
2,579

 
2,579

 
9,506

 
9,506

Intangibles amortization
 
116

 
116

 
500

 
500

Amortization of debt discount and issuance costs
 
25

 
25

 
247

 
247

Extinguishment of debt
 
$

 
$

 
$
1,026

 
$
1,026

Non-GAAP net loss
 
$
(800
)
 
$
(1,800
)
 
$
(4,510
)
 
$
(5,510
)
GAAP net loss per share, basic and diluted
 
$
(0.07
)
 
$
(0.09
)
 
$
(0.30
)
 
$
(0.32
)
Non-GAAP net loss per share, basic and diluted
 
$
(0.02
)
 
$
(0.03
)
 
$
(0.09
)
 
$
(0.11
)
Shares used in computing GAAP and non-GAAP net loss per share:
 
 
 
 
 
 
 
 
Basic and diluted
 
53,000

 
53,000

 
52,300

 
52,300




12


Investor Relations Contact:

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
Tony Righetti
415-489-2186
Tony@blueshirtgroup.com



# # #


13