Five9 Reports Record 2016 Revenue of $162.1 Million, Up 26% Year-Over-Year
February 16 2017 - 4:05PM
LTM Enterprise Subscription Revenue Growth of
43%
Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud software for
the enterprise contact center market, today reported results for
the fourth quarter and full year ended December 31, 2016.
Fourth Quarter 2016 Financial Results
- Total revenue for the fourth quarter of 2016 increased 23% to a
record $44.2 million, compared to $36.0 million for the fourth
quarter of 2015.
- GAAP gross margin was 64.3% for the fourth quarter of 2016,
compared to 56.6% for the fourth quarter of 2015. Included in
the GAAP results for the fourth quarter of 2016 was a reversal of
accrued federal fees of $3.1 million following a favorable FCC
ruling. This reversal increased the Company’s GAAP gross
margin by 7.0 percentage points from 57.3% for the quarter.
- Adjusted gross margin was 61.9% for the fourth quarter of 2016,
compared to 61.4% for the fourth quarter of 2015.
- GAAP net income for the fourth quarter of 2016 was $0.4
million, or $0.01 per share, compared to a GAAP net loss of $(3.5)
million, or $(0.07) per share, for the fourth quarter of
2015. Excluding the $3.1 million accrual reversal, GAAP net
loss for 2016 was $(2.7) million, or $(0.05) per share.
- Non-GAAP net income for the fourth quarter of 2016 was $0.1
million, or $0.00 per share, compared to a non-GAAP net loss of
$(1.6) million, or $(0.03) per share, for the fourth quarter of
2015. Fourth quarter of 2016 was the first time the Company
reported positive non-GAAP net income.
- Adjusted EBITDA for the fourth quarter of 2016 was $2.9
million, or 6.6% of revenue, compared to $1.2 million, or 3.5% of
revenue, for the fourth quarter of 2015.
- GAAP operating cash flow for the fourth quarter of 2016 was
$2.8 million, compared to GAAP operating cash outflow of $(0.1)
million for the fourth quarter of 2015.
2016 Financial Results
- Total revenue for 2016 increased 26% to $162.1 million,
compared to $128.9 million in 2015.
- GAAP gross margin was 58.7% for 2016, compared to 53.8% in
2015. Included in the GAAP results for 2016 was a fourth
quarter reversal of accrued federal fees of $3.1 million following
a favorable FCC ruling. This reversal increased the Company’s
GAAP gross margin by 1.9 percentage points from 56.8% for the
year.
- Adjusted gross margin was 61.7% for 2016, compared to 59.1% in
2015.
- GAAP net loss for 2016 was $(11.9) million, or $(0.23) per
share, compared to GAAP net loss of $(25.8) million, or $(0.52) per
share, in 2015. Excluding the $3.1 million reversal, GAAP net
loss for 2016 was $(15.0) million, or $(0.29) per share.
- Non-GAAP net loss for 2016 was $(3.6) million, or $(0.07) per
share, compared to non-GAAP net loss of $(16.5) million, or $(0.33)
per share, in 2015.
- Adjusted EBITDA for 2016 was $8.4 million, or 5.2% of revenue,
compared to a loss of $(5.3) million, or (4.1)% of revenue, in
2015.
- GAAP operating cash flow for 2016 was $6.8 million, compared to
a GAAP operating cash outflow of $(12.9) million in 2015.
“Our strong fourth quarter results capped off a record year for
Five9. For the year, we grew revenue by 26% to a record
$162.1 million. This revenue growth was driven by our faster
growing Enterprise business, which delivered 43% growth in LTM
Enterprise subscription revenue, and where we saw average deal size
increase to approximately $560,000 in annual revenue. I’m
also very pleased that we set an all-time record for Enterprise
bookings in the fourth quarter and full year. In addition, we
continued to enjoy leverage in our business model as we delivered
strong improvements to our bottom line, including reaching the new
milestone of positive net income in the fourth quarter. We
believe our continued execution combined with our differentiated
cloud contact center software, positions Five9 extremely well in
this large contact center market that is still in the early days of
a massive shift to the cloud.”- Mike Burkland, President and CEO,
Five9
Business Highlights
- All-time record enterprise bookings for the quarter and the
full year
- 2016 average new enterprise deal size of approximately $560,000
in annual revenue, up from an average of $450,000 in 2015
- LTM enterprise subscription revenue grew 43% year-over-year, up
from 38% in the year ago period
- LTM enterprise revenue increased to 69% of total revenue, up
from 65% in the year ago period
- Annual dollar-based retention rate was 100%, up from 96% in the
year ago period
Business Outlook
- For the full year 2017, Five9 expects to
report:-Revenue in the range of $187.0 to $190.0
million-GAAP net loss in the range of $(17.3) to $(20.3) million,
or $(0.32) to $(0.38) per share-Non-GAAP net loss in the range of
$(1.5) to $(4.5) million, or $(0.03) to $(0.08) per share
- For the first quarter of 2017, Five9 expects to
report:-Revenue in the range of $44.0 to $45.0
million-GAAP net loss in the range of $(5.3) to $(6.3) million, or
a loss of $(0.10) to $(0.12) per share-Non-GAAP net loss in the
range of $(1.7) to $(2.7) million, or a loss of $(0.03) to $(0.05)
per share
Conference Call Details
Five9 will discuss its fourth quarter and full year 2016 results
today, February 16, 2017, via teleconference at 4:30 p.m. Eastern
Time. To access the call (ID 3153708), please dial:
888-855-5428 or 719-325-2444. An audio replay of the call
will be available through March 2, 2017 by dialing 888-203-1112 or
719-457-0820 and entering access code 3153708. A copy of this
press release will be furnished to the Securities and Exchange
Commission on a Current Report on Form 8-K, and will be posted to
our web site, prior to the conference call.
A webcast of the call will be available on the Investor
Relations section of the Company’s website at
http://investors.five9.com/.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), this press release and the accompanying tables contain
certain non-GAAP financial measures. We calculate adjusted
gross profit by adding back the following items to gross profit:
depreciation, amortization, stock-based compensation expenses and
reversal of accrued federal fees. We calculate adjusted
EBITDA by adding back the following items to net income (loss):
depreciation, amortization, stock-based compensation expenses,
interest expense, income tax expense, interest income and other,
which consists primarily of interest income and foreign exchange
gains and losses, extinguishment of debt, an immaterial one time
out of period adjustment for sales taxes and reversal of accrued
federal fees. We calculate non-GAAP operating income (loss)
by adding back the following items to operating income (loss):
stock-based compensation expenses, amortization, an immaterial one
time out of period adjustment for sales taxes and reversal of
accrued federal fees. We calculate non-GAAP net income (loss)
as net income (loss) by adding back the following items:
stock-based compensation expenses, amortization, extinguishment of
debt, amortization of debt discount and issuance costs, an
immaterial one time out of period adjustment for sales taxes and
reversal of accrued federal fees. Non-GAAP financial measures do
not have any standardized meaning and are therefore unlikely to be
comparable to similarly titled measures presented by other
companies. Five9 considers these non-GAAP financial
measures to be important because they provide useful measures of
the operating performance of the Company, exclusive of factors that
do not directly affect what we consider to be our core operating
performance, as well as unusual events. The Company’s
management uses these measures to (i) illustrate underlying trends
in the Company’s business that could otherwise be masked by the
effect of income or expenses that are excluded from non-GAAP
measures, and (ii) establish budgets and operational goals for
managing the Company’s business and evaluating its
performance. In addition, investors often use similar
measures to evaluate the operating performance of a company.
Non-GAAP financial measures are presented only as supplemental
information for purposes of understanding the Company's operating
results. The non-GAAP financial measures should not be considered a
substitute for financial information presented in accordance with
GAAP. Please see the reconciliation of non-GAAP financial
measures set forth herein and attached to this release.
Forward Looking Statements
This news release contains certain forward-looking statements,
including the statements in the quote from our Chief Executive
Officer, including statements regarding Five9’s market position and
contact center market trends, increasing demand for Five9’s
solutions, and the first quarter 2017 and full year 2017 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) if
we are unable to attract new clients or sell additional services
and functionality to our existing clients, our revenue and revenue
growth will be harmed; (iii) our recent rapid growth may not
be indicative of our future growth, and if we continue to grow
rapidly, we may fail to manage our growth effectively; (iv) failure
to adequately expand our direct sales force will impede our
growth; (v) if we fail to manage our technical operations
infrastructure, our existing clients may experience service
outages, our new clients may experience delays in the deployment of
our solution and we could be subject to, among other things, claims
for credits or damages; (vi) the markets in which we
participate are highly competitive, and if we do not compete
effectively, our operating results could be harmed; (vii) 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; (viii) 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; (ix) 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; (x)
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 subject us to, among other things,
claims for credits or damages; (xi) we have a history of
losses and we may be unable to achieve or sustain
profitability; (xii) we may not be able to secure additional
financing on favorable terms, or at all, to meet our future capital
needs; and (xiii) the other risks detailed from time-to-time
under the caption “Risk Factors” and elsewhere in our Securities
and Exchange Commission filings and reports, including, but not
limited to, our most recent quarterly report on Form 10-Q. Such
forward looking statements speak only as of the date hereof and
readers should not unduly rely on such statements. We
undertake no obligation to update the information contained in this
press release, including in any forward-looking statements.
About Five9
Five9 is a leading provider of cloud software for the enterprise
contact center market, bringing the power of the cloud to thousands
of customers and facilitating 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 |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
December 31,
2016 |
|
December 31,
2015 |
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
58,122 |
|
|
$ |
58,484 |
|
|
Accounts
receivable, net |
|
|
13,881 |
|
|
|
10,567 |
|
|
Prepaid
expenses and other current assets |
|
|
3,008 |
|
|
|
2,184 |
|
|
Total current
assets |
|
|
75,011 |
|
|
|
71,235 |
|
|
Property and equipment,
net |
|
|
14,688 |
|
|
|
13,225 |
|
|
Intangible assets,
net |
|
|
1,539 |
|
|
|
2,041 |
|
|
Goodwill |
|
|
11,798 |
|
|
|
11,798 |
|
|
Other assets |
|
|
2,203 |
|
|
|
934 |
|
|
Total
assets |
|
$ |
105,239 |
|
|
$ |
99,233 |
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
3,366 |
|
|
$ |
2,569 |
|
|
Accrued
and other current liabilities |
|
|
9,604 |
|
|
|
7,911 |
|
|
Accrued
federal fees |
|
|
2,742 |
|
|
|
5,684 |
|
|
Sales tax
liability |
|
|
1,347 |
|
|
|
1,262 |
|
|
Revolving
line of credit |
|
|
— |
|
|
|
12,500 |
|
|
Notes
payable |
|
|
742 |
|
|
|
7,212 |
|
|
Capital
leases |
|
|
6,230 |
|
|
|
4,972 |
|
|
Deferred
revenue |
|
|
10,047 |
|
|
|
6,413 |
|
|
Total current
liabilities |
|
|
34,078 |
|
|
|
48,523 |
|
|
Revolving line of
credit — less current portion |
|
|
32,594 |
|
|
|
— |
|
|
Sales tax liability —
less current portion |
|
|
1,476 |
|
|
|
1,915 |
|
|
Notes payable — less
current portion |
|
|
318 |
|
|
|
17,327 |
|
|
Capital leases — less
current portion |
|
|
5,915 |
|
|
|
4,606 |
|
|
Other long-term
liabilities |
|
|
530 |
|
|
|
582 |
|
|
Total
liabilities |
|
|
74,911 |
|
|
|
72,953 |
|
|
Stockholders’
equity: |
|
|
|
|
|
Common stock |
|
|
53 |
|
|
|
51 |
|
|
Additional paid-in
capital |
|
|
196,555 |
|
|
|
180,649 |
|
|
Accumulated
deficit |
|
|
(166,280 |
) |
|
|
(154,420 |
) |
|
Total
stockholders’ equity |
|
|
30,328 |
|
|
|
26,280 |
|
|
Total
liabilities and stockholders’ equity |
|
$ |
105,239 |
|
|
$ |
99,233 |
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 31,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
Revenue |
|
$ |
44,207 |
|
|
$ |
36,033 |
|
|
$ |
162,090 |
|
|
$ |
128,868 |
|
|
Cost of revenue |
|
|
15,770 |
|
|
|
15,635 |
|
|
|
66,934 |
|
|
|
59,495 |
|
|
Gross profit |
|
|
28,437 |
|
|
|
20,398 |
|
|
|
95,156 |
|
|
|
69,373 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
6,236 |
|
|
|
5,580 |
|
|
|
23,878 |
|
|
|
22,659 |
|
|
Sales and
marketing |
|
|
14,480 |
|
|
|
10,720 |
|
|
|
52,748 |
|
|
|
42,042 |
|
|
General
and administrative |
|
|
6,511 |
|
|
|
6,433 |
|
|
|
25,072 |
|
|
|
25,822 |
|
|
Total operating
expenses |
|
|
27,227 |
|
|
|
22,733 |
|
|
|
101,698 |
|
|
|
90,523 |
|
|
Income (loss) from
operations |
|
|
1,210 |
|
|
|
(2,335 |
) |
|
|
(6,542 |
) |
|
|
(21,150 |
) |
|
Other income (expense),
net: |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(869 |
) |
|
|
(1,198 |
) |
|
|
(4,226 |
) |
|
|
(4,727 |
) |
|
Extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(1,026 |
) |
|
|
— |
|
|
Interest
income and other |
|
|
54 |
|
|
|
28 |
|
|
|
(12 |
) |
|
|
100 |
|
|
Total other income
(expense), net |
|
|
(815 |
) |
|
|
(1,170 |
) |
|
|
(5,264 |
) |
|
|
(4,627 |
) |
|
Income (loss) before
income taxes |
|
|
395 |
|
|
|
(3,505 |
) |
|
|
(11,806 |
) |
|
|
(25,777 |
) |
|
Provision for (benefit
from) income taxes |
|
|
(14 |
) |
|
|
13 |
|
|
|
54 |
|
|
|
61 |
|
|
Net income (loss) |
|
$ |
409 |
|
|
$ |
(3,518 |
) |
|
$ |
(11,860 |
) |
|
$ |
(25,838 |
) |
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.52 |
) |
|
Diluted |
|
$ |
0.01 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.52 |
) |
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income (loss) per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
53,126 |
|
|
|
50,764 |
|
|
|
52,342 |
|
|
|
50,141 |
|
|
Diluted |
|
|
56,633 |
|
|
|
50,764 |
|
|
|
52,342 |
|
|
|
50,141 |
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
December 31,
2016 |
|
December 31,
2015 |
|
|
|
(Unaudited) |
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
Net loss |
|
$ |
(11,860 |
) |
|
$ |
(25,838 |
) |
|
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
8,390 |
|
|
|
7,388 |
|
|
Provision
for doubtful accounts |
|
|
75 |
|
|
|
171 |
|
|
Stock-based compensation |
|
|
9,643 |
|
|
|
7,730 |
|
|
Loss on
disposal of property and equipment |
|
|
1 |
|
|
|
10 |
|
|
Amortization of debt discount and issuance costs |
|
|
241 |
|
|
|
350 |
|
|
Loss on
extinguishment of debt |
|
|
1,026 |
|
|
|
— |
|
|
Reversal
of accrued federal fees |
|
|
(3,114 |
) |
|
|
— |
|
|
Accretion
of interest |
|
|
20 |
|
|
|
— |
|
|
Others |
|
|
(11 |
) |
|
|
36 |
|
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
Accounts
receivable |
|
|
(3,389 |
) |
|
|
(2,410 |
) |
|
Prepaid
expenses and other current assets |
|
|
(859 |
) |
|
|
(224 |
) |
|
Other
assets |
|
|
203 |
|
|
|
(312 |
) |
|
Accounts
payable |
|
|
811 |
|
|
|
(1,610 |
) |
|
Accrued
and other current liabilities |
|
|
2,262 |
|
|
|
426 |
|
|
Accrued
federal fees and sales tax liability |
|
|
(182 |
) |
|
|
441 |
|
|
Deferred
revenue |
|
|
3,680 |
|
|
|
1,038 |
|
|
Other
liabilities |
|
|
(99 |
) |
|
|
(135 |
) |
|
Net cash used in
operating activities |
|
|
6,838 |
|
|
|
(12,939 |
) |
|
Cash flows from
investing activities: |
|
|
|
|
|
Purchases of property
and equipment |
|
|
(1,131 |
) |
|
|
(1,116 |
) |
|
Purchases of
privately-held company securities |
|
|
(1,206 |
) |
|
|
— |
|
|
Decrease (increase) in
restricted cash |
|
|
(60 |
) |
|
|
806 |
|
|
Purchase of short-term
investments |
|
|
— |
|
|
|
(20,000 |
) |
|
Proceeds from maturity
of short-term investments |
|
|
— |
|
|
|
40,000 |
|
|
Net cash provided by
(used in) investing activities |
|
|
(2,397 |
) |
|
|
19,690 |
|
|
Cash flows from
financing activities: |
|
|
|
|
|
Proceeds from exercise
of common stock options and warrants |
|
|
4,286 |
|
|
|
1,266 |
|
|
Proceeds from sale of
common stock under ESPP |
|
|
1,979 |
|
|
|
1,369 |
|
|
Repayments of notes
payable |
|
|
(24,351 |
) |
|
|
(3,447 |
) |
|
Payments of capital
leases |
|
|
(6,237 |
) |
|
|
(5,744 |
) |
|
Payment of prepayment
penalty and related fees |
|
|
(368 |
) |
|
|
— |
|
|
Payments for debt
issuance costs |
|
|
(206 |
) |
|
|
— |
|
|
Proceeds from revolving
line of credit |
|
|
32,594 |
|
|
|
— |
|
|
Repayments on revolving
line of credit |
|
|
(12,500 |
) |
|
|
— |
|
|
Net cash provided by
(used in) financing activities |
|
|
(4,803 |
) |
|
|
(6,556 |
) |
|
Net increase in cash
and cash equivalents |
|
|
(362 |
) |
|
|
195 |
|
|
Cash and cash
equivalents: |
|
|
|
|
|
Beginning
of period |
|
|
58,484 |
|
|
|
58,289 |
|
|
End of
period |
|
$ |
58,122 |
|
|
$ |
58,484 |
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP GROSS PROFIT TO
ADJUSTED GROSS PROFIT |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
|
|
|
|
|
|
|
|
|
GAAP
gross profit |
|
$ |
28,437 |
|
|
$ |
20,398 |
|
|
$ |
95,156 |
|
|
$ |
69,373 |
|
GAAP
gross margin |
|
|
64.3 |
% |
|
|
56.6 |
% |
|
|
58.7 |
% |
|
|
53.8 |
% |
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
1,521 |
|
|
|
1,396 |
|
|
|
6,221 |
|
|
|
5,599 |
|
Intangibles amortization |
|
|
87 |
|
|
|
87 |
|
|
|
352 |
|
|
|
351 |
|
Stock-based compensation |
|
|
424 |
|
|
|
227 |
|
|
|
1,375 |
|
|
|
866 |
|
Reversal
of accrued federal fees |
|
$ |
(3,114 |
) |
|
$ |
— |
|
|
$ |
(3,114 |
) |
|
$ |
— |
|
Adjusted
gross profit |
|
$ |
27,355 |
|
|
$ |
22,108 |
|
|
$ |
99,990 |
|
|
$ |
76,189 |
|
Adjusted
gross margin |
|
|
61.9 |
% |
|
|
61.4 |
% |
|
|
61.7 |
% |
|
|
59.1 |
% |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO
ADJUSTED EBITDA |
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 31,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) |
|
$ |
409 |
|
|
$ |
(3,518 |
) |
|
$ |
(11,860 |
) |
|
$ |
(25,838 |
) |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,086 |
|
|
|
1,863 |
|
|
|
8,390 |
|
|
|
7,388 |
|
|
Stock-based compensation |
|
|
2,716 |
|
|
|
1,720 |
|
|
|
9,643 |
|
|
|
7,730 |
|
|
Interest
expense |
|
|
869 |
|
|
|
1,198 |
|
|
|
4,226 |
|
|
|
4,727 |
|
|
Extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
1,026 |
|
|
|
— |
|
|
Interest
income and other |
|
|
(54 |
) |
|
|
(28 |
) |
|
|
13 |
|
|
|
(100 |
) |
|
Provision
for (benefit from) income taxes |
|
|
(14 |
) |
|
|
13 |
|
|
|
54 |
|
|
|
61 |
|
|
Reversal
of accrued federal fees (COR) |
|
|
(3,114 |
) |
|
|
— |
|
|
|
(3,114 |
) |
|
|
— |
|
|
Out of
period adjustment for sales tax liability (G&A) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
765 |
|
|
Adjusted
EBITDA |
|
$ |
2,898 |
|
|
$ |
1,248 |
|
|
$ |
8,378 |
|
|
$ |
(5,267 |
) |
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP OPERATING INCOME (LOSS)
TO NON-GAAP OPERATING INCOME (LOSS) |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
GAAP
operating income (loss) |
|
$ |
1,210 |
|
|
$ |
(2,335 |
) |
|
$ |
(6,542 |
) |
|
$ |
(21,150 |
) |
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
2,716 |
|
|
|
1,720 |
|
|
|
9,643 |
|
|
|
7,730 |
|
Intangibles amortization |
|
|
117 |
|
|
|
128 |
|
|
|
503 |
|
|
|
512 |
|
Out of
period adjustment for sales tax liability (G&A) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
765 |
|
Reversal
of accrued federal fees (COR) |
|
$ |
(3,114 |
) |
|
$ |
— |
|
|
$ |
(3,114 |
) |
|
$ |
— |
|
Non-GAAP
operating income (loss) |
|
$ |
929 |
|
|
$ |
(487 |
) |
|
$ |
490 |
|
|
$ |
(12,143 |
) |
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO
NON-GAAP NET INCOME (LOSS) |
(Unaudited, in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) |
|
$ |
409 |
|
|
$ |
(3,518 |
) |
|
$ |
(11,860 |
) |
|
$ |
(25,838 |
) |
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
2,716 |
|
|
|
1,720 |
|
|
|
9,643 |
|
|
|
7,730 |
|
Intangibles amortization |
|
|
117 |
|
|
|
128 |
|
|
|
503 |
|
|
|
512 |
|
Amortization of debt discount and issuance costs |
|
|
20 |
|
|
|
90 |
|
|
|
241 |
|
|
|
350 |
|
Extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
1,026 |
|
|
|
— |
|
Reversal
of accrued federal fees (COR) |
|
|
(3,114 |
) |
|
|
— |
|
|
|
(3,114 |
) |
|
|
— |
|
Out of
period adjustment for sales tax liability (G&A) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
765 |
|
Non-GAAP
net income (loss) |
|
$ |
148 |
|
|
$ |
(1,580 |
) |
|
$ |
(3,561 |
) |
|
$ |
(16,481 |
) |
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.52 |
) |
Diluted |
|
$ |
0.01 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.52 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP
net income (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.00 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.33 |
) |
Diluted |
|
$ |
0.00 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.33 |
) |
|
|
|
|
|
|
|
|
|
Shares
used in computing non-GAAP net income (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
53,126 |
|
|
|
50,764 |
|
|
|
52,342 |
|
|
|
50,141 |
|
Diluted |
|
|
56,633 |
|
|
|
50,764 |
|
|
|
52,342 |
|
|
|
50,141 |
|
|
|
|
|
|
|
|
|
|
SUMMARY OF STOCK-BASED COMPENSATION,
DEPRECIATION AND INTANGIBLES AMORTIZATION |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, 2016 |
|
December 31, 2015 |
|
|
Stock-Based Compensation |
|
Depreciation |
|
Intangibles
Amortization |
|
Stock-Based Compensation |
|
Depreciation |
|
Intangibles Amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
424 |
|
$ |
1,521 |
|
$ |
87 |
|
$ |
227 |
|
$ |
1,396 |
|
$ |
87 |
Research
and development |
|
|
549 |
|
|
224 |
|
|
— |
|
|
401 |
|
|
140 |
|
|
— |
Sales
and marketing |
|
|
759 |
|
|
29 |
|
|
29 |
|
|
370 |
|
|
25 |
|
|
29 |
General
and administrative |
|
|
984 |
|
|
195 |
|
|
1 |
|
|
722 |
|
|
174 |
|
|
12 |
Total |
|
$ |
2,716 |
|
$ |
1,969 |
|
$ |
117 |
|
$ |
1,720 |
|
$ |
1,735 |
|
$ |
128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
December 31, 2016 |
|
December 31, 2015 |
|
|
Stock-Based Compensation |
|
Depreciation |
|
Intangibles
Amortization |
|
Stock-Based Compensation |
|
Depreciation |
|
Intangibles Amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
1,375 |
|
$ |
6,221 |
|
$ |
352 |
|
$ |
866 |
|
$ |
5,599 |
|
$ |
351 |
Research
and development |
|
|
2,059 |
|
|
737 |
|
|
— |
|
|
1,790 |
|
|
455 |
|
|
— |
Sales
and marketing |
|
|
2,363 |
|
|
107 |
|
|
114 |
|
|
1,800 |
|
|
92 |
|
|
114 |
General
and administrative |
|
|
3,846 |
|
|
822 |
|
|
37 |
|
|
3,274 |
|
|
730 |
|
|
47 |
Total |
|
$ |
9,643 |
|
$ |
7,887 |
|
$ |
503 |
|
$ |
7,730 |
|
$ |
6,876 |
|
$ |
512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP
NET LOSS – GUIDANCE |
(Unaudited, in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ending |
|
Year Ending |
|
|
March 31, 2017 |
|
December 31, 2017 |
|
|
Low |
|
High |
|
Low |
|
High |
|
|
|
|
|
|
|
|
|
GAAP net
loss |
|
$ |
(5,250 |
) |
|
$ |
(6,250 |
) |
|
$ |
(17,332 |
) |
|
$ |
(20,332 |
) |
Non-GAAP
adjustments: |
|
|
Stock-based compensation |
|
|
3,414 |
|
|
|
3,414 |
|
|
|
15,286 |
|
|
|
15,286 |
|
Intangibles amortization |
|
|
116 |
|
|
|
116 |
|
|
|
465 |
|
|
|
465 |
|
Amortization of debt issuance costs |
|
|
20 |
|
|
|
20 |
|
|
|
81 |
|
|
|
81 |
|
Non-GAAP
net loss |
|
$ |
(1,700 |
) |
|
$ |
(2,700 |
) |
|
$ |
(1,500 |
) |
|
$ |
(4,500 |
) |
|
|
|
|
|
|
|
|
|
GAAP net
loss per share, basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.38 |
) |
Non-GAAP
net loss per share, basic and diluted |
|
$ |
(0.03 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
Shares
used in computing GAAP and non-GAAP net loss per share: |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
|
53,500 |
|
|
|
53,500 |
|
|
|
53,800 |
|
|
|
53,800 |
|
Investor Relations Contact:
Five9, Inc.
Barry Zwarenstein
Chief Financial Officer
925-201-2000 ext. 5959
IR@five9.com
The Blueshirt Group for Five9, Inc.
Lisa Laukkanen
415-217-4967
Lisa@blueshirtgroup.com
Tony Righetti
415-489-2186
Tony@blueshirtgroup.com
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