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Five9 Reports Third Quarter 2024 Accelerated Revenue Growth of 15% to $264 Million

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Five9 (NASDAQ:FIVN) reported a 15% increase in revenue for Q3 2024, reaching $264.2 million, compared to $230.1 million in Q3 2023. The company also saw a 20% growth in subscription revenue and a record $41 million in operating cash flow.

GAAP gross margin for the quarter was 53.8%, up from 51.7% in Q3 2023, while the adjusted gross margin rose to 61.8% from 60.6%. The GAAP net loss decreased to $(4.5) million or $(0.06) per basic share, compared to $(20.4) million or $(0.28) per basic share in the same period last year. Non-GAAP net income increased to $50.5 million or $0.67 per diluted share, up from $38.0 million or $0.52 per diluted share in Q3 2023. Adjusted EBITDA was $52.4 million or 19.8% of revenue, compared to $41.3 million or 17.9% of revenue in the previous year.

Based on these results, Five9 has raised its 2024 guidance for revenue and bottom line.

Five9 (NASDAQ:FIVN) ha riportato un aumento del 15% dei ricavi per il terzo trimestre del 2024, raggiungendo 264,2 milioni di dollari, rispetto ai 230,1 milioni di dollari del terzo trimestre del 2023. L'azienda ha anche visto una crescita del 20% nei ricavi da abbonamento e un record di 41 milioni di dollari di flusso di cassa operativo.

Il margine lordo GAAP per il trimestre è stato del 53,8%, in aumento rispetto al 51,7% del terzo trimestre del 2023, mentre il margine lordo rettificato è salito al 61,8% dal 60,6%. La perdita netta GAAP è diminuita a $(4,5) milioni o $(0,06) per azione base, rispetto ai $(20,4) milioni o $(0,28) per azione base nello stesso periodo dell'anno scorso. L'utile netto non-GAAP è aumentato a 50,5 milioni di dollari o $0,67 per azione diluita, rispetto ai 38,0 milioni di dollari o $0,52 per azione diluita nel terzo trimestre del 2023. L'EBITDA rettificato è stato di 52,4 milioni di dollari o il 19,8% dei ricavi, rispetto ai 41,3 milioni di dollari o il 17,9% dei ricavi dell'anno precedente.

Sulla base di questi risultati, Five9 ha aumentato le previsioni per il 2024 riguardo ai ricavi e al risultato finale.

Five9 (NASDAQ:FIVN) reportó un aumento del 15% en los ingresos para el tercer trimestre de 2024, alcanzando $264.2 millones, en comparación con $230.1 millones en el tercer trimestre de 2023. La compañía también experimentó un crecimiento del 20% en los ingresos por suscripción y un récord de $41 millones en flujo de caja operativo.

El margen bruto GAAP para el trimestre fue del 53.8%, en comparación con el 51.7% en el tercer trimestre de 2023, mientras que el margen bruto ajustado aumentó al 61.8% desde el 60.6%. La pérdida neta GAAP se redujo a $(4.5) millones o $(0.06) por acción básica, en comparación con $(20.4) millones o $(0.28) por acción básica en el mismo período del año pasado. El ingreso neto no GAAP aumentó a $50.5 millones o $0.67 por acción diluida, subiendo desde $38.0 millones o $0.52 por acción diluida en el tercer trimestre de 2023. El EBITDA ajustado fue de $52.4 millones o el 19.8% de los ingresos, en comparación con $41.3 millones o el 17.9% de los ingresos del año anterior.

Basado en estos resultados, Five9 ha aumentado su guía para 2024 en cuanto a ingresos y resultados finales.

Five9 (NASDAQ:FIVN)은 2024년 3분기에 15%의 매출 증가를 보고했으며, 매출은 2억 6천 4백 20만 달러에 이르렀습니다. 이는 2023년 3분기의 2억 3천 1백만 달러와 비교됩니다. 회사는 또한 20%의 구독 매출 성장을 기록했으며, 운영 현금 흐름에서 4100만 달러로 기록을 세웠습니다.

이번 분기의 GAAP 총 마진53.8%로, 2023년 3분기의 51.7%에서 증가했습니다. 조정된 총 마진은 60.6%에서 61.8%로 상승했습니다. GAAP 순손실$(450만) 또는 기본주당 $(0.06)으로 감소했으며, 작년 같은 기간의 $(2040만) 또는 $(0.28)과 비교됩니다. 비GAAP 순이익5050만 달러 또는 희석주당 $0.67로 증가했으며, 2023년 3분기의 $3800만 또는 $0.52에서 증가한 수치입니다. 조정된 EBITDA5240만 달러 또는 매출의 19.8%로, 지난해의 4130만 달러 또는 매출의 17.9%와 비교됩니다.

이러한 결과를 바탕으로 Five9은 2024년 매출 및 손익 전망을 상향 조정했습니다.

Five9 (NASDAQ:FIVN) a annoncé une augmentation de 15% de son chiffre d'affaires pour le troisième trimestre 2024, atteignant 264,2 millions de dollars, contre 230,1 millions de dollars au troisième trimestre 2023. L'entreprise a également connu une croissance de 20% des revenus d'abonnement et un record de 41 millions de dollars de flux de trésorerie opérationnel.

La marge brute GAAP pour le trimestre était de 53,8%, en hausse par rapport à 51,7% au troisième trimestre 2023, tandis que la marge brute ajustée est passée à 61,8% contre 60,6%. La perte nette GAAP a diminué à $(4,5) millions ou $(0,06) par action ordinaire, contre $(20,4) millions ou $(0,28) par action ordinaire pendant la même période l'année dernière. Le résultat net non-GAAP a augmenté à 50,5 millions de dollars ou $0,67 par action diluée, contre 38,0 millions de dollars ou $0,52 par action diluée au troisième trimestre 2023. L'EBITDA ajusté était de 52,4 millions de dollars ou 19,8% du chiffre d'affaires, contre 41,3 millions de dollars ou 17,9% du chiffre d'affaires de l'année précédente.

Sur la base de ces résultats, Five9 a relevé ses prévisions pour 2024 concernant les revenus et le résultat net.

Five9 (NASDAQ:FIVN) meldete für das 3. Quartal 2024 einen Umsatzanstieg von 15%, der 264,2 Millionen Dollar erreichte, im Vergleich zu 230,1 Millionen Dollar im 3. Quartal 2023. Das Unternehmen verzeichnete auch 20% Wachstum bei den Abonnementeinnahmen und einen Rekord von 41 Millionen Dollar im operativen Cashflow.

Die GAAP-Bruttomarge für das Quartal lag bei 53,8%, gegenüber 51,7% im 3. Quartal 2023, während die bereinigte Bruttomarge auf 61,8% von 60,6% anstieg. Der GAAP-Nettoverlust verringerte sich auf $(4,5) Millionen oder $(0,06) pro Basisaktie, im Vergleich zu $(20,4) Millionen oder $(0,28) pro Basisaktie im gleichen Zeitraum des Vorjahres. Der Non-GAAP-Nettoertrag stieg auf 50,5 Millionen Dollar oder $0,67 pro verwässerte Aktie, gegenüber 38,0 Millionen Dollar oder $0,52 pro verwässerte Aktie im 3. Quartal 2023. Bereinigtes EBITDA betrug 52,4 Millionen Dollar oder 19,8% des Umsatzes, im Vergleich zu 41,3 Millionen Dollar oder 17,9% des Umsatzes im Vorjahr.

Aufgrund dieser Ergebnisse hat Five9 seine Prognose für 2024 angehoben in Bezug auf Umsatz und Nettoergebnis.

Positive
  • Revenue increased by 15% to $264.2 million.
  • Subscription revenue grew by 20%.
  • Operating cash flow reached a record $41 million.
  • GAAP gross margin increased to 53.8%.
  • Adjusted gross margin rose to 61.8%.
  • Non-GAAP net income increased to $50.5 million.
  • Adjusted EBITDA increased to $52.4 million.
  • Raised 2024 guidance for revenue and bottom line.
Negative
  • GAAP net loss of $(4.5) million.

Insights

Five9's Q3 results demonstrate robust financial performance with several key improvements. The 15% revenue growth to $264.2 million shows strong market execution, while subscription revenue growth of 20% indicates healthy core business expansion. The significant reduction in GAAP net loss from $(20.4) million to $(4.5) million and improvement in adjusted EBITDA margin to 19.8% reflect enhanced operational efficiency.

The expansion in both GAAP gross margin (53.8%) and adjusted gross margin (61.8%) suggests better cost management and scaling benefits. The record operating cash flow of $41.1 million demonstrates strong cash generation capability, important for future growth investments, particularly in AI initiatives. The non-GAAP earnings per share increase from $0.52 to $0.67 indicates solid bottom-line improvement and operational leverage.

Five9's strategic positioning in AI-powered CX solutions represents a significant competitive advantage in the rapidly evolving contact center market. The company's focus on hyper-personalized experiences and continuous engagement aligns perfectly with enterprise digital transformation trends. The accelerating adoption of AI in customer experience platforms suggests strong growth potential, particularly as businesses seek to optimize customer service operations while managing costs.

The 20% growth in subscription revenue is particularly noteworthy as it indicates strong product-market fit and customer retention. The emphasis on AI-powered solutions positions Five9 well against both legacy providers and new entrants in the cloud contact center space, suggesting potential for sustained market share gains and pricing power.

20% Growth in Subscription Revenue

Record $41 Million in Operating Cash Flow

Raises 2024 Guidance for Revenue and Bottom Line

SAN RAMON, Calif.--(BUSINESS WIRE)-- Five9, Inc. (NASDAQ:FIVN), the Intelligent CX Platform provider, today reported results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial Results

  • Revenue for the third quarter of 2024 increased 15% to a record $264.2 million, compared to $230.1 million for the third quarter of 2023.
  • GAAP gross margin was 53.8% for the third quarter of 2024, compared to 51.7% for the third quarter of 2023.
  • Adjusted gross margin was 61.8% for the third quarter of 2024, compared to 60.6% for the third quarter of 2023.
  • GAAP net loss for the third quarter of 2024 was $(4.5) million, or $(0.06) per basic share, and (1.7)% of revenue, compared to GAAP net loss of $(20.4) million, or $(0.28) per basic share, and (8.9)% of revenue, for the third quarter of 2023.
  • Non-GAAP net income for the third quarter of 2024 was $50.5 million, or $0.67 per diluted share, and 19.1% of revenue, compared to non-GAAP net income of $38.0 million, or $0.52 per diluted share, and 16.5% of revenue, for the third quarter of 2023.
  • Adjusted EBITDA for the third quarter of 2024 was $52.4 million, or 19.8% of revenue, compared to $41.3 million, or 17.9% of revenue, for the third quarter of 2023.
  • GAAP operating cash flow for the third quarter of 2024 was $41.1 million, compared to GAAP operating cash flow of $37.0 million for the third quarter of 2023.

“We are very pleased to report strong third quarter results, which exceeded our guidance across all key metrics. Subscription revenue grew 20% year-over-year, and we achieved an adjusted EBITDA margin of 20%, helping drive robust operating cash flow of $41 million. With the acceleration of AI, CX is at an inflection point. We believe our AI-powered platform is at the forefront of enabling a hyper-personalized experience, continuous engagement, and seamless customer journeys, all while creating a pathway for durable growth. We are energized by the momentum we are seeing with our AI products and believe that the market opportunity ahead is stronger than ever.”

- Mike Burkland, Chairman and 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 ongoing impact of macroeconomic challenges.

  • For the full year 2024, Five9 now expects to report:
    • Revenue in the range of $1.030 to $1.031 billion.
    • GAAP net loss per share in the range of $(0.30) to $(0.23), assuming basic shares outstanding of approximately 74.5 million.
    • Non-GAAP net income per share in the range of $2.36 to $2.38, assuming diluted shares outstanding of approximately 75.0 million.
  • For the fourth quarter of 2024, Five9 expects to report:
    • Revenue in the range of $267.0 to $268.0 million.
    • GAAP net income per share in the range of $0.03 to $0.08, assuming diluted shares outstanding of approximately 88.6 million.
    • Non-GAAP net income per share in the range of $0.69 to $0.71, assuming diluted shares outstanding of approximately 76.0 million.

With respect to Five9’s guidance as provided above, please refer to the “Reconciliation of GAAP Net Loss to Non-GAAP net income - Guidance” table for more details, including important assumptions upon which such guidance is based.

Conference Call Details

Five9 will discuss its third quarter 2024 results today, November 7, 2024, 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 and related transaction costs and one-time integration costs, lease amortization for finance leases and costs related to a reduction in force plan. 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, gain on early extinguishment of debt, interest income and other, exit costs related to closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, lease amortization for finance leases, costs related to a reduction in force plan and provision for income taxes. We calculate non-GAAP operating income by adding back or removing the following items to or from GAAP loss from operations: stock-based compensation, intangibles amortization, exit costs related to the closure and relocation of our Russian operations, and acquisition related transaction costs and one-time integration costs, and costs related to a reduction in force plan. 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 and related transaction costs and one-time integration costs, gain on early extinguishment of debt, impairment charge of an equity investment, costs related to a reduction in force plan, and tax benefit associated with an acquired company. For the periods presented, these adjustments from GAAP net loss to non-GAAP net income do not include any presentation of the net tax effect of such adjustments given our significant net operating loss carryforwards. 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 in this release.

Forward-Looking Statements

This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements in the quote from our Chairman and Chief Executive Officer, including statements regarding the effect of AI on the CX market,

Five9’s AI platform and its market position and expected impact on the Company's growth, Five9's market opportunity and ability to capitalize on that opportunity, and the fourth quarter and full year 2024 financial projections set forth under the caption “Business Outlook,” that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) the impact of adverse economic conditions, including the impact of macroeconomic challenges, including continued inflation, increased interest rates, supply chain disruptions, decreased economic output and fluctuations in currency rates, the impact of the Russia-Ukraine conflict, the impact of the conflict in the Middle East, and other factors, may continue to harm our business; (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) if our existing clients terminate their subscriptions or reduce their subscriptions and related usage, or fail to grow subscriptions at the rate they have in the past or that we might expect, our revenues and gross margins will be harmed and we will be required to spend more money to grow our client base; (iv) 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; (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) further development of our AI solutions may not be successful and may result in reputational harm and our future operating results could be materially harmed; (vii) we have established, and are continuing to increase, our network of technology solution distributors and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues; (viii) our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock; (ix) if we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be adversely affected; (x) our historical 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; (xi) failure to adequately retain and expand our sales force will impede our growth; (xii) the AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks; (xiii) the use of AI by our workforce may present risks to our business; (xiv) 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; (xv) 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; (xvi) 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; (xvii) we continue to expand our international operations, which exposes us to significant macroeconomic and other risks; (xviii) security breaches and improper access to, use of, 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, our business or financial results; (xix) 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; (xx) 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; (xxi) 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; (xxii) we have a history of losses and we may be unable to achieve or sustain profitability; (xxiii) our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control; (xxiv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxv) failure to comply with laws and regulations could harm our business and our reputation; (xxvi) 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 (xxvii) 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

The Five9 Intelligent CX Platform provides a comprehensive suite of solutions for orchestrating fluid customer experiences. Our cloud-native, multi-tenant, scalable, reliable, and secure platform includes contact center; omni-channel engagement; Workforce Engagement Management; extensibility through more than 1,000 partners; and innovative, practical AI, automation and journey analytics that are embedded as part of the platform. Five9 brings the power of people, technology, and partners to more than 3,000 organizations worldwide. For more information, visit www.five9.com.

FIVE9, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

September 30, 2024

 

December 31, 2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

290,959

 

 

$

143,201

 

Marketable investments

 

 

675,704

 

 

 

587,096

 

Accounts receivable, net

 

 

116,430

 

 

 

97,424

 

Prepaid expenses and other current assets

 

 

48,640

 

 

 

34,622

 

Deferred contract acquisition costs, net

 

 

72,534

 

 

 

61,711

 

Total current assets

 

 

1,204,267

 

 

 

924,054

 

Property and equipment, net

 

 

136,052

 

 

 

108,572

 

Operating lease right-of-use assets

 

 

43,480

 

 

 

38,873

 

Finance lease right-of-use assets

 

 

21,262

 

 

 

4,564

 

Intangible assets, net

 

 

69,731

 

 

 

38,323

 

Goodwill

 

 

365,450

 

 

 

227,412

 

Other assets

 

 

17,765

 

 

 

16,199

 

Deferred contract acquisition costs, net — less current portion

 

 

149,885

 

 

 

136,571

 

Total assets

 

$

2,007,892

 

 

$

1,494,568

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

33,876

 

 

$

24,399

 

Accrued and other current liabilities

 

 

84,297

 

 

 

62,131

 

Operating lease liabilities

 

 

11,446

 

 

 

10,731

 

Finance lease liabilities

 

 

7,695

 

 

 

1,767

 

Deferred revenue

 

 

80,000

 

 

 

68,187

 

Convertible senior notes

 

 

432,927

 

 

 

 

Total current liabilities

 

 

650,241

 

 

 

167,215

 

Convertible senior notes — less current portion

 

 

730,932

 

 

 

742,125

 

Operating lease liabilities — less current portion

 

 

39,976

 

 

 

36,378

 

Finance lease liabilities — less current portion

 

 

13,716

 

 

 

2,877

 

Other long-term liabilities

 

 

7,441

 

 

 

7,888

 

Total liabilities

 

 

1,442,306

 

 

 

956,483

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

75

 

 

 

73

 

Additional paid-in capital

 

 

992,905

 

 

 

942,280

 

Accumulated other comprehensive income

 

 

1,828

 

 

 

582

 

Accumulated deficit

 

 

(429,222

)

 

 

(404,850

)

Total stockholders’ equity

 

 

565,586

 

 

 

538,085

 

Total liabilities and stockholders’ equity

 

$

2,007,892

 

 

$

1,494,568

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

Revenue

 

$

264,182

 

 

$

230,105

 

 

$

763,278

 

 

$

671,426

 

Cost of revenue

 

 

121,933

 

 

 

111,080

 

 

 

354,877

 

 

 

320,197

 

Gross profit

 

 

142,249

 

 

 

119,025

 

 

 

408,401

 

 

 

351,229

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

42,482

 

 

 

40,391

 

 

 

124,717

 

 

 

117,709

 

Sales and marketing

 

 

78,615

 

 

 

73,366

 

 

 

238,056

 

 

 

223,757

 

General and administrative

 

 

36,575

 

 

 

31,006

 

 

 

101,111

 

 

 

89,741

 

Total operating expenses

 

 

157,672

 

 

 

144,763

 

 

 

463,884

 

 

 

431,207

 

Loss from operations

 

 

(15,423

)

 

 

(25,738

)

 

 

(55,483

)

 

 

(79,978

)

Other income (expense), net:

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,068

)

 

 

(1,972

)

 

 

(10,541

)

 

 

(5,683

)

Gain on early extinguishment of debt

 

 

 

 

 

 

 

 

6,615

 

 

 

 

Interest income and other

 

 

11,144

 

 

 

8,233

 

 

 

35,503

 

 

 

18,477

 

Total other income (expense), net

 

 

7,076

 

 

 

6,261

 

 

 

31,577

 

 

 

12,794

 

Loss before income taxes

 

 

(8,347

)

 

 

(19,477

)

 

 

(23,906

)

 

 

(67,184

)

(Benefit from) provision for income taxes

 

 

(3,868

)

 

 

942

 

 

 

466

 

 

 

2,222

 

Net loss

 

$

(4,479

)

 

$

(20,419

)

 

$

(24,372

)

 

$

(69,406

)

Net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.06

)

 

$

(0.28

)

 

$

(0.33

)

 

$

(0.97

)

Shares used in computing net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

 

74,876

 

 

 

72,356

 

 

 

74,192

 

 

 

71,751

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(24,372

)

 

$

(69,406

)

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

 

 

 

 

Depreciation and amortization

 

 

38,265

 

 

 

35,553

 

Amortization of operating lease right-of-use assets

 

 

10,631

 

 

 

9,234

 

Amortization of deferred contract acquisition costs

 

 

52,152

 

 

 

40,088

 

Accretion of discount on marketable investments

 

 

(16,833

)

 

 

(7,684

)

Provision for credit losses

 

 

806

 

 

 

795

 

Stock-based compensation

 

 

127,872

 

 

 

156,721

 

Amortization of discount and issuance costs on convertible senior notes

 

 

3,991

 

 

 

2,793

 

Gain on early extinguishment of debt

 

 

(6,615

)

 

 

 

Impairment charge of an equity investment

 

 

1,250

 

 

 

 

Interest on finance lease obligations

 

 

258

 

 

 

77

 

Deferred taxes

 

 

441

 

 

 

438

 

Tax benefit of valuation allowance associated with an acquisition

 

 

(4,831

)

 

 

 

Other

 

 

(145

)

 

 

592

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(15,559

)

 

 

(6,661

)

Prepaid expenses and other current assets

 

 

(9,562

)

 

 

(6,537

)

Deferred contract acquisition costs

 

 

(76,288

)

 

 

(68,410

)

Other assets

 

 

(1,452

)

 

 

(4,892

)

Accounts payable

 

 

8,651

 

 

 

5,562

 

Accrued and other current liabilities

 

 

5,380

 

 

 

(1,149

)

Deferred revenue

 

 

184

 

 

 

1,544

 

Other liabilities

 

 

(871

)

 

 

3,636

 

Net cash provided by operating activities

 

 

93,353

 

 

 

92,294

 

Cash flows from investing activities:

 

 

 

 

Purchases of marketable investments

 

 

(993,483

)

 

 

(544,713

)

Proceeds from sales of marketable investments

 

 

93,995

 

 

 

971

 

Proceeds from maturities of marketable investments

 

 

829,122

 

 

 

415,117

 

Purchases of property and equipment

 

 

(33,097

)

 

 

(19,941

)

Capitalization of software development costs

 

 

(14,211

)

 

 

(5,820

)

Cash paid to acquire Acqueon Inc.

 

 

(167,166

)

 

 

 

Cash paid to acquire Aceyus, Inc.

 

 

99

 

 

 

(80,588

)

Net cash used in investing activities

 

 

(284,741

)

 

 

(234,974

)

Cash flows from financing activities:

 

 

 

 

Proceeds from issuance of 2029 convertible senior notes, net of issuance costs

 

 

728,843

 

 

 

 

Payments for capped call transactions associated with the 2029 convertible senior notes

 

 

(93,438

)

 

 

 

Repurchase of a portion of 2025 convertible senior notes, net of costs

 

 

(304,485

)

 

 

 

Repayment of outstanding 2023 convertible senior notes at maturity

 

 

 

 

 

(169

)

Cash received from the settlement at maturity of the outstanding capped calls associated with the 2023 convertible senior notes

 

 

 

 

 

74,453

 

Cash received from partial termination of capped calls associated with the 2025 convertible senior notes

 

 

539

 

 

 

 

Proceeds from exercise of common stock options

 

 

423

 

 

 

8,315

 

Proceeds from sale of common stock under ESPP

 

 

9,522

 

 

 

9,444

 

Payment of holdback related to an acquisition

 

 

 

 

 

(500

)

Payment of finance lease liabilities

 

 

(2,006

)

 

 

(496

)

Net cash provided by financing activities

 

 

339,398

 

 

 

91,047

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

148,010

 

 

 

(51,633

)

Cash, cash equivalents and restricted cash:

 

 

 

 

Beginning of period

 

 

144,842

 

 

 

180,987

 

End of period

 

$

292,852

 

 

$

129,354

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

142,249

 

 

$

119,025

 

 

$

408,401

 

 

$

351,229

 

GAAP gross margin

 

 

53.8

%

 

 

51.7

%

 

 

53.5

%

 

 

52.3

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

7,218

 

 

 

6,893

 

 

 

21,956

 

 

 

19,378

 

Intangibles amortization

 

 

3,196

 

 

 

3,182

 

 

 

8,492

 

 

 

8,873

 

Stock-based compensation

 

 

7,512

 

 

 

9,856

 

 

 

22,904

 

 

 

29,077

 

Exit costs related to closure and relocation of Russian operations

 

 

 

 

 

18

 

 

 

 

 

 

93

 

Acquisition and related transaction costs and one-time integration costs

 

 

94

 

 

 

 

 

 

219

 

 

 

34

 

Lease amortization for finance leases

 

 

895

 

 

 

492

 

 

 

1,807

 

 

 

492

 

Costs related to a reduction in force plan

 

 

2,115

 

 

 

 

 

 

2,115

 

 

 

 

Adjusted gross profit

 

$

163,279

 

 

$

139,466

 

 

$

465,894

 

 

$

409,176

 

Adjusted gross margin

 

 

61.8

%

 

 

60.6

%

 

 

61.0

%

 

 

60.9

%

FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(In thousands, except percentages)

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(4,479

)

 

$

(20,419

)

 

$

(24,372

)

 

$

(69,406

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

13,144

 

 

 

12,482

 

 

 

38,265

 

 

 

35,553

 

Stock-based compensation

 

 

39,556

 

 

 

52,611

 

 

 

127,872

 

 

 

156,721

 

Interest expense

 

 

4,068

 

 

 

1,972

 

 

 

10,541

 

 

 

5,683

 

Gain on early extinguishment of debt

 

 

 

 

 

 

 

 

(6,615

)

 

 

 

Interest income and other

 

 

(11,144

)

 

 

(8,233

)

 

 

(35,503

)

 

 

(18,477

)

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

 

 

21

 

 

 

659

 

 

 

78

 

 

 

2,070

 

Acquisition and related transaction costs and one-time integration costs

 

 

4,486

 

 

 

778

 

 

 

9,506

 

 

 

3,110

 

Lease amortization for finance leases

 

 

951

 

 

 

492

 

 

 

1,863

 

 

 

492

 

Costs related to a reduction in force plan

 

 

9,625

 

 

 

 

 

 

9,625

 

 

 

 

(Benefit from) provision for income taxes

 

 

(3,868

)

 

 

942

 

 

 

466

 

 

 

2,222

 

Adjusted EBITDA

 

$

52,360

 

 

$

41,284

 

 

$

131,726

 

 

$

117,968

 

Adjusted EBITDA as % of revenue

 

 

19.8

%

 

 

17.9

%

 

 

17.3

%

 

 

17.6

%

(1) Exit costs related to the closure and relocation of our Russian operations were $0.2 million during both the three and nine months ended September 30, 2024. The $0.0 million and $0.1 million adjustments presented above were net of $0.2 million and $0.1 million included in “Interest income and other.” Exit costs related to the closure and relocation of our Russian operations was $0.9 million and $2.7 million during the three and nine months ended September 30, 2023. The $0.7 million and $2.1 million adjustments presented above were net of $0.2 million and $0.6 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

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

 

 

 

 

 

 

 

 

 

Loss from operations

 

$

(15,423

)

 

$

(25,738

)

 

$

(55,483

)

 

$

(79,978

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

39,556

 

 

 

52,611

 

 

 

127,872

 

 

 

156,721

 

Intangibles amortization

 

 

3,196

 

 

 

3,182

 

 

 

8,492

 

 

 

8,873

 

Exit costs related to closure and relocation of Russian operations

 

 

21

 

 

 

659

 

 

 

78

 

 

 

2,070

 

Acquisition and related transaction costs and one-time integration costs

 

 

4,486

 

 

 

778

 

 

 

9,506

 

 

 

3,110

 

Costs related to a reduction in force plan

 

 

9,625

 

 

 

 

 

 

9,625

 

 

 

 

Non-GAAP operating income

 

$

41,461

 

 

$

31,492

 

 

$

100,090

 

 

$

90,796

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(4,479

)

 

$

(20,419

)

 

$

(24,372

)

 

$

(69,406

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

39,556

 

 

 

52,611

 

 

 

127,872

 

 

 

156,721

 

Intangibles amortization

 

 

3,196

 

 

 

3,182

 

 

 

8,492

 

 

 

8,873

 

Amortization of discount and issuance costs on convertible senior notes

 

 

1,482

 

 

 

954

 

 

 

3,991

 

 

 

2,793

 

Gain on early extinguishment of debt

 

 

 

 

 

 

 

 

(6,615

)

 

 

 

Exit costs related to closure and relocation of Russian operations

 

 

176

 

 

 

854

 

 

 

156

 

 

 

2,705

 

Acquisition and related transaction costs and one-time integration costs

 

 

4,486

 

 

 

778

 

 

 

9,506

 

 

 

3,110

 

Impairment charge of an equity investment

 

 

1,250

 

 

 

 

 

 

1,250

 

 

 

 

Costs related to a reduction in force plan

 

 

9,625

 

 

 

 

 

 

9,625

 

 

 

 

Tax benefit associated with an acquired company

 

 

(4,831

)

 

 

 

 

 

(4,831

)

 

 

 

Income tax expense effects (1)

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 

$

50,461

 

 

$

37,960

 

 

$

125,074

 

 

$

104,796

 

GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.06

)

 

$

(0.28

)

 

$

(0.33

)

 

$

(0.97

)

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.67

 

 

$

0.52

 

 

$

1.69

 

 

$

1.46

 

Diluted

 

$

0.67

 

 

$

0.52

 

 

$

1.68

 

 

$

1.44

 

Shares used in computing GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

 

74,876

 

 

 

72,356

 

 

 

74,192

 

 

 

71,751

 

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

 

 

 

 

 

 

 

 

Basic

 

 

74,876

 

 

 

72,356

 

 

 

74,192

 

 

 

71,751

 

Diluted

 

 

75,137

 

 

 

73,426

 

 

 

74,653

 

 

 

72,790

 

 

 

 

 

 

 

 

 

 

  1. Non-GAAP adjustments do not have a material impact on our worldwide income tax provision due to the tax treatment of the non-GAAP adjustments reported, and the Company’s domestic valuation allowance position.

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

September 30, 2024

 

September 30, 2023

 

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

7,512

 

$

7,218

 

$

3,196

 

$

9,856

 

$

6,893

 

$

3,182

Research and development

 

 

8,244

 

 

721

 

 

 

 

12,980

 

 

831

 

 

Sales and marketing

 

 

12,490

 

 

32

 

 

 

 

16,404

 

 

36

 

 

General and administrative

 

 

11,310

 

 

1,977

 

 

 

 

13,371

 

 

1,540

 

 

Total

 

$

39,556

 

$

9,948

 

$

3,196

 

$

52,611

 

$

9,300

 

$

3,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

 

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

Stock-Based Compensation

 

Depreciation

 

Intangibles Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

22,904

 

$

21,956

 

$

8,492

 

$

29,077

 

$

19,378

 

$

8,873

Research and development

 

 

29,001

 

 

2,352

 

 

 

 

38,375

 

 

2,571

 

 

Sales and marketing

 

 

40,334

 

 

85

 

 

 

 

50,840

 

 

38

 

 

General and administrative

 

 

35,633

 

 

5,380

 

 

 

 

38,429

 

 

4,693

 

 

Total

 

$

127,872

 

$

29,773

 

$

8,492

 

$

156,721

 

$

26,680

 

$

8,873

 

 

 

 

 

 

 

 

 

 

 

 

 

FIVE9, INC.

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME – GUIDANCE(1)

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ending

 

Year Ending

 

 

December 31, 2024

 

December 31, 2024

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

2,687

 

$

7,207

 

$

(22,000

)

 

$

(17,500

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation(2)

 

 

43,479

 

 

41,479

 

 

171,351

 

 

 

169,351

 

Intangibles amortization

 

 

2,643

 

 

2,643

 

 

11,135

 

 

 

11,135

 

Amortization of discount and issuance costs on convertible senior notes

 

 

1,485

 

 

1,485

 

 

5,476

 

 

 

5,476

 

Exit costs related to closure and relocation of Russian operations

 

 

 

 

 

 

156

 

 

 

156

 

Acquisition and related transaction costs and one-time integration costs(3)

 

 

2,146

 

 

1,146

 

 

11,652

 

 

 

10,652

 

Gain on early extinguishment of debt

 

 

 

 

 

 

(6,615

)

 

 

(6,615

)

Impairment charge of an equity investment

 

 

 

 

 

 

1,250

 

 

 

1,250

 

Costs related to a reduction in force plan

 

 

 

 

 

 

9,625

 

 

 

9,625

 

Tax benefit of valuation allowance associated with an acquisition

 

 

 

 

 

 

(4,831

)

 

 

(4,831

)

Income tax expense effects(4)

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 

$

52,440

 

$

53,960

 

$

177,199

 

 

$

178,699

 

GAAP net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.04

 

$

0.10

 

$

(0.30

)

 

$

(0.23

)

Diluted

 

$

0.03

 

$

0.08

 

$

(0.30

)

 

$

(0.23

)

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.69

 

$

0.71

 

$

2.38

 

 

$

2.40

 

Diluted

 

$

0.69

 

$

0.71

 

$

2.36

 

 

$

2.38

 

Shares used in computing GAAP net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

 

75,600

 

 

75,600

 

 

74,500

 

 

 

74,500

 

Diluted

 

 

88,600

 

 

88,600

 

 

74,500

 

 

 

74,500

 

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

 

 

 

 

 

 

 

 

Basic

 

 

75,600

 

 

75,600

 

 

74,500

 

 

 

74,500

 

Diluted

 

 

76,000

 

 

76,000

 

 

75,000

 

 

 

75,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Represents guidance discussed on November 7, 2024. Reader shall not construe presentation of this information after November 7, 2024 as an update or reaffirmation of such guidance.
  2. Stock-based compensation expenses are based on a range of probable significance, assuming market price for our common stock that is approximately consistent with current levels.
  3. Acquisition and related transaction costs and one-time integration costs are based on a range of probable significance for completed acquisitions, and no new acquisitions assumed.
  4. Non-GAAP adjustments do not have a material impact on our worldwide income tax provision due to the tax treatment of the non-GAAP adjustments reported, and the Company’s domestic valuation allowance position.

FIVE9, INC.

TAXES AND PURCHASES OF PROPERTY AND EQUIPMENT – GUIDANCE(1)

(In thousands)

(Unaudited)

 

 

 

Three Months Ending

 

Year Ending

 

 

December 31, 2024

 

December 31, 2024

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

Taxes - Non-GAAP

 

$

2,500

 

$

2,700

 

$

7,797

 

$

7,997

Purchases of property and equipment

 

 

13,000

 

 

14,000

 

 

46,097

 

 

47,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Represents guidance discussed on November 7, 2024. Reader shall not construe presentation of this information after November 7, 2024 as an update or reaffirmation of such guidance.

     

Investor Relations Contacts:

Five9, Inc.

Barry Zwarenstein

Chief Financial Officer

925-201-2000 ext. 5959

IR@five9.com

The Blueshirt Group for Five9, Inc.

Lisa Laukkanen

415-217-4967

Lisa@blueshirtgroup.com

Source: Five9, Inc.

FAQ

What was Five9's revenue for Q3 2024?

Five9 reported a revenue of $264.2 million for Q3 2024, a 15% increase from Q3 2023.

How much did Five9's subscription revenue grow in Q3 2024?

Five9's subscription revenue grew by 20% in Q3 2024.

What was Five9's GAAP gross margin for Q3 2024?

Five9's GAAP gross margin for Q3 2024 was 53.8%.

What was Five9's adjusted EBITDA for Q3 2024?

Five9's adjusted EBITDA for Q3 2024 was $52.4 million, or 19.8% of revenue.

What is Five9's GAAP net loss for Q3 2024?

Five9 reported a GAAP net loss of $(4.5) million for Q3 2024.

What is Five9's non-GAAP net income for Q3 2024?

Five9's non-GAAP net income for Q3 2024 was $50.5 million.

Did Five9 raise its 2024 guidance?

Yes, Five9 raised its 2024 guidance for revenue and bottom line.

FIVE9, INC.

NASDAQ:FIVN

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3.04B
74.61M
0.76%
115.45%
11.4%
Software - Infrastructure
Services-computer Processing & Data Preparation
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United States of America
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