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February 20, 2019

Five9 Reports Fourth Quarter Revenue Growth of 31% to a Record $72.3 Million

 

SAN RAMON, Calif.–(BUSINESS WIRE)–Five9, Inc. (NASDAQ:FIVN), a leading provider of cloud contact center software for the digital enterprise, today reported results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter 2018 Financial Results

  • Revenue for the fourth quarter of 2018 increased 31% to a record $72.3 million, compared to $55.4 million for the fourth quarter of 2017.
  • GAAP gross margin was 60.8% for the fourth quarter of 2018, compared to 59.6% for the fourth quarter of 2017.
  • Adjusted gross margin was 65.1% for the fourth quarter of 2018, compared to 63.6% for the fourth quarter of 2017.
  • GAAP net income for the fourth quarter of 2018 was $3.7 million, or $0.06 per diluted share, compared to GAAP net loss of $(0.6) million, or $(0.01) per basic share, for the fourth quarter of 2017.
  • Non-GAAP net income for the fourth quarter of 2018 was $14.5 million, or $0.23 per diluted share, compared to non-GAAP net income of $4.0 million, or $0.07 per diluted share, for the fourth quarter of 2017.
  • Adjusted EBITDA for the fourth quarter of 2018 was $16.4 million, or a record 22.7% of revenue, compared to $6.9 million, or 12.4% of revenue, for the fourth quarter of 2017.
  • GAAP operating cash flow for the fourth quarter of 2018 was $15.5 million, compared to GAAP operating cash flow of $2.9 million for the fourth quarter of 2017.
  • 2018 Financial Results
    • Total revenue for 2018 increased 29% to a record $257.7 million, compared to $200.2 million in 2017.
    • GAAP gross margin was 59.6% for 2018, compared to 58.5% in 2017.
    • Adjusted gross margin was 63.9% for 2018, compared to 62.7% in 2017.
    • GAAP net loss for 2018 was $(0.2) million, or $(0.00) per basic share, compared to a GAAP net loss of $(9.0) million, or $(0.16) per basic share, in 2017.
    • Non-GAAP net income for 2018 was $37.0 million, or $0.60 per diluted share, compared to a non-GAAP net income of $6.3 million, or $0.11 per diluted share, in 2017.
    • Adjusted EBITDA for 2018 was $46.4 million, or a record 18.0% of revenue, compared to $17.6 million, or 8.8% of revenue, in 2017.
    • GAAP operating cash flow for 2018 was $38.6 million, compared to GAAP operating cash flow of $11.1 million in 2017.

    “We closed 2018 with our strongest quarter ever with fourth quarter revenue growth accelerating to 31%. This accelerating revenue growth, combined with our strong execution and expense discipline, allowed us to deliver 22.7% adjusted EBITDA margin. These stand-out results are representative of the large market opportunity we are addressing and continued momentum in our Enterprise business. As customer experience becomes a strategic priority and the market shifts towards the cloud, we believe Five9 is extremely well positioned to capitalize on this opportunity. Our customers view Five9 as a trusted strategic partner who can help them at every stage of the customer experience journey. We believe that we are at the nexus of a transformative opportunity, and that this will enable us to continue to deliver sustained growth and advance our goal of creating the world’s best intelligent contact center delivered through the cloud and powered by AI.”

    – Rowan Trollope, CEO, Five9

    Business Outlook

    • For the full year 2019, Five9 expects to report:
      • Revenue in the range of $298.5 to $301.5 million.
      • GAAP net loss in the range of $(22.1) to $(19.1) million, or $(0.36) to $(0.31) per basic share.
      • Non-GAAP net income in the range of $36.8 to $39.8 million, or $0.58 to $0.62 per diluted share.
    • For the first quarter of 2019, Five9 expects to report:
      • Revenue in the range of $70.0 to $71.0 million.
      • GAAP net loss in the range of $(5.7) to $(4.7) million, or a loss of $(0.10) to $(0.08) per basic share.
      • Non-GAAP net income in the range of $7.1 to $8.1 million, or $0.11 to $0.13 per diluted share.

Promero is an authorized Five9 reseller.