Five9 Reports Second Quarter Revenue Growth of 32% to a Record $189.4 Million

41% Growth in LTM Enterprise Subscription Revenue
Raises 2022 Guidance for Both Revenue and Bottom Line

SAN RAMON, Calif.--()--Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud contact center software, today reported results for the second quarter ended June 30, 2022.

Second Quarter 2022 Financial Results

  • Revenue for the second quarter of 2022 increased 32% to a record $189.4 million, compared to $143.8 million for the second quarter of 2021.
  • GAAP gross margin was 53.4% for the second quarter of 2022, compared to 55.2% for the second quarter of 2021.
  • Adjusted gross margin was 60.7% for the second quarter of 2022, compared to 63.3% for the second quarter of 2021.
  • GAAP net loss for the second quarter of 2022 was $(23.7) million, or $(0.34) per basic share, compared to GAAP net loss of $(16.5) million, or $(0.25) per basic share, for the second quarter 2021.
  • Non-GAAP net income for the second quarter of 2022 was $24.3 million, or $0.34 per diluted share, compared to non-GAAP net income of $16.0 million, or $0.23 per diluted share, for the second quarter of 2021.
  • Adjusted EBITDA for the second quarter of 2022 was $33.1 million, or 17.5% of revenue, compared to $24.0 million, or 16.7% of revenue, for the second quarter of 2021.
  • GAAP operating cash flow for the second quarter of 2022 was $(3.1) million, compared to GAAP operating cash flow of $11.4 million for the second quarter of 2021.

“We are excited to report strong second quarter results with revenue growing 32% year-over-year to a record $189.4 million. This growth continues to be driven primarily by the strength of our Enterprise business where LTM subscription revenue grew 41% year-over-year. This quarter, we achieved an adjusted EBITDA margin of 17%, while continuing to make progress on platform innovation, our march up market and our international expansion. Despite the macro environment uncertainties, we continued to experience strong growth with second quarter record bookings for both new logos and our installed base. Given the mission criticality of contact centers and a massive yet barely penetrated TAM, as well as our leading platform, go-to-market machine and proven execution, we remain confident in delivering durable and profitable growth.”

- Rowan Trollope, CEO, Five9

Business Outlook

Five9 provides guidance based on current market conditions and expectations. Five9 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 global macroeconomic environment, including the impact of the Russia-Ukraine conflict and the COVID-19 pandemic.

  • For the full year 2022, Five9 expects to report:
    • Revenue in the range of $780.5 to $782.5 million.
    • Non-GAAP net income per share in the range of $1.38 to $1.40, assuming diluted shares outstanding of approximately 72.8 million.
  • For the third quarter of 2022, Five9 expects to report:
    • Revenue in the range of $192.5 to $193.5 million.
    • Non-GAAP net income per share in the range of $0.31 to $0.33, assuming diluted shares outstanding of approximately 73.0 million.

With respect to Five9’s guidance as provided above, Five9 has not reconciled its expectations as to non-GAAP net income per share to GAAP net loss per share because stock-based compensation and one-time costs cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Conference Call Details

Five9 will discuss its second quarter 2022 results today, July 28, 2022, via Zoom webinar at 4:30 p.m. Eastern Time. To access the webinar, please register by clicking here. 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 live webcast and a replay 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, exit costs related to the closure and relocation of our Russian operations, acquisition-related transaction and one-time integration costs, and refund for prior year overpayment of Universal Service Fund, or USF, fees. 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, exit costs related to closure and relocation of our Russian operations, acquisition-related transaction costs and one-time integration costs, contingent consideration expense, refund for prior year overpayment of USF fees and provision for (benefit from) income taxes. We calculate non-GAAP operating income by adding back or removing the following items to or from GAAP operating income: stock-based compensation, intangibles amortization, exit costs related to the closure and relocation of our Russian operations, acquisition-related transaction and one-time integration costs, contingent consideration expense and refund for prior year overpayment of USF fees. We calculate non-GAAP net income by adding back or removing the following items to or from GAAP net loss: stock-based compensation, intangibles amortization, amortization of discount and issuance costs on convertible senior notes, exit costs related to the closure and relocation of our Russian operations, acquisition-related transaction costs and one-time integration costs, contingent consideration expense, refund for prior year overpayment of USF fees and tax provision associated with acquired companies. 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. The Company 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 ability to continue to deliver growth and the reasons therefor, and the third quarter and full year 2022 financial projections set forth under the caption “Business Outlook,” that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, and may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock; (ii) adverse economic conditions may harm our business, including the current global economic downturn; (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) the markets in which we participate involve a high number of competitors that is continuing to increase, and if we do not compete effectively, our operating results could be harmed; (x) we continue to expand our international operations, which exposes us to significant risks; (xi) 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 our business; (xii) we may acquire other companies or technologies, or be the target of strategic transactions, or be impacted by transactions by other companies, which could divert our management’s attention, result in additional dilution to our stockholders or use a significant amount of our cash resources and otherwise disrupt our operations and harm our operating results; (xiii) 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; (xiv) 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; (xv) 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; (xvi) 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; (xvii) we have a history of losses and we may be unable to achieve or sustain profitability; (xviii) the contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new solutions in order to maintain and grow our business; (xix) 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; (xx) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxi) failure to comply with laws and regulations could harm our business and our reputation; (xxii) 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 (xxiii) 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 nine 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, 2022

 

December 31, 2021

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

101,315

 

 

$

90,878

 

Marketable investments

 

 

397,067

 

 

 

378,980

 

Accounts receivable, net

 

 

82,885

 

 

 

83,731

 

Prepaid expenses and other current assets

 

 

38,464

 

 

 

30,342

 

Deferred contract acquisition costs, net

 

 

40,306

 

 

 

33,295

 

Total current assets

 

 

660,037

 

 

 

617,226

 

Property and equipment, net

 

 

99,994

 

 

 

77,785

 

Operating lease right-of-use assets

 

 

43,593

 

 

 

48,703

 

Intangible assets, net

 

 

34,015

 

 

 

39,897

 

Goodwill

 

 

165,420

 

 

 

165,420

 

Marketable investments

 

 

60,424

 

 

 

147,377

 

Other assets

 

 

11,886

 

 

 

11,871

 

Deferred contract acquisition costs, net — less current portion

 

 

101,854

 

 

 

84,663

 

Total assets

 

$

1,177,223

 

 

$

1,192,942

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

25,931

 

 

$

20,510

 

Accrued and other current liabilities

 

 

56,894

 

 

 

78,577

 

Operating lease liabilities

 

 

9,836

 

 

 

9,826

 

Accrued federal fees

 

 

 

 

 

2,282

 

Sales tax liabilities

 

 

2,253

 

 

 

2,660

 

Deferred revenue

 

 

51,553

 

 

 

43,720

 

Convertible senior notes

 

 

187

 

 

 

 

Total current liabilities

 

 

146,654

 

 

 

157,575

 

Convertible senior notes — less current portion

 

 

736,485

 

 

 

768,599

 

Sales tax liabilities — less current portion

 

 

888

 

 

 

877

 

Operating lease liabilities — less current portion

 

 

42,186

 

 

 

47,088

 

Other long-term liabilities

 

 

6,108

 

 

 

7,671

 

Total liabilities

 

 

932,321

 

 

 

981,810

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

70

 

 

 

68

 

Additional paid-in capital

 

 

535,592

 

 

 

439,787

 

Accumulated other comprehensive loss

 

 

(4,534

)

 

 

(287

)

Accumulated deficit

 

 

(286,226

)

 

 

(228,436

)

Total stockholders’ equity

 

 

244,902

 

 

 

211,132

 

Total liabilities and stockholders’ equity

 

$

1,177,223

 

 

$

1,192,942

 

 

 

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

 

 

 

 

 

 

 

 

 

Revenue

 

$

189,382

 

 

$

143,782

 

 

$

372,159

 

 

$

281,664

 

Cost of revenue

 

 

88,229

 

 

 

64,395

 

 

 

177,096

 

 

 

124,198

 

Gross profit

 

 

101,153

 

 

 

79,387

 

 

 

195,063

 

 

 

157,466

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

34,992

 

 

 

24,648

 

 

 

70,816

 

 

 

46,769

 

Sales and marketing

 

 

64,098

 

 

 

46,024

 

 

 

128,709

 

 

 

90,823

 

General and administrative

 

 

23,824

 

 

 

22,909

 

 

 

48,138

 

 

 

45,154

 

Total operating expenses

 

 

122,914

 

 

 

93,581

 

 

 

247,663

 

 

 

182,746

 

Loss from operations

 

 

(21,761

)

 

 

(14,194

)

 

 

(52,600

)

 

 

(25,280

)

Other (expense) income, net:

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,857

)

 

 

(2,118

)

 

 

(3,727

)

 

 

(4,056

)

Interest income and other

 

 

280

 

 

 

(353

)

 

 

1,125

 

 

 

(178

)

Total other (expense) income, net

 

 

(1,577

)

 

 

(2,471

)

 

 

(2,602

)

 

 

(4,234

)

Loss before income taxes

 

 

(23,338

)

 

 

(16,665

)

 

 

(55,202

)

 

 

(29,514

)

Provision for (benefit from) income taxes

 

 

332

 

 

 

(135

)

 

 

2,588

 

 

 

(652

)

Net loss

 

$

(23,670

)

 

$

(16,530

)

 

$

(57,790

)

 

$

(28,862

)

Net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.34

)

 

$

(0.25

)

 

$

(0.83

)

 

$

(0.43

)

Shares used in computing net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

 

69,748

 

 

 

67,292

 

 

 

69,363

 

 

 

67,008

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Six Months Ended

 

 

June 30, 2022

 

June 30, 2021

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(57,790

)

 

$

(28,862

)

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

 

 

 

 

Depreciation and amortization

 

 

22,435

 

 

 

18,414

 

Amortization of operating lease right-of-use assets

 

 

4,942

 

 

 

4,473

 

Amortization of deferred contract acquisition costs

 

 

18,653

 

 

 

11,468

 

Amortization of premium on marketable investments

 

 

1,114

 

 

 

3,521

 

Provision for doubtful accounts

 

 

505

 

 

 

337

 

Stock-based compensation

 

 

84,179

 

 

 

45,809

 

Amortization of discount and issuance costs on convertible senior notes

 

 

1,852

 

 

 

1,959

 

Deferred taxes

 

 

2,054

 

 

 

 

Change in fair of value of contingent consideration

 

 

260

 

 

 

5,200

 

Payment of contingent consideration liability in excess of acquisition-date fair value

 

 

(5,900

)

 

 

 

Other

 

 

172

 

 

 

226

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

310

 

 

 

(5,526

)

Prepaid expenses and other current assets

 

 

(8,092

)

 

 

(5,962

)

Deferred contract acquisition costs

 

 

(42,854

)

 

 

(35,319

)

Other assets

 

 

(70

)

 

 

147

 

Accounts payable

 

 

4,487

 

 

 

1,725

 

Accrued and other current liabilities

 

 

(4,107

)

 

 

23,343

 

Accrued federal fees and sales tax liability

 

 

(2,677

)

 

 

1,277

 

Deferred revenue

 

 

7,571

 

 

 

(2,118

)

Other liabilities

 

 

(1,423

)

 

 

(14,955

)

Net cash provided by operating activities

 

 

25,621

 

 

 

25,157

 

Cash flows from investing activities:

 

 

 

 

Purchases of marketable investments

 

 

(151,712

)

 

 

(325,628

)

Proceeds from sales of marketable investments

 

 

600

 

 

 

1,557

 

Proceeds from maturities of marketable investments

 

 

214,585

 

 

 

282,048

 

Purchases of property and equipment

 

 

(34,474

)

 

 

(19,477

)

Capitalization of software development costs

 

 

(1,392

)

 

 

 

Cash paid for an equity investment in a privately-held company

 

 

(2,000

)

 

 

 

Net cash provided by (used in) investing activities

 

 

25,607

 

 

 

(61,500

)

Cash flows from financing activities:

 

 

 

 

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

 

 

(34,034

)

 

 

(17,622

)

Proceeds from exercise of common stock options

 

 

3,005

 

 

 

4,439

 

Proceeds from sale of common stock under ESPP

 

 

8,338

 

 

 

8,128

 

Payment of contingent consideration liability up to acquisition-date fair value

 

 

(18,100

)

 

 

 

Payment of hold back related to an acquisition

 

 

 

 

 

(3,200

)

Payments of finance leases

 

 

 

 

 

(575

)

Net cash used in financing activities

 

 

(40,791

)

 

 

(8,830

)

Net increase (decrease) in cash and cash equivalents

 

 

10,437

 

 

 

(45,173

)

Cash and cash equivalents:

 

 

 

 

Beginning of period

 

 

90,878

 

 

 

220,372

 

End of period

 

$

101,315

 

 

$

175,199

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

101,153

 

 

$

79,387

 

 

$

195,063

 

 

$

157,466

 

GAAP gross margin

 

 

53.4

%

 

 

55.2

%

 

 

52.4

%

 

 

55.9

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

5,812

 

 

 

4,878

 

 

 

11,365

 

 

 

9,018

 

Intangibles amortization

 

 

2,935

 

 

 

2,947

 

 

 

5,882

 

 

 

5,894

 

Stock-based compensation

 

 

8,538

 

 

 

3,781

 

 

 

16,330

 

 

 

6,886

 

Exit costs related to closure and relocation of Russian operations

 

 

3

 

 

 

 

 

 

383

 

 

 

 

Acquisition-related and one-time integration costs

 

 

80

 

 

 

2

 

 

 

128

 

 

 

32

 

Refund for prior year overpayment of USF fees

 

 

(3,511

)

 

 

 

 

 

(3,511

)

 

 

 

Adjusted gross profit

 

$

115,010

 

 

$

90,995

 

 

$

225,640

 

 

$

179,296

 

Adjusted gross margin

 

 

60.7

%

 

 

63.3

%

 

 

60.6

%

 

 

63.7

%

FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(In thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(23,670

)

 

$

(16,530

)

 

$

(57,790

)

 

$

(28,862

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

11,640

 

 

 

9,651

 

 

 

22,435

 

 

 

18,414

 

Stock-based compensation

 

 

44,786

 

 

 

24,901

 

 

 

84,179

 

 

 

45,809

 

Interest expense

 

 

1,857

 

 

 

2,118

 

 

 

3,727

 

 

 

4,056

 

Interest (income) and other

 

 

(280

)

 

 

353

 

 

 

(1,125

)

 

 

178

 

Exit costs related to closure and relocation of Russian operations (1)

 

 

214

 

 

 

 

 

 

3,441

 

 

 

 

Acquisition-related transaction and one-time integration costs

 

 

1,714

 

 

 

973

 

 

 

3,352

 

 

 

2,067

 

Contingent consideration expense

 

 

 

 

 

2,700

 

 

 

260

 

 

 

5,200

 

Refund for prior year overpayment of USF fees

 

 

(3,511

)

 

 

 

 

 

(3,511

)

 

 

 

Provision for (benefit from) income taxes

 

 

332

 

 

 

(135

)

 

 

2,588

 

 

 

(652

)

Adjusted EBITDA

 

$

33,082

 

 

$

24,031

 

 

$

57,556

 

 

$

46,210

 

Adjusted EBITDA as % of revenue

 

 

17.5

%

 

 

16.7

%

 

 

15.5

%

 

 

16.4

%

(1) Exit costs related to the closure and relocation of our Russian operations was $1.1 million and $3.9 million during the three and six months ended June 30, 2022. The $0.2 million and $3.4 million adjustments presented above were net of $0.7 million and $0.8 million included in “Depreciation and amortization” and $0.2 million and $(0.3) million included in “Interest (income) and other.”

FIVE9, INC.

RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP OPERATING INCOME

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

 

 

 

 

 

 

 

 

 

Loss from operations

 

$

(21,761

)

 

$

(14,194

)

 

$

(52,600

)

 

$

(25,280

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

44,786

 

 

 

24,901

 

 

 

84,179

 

 

 

45,809

 

Intangibles amortization

 

 

2,935

 

 

 

2,947

 

 

 

5,882

 

 

 

5,894

 

Exit costs related to closure and relocation of Russian operations

 

 

883

 

 

 

 

 

 

4,215

 

 

 

 

Acquisition-related transaction and one-time integration costs

 

 

1,714

 

 

 

973

 

 

 

3,352

 

 

 

2,067

 

Contingent consideration expense

 

 

 

 

 

2,700

 

 

 

260

 

 

 

5,200

 

Refund for prior year overpayment of USF fees

 

 

(3,511

)

 

 

 

 

 

(3,511

)

 

 

 

Non-GAAP operating income

 

$

25,046

 

 

$

17,327

 

 

$

41,777

 

 

$

33,690

 

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, 2022

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$ (23,670)

 

$ (16,530)

 

$ (57,790)

 

$ (28,862)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

44,786

 

24,901

 

84,179

 

45,809

Intangibles amortization

 

2,935

 

2,947

 

5,882

 

5,894

Amortization of discount and issuance costs on convertible senior notes

 

922

 

985

 

1,852

 

1,959

Exit costs related to closure and relocation of Russian operations

 

1,125

 

 

3,874

 

Acquisition-related transaction and one-time integration costs

 

1,714

 

973

 

3,352

 

2,067

Contingent consideration expense

 

 

2,700

 

260

 

5,200

Refund for prior year overpayment of USF fees

 

(3,511)

 

 

(3,511)

 

Tax provision associated with acquired companies

 

 

 

1,830

 

Non-GAAP net income

 

$ 24,301

 

$ 15,976

 

$ 39,928

 

$ 32,067

GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$ (0.34)

 

$ (0.25)

 

$ (0.83)

 

$ (0.43)

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$ 0.35

 

$ 0.24

 

$ 0.58

 

$ 0.48

Diluted

 

$ 0.34

 

$ 0.23

 

$ 0.56

 

$ 0.45

Shares used in computing GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

69,748

 

67,292

 

69,363

 

67,008

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

 

 

 

 

 

 

 

 

Basic

 

69,748

 

67,292

 

69,363

 

67,008

Diluted

 

71,083

 

70,774

 

70,869

 

70,640

 

 

 

 

 

 

 

 

 

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

June 30, 2022

 

June 30, 2021

 

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

8,538

 

$

5,812

 

$

2,935

 

$

3,781

 

$

4,878

 

$

2,947

Research and development

 

 

11,818

 

 

804

 

 

 

 

6,152

 

 

729

 

 

Sales and marketing

 

 

14,963

 

 

1

 

 

 

 

8,208

 

 

1

 

 

General and administrative

 

 

9,467

 

 

2,088

 

 

 

 

6,760

 

 

1,096

 

 

Total

 

$

44,786

 

$

8,705

 

$

2,935

 

$

24,901

 

$

6,704

 

$

2,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30, 2022

 

June 30, 2021

 

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

Stock-Based
Compensation

 

Depreciation

 

Intangibles
Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

16,330

 

$

11,365

 

$

5,882

 

$

6,886

 

$

9,018

 

$

5,894

Research and development

 

 

21,963

 

 

1,629

 

 

 

 

10,915

 

 

1,325

 

 

Sales and marketing

 

 

28,387

 

 

2

 

 

 

 

14,979

 

 

2

 

 

General and administrative

 

 

17,499

 

 

3,557

 

 

 

 

13,029

 

 

2,175

 

 

Total

 

$

84,179

 

$

16,553

 

$

5,882

 

$

45,809

 

$

12,520

 

$

5,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contacts

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

Contacts

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