Five9 Reports Third Quarter 2015 Results
03 Novembro 2015 - 7:05PM
Revenue Up 25% Year-Over-Year to a Record $32.3
Million Enterprise LTM Subscription Revenue Up 35%
Year-Over-Year
Adjusted EBITDA Loss Narrows to 3% of Revenue
Raises 2015 Guidance
Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud software for
the enterprise contact center market, today reported results for
the third quarter ended September 30, 2015.
Third Quarter Highlights
- Revenue increased 25% year-over-year to $32.3 million
- Enterprise LTM subscription revenue increased 35%
year-over-year
- GAAP and Adjusted gross margins improved by over 600 basis
points year-over-year
- Adjusted EBITDA margin improved by nearly 1,600 basis points
year-over-year
"We delivered outstanding third quarter results that once again
exceeded our expectations across all metrics. This is the fifth
consecutive quarter of broad based outperformance and highlights
the strong progression of our business. Our record revenue and
bookings were primarily driven by continued success in our high
growth Enterprise business. Our strong momentum in the enterprise
market is being driven by key differentiators including our
comprehensive end-to-end solution, our trusted platform which is
delivering 99.993% uptime, our deep CRM integrations and ecosystem
partnerships and best in class implementation and support
execution. As validation of our leading position in the enterprise
market, Five9 was recently named a leader in the Gartner Magic
Quadrant for Contact Center as a Service, North America, and
positioned highest for ability to execute. We believe this is a
core attribute that Enterprise accounts are looking for. In
conjunction with our topline growth of 25%, we significantly
improved our EBITDA margin by nearly 1,600 basis points from a year
ago."
- Mike Burkland, President and CEO, Five9
Third Quarter 2015 Financial Results
- Total revenue for the third quarter of 2015 increased 25% to
$32.3 million compared to $25.9 million for the third quarter of
2014.
- Annual dollar-based retention rate for the period ended
September 30, 2015 was 95%.
- GAAP gross margin was 54.1% in the third quarter of 2015
compared to 47.8% for the same period in 2014.
- Adjusted gross margin was 59.4% for the third quarter of 2015
compared to 53.3% for the same period in 2014.
- Adjusted EBITDA for the third quarter of 2015 was a loss of
$(1.1) million, or 3.4% of revenue, compared to a loss of $(5.0)
million, or 19.2% of revenue, for the third quarter of 2014.
- GAAP net loss for the third quarter of 2015 was $(6.0) million,
or $(0.12) per share, compared to a GAAP net loss of $(11.4)
million, or $(0.24) per share, for the third quarter of 2014.
- Non-GAAP net loss for the third quarter of 2015 was $(3.9)
million, or $(0.08) per share, compared to a non-GAAP net loss of
$(7.3) million, or $(0.15) per share, for the third quarter of
2014.
A reconciliation of the non-GAAP financial measures to their
related GAAP financial measures is set forth in the tables attached
to this release.
Business Outlook
- For the fourth quarter of 2015, Five9 expects to
report:
- Revenue in the range of $32.5 to $33.5 million
- GAAP net loss in the range of $(6.0) to $(7.0) million, or a
loss of $(0.12) to $(0.14) per share
- Non-GAAP net loss in the range of $(3.8) to $(4.8) million, or
a loss of $(0.07) to $(0.09) per share
- For the full year 2015, Five9 expects to
report:
- Revenue in the range of $125.3 to $126.3 million, up from the
guidance range of $122.5 to $124.5 million that was previously
provided on August 3, 2015
- GAAP net loss in the range of $(28.3) to $(29.3) million, or a
loss of $(0.56) to $(0.58) per share, improved from a guidance
range of $(31.1) to $(33.1) million, or a loss of $(0.62) to
$(0.66) per share, that was previously provided on August 3,
2015
- Non-GAAP net loss in the range of $(18.7) to $(19.7) million,
or $(0.37) to $(0.39) per share, improved from the guidance range
of $(21.5) to $(23.5) million or $(0.43) to $(0.47) per share, that
was previously provided on August 3, 2015
Conference Call Details
Five9 will discuss its third quarter 2015 results today,
November 3, 2015, via teleconference at 4:30 p.m. Eastern
Time. To access the call (ID 695528), please dial:
877-780-3379 or 719-457-2644. An audio replay of the call will
be available through November 17, 2015 by dialing 888-203-1112 or
719-457-0820 and entering access code 695528. A copy of this
press release will be furnished to the Securities and Exchange
Commission on a Current Report on Form 8-K, and will be posted to
our web site, prior to the conference call.
A webcast of the call will be available on the Investor
Relations section of the Company's website at
http://investors.five9.com/.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), this press release and the accompanying tables contain
certain non-GAAP financial measures. 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
unusual events, as well as factors that do not directly affect what
we consider to be our core operating performance. The
company's management uses these measures to (i) illustrate
underlying trends in the company's business that could otherwise be
masked by the effect of income or expenses that are excluded from
non-GAAP measures, and (ii) establish budgets and operational goals
for managing the company's business and evaluating its
performance. In addition, investors often use similar measures
to evaluate the operating performance of a company. Non-GAAP
financial measures are presented for supplemental informational
purposes only for 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
to the most directly comparable GAAP measure 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, and the fourth quarter 2015 and full year 2015 financial
projections set forth under the caption "Business Outlook," that
are based on our current expectations and involve numerous risks
and uncertainties that may cause these forward-looking statements
to be inaccurate. Risks that may cause these forward-looking
statements to be inaccurate include, among others: (i) our
quarterly and annual results may fluctuate significantly, may not
fully reflect the underlying performance of our business and may
result in decreases in the price of our common stock; (ii) we
may be unable to attract new clients or sell additional services
and functionality to our existing clients or could experience a
reduction in seats or revenues from existing clients; (iii)
our recent rapid growth may not be indicative of our future growth
and we may fail to manage our growth effectively; (iv) the
markets in which we participate are highly competitive and we may
be unable to compete effectively; (v) we may be unable to
manage our technical operations infrastructure, which could cause
our existing clients to experience service outages, cause our new
clients to experience delays in the deployment of our solution and
subject us to, among other things, claims for credits or
damages; (vi) a decline in our dollar-based retention rate
could cause our revenues and gross margins to decrease and our net
loss to increase and we may be required to spend more money to grow
our client base to maintain our revenues; (vii) sales of our
solutions to larger organizations may require longer sales and
implementation cycles and we may be unable to offer the
configuration and integration services or customized features and
functions required by larger organizations, which could delay or
prevent sales of our solution to them; (viii) downturns or
upturns in new sales will not be immediately reflected in our
operating results and may be difficult to discern; (ix)
third-party telecommunications and internet service providers on
which we rely may fail to provide our clients and their customers
with reliable telecommunication services and connectivity to our
cloud contact center software; (x) we may be unable to achieve
or sustain profitability; (xi) we may be unable to secure
additional financing on favorable terms, or at all, to meet our
future capital needs; and (xii) 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 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 reliable, secure, compliant, and scalable cloud
contact center software designed to create exceptional customer
experiences, increase agent productivity and deliver tangible
business results. For more information
visit www.five9.com.
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(Unaudited, in thousands) |
|
|
|
|
September 30,
2015 |
December 31,
2014 |
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 59,501 |
$ 58,289 |
Short-term investments |
— |
20,000 |
Accounts receivable, net |
9,309 |
8,335 |
Prepaid expenses and other current
assets |
2,917 |
1,960 |
Total current assets |
71,727 |
88,584 |
Property and equipment, net |
12,376 |
12,571 |
Intangible assets, net |
2,169 |
2,553 |
Goodwill |
11,798 |
11,798 |
Other assets |
800 |
1,428 |
Total assets |
$ 98,870 |
$ 116,934 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 2,865 |
$ 4,179 |
Accrued and other current
liabilities |
8,053 |
7,318 |
Accrued federal fees |
5,595 |
7,215 |
Sales tax liability |
1,036 |
297 |
Notes payable |
6,045 |
3,146 |
Capital leases |
4,313 |
4,849 |
Deferred revenue |
5,562 |
5,346 |
Total current liabilities |
33,469 |
32,350 |
Revolving line of credit |
12,500 |
12,500 |
Sales tax liability — less current
portion |
1,949 |
2,582 |
Notes payable — less current portion |
19,232 |
22,778 |
Capital leases — less current portion |
4,538 |
4,423 |
Other long-term liabilities |
640 |
548 |
Total liabilities |
72,328 |
75,181 |
Stockholders' equity: |
|
|
Common stock |
51 |
49 |
Additional paid-in capital |
177,393 |
170,286 |
Accumulated deficit |
(150,902) |
(128,582) |
Total stockholders'
equity |
26,542 |
41,753 |
Total liabilities and stockholders'
equity |
$ 98,870 |
$ 116,934 |
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(Unaudited, in thousands,
except per share data) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September 30,
2015 |
September 30,
2014 |
September 30,
2015 |
September 30,
2014 |
|
|
|
|
|
Revenue |
$ 32,287 |
$ 25,869 |
$ 92,835 |
$ 74,828 |
Cost of revenue |
14,812 |
13,504 |
43,860 |
40,121 |
Gross profit |
17,475 |
12,365 |
48,975 |
34,707 |
Operating expenses: |
|
|
|
|
Research and development |
5,473 |
5,503 |
17,079 |
16,282 |
Sales and marketing |
10,797 |
9,296 |
31,322 |
27,992 |
General and administrative |
6,087 |
7,967 |
19,389 |
17,653 |
Total operating expenses |
22,357 |
22,766 |
67,790 |
61,927 |
Loss from operations |
(4,882) |
(10,401) |
(18,815) |
(27,220) |
Other income (expense), net: |
|
|
|
|
Interest expense |
(1,235) |
(1,116) |
(3,529) |
(2,986) |
Interest income and other |
119 |
95 |
72 |
99 |
Change in fair value of convertible
preferred and common stock warrant liabilities |
— |
— |
— |
1,745 |
Total other income (expense), net |
(1,116) |
(1,021) |
(3,457) |
(1,142) |
Loss before provision for income taxes |
(5,998) |
(11,422) |
(22,272) |
(28,362) |
Provision for income taxes |
50 |
13 |
48 |
52 |
Net loss |
$ (6,048) |
$ (11,435) |
$ (22,320) |
$ (28,414) |
Net loss per share: |
|
|
|
|
Basic and diluted |
$ (0.12) |
$ (0.24) |
$ (0.45) |
$ (0.84) |
Shares used in computing net loss per
share: |
|
|
|
|
Basic and diluted |
50,369 |
48,310 |
49,931 |
33,762 |
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited, in thousands) |
|
|
|
|
Nine Months
Ended |
|
September 30,
2015 |
September 30,
2014 |
Cash flows from operating
activities: |
|
|
Net loss |
$ (22,320) |
$ (28,414) |
Adjustments to reconcile net loss to net cash
used in operating activities: |
|
|
Depreciation and amortization |
5,525 |
4,858 |
Provision for doubtful accounts |
157 |
43 |
Stock-based compensation |
6,010 |
4,796 |
Loss on the disposal of property and
equipment |
10 |
1 |
Non-cash interest expense |
260 |
210 |
Changes in fair value of convertible
preferred and common stock warrant liabilities |
— |
(1,745) |
Others |
40 |
(5) |
Changes in operating assets and
liabilities: |
|
|
Accounts receivable |
(1,149) |
(744) |
Prepaid expenses and other current
assets |
(957) |
(981) |
Other assets |
(178) |
(39) |
Accounts payable |
(1,329) |
(1,018) |
Accrued and other current
liabilities |
788 |
2,558 |
Accrued federal fees and sales tax
liability |
161 |
(787) |
Deferred revenue |
192 |
666 |
Other liabilities |
(83) |
(158) |
Net cash used in operating activities |
(12,873) |
(20,759) |
Cash flows from investing
activities: |
|
|
Purchases of property and equipment |
(689) |
(478) |
Decrease (increase) in restricted cash |
806 |
(25) |
Purchase of short-term investments |
(20,000) |
(29,993) |
Proceeds from maturity of short-term
investments |
40,000 |
— |
Net cash provided by (used in) investing
activities |
20,117 |
(30,496) |
Cash flows from financing
activities: |
|
|
Net proceeds from initial public offering,
net of payments for offering costs |
— |
71,459 |
Proceeds from exercise of common stock
options and warrants |
419 |
767 |
Proceeds from sale of common stock under
ESPP |
680 |
— |
Proceeds from notes payable |
— |
19,561 |
Repayments of notes payable |
(2,622) |
(783) |
Payments of capital leases |
(4,509) |
(4,008) |
Net cash provided by (used in) financing
activities |
(6,032) |
86,996 |
Net increase in cash and cash
equivalents |
1,212 |
35,741 |
Cash and cash
equivalents: |
|
|
Beginning of period |
58,289 |
17,748 |
End of period |
$ 59,501 |
$ 53,489 |
|
|
Reconciliation of GAAP
Gross Profit to Adjusted Gross Profit |
(Unaudited, in thousands,
except percentages) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September 30,
2015 |
September 30,
2014 |
September 30,
2015 |
September 30,
2014 |
|
|
|
|
|
GAAP gross profit |
$ 17,475 |
$ 12,365 |
$ 48,975 |
$ 34,707 |
GAAP gross margin |
54.1 % |
47.8 % |
52.8 % |
46.4 % |
Non-GAAP adjustments: |
|
|
|
|
Depreciation |
1,382 |
1,184 |
4,203 |
3,583 |
Intangibles amortization |
88 |
88 |
264 |
264 |
Stock-based compensation |
233 |
158 |
639 |
366 |
Adjusted gross profit |
$ 19,178 |
$ 13,795 |
$ 54,081 |
$ 38,920 |
Adjusted gross margin |
59.4 % |
53.3 % |
58.3 % |
52.0 % |
|
|
|
Reconciliation of GAAP
Net Loss to Adjusted EBITDA |
(Unaudited, in thousands) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September 30,
2015 |
September 30,
2014 |
September 30,
2015 |
September 30,
2014 |
|
|
|
|
|
GAAP net loss |
$ (6,048) |
$ (11,435) |
$ (22,320) |
$ (28,414) |
Non-GAAP adjustments: |
|
|
|
|
Depreciation and amortization |
1,840 |
1,567 |
5,525 |
4,858 |
Stock-based compensation |
1,945 |
1,877 |
6,010 |
4,796 |
Interest expense |
1,235 |
1,116 |
3,529 |
2,986 |
Interest income and other |
(119) |
(95) |
(72) |
(99) |
Provision for income taxes |
50 |
13 |
48 |
52 |
Change in fair value of convertible
preferred and common stock warrant liabilities |
— |
— |
— |
(1,745) |
Reversal of contingent sales tax
liability (G&A) |
— |
— |
— |
(2,766) |
Accrued FCC charge (G&A) |
— |
2,000 |
— |
2,000 |
Out of period adjustment for sales tax
liability (G&A) |
— |
— |
765 |
— |
Adjusted EBITDA |
$ (1,097) |
$ (4,957) |
$ (6,515) |
$ (18,332) |
|
|
Reconciliation of GAAP
Net Loss to Non-GAAP Net Loss |
(Unaudited, in thousands,
except per share data) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September 30,
2015 |
September 30,
2014 |
September 30,
2015 |
September 30,
2014 |
|
|
|
|
|
GAAP net loss |
$ (6,048) |
$ (11,435) |
$ (22,320) |
$ (28,414) |
Non-GAAP adjustments: |
|
|
|
|
Stock-based compensation |
1,945 |
1,877 |
6,010 |
4,796 |
Intangibles amortization |
128 |
128 |
384 |
384 |
Non-cash interest expense |
89 |
81 |
260 |
210 |
Change in fair value of convertible
preferred and common stock warrant liabilities |
— |
— |
— |
(1,745) |
Reversal of contingent sales tax
liability (G&A) |
— |
— |
— |
(2,766) |
Accrued FCC charge (G&A) |
— |
2,000 |
— |
2,000 |
Out of period adjustment for sales tax
liability (G&A) |
— |
— |
765 |
— |
Non-GAAP net loss |
$ (3,886) |
$ (7,349) |
$ (14,901) |
$ (25,535) |
Non-GAAP net loss per share: |
|
|
|
|
Basic and diluted |
$ (0.08) |
$ (0.15) |
$ (0.30) |
$ (0.76) |
|
|
|
|
|
Shares used in computing non-GAAP net loss
per share: |
|
|
|
|
Basic and diluted |
50,369 |
48,310 |
49,931 |
33,762 |
|
|
|
Summary of Stock-Based
Compensation, Depreciation and Intangibles
Amortization |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
Three Months
Ended |
|
September 30,
2015 |
September 30,
2014 |
|
Stock-Based
Compensation |
Depreciation |
Intangibles
Amortization |
Stock-Based
Compensation |
Depreciation |
Intangibles
Amortization |
|
|
|
|
|
|
|
Cost of revenue |
$ 233 |
$ 1,382 |
$ 88 |
$ 158 |
$ 1,184 |
$ 88 |
Research and development |
475 |
126 |
— |
583 |
58 |
— |
Sales and marketing |
448 |
23 |
29 |
361 |
21 |
29 |
General and administrative |
789 |
181 |
11 |
775 |
176 |
11 |
Total |
$ 1,945 |
$ 1,712 |
$ 128 |
$ 1,877 |
$ 1,439 |
$ 128 |
|
|
|
|
|
|
|
|
Nine Months
Ended |
|
September 30,
2015 |
September 30,
2014 |
|
Stock-Based
Compensation |
Depreciation |
Intangibles
Amortization |
Stock-Based
Compensation |
Depreciation |
Intangibles
Amortization |
|
|
|
|
|
|
|
Cost of revenue |
$ 639 |
$ 4,203 |
$ 264 |
$ 366 |
$ 3,583 |
264 |
Research and development |
1,389 |
315 |
— |
1,404 |
154 |
— |
Sales and marketing |
1,430 |
67 |
85 |
1,055 |
61 |
85 |
General and administrative |
2,552 |
556 |
35 |
1,971 |
676 |
35 |
Total |
$ 6,010 |
$ 5,141 |
$ 384 |
$ 4,796 |
$ 4,474 |
$ 384 |
|
|
|
Reconciliation of GAAP
Net Loss to Non-GAAP Net Loss - GUIDANCE |
(Unaudited, in thousands,
except per share data) |
|
|
|
|
|
|
Three Months
Ending |
Year
Ending |
|
December 31,
2015 |
December 31,
2015 |
|
Low |
High |
Low |
High |
|
|
|
|
|
GAAP net loss |
$ (5,975) |
$ (6,975) |
$ (28,295) |
$ (29,295) |
Non-GAAP adjustments: |
|
|
|
|
Stock-based compensation |
1,954 |
1,954 |
7,964 |
7,964 |
Intangibles amortization |
128 |
128 |
512 |
512 |
Non-cash interest expense |
93 |
93 |
353 |
353 |
Out of period adjustment for sales tax
liability (G&A) |
— |
— |
765 |
765 |
Non-GAAP net loss |
$ (3,800) |
$ (4,800) |
$ (18,701) |
$ (19,701) |
|
|
|
|
|
GAAP net loss per share, basic and
diluted |
$ (0.12) |
$ (0.14) |
$ (0.56) |
$ (0.58) |
Non-GAAP net loss per share, basic and
diluted |
$ (0.07) |
$ (0.09) |
$ (0.37) |
$ (0.39) |
|
|
|
|
|
Shares used in computing GAAP and non-GAAP
net loss per share: |
|
|
|
|
Basic and diluted |
50,700 |
50,700 |
50,100 |
50,100 |
CONTACT: Investor Relations Contact:
Barry Zwarenstein
Chief Financial Officer
Five9, Inc.
925-201-2000 ext. 5959
IR@five9.com
Lisa Laukkanen
The Blueshirt Group for Five9, Inc.
415-217-4967
Lisa@blueshirtgroup.com
Five9 (NASDAQ:FIVN)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Five9 (NASDAQ:FIVN)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024