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 99.1
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 |
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“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 |
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• | 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
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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
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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.
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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 | ||||
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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 | ||||||||||||
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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 | ||||
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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 | ) | ||||||
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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 | ||||||||||||
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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 | ||||||||||||
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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 | ||||||||||||
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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
# # #
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