Five9 Reports Record Annual Revenue of $200 Million, Up 24% Year-Over-Year
37% Growth in LTM Enterprise Subscription Revenue
Record Annual Operating Cash Flow of $11.1 Million
Fourth Quarter Record Revenue of $55.4 Million, Up 25% Year-Over-Year
Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud software for the enterprise contact center market, today reported results
for the fourth quarter and full year ended December 31, 2017.
Fourth Quarter 2017 Financial Results
- Revenue for the fourth quarter of 2017 increased 25% to $55.4 million, compared to $44.2 million
for the fourth quarter of 2016.
- GAAP gross margin was 59.6% for the fourth quarter of 2017, compared to 64.3% for the fourth quarter
of 2016. Included in the GAAP results for the fourth quarter of 2016 was a $3.1 million non-recurring item, which increased
GAAP gross margin in the fourth quarter of 2016 by 7.0 percentage points from 57.3%.
- Adjusted gross margin was 63.6% for the fourth quarter of 2017, compared to 61.9% for the fourth
quarter of 2016.
- GAAP net loss for the fourth quarter of 2017 was $(0.6) million, or $(0.01) per basic share, compared
to GAAP net income of $0.4 million, or $0.01 per diluted share, for the fourth quarter of 2016. GAAP net loss for the fourth
quarter of 2016 was $(2.7) million, or $(0.05) per basic share, excluding the $3.1 million non-recurring item.
- Non-GAAP net income for the fourth quarter of 2017 was $4.0 million, or $0.07 per diluted share,
compared to non-GAAP net income of $0.1 million, or $0.00 per diluted share, for the fourth quarter of 2016.
- Adjusted EBITDA for the fourth quarter of 2017 was a record $6.9 million, or 12.4% of revenue,
compared to $2.9 million, or 6.6% of revenue, for the fourth quarter of 2016.
- GAAP operating cash flow for the fourth quarter of 2017 was $2.9 million, compared to GAAP operating
cash flow of $2.8 million for the fourth quarter of 2016.
2017 Financial Results
- Total revenue for 2017 increased 24% to a record $200.2 million, compared to $162.1 million in
2016.
- GAAP gross margin was 58.5% for 2017, compared to 58.7% in 2016. Included in the GAAP results for
2016 was a $3.1 million non-recurring item, which increased GAAP gross margin in 2016 by 1.9 percentage points from
56.8%.
- Adjusted gross margin was 62.7% for 2017, compared to 61.7% in 2016.
- GAAP net loss for 2017 was $(9.0) million, or $(0.16) per basic share, compared to a GAAP net loss of
$(11.9) million, or $(0.23) per basic share, in 2016. Included in the GAAP results for 2017 were two non-recurring items
resulting in a net $0.3 million favorability while 2016 GAAP results included two non-recurring items resulting in a net $2.1
million favorability.
- Non-GAAP net income for 2017 was $6.3 million, or $0.11 per diluted share, compared to a non-GAAP net
loss of $(3.6) million, or $(0.07) per basic share, in 2016.
- Adjusted EBITDA for 2017 was a record $17.6 million, or 8.8% of revenue, compared to
$8.4 million, or 5.2% of revenue, in 2016.
- GAAP operating cash flow for 2017 was $11.1 million, compared to GAAP operating cash flow of
$6.8 million in 2016.
“We had a strong finish to the year with better than expected fourth quarter results capping off a record year for
Five9. For the year, we grew revenue by 24% to a record $200 million. Our revenue growth continues to be driven by our
Enterprise business, which delivered 37% growth in LTM Enterprise subscription revenue. Our strong enterprise growth and the
operating leverage in our business model drove strong improvements to our bottom line, including operating cash flow of
$11.1 million for the year. Additionally, we set an all-time record for Enterprise bookings in the fourth quarter and full
year. We believe that our continued execution combined with our powerful, differentiated cloud contact center software
positions Five9 extremely well in the customer experience market that is still in the early days of a massive shift to the cloud.”
- Barry Zwarenstein, Interim CEO and Chief Financial Officer, Five9
Business Outlook
On January 1, 2018, Five9 adopted Accounting Standards Codification (ASC) 606 “Revenue from Contracts with Customers” using the
modified retrospective transition method. The guidance below includes the expected impact of the adoption of this new revenue
standard, which replaced ASC 605. For the full year and first quarter of 2018, we expect no material difference in revenue between
ASC 606 and ASC 605. Under ASC 606, we expect to add approximately $5 million to $7 million to GAAP and non-GAAP net income for the
full year 2018 and approximately $0.5 million to $1.5 million to GAAP and non-GAAP net income for the first quarter of 2018.
-
For the full year 2018, Five9 expects to report:
- Revenue in the range of $231 to $234 million.
- GAAP net loss in the range of $(13.4) to $(10.4) million, or $(0.23) to $(0.18) per basic
share.
- Non-GAAP net income in the range of $12.6 to $15.6 million, or $0.20 to $0.25 per diluted
share.
-
For the first quarter of 2018, Five9 expects to report:
- Revenue in the range of $54.5 to $55.5 million.
- GAAP net loss in the range of $(4.5) to $(3.5) million, or a loss of $(0.08) to $(0.06) per basic
share.
- Non-GAAP net income in the range of $1.3 to $2.3 million, or $0.02 to $0.04 per diluted
share.
Conference Call Details
Five9 will discuss its fourth quarter and full year 2017 results today, February 21, 2018, via teleconference at 4:30 p.m.
Eastern Time. To access the call (ID 6886112), please dial: 888-427-9411 or 719-325-4940. An audio replay of the call will be
available through March 7, 2018 by dialing 888-203-1112 or 719-457-0820 and entering access code 6886112. A copy of this press
release will be furnished to the Securities and Exchange Commission on a Current Report on Form 8-K, and will be posted to our
website, prior to the conference call.
A 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 or removing the following items to gross profit: depreciation, amortization, stock-based compensation expense, and the
reversal of accrued federal fees. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net
income (loss): depreciation, amortization, interest expense, income tax expense (benefit), stock-based compensation expense,
extinguishment of debt, non-recurring litigation settlement costs, the reversal of interest and penalties on accrued federal fees,
and interest income and other, which consists primarily of a non-cash adjustment on investment, interest income and foreign
exchange gains and losses. We calculate non-GAAP operating income (loss) as operating income (loss) excluding stock-based
compensation expense, intangibles amortization, non-recurring litigation settlement costs, and the reversal of interest and
penalties on accrued federal fees. We calculate non-GAAP net income (loss) as GAAP net income (loss) excluding stock-based
compensation expense, intangibles amortization, amortization of debt discount and issuance costs, extinguishment of debt,
non-recurring litigation settlement costs, the reversal of interest and penalties on accrued federal fees, and non-cash adjustments
on 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 Interim Chief
Executive Officer and Chief Financial Officer, including statements regarding Five9’s market position, business momentum, product
positioning, the state of the cloud customer experience market, and the first quarter 2018 and full year 2018 financial
projections, including the expected impact of ASC 606, 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) 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 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 grow and manage these relationships could harm our business; (x) we are establishing a 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, any increase
in the cost thereof, reduction in efficacy or any failure by these service providers to provide reliable services could cause us to
lose customers, increase our customers’ cost of using our solution and subject us to, among other things, claims for credits or
damages; (xiv) we have a history of losses and we may be unable to achieve or sustain profitability; (xv) we may not be able to
secure additional financing on favorable terms, or at all, to meet our future capital needs; (xvi) failure to comply with laws and
regulations could harm our business and our reputation; and (xvii) 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 more than 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 is 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.
|
|
|
|
|
|
FIVE9, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
December 31, 2017
|
|
December 31, 2016 |
| ASSETS |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
68,947 |
|
|
$ |
58,122 |
|
| Accounts receivable, net |
|
19,048 |
|
|
13,881 |
|
| Prepaid expenses and other current assets |
|
4,840 |
|
|
3,008 |
|
| Total current assets |
|
92,835 |
|
|
75,011 |
|
| Property and equipment, net |
|
19,888 |
|
|
14,688 |
|
| Intangible assets, net |
|
1,073 |
|
|
1,539 |
|
| Goodwill |
|
11,798 |
|
|
11,798 |
|
| Other assets |
|
2,602 |
|
|
2,203 |
|
| Total assets |
|
$ |
128,196 |
|
|
$ |
105,239 |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts payable |
|
$ |
4,292 |
|
|
$ |
3,366 |
|
| Accrued and other current liabilities |
|
11,787 |
|
|
9,604 |
|
| Accrued federal fees |
|
1,151 |
|
|
2,742 |
|
| Sales tax liability |
|
1,326 |
|
|
1,347 |
|
| Notes payable |
|
336 |
|
|
742 |
|
| Capital leases |
|
6,651 |
|
|
6,230 |
|
| Deferred revenue |
|
13,975 |
|
|
10,047 |
|
| Total current liabilities |
|
39,518 |
|
|
34,078 |
|
| Revolving line of credit — less current portion |
|
32,594 |
|
|
32,594 |
|
| Sales tax liability — less current portion |
|
1,044 |
|
|
1,476 |
|
| Notes payable — less current portion |
|
— |
|
|
318 |
|
| Capital leases — less current portion |
|
7,161 |
|
|
5,915 |
|
| Other long-term liabilities |
|
1,041 |
|
|
530 |
|
| Total liabilities |
|
81,358 |
|
|
74,911 |
|
| Stockholders’ equity: |
|
|
|
|
| Common stock |
|
57 |
|
|
53 |
|
| Additional paid-in capital |
|
222,202 |
|
|
196,555 |
|
| Accumulated deficit |
|
(175,421 |
) |
|
(166,280 |
) |
| Total stockholders’ equity |
|
46,838 |
|
|
30,328 |
|
| Total liabilities and stockholders’ equity |
|
$ |
128,196 |
|
|
$ |
105,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE9, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
| Revenue |
|
$ |
55,403 |
|
|
$ |
44,207 |
|
|
$ |
200,225 |
|
|
$ |
162,090 |
|
| Cost of revenue |
|
22,363 |
|
|
15,770 |
|
|
83,104 |
|
|
66,934 |
|
| Gross profit |
|
33,040 |
|
|
28,437 |
|
|
117,121 |
|
|
95,156 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Research and development |
|
6,748 |
|
|
6,236 |
|
|
27,120 |
|
|
23,878 |
|
| Sales and marketing |
|
17,358 |
|
|
14,480 |
|
|
66,570 |
|
|
52,748 |
|
| General and administrative |
|
8,767 |
|
|
6,511 |
|
|
29,151 |
|
|
25,072 |
|
| Total operating expenses |
|
32,873 |
|
|
27,227 |
|
|
122,841 |
|
|
101,698 |
|
| Income (loss) from operations |
|
167 |
|
|
1,210 |
|
|
(5,720 |
) |
|
(6,542 |
) |
| Other income (expense), net: |
|
|
|
|
|
|
|
|
| Extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
(1,026 |
) |
| Interest expense |
|
(836 |
) |
|
(869 |
) |
|
(3,471 |
) |
|
(4,226 |
) |
| Interest income and other |
|
164 |
|
|
54 |
|
|
490 |
|
|
(12 |
) |
| Total other income (expense), net |
|
(672 |
) |
|
(815 |
) |
|
(2,981 |
) |
|
(5,264 |
) |
| Income (loss) before income taxes |
|
(505 |
) |
|
395 |
|
|
(8,701 |
) |
|
(11,806 |
) |
| Provision for (benefit from) income taxes |
|
126 |
|
|
(14 |
) |
|
268 |
|
|
54 |
|
| Net income (loss) |
|
$ |
(631 |
) |
|
$ |
409 |
|
|
$ |
(8,969 |
) |
|
$ |
(11,860 |
) |
| Net income (loss) per share: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.01 |
) |
|
$ |
0.01 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
| Diluted |
|
$ |
(0.01 |
) |
|
$ |
0.01 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
| Shares used in computing net income (loss) per share: |
|
|
|
|
|
|
|
|
| Basic |
|
56,034 |
|
|
53,126 |
|
|
54,946 |
|
|
52,342 |
|
| Diluted |
|
56,034 |
|
|
56,633 |
|
|
54,946 |
|
|
52,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE9, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Twelve Months Ended |
|
|
December 31, 2017 |
|
December 31, 2016 |
| Cash flows from operating activities: |
|
|
|
|
| Net loss |
|
$ |
(8,969 |
) |
|
$ |
(11,860 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
| Depreciation and amortization |
|
8,314 |
|
|
8,390 |
|
| Provision for doubtful accounts |
|
95 |
|
|
75 |
|
| Stock-based compensation |
|
15,343 |
|
|
9,643 |
|
| Amortization of debt discount and issuance costs |
|
80 |
|
|
241 |
|
| Loss on extinguishment of debt |
|
— |
|
|
1,026 |
|
| Reversal of interest and penalties on accrued federal fees |
|
(2,133 |
) |
|
— |
|
| Reversal of accrued federal fees |
|
— |
|
|
(3,114 |
) |
| Non-cash adjustment on investment |
|
(366 |
) |
|
— |
|
| Accretion of interest |
|
21 |
|
|
20 |
|
| Others |
|
(48 |
) |
|
(10 |
) |
| Changes in operating assets and liabilities: |
|
|
|
|
| Accounts receivable |
|
(5,163 |
) |
|
(3,389 |
) |
| Prepaid expenses and other current assets |
|
(1,912 |
) |
|
(859 |
) |
| Other assets |
|
(33 |
) |
|
203 |
|
| Accounts payable |
|
813 |
|
|
811 |
|
| Accrued and other current liabilities |
|
1,061 |
|
|
2,262 |
|
| Accrued federal fees and sales tax liability |
|
90 |
|
|
(182 |
) |
| Deferred revenue |
|
3,882 |
|
|
3,680 |
|
| Other liabilities |
|
31 |
|
|
(99 |
) |
| Net cash provided by operating activities |
|
11,106 |
|
|
6,838 |
|
| Cash flows from investing activities: |
|
|
|
|
| Purchases of property and equipment |
|
(2,650 |
) |
|
(1,131 |
) |
| Purchases of privately-held company securities |
|
— |
|
|
(1,206 |
) |
| Decrease (increase) in restricted cash |
|
— |
|
|
(60 |
) |
| Net cash used in investing activities |
|
(2,650 |
) |
|
(2,397 |
) |
| Cash flows from financing activities: |
|
|
|
|
| Proceeds from exercise of common stock options and warrants |
|
6,035 |
|
|
4,286 |
|
| Proceeds from sale of common stock under ESPP |
|
4,101 |
|
|
1,979 |
|
| Proceeds from revolving line of credit |
|
— |
|
|
32,594 |
|
| Repayments on revolving line of credit |
|
— |
|
|
(12,500 |
) |
| Repayments of notes payable |
|
(699 |
) |
|
(24,351 |
) |
| Payments of capital leases |
|
(7,068 |
) |
|
(6,237 |
) |
| Payment of prepayment penalty and related fees |
|
— |
|
|
(368 |
) |
| Payments for debt issuance costs |
|
— |
|
|
(206 |
) |
| Net cash provided by (used in) financing activities |
|
2,369 |
|
|
(4,803 |
) |
|
Net increase (decrease) in cash and cash equivalents
|
|
10,825 |
|
|
(362 |
) |
| Cash and cash equivalents: |
|
|
|
|
| Beginning of period |
|
58,122 |
|
|
58,484 |
|
| End of period |
|
$ |
68,947 |
|
|
$ |
58,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE9, INC.
|
|
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
| GAAP gross profit |
|
$ |
33,040 |
|
|
$ |
28,437 |
|
|
$ |
117,121 |
|
|
$ |
95,156 |
|
| GAAP gross margin |
|
59.6 |
% |
|
64.3 |
% |
|
58.5 |
% |
|
58.7 |
% |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Depreciation |
|
1,523 |
|
|
1,521 |
|
|
5,949 |
|
|
6,221 |
|
| Intangibles amortization |
|
88 |
|
|
87 |
|
|
351 |
|
|
352 |
|
| Stock-based compensation |
|
594 |
|
|
424 |
|
|
2,202 |
|
|
1,375 |
|
| Reversal of accrued federal fees |
|
— |
|
|
(3,114 |
) |
|
— |
|
|
(3,114 |
) |
| Adjusted gross profit |
|
$ |
35,245 |
|
|
$ |
27,355 |
|
|
$ |
125,623 |
|
|
$ |
99,990 |
|
| Adjusted gross margin |
|
63.6 |
% |
|
61.9 |
% |
|
62.7 |
% |
|
61.7 |
% |
| |
| |
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA
|
|
(In thousands)
|
|
(Unaudited)
|
| |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
| GAAP net income (loss) |
|
$ |
(631 |
) |
|
$ |
409 |
|
|
$ |
(8,969 |
) |
|
$ |
(11,860 |
) |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
2,068 |
|
|
2,086 |
|
|
8,314 |
|
|
8,390 |
|
| Stock-based compensation |
|
4,640 |
|
|
2,716 |
|
|
15,343 |
|
|
9,643 |
|
| Extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
1,026 |
|
| Interest expense |
|
836 |
|
|
869 |
|
|
3,471 |
|
|
4,226 |
|
| Interest (income) and other |
|
(164 |
) |
|
(54 |
) |
|
(490 |
) |
|
13 |
|
| Legal settlement |
|
— |
|
|
— |
|
|
1,700 |
|
|
— |
|
| Legal and indemnification fees related to settlement |
|
— |
|
|
— |
|
|
135 |
|
|
— |
|
| Reversal of interest and penalties on accrued federal fees (G&A) |
|
— |
|
|
— |
|
|
(2,133 |
) |
|
— |
|
| Reversal of accrued federal fees (COR) |
|
— |
|
|
(3,114 |
) |
|
— |
|
|
(3,114 |
) |
| Provision for (benefit from) income taxes |
|
126 |
|
|
(14 |
) |
|
268 |
|
|
54 |
|
| Adjusted EBITDA |
|
$ |
6,875 |
|
|
$ |
2,898 |
|
|
$ |
17,639 |
|
|
$ |
8,378 |
|
| |
| |
|
FIVE9, INC.
|
|
RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
| |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
| GAAP operating income (loss) |
|
$ |
167 |
|
|
$ |
1,210 |
|
|
$ |
(5,720 |
) |
|
$ |
(6,542 |
) |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
4,640 |
|
|
2,716 |
|
|
15,343 |
|
|
9,643 |
|
| Intangibles amortization |
|
116 |
|
|
117 |
|
|
465 |
|
|
503 |
|
| Legal settlement |
|
— |
|
|
— |
|
|
1,700 |
|
|
— |
|
| Legal and indemnification fees related to settlement |
|
— |
|
|
— |
|
|
135 |
|
|
— |
|
| Reversal of interest and penalties on accrued federal fees (G&A) |
|
— |
|
|
— |
|
|
(2,133 |
) |
|
— |
|
| Reversal of accrued federal fees (COR) |
|
— |
|
|
(3,114 |
) |
|
— |
|
|
(3,114 |
) |
| Non-GAAP operating income |
|
$ |
4,923 |
|
|
$ |
929 |
|
|
$ |
9,790 |
|
|
$ |
490 |
|
| |
| |
|
FIVE9, INC.
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
| |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
| GAAP net income (loss) |
|
$ |
(631 |
) |
|
$ |
409 |
|
|
$ |
(8,969 |
) |
|
$ |
(11,860 |
) |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
4,640 |
|
|
2,716 |
|
|
15,343 |
|
|
9,643 |
|
| Intangibles amortization |
|
116 |
|
|
117 |
|
|
465 |
|
|
503 |
|
| Amortization of debt discount and issuance costs |
|
20 |
|
|
20 |
|
|
80 |
|
|
241 |
|
| Extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
1,026 |
|
| Legal settlement |
|
— |
|
|
— |
|
|
1,700 |
|
|
— |
|
| Legal and indemnification fees related to settlement |
|
— |
|
|
— |
|
|
135 |
|
|
— |
|
| Reversal of interest and penalties on accrued federal fees (G&A) |
|
— |
|
|
— |
|
|
(2,133 |
) |
|
— |
|
| Reversal of accrued federal fees (COR) |
|
— |
|
|
(3,114 |
) |
|
— |
|
|
(3,114 |
) |
| Non-cash adjustment on investment |
|
(133 |
) |
|
— |
|
|
(366 |
) |
|
— |
|
| Non-GAAP net income (loss) |
|
$ |
4,012 |
|
|
$ |
148 |
|
|
$ |
6,255 |
|
|
$ |
(3,561 |
) |
| GAAP net income (loss) per share: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.01 |
) |
|
$ |
0.01 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
| Diluted |
|
$ |
(0.01 |
) |
|
$ |
0.01 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
| Non-GAAP net income (loss) per share: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.07 |
|
|
$ |
— |
|
|
$ |
0.11 |
|
|
$ |
(0.07 |
) |
| Diluted |
|
$ |
0.07 |
|
|
$ |
— |
|
|
$ |
0.11 |
|
|
$ |
(0.07 |
) |
| Shares used in computing GAAP net income (loss) per share: |
|
|
|
|
|
|
|
|
| Basic |
|
56,034 |
|
|
53,126 |
|
|
54,946 |
|
|
52,342 |
|
| Diluted |
|
56,034 |
|
|
56,633 |
|
|
54,946 |
|
|
52,342 |
|
|
|
|
|
|
|
|
|
|
| Shares used in computing non-GAAP net income (loss) per share: |
|
|
|
|
|
|
|
|
| Basic |
|
56,034 |
|
|
53,126 |
|
|
54,946 |
|
|
52,342 |
|
| Diluted |
|
59,905 |
|
|
56,633 |
|
|
59,073 |
|
|
52,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE9, INC.
|
|
SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, 2017 |
|
December 31, 2016 |
|
|
Stock-Based
Compensation
|
|
Depreciation |
|
Intangibles
Amortization
|
|
Stock-Based
Compensation
|
|
Depreciation |
|
Intangibles
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
|
$ |
594 |
|
|
$ |
1,523 |
|
|
$ |
88 |
|
|
$ |
424 |
|
|
$ |
1,521 |
|
|
$ |
87 |
| Research and development |
|
807 |
|
|
170 |
|
|
— |
|
|
549 |
|
|
224 |
|
|
— |
| Sales and marketing |
|
1,128 |
|
|
2 |
|
|
28 |
|
|
759 |
|
|
29 |
|
|
29 |
| General and administrative |
|
2,111 |
|
|
257 |
|
|
— |
|
|
984 |
|
|
195 |
|
|
1 |
| Total |
|
$ |
4,640 |
|
|
$ |
1,952 |
|
|
$ |
116 |
|
|
$ |
2,716 |
|
|
$ |
1,969 |
|
|
$ |
117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
December 31, 2017 |
|
December 31, 2016 |
|
|
Stock-Based
Compensation
|
|
Depreciation |
|
Intangibles
Amortization
|
|
Stock-Based
Compensation
|
|
Depreciation |
|
Intangibles
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
|
$ |
2,202 |
|
|
$ |
5,949 |
|
|
$ |
351 |
|
|
$ |
1,375 |
|
|
$ |
6,221 |
|
|
$ |
352 |
| Research and development |
|
3,042 |
|
|
795 |
|
|
— |
|
|
2,059 |
|
|
737 |
|
|
— |
| Sales and marketing |
|
4,364 |
|
|
6 |
|
|
114 |
|
|
2,363 |
|
|
107 |
|
|
114 |
| General and administrative |
|
5,735 |
|
|
1,099 |
|
|
— |
|
|
3,846 |
|
|
822 |
|
|
37 |
| Total |
|
$ |
15,343 |
|
|
$ |
7,849 |
|
|
$ |
465 |
|
|
$ |
9,643 |
|
|
$ |
7,887 |
|
|
$ |
503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
March 31, 2018 |
|
December 31, 2018 |
|
|
Low |
|
High |
|
Low |
|
High |
|
|
|
|
|
|
|
|
|
| GAAP net loss |
|
$ |
(4,476 |
) |
|
$ |
(3,476 |
) |
|
$ |
(13,398 |
) |
|
$ |
(10,398 |
) |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
5,640 |
|
|
5,640 |
|
|
25,452 |
|
|
25,452 |
|
| Intangibles amortization |
|
116 |
|
|
116 |
|
|
465 |
|
|
465 |
|
| Amortization of debt issuance costs |
|
20 |
|
|
20 |
|
|
81 |
|
|
81 |
|
| Income tax expense effects (1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Non-GAAP net income |
|
$ |
1,300 |
|
|
$ |
2,300 |
|
|
$ |
12,600 |
|
|
$ |
15,600 |
|
| GAAP net loss per share, basic and diluted |
|
$ |
(0.08 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.18 |
) |
| Non-GAAP net income per share: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.02 |
|
|
$ |
0.04 |
|
|
$ |
0.22 |
|
|
$ |
0.27 |
|
| Diluted |
|
$ |
0.02 |
|
|
$ |
0.04 |
|
|
$ |
0.20 |
|
|
$ |
0.25 |
|
| Shares used in computing GAAP net loss per share and non-GAAP net income per
share: |
|
|
|
|
|
|
|
|
| Basic |
|
57,000 |
|
|
57,000 |
|
|
58,500 |
|
|
58,500 |
|
| Diluted |
|
61,500 |
|
|
61,500 |
|
|
63,000 |
|
|
63,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP adjustments do not have an impact on our income tax provision due to past non-GAAP
losses.
|
Five9, Inc.
Barry Zwarenstein, 925-201-2000 ext. 5959
Interim CEO and Chief Financial Officer
IR@five9.com
or
The Blueshirt Group for Five9, Inc.
Lisa Laukkanen, 415-217-4967
Lisa@blueshirtgroup.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20180221006185/en/