Five9 Reports Record Revenue of $283 Million for the Second Quarter
Q2 Enterprise AI Revenue Growth Accelerated to 42%
Q2 Record Operating Cash Flow of
Announces Appointment of
Second Quarter 2025 Financial Results
-
Revenue for the second quarter of 2025 increased 12% to a record
$283.3 million , compared to$252.1 million for the second quarter of 2024. - GAAP gross margin was 54.9% for the second quarter of 2025, compared to 53.0% for the second quarter of 2024.
- Adjusted gross margin was 63.0% for the second quarter of 2025, compared to 60.5% for the second quarter of 2024.
-
GAAP net income for the second quarter of 2025 was
$1.2 million , or$0.01 per diluted share, and 0.4% of revenue, compared to GAAP net loss of$(12.8) million , or$(0.17) per basic share, and (5.1)% of revenue, for the second quarter of 2024. -
Non-GAAP net income for the second quarter of 2025 was
$58.3 million , or$0.76 per diluted share, and 20.6% of revenue, compared to non-GAAP net income of$38.9 million , or$0.52 per diluted share, and 15.4% of revenue, for the second quarter of 2024. -
Adjusted EBITDA for the second quarter of 2025 was
$67.9 million , or 24.0% of revenue, compared to$41.8 million , or 16.6% of revenue, for the second quarter of 2024. -
GAAP operating cash flow for the second quarter of 2025 was
$35.1 million , compared to GAAP operating cash flow of$19.9 million for the second quarter of 2024.
“We are pleased to report strong second quarter results which exceeded our expectations across all key metrics. Subscription revenue accelerated to 16% year-over-year growth, primarily driven by Enterprise AI revenue accelerating to 42% year-over-year growth and now representing 10% of Enterprise subscription revenue. Adjusted EBITDA margin increased to 24%, reaching an all-time record and helping drive a Q2 record for both operating and free cash flow. As we drive balanced, profitable growth, we are also seeing strong momentum in our sales execution with Enterprise AI bookings more than tripling year-over-year in the second quarter. Our customers are realizing meaningful benefits through our Genius AI suite of products as we continue to drive innovation with the recent launch of
-
Business Outlook
-
For the full year 2025,
Five9 expects to report:-
Revenue in the range of
$1.1435 to$1.1495 billion . -
GAAP net income per share in the range of
$0.23 to$0.30 , assuming diluted shares outstanding of approximately 88.5 million. -
Non-GAAP net income per share in the range of
$2.86 to$2.90 , assuming diluted shares outstanding of approximately 77.7 million.
-
Revenue in the range of
-
For the third quarter of 2025,
Five9 expects to report:-
Revenue in the range of
$283.0 to$286.0 million . -
GAAP net income per share in the range of
$0.06 to$0.12 , assuming diluted shares outstanding of approximately 87.5 million. -
Non-GAAP net income per share in the range of
$0.72 to$0.74 , assuming diluted shares outstanding of approximately 78.1 million.
-
Revenue in the range of
With respect to Five9’s guidance as provided above, please refer to the “Reconciliation of GAAP Net Income to Non-GAAP net income - Guidance” table for more details, including important assumptions upon which such guidance is based.
Chief Financial Officer Appointment
“Bryan has been an instrumental member of the finance team since joining
“I am thrilled to take on this role and would like to thank Mike and our Board of Directors for this opportunity,” said Lee. “Five9 is uniquely positioned to capitalize on a massive market opportunity ahead, and I am excited to continue working with the team to drive the company's next chapter of success.”
Prior to becoming Five9’s interim CFO in
As CFO, Lee will lead Five9’s global financial operations, including financial planning and analysis, accounting, procurement, treasury, and investor relations.
Conference Call Details
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
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
About
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.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
||||||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
205,479 |
|
|
$ |
362,546 |
|
Marketable investments |
|
|
430,397 |
|
|
|
643,410 |
|
Accounts receivable, net |
|
|
127,835 |
|
|
|
115,172 |
|
Prepaid expenses and other current assets |
|
|
47,986 |
|
|
|
50,840 |
|
Deferred contract acquisition costs, net |
|
|
82,497 |
|
|
|
76,600 |
|
Total current assets |
|
|
894,194 |
|
|
|
1,248,568 |
|
Property and equipment, net |
|
|
154,499 |
|
|
|
144,888 |
|
Operating lease right-of-use assets |
|
|
37,433 |
|
|
|
38,880 |
|
Finance lease right-of-use assets |
|
|
18,803 |
|
|
|
19,269 |
|
Intangible assets, net |
|
|
58,068 |
|
|
|
65,632 |
|
|
|
|
366,698 |
|
|
|
365,436 |
|
Other assets |
|
|
11,252 |
|
|
|
13,384 |
|
Deferred contract acquisition costs, net — less current portion |
|
|
163,913 |
|
|
|
155,157 |
|
Total assets |
|
$ |
1,704,860 |
|
|
$ |
2,051,214 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
31,063 |
|
|
$ |
26,282 |
|
Accrued and other current liabilities |
|
|
81,870 |
|
|
|
83,720 |
|
Operating lease liabilities |
|
|
11,473 |
|
|
|
11,258 |
|
Finance lease liabilities |
|
|
9,174 |
|
|
|
7,768 |
|
Deferred revenue |
|
|
68,009 |
|
|
|
79,173 |
|
Convertible senior notes |
|
|
— |
|
|
|
433,490 |
|
Total current liabilities |
|
|
201,589 |
|
|
|
641,691 |
|
Convertible senior notes — less current portion |
|
|
733,620 |
|
|
|
731,855 |
|
Operating lease liabilities — less current portion |
|
|
35,225 |
|
|
|
37,071 |
|
Finance lease liabilities — less current portion |
|
|
10,012 |
|
|
|
11,688 |
|
Other long-term liabilities |
|
|
7,037 |
|
|
|
6,717 |
|
Total liabilities |
|
|
987,483 |
|
|
|
1,429,022 |
|
Stockholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
77 |
|
|
|
76 |
|
Additional paid-in capital |
|
|
1,133,107 |
|
|
|
1,039,125 |
|
Accumulated other comprehensive income |
|
|
108 |
|
|
|
636 |
|
Accumulated deficit |
|
|
(415,915 |
) |
|
|
(417,645 |
) |
Total stockholders’ equity |
|
|
717,377 |
|
|
|
622,192 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,704,860 |
|
|
$ |
2,051,214 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
283,269 |
|
|
$ |
252,086 |
|
|
$ |
562,974 |
|
|
$ |
499,096 |
|
Cost of revenue |
|
|
127,865 |
|
|
|
118,414 |
|
|
|
253,838 |
|
|
|
232,944 |
|
Gross profit |
|
|
155,404 |
|
|
|
133,672 |
|
|
|
309,136 |
|
|
|
266,152 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
39,912 |
|
|
|
40,717 |
|
|
|
81,012 |
|
|
|
82,235 |
|
Sales and marketing |
|
|
80,668 |
|
|
|
78,332 |
|
|
|
163,523 |
|
|
|
159,441 |
|
General and administrative |
|
|
36,385 |
|
|
|
33,988 |
|
|
|
71,590 |
|
|
|
64,536 |
|
Total operating expenses |
|
|
156,965 |
|
|
|
153,037 |
|
|
|
316,125 |
|
|
|
306,212 |
|
Loss from operations |
|
|
(1,561 |
) |
|
|
(19,365 |
) |
|
|
(6,989 |
) |
|
|
(40,060 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
(3,820 |
) |
|
|
(3,906 |
) |
|
|
(7,935 |
) |
|
|
(6,473 |
) |
Gain on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,615 |
|
Interest income and other |
|
|
7,917 |
|
|
|
13,800 |
|
|
|
18,220 |
|
|
|
24,359 |
|
Total other income (expense), net |
|
|
4,097 |
|
|
|
9,894 |
|
|
|
10,285 |
|
|
|
24,501 |
|
Income (loss) before income taxes |
|
|
2,536 |
|
|
|
(9,471 |
) |
|
|
3,296 |
|
|
|
(15,559 |
) |
Provision for income taxes |
|
|
1,382 |
|
|
|
3,345 |
|
|
|
1,566 |
|
|
|
4,334 |
|
Net income (loss) |
|
$ |
1,154 |
|
|
$ |
(12,816 |
) |
|
$ |
1,730 |
|
|
$ |
(19,893 |
) |
Net income (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.02 |
|
|
$ |
(0.17 |
) |
|
$ |
0.02 |
|
|
$ |
(0.27 |
) |
Diluted |
|
$ |
0.01 |
|
|
$ |
(0.17 |
) |
|
$ |
0.02 |
|
|
$ |
(0.27 |
) |
Shares used in computing net income (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
76,654 |
|
|
|
74,203 |
|
|
|
76,303 |
|
|
|
73,845 |
|
Diluted |
|
|
88,523 |
|
|
|
74,203 |
|
|
|
88,964 |
|
|
|
73,845 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
|
Six Months Ended |
||||||
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
1,730 |
|
|
$ |
(19,893 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
29,139 |
|
|
|
25,121 |
|
Reduction in the carrying amount of right-of-use assets |
|
|
10,080 |
|
|
|
6,312 |
|
Amortization of deferred contract acquisition costs |
|
|
41,528 |
|
|
|
33,825 |
|
Accretion of discount on marketable investments |
|
|
(5,325 |
) |
|
|
(11,217 |
) |
Provision for credit losses |
|
|
945 |
|
|
|
677 |
|
Stock-based compensation |
|
|
81,104 |
|
|
|
88,316 |
|
Amortization of discount and issuance costs on convertible senior notes |
|
|
2,680 |
|
|
|
2,509 |
|
Gain on early extinguishment of debt |
|
|
— |
|
|
|
(6,615 |
) |
Impairment charge of long-lived assets |
|
|
835 |
|
|
|
— |
|
Interest on finance lease obligations |
|
|
548 |
|
|
|
126 |
|
Deferred taxes |
|
|
33 |
|
|
|
356 |
|
Other |
|
|
(201 |
) |
|
|
(190 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(13,608 |
) |
|
|
(7,635 |
) |
Prepaid expenses and other current assets |
|
|
2,854 |
|
|
|
(7,137 |
) |
Deferred contract acquisition costs |
|
|
(56,181 |
) |
|
|
(53,032 |
) |
Other assets |
|
|
2,552 |
|
|
|
(1,868 |
) |
Accounts payable |
|
|
3,853 |
|
|
|
3,931 |
|
Accrued and other current liabilities |
|
|
(8,096 |
) |
|
|
3,934 |
|
Deferred revenue |
|
|
(11,522 |
) |
|
|
(3,484 |
) |
Other liabilities |
|
|
497 |
|
|
|
(1,805 |
) |
Net cash provided by operating activities |
|
|
83,445 |
|
|
|
52,231 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of marketable investments |
|
|
(315,146 |
) |
|
|
(816,492 |
) |
Proceeds from sales of marketable investments |
|
|
90,502 |
|
|
|
12,517 |
|
Proceeds from maturities of marketable investments |
|
|
442,655 |
|
|
|
470,755 |
|
Purchases of property and equipment |
|
|
(8,218 |
) |
|
|
(18,722 |
) |
Capitalization of software development costs |
|
|
(18,730 |
) |
|
|
(8,260 |
) |
Cash settlement for acquisition of businesses |
|
|
— |
|
|
|
99 |
|
Net cash used in (provided by) investing activities |
|
|
191,063 |
|
|
|
(360,103 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from issuance of 2029 convertible senior notes, net of issuance costs |
|
|
— |
|
|
|
731,055 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(2,212 |
) |
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 |
|
|
(434,405 |
) |
|
|
— |
|
Cash received from partial termination of capped calls associated with the 2025 convertible senior notes |
|
|
— |
|
|
|
539 |
|
Proceeds from exercise of common stock options |
|
|
30 |
|
|
|
397 |
|
Proceeds from sale of common stock under ESPP |
|
|
7,921 |
|
|
|
9,522 |
|
Payment of finance lease liabilities |
|
|
(4,671 |
) |
|
|
(966 |
) |
Net cash (used in) provided by financing activities |
|
|
(431,125 |
) |
|
|
340,412 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(156,617 |
) |
|
|
32,540 |
|
Cash, cash equivalents and restricted cash: |
|
|
|
|
||||
Beginning of period |
|
|
364,185 |
|
|
|
144,842 |
|
End of period |
|
$ |
207,568 |
|
|
$ |
177,382 |
|
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT (In thousands, except percentages) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
|
$ |
155,404 |
|
|
$ |
133,672 |
|
|
$ |
309,136 |
|
|
$ |
266,152 |
|
GAAP gross margin |
|
|
54.9 |
% |
|
|
53.0 |
% |
|
|
54.9 |
% |
|
|
53.3 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Depreciation |
|
|
8,697 |
|
|
|
7,773 |
|
|
|
16,480 |
|
|
|
14,738 |
|
Intangibles amortization |
|
|
3,464 |
|
|
|
2,648 |
|
|
|
7,564 |
|
|
|
5,296 |
|
Stock-based compensation |
|
|
7,296 |
|
|
|
7,789 |
|
|
|
14,480 |
|
|
|
15,392 |
|
Acquisition and related transaction costs and one-time integration costs |
|
|
— |
|
|
|
72 |
|
|
|
— |
|
|
|
125 |
|
Lease amortization for finance leases |
|
|
2,119 |
|
|
|
455 |
|
|
|
3,935 |
|
|
|
912 |
|
Costs related to a reduction in force plan |
|
|
1,565 |
|
|
|
— |
|
|
|
1,565 |
|
|
|
— |
|
Adjusted gross profit |
|
$ |
178,545 |
|
|
$ |
152,409 |
|
|
$ |
353,160 |
|
|
$ |
302,615 |
|
Adjusted gross margin |
|
|
63.0 |
% |
|
|
60.5 |
% |
|
|
62.7 |
% |
|
|
60.6 |
% |
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA (In thousands, except percentages) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income (loss) |
|
$ |
1,154 |
|
|
$ |
(12,816 |
) |
|
$ |
1,730 |
|
|
$ |
(19,893 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
14,649 |
|
|
|
12,938 |
|
|
|
29,139 |
|
|
|
25,121 |
|
Stock-based compensation |
|
|
41,859 |
|
|
|
43,632 |
|
|
|
81,104 |
|
|
|
88,316 |
|
Interest expense |
|
|
3,820 |
|
|
|
3,906 |
|
|
|
7,935 |
|
|
|
6,473 |
|
Gain on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,615 |
) |
Interest income and other |
|
|
(7,917 |
) |
|
|
(13,800 |
) |
|
|
(18,220 |
) |
|
|
(24,359 |
) |
Exit costs related to closure and relocation of Russian operations |
|
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
57 |
|
Acquisition and related transaction costs and one-time integration costs |
|
|
1,489 |
|
|
|
4,089 |
|
|
|
2,470 |
|
|
|
5,020 |
|
Lease amortization for finance leases |
|
|
2,311 |
|
|
|
455 |
|
|
|
4,319 |
|
|
|
912 |
|
Costs related to a reduction in force plan |
|
|
7,766 |
|
|
|
— |
|
|
|
7,766 |
|
|
|
— |
|
One-time expenses related to strategic consulting services for operational review |
|
|
— |
|
|
|
— |
|
|
|
1,265 |
|
|
|
— |
|
Other cost-reduction and productivity initiatives |
|
|
974 |
|
|
|
— |
|
|
|
974 |
|
|
|
— |
|
Legal fees related to the securities class action |
|
|
368 |
|
|
|
— |
|
|
|
509 |
|
|
|
— |
|
Office closure lease termination costs |
|
|
95 |
|
|
|
— |
|
|
|
95 |
|
|
|
— |
|
Provision for income taxes(1) |
|
|
1,382 |
|
|
|
3,345 |
|
|
|
1,566 |
|
|
|
4,334 |
|
Adjusted EBITDA |
|
$ |
67,950 |
|
|
$ |
41,781 |
|
|
$ |
120,652 |
|
|
$ |
79,366 |
|
Adjusted EBITDA as % of revenue |
|
|
24.0 |
% |
|
|
16.6 |
% |
|
|
21.4 |
% |
|
|
15.9 |
% |
(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 our domestic valuation allowance position. |
RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP OPERATING INCOME (In thousands) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Loss from operations |
|
$ |
(1,561 |
) |
|
$ |
(19,365 |
) |
|
$ |
(6,989 |
) |
|
$ |
(40,060 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
|
41,859 |
|
|
|
43,632 |
|
|
|
81,104 |
|
|
|
88,316 |
|
Intangibles amortization |
|
|
3,464 |
|
|
|
2,648 |
|
|
|
7,564 |
|
|
|
5,296 |
|
Exit costs related to closure and relocation of Russian operations |
|
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
57 |
|
Acquisition and related transaction costs and one-time integration costs |
|
|
1,489 |
|
|
|
4,089 |
|
|
|
2,470 |
|
|
|
5,020 |
|
Costs related to a reduction in force plan |
|
|
7,766 |
|
|
|
— |
|
|
|
7,766 |
|
|
|
— |
|
One-time expenses related to strategic consulting services for operational review |
|
|
— |
|
|
|
— |
|
|
|
1,265 |
|
|
|
— |
|
Other cost-reduction and productivity initiatives |
|
|
974 |
|
|
|
— |
|
|
|
974 |
|
|
|
— |
|
Legal fees related to the securities class action |
|
|
368 |
|
|
|
— |
|
|
|
509 |
|
|
|
— |
|
Office closure lease termination costs |
|
|
95 |
|
|
|
— |
|
|
|
95 |
|
|
|
— |
|
Non-GAAP operating income |
|
$ |
54,454 |
|
|
$ |
31,036 |
|
|
$ |
94,758 |
|
|
$ |
58,629 |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (In thousands, except per share data) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income (loss) |
|
$ |
1,154 |
|
|
$ |
(12,816 |
) |
|
$ |
1,730 |
|
|
$ |
(19,893 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
|
41,859 |
|
|
|
43,632 |
|
|
|
81,104 |
|
|
|
88,316 |
|
Intangibles amortization |
|
|
3,464 |
|
|
|
2,648 |
|
|
|
7,564 |
|
|
|
5,296 |
|
Amortization of discount and issuance costs on convertible senior notes |
|
|
1,273 |
|
|
|
1,435 |
|
|
|
2,680 |
|
|
|
2,509 |
|
Gain on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,615 |
) |
Exit costs related to closure and relocation of Russian operations |
|
|
(169 |
) |
|
|
(114 |
) |
|
|
(545 |
) |
|
|
(20 |
) |
Acquisition and related transaction costs and one-time integration costs |
|
|
1,489 |
|
|
|
4,089 |
|
|
|
2,470 |
|
|
|
5,020 |
|
Costs related to a reduction in force plan |
|
|
7,766 |
|
|
|
— |
|
|
|
7,766 |
|
|
|
— |
|
One-time expenses related to strategic consulting services for operational review |
|
|
— |
|
|
|
— |
|
|
|
1,265 |
|
|
|
— |
|
Other cost-reduction and productivity initiatives |
|
|
974 |
|
|
|
— |
|
|
|
974 |
|
|
|
— |
|
Legal fees related to the securities class action |
|
|
368 |
|
|
|
— |
|
|
|
509 |
|
|
|
— |
|
Office closure lease termination costs |
|
|
95 |
|
|
|
— |
|
|
|
95 |
|
|
|
— |
|
Income tax expense effects (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-GAAP net income |
|
$ |
58,273 |
|
|
$ |
38,874 |
|
|
$ |
105,612 |
|
|
$ |
74,613 |
|
GAAP net income (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.02 |
|
|
$ |
(0.17 |
) |
|
$ |
0.02 |
|
|
$ |
(0.27 |
) |
Diluted |
|
$ |
0.01 |
|
|
$ |
(0.17 |
) |
|
$ |
0.02 |
|
|
$ |
(0.27 |
) |
Non-GAAP net income per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.76 |
|
|
$ |
0.52 |
|
|
$ |
1.38 |
|
|
$ |
1.01 |
|
Diluted |
|
$ |
0.76 |
|
|
$ |
0.52 |
|
|
$ |
1.37 |
|
|
$ |
1.00 |
|
Shares used in computing GAAP net income (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
76,654 |
|
|
|
74,203 |
|
|
|
76,303 |
|
|
|
73,845 |
|
Diluted |
|
|
88,523 |
|
|
|
74,203 |
|
|
|
88,964 |
|
|
|
73,845 |
|
Shares used in computing non-GAAP net income per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
76,654 |
|
|
|
74,203 |
|
|
|
76,303 |
|
|
|
73,845 |
|
Diluted |
|
|
76,919 |
|
|
|
74,647 |
|
|
|
76,836 |
|
|
|
74,415 |
|
|
|
|
|
|
|
|
|
|
(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 our domestic valuation allowance position. |
SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION (In thousands) (Unaudited) |
||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||
|
|
|
|
|
||||||||||||||
|
|
Stock-Based
|
|
Depreciation |
|
Intangibles
|
|
Stock-Based
|
|
Depreciation |
|
Intangibles
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of revenue |
|
$ |
7,296 |
|
$ |
8,697 |
|
$ |
3,464 |
|
$ |
7,789 |
|
$ |
7,773 |
|
$ |
2,648 |
Research and development |
|
|
8,829 |
|
|
799 |
|
|
— |
|
|
9,827 |
|
|
741 |
|
|
— |
Sales and marketing |
|
|
13,355 |
|
|
27 |
|
|
— |
|
|
13,824 |
|
|
26 |
|
|
— |
General and administrative |
|
|
12,379 |
|
|
1,662 |
|
|
— |
|
|
12,192 |
|
|
1,750 |
|
|
— |
Total |
|
$ |
41,859 |
|
$ |
11,185 |
|
$ |
3,464 |
|
$ |
43,632 |
|
$ |
10,290 |
|
$ |
2,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
||||||||||||||
|
|
Stock-Based
|
|
Depreciation |
|
Intangibles
|
|
Stock-Based
|
|
Depreciation |
|
Intangibles
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of revenue |
|
$ |
14,480 |
|
$ |
16,480 |
|
$ |
7,564 |
|
$ |
15,392 |
|
$ |
14,738 |
|
$ |
5,296 |
Research and development |
|
|
17,519 |
|
|
1,479 |
|
|
— |
|
|
20,757 |
|
|
1,631 |
|
|
— |
Sales and marketing |
|
|
24,929 |
|
|
63 |
|
|
— |
|
|
27,844 |
|
|
53 |
|
|
— |
General and administrative |
|
|
24,176 |
|
|
3,553 |
|
|
— |
|
|
24,323 |
|
|
3,403 |
|
|
— |
Total |
|
$ |
81,104 |
|
$ |
21,575 |
|
$ |
7,564 |
|
$ |
88,316 |
|
$ |
19,825 |
|
$ |
5,296 |
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME – GUIDANCE(1) (In thousands, except per share data) (Unaudited) |
||||||||||||||
|
|
Three Months Ending |
|
Year Ending |
||||||||||
|
|
|
|
|
||||||||||
|
|
Low |
|
High |
|
Low |
|
High |
||||||
|
|
|
|
|
|
|
|
|
||||||
GAAP net income |
|
$ |
5,515 |
|
$ |
10,077 |
|
$ |
20,238 |
|
|
$ |
26,346 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
||||||
Stock-based compensation(2) |
|
|
41,509 |
|
|
39,509 |
|
|
162,022 |
|
|
|
160,022 |
|
Intangibles amortization |
|
|
2,643 |
|
|
2,643 |
|
|
12,849 |
|
|
|
12,849 |
|
Amortization of discount and issuance costs on convertible senior notes |
|
|
932 |
|
|
932 |
|
|
4,002 |
|
|
|
4,002 |
|
Exit costs related to closure and relocation of Russian operations |
|
|
— |
|
|
— |
|
|
(545 |
) |
|
|
(545 |
) |
Acquisition and related transaction costs and one-time integration costs(3) |
|
|
3,736 |
|
|
2,736 |
|
|
8,972 |
|
|
|
7,972 |
|
Costs related to a reduction in force plan |
|
|
— |
|
|
— |
|
|
7,766 |
|
|
|
7,766 |
|
One-time expenses related to strategic consulting services for operational review |
|
|
— |
|
|
— |
|
|
1,265 |
|
|
|
1,265 |
|
Other cost-reduction and productivity initiatives |
|
|
1,898 |
|
|
1,898 |
|
|
4,771 |
|
|
|
4,771 |
|
Legal fees related to the securities class action |
|
|
— |
|
|
— |
|
|
509 |
|
|
|
509 |
|
Office closure lease termination costs |
|
|
— |
|
|
— |
|
|
95 |
|
|
|
95 |
|
Income tax expense effects(4) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
Non-GAAP net income |
|
$ |
56,233 |
|
$ |
57,795 |
|
$ |
221,944 |
|
|
$ |
225,052 |
|
GAAP net income per share: |
|
|
|
|
|
|
|
|
||||||
Diluted |
|
$ |
0.06 |
|
$ |
0.12 |
|
$ |
0.23 |
|
|
$ |
0.30 |
|
Non-GAAP net income per share: |
|
|
|
|
|
|
|
|
||||||
Diluted |
|
$ |
0.72 |
|
$ |
0.74 |
|
$ |
2.86 |
|
|
$ |
2.90 |
|
Shares used in computing GAAP net income per share: |
|
|
|
|
|
|
|
|
||||||
Diluted |
|
|
87,500 |
|
|
87,500 |
|
|
88,500 |
|
|
|
88,500 |
|
Shares used in computing non-GAAP net income per share: |
|
|
|
|
|
|
|
|
||||||
Diluted |
|
|
78,100 |
|
|
78,100 |
|
|
77,700 |
|
|
|
77,700 |
|
|
|
|
|
|
|
|
|
|
(1) |
Represents guidance discussed on |
|
(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 our domestic valuation allowance position. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250731258937/en/
Investor Relations Contacts:
Chief Financial Officer
925-201-2000
IR@five9.com
lauren@blueshirtgroup.com
Source: