fivn-20240808
0001288847false00012888472024-08-082024-08-08

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
 CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2024
FIVE9, INC.
(Exact name of Registrant as specified in its charter)
 
Delaware001-3638394-3394123
(State or other jurisdiction
of incorporation)
(Commission File No.)
(I.R.S. Employer
Identification No.)
3001 Bishop Drive, Suite 350
San Ramon, CA 94583
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (925) 201-2000
Not Applicable
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
_______________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common stock, par value $0.001 per shareFIVNThe NASDAQ Global Market
Indicated by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    




Item 2.02 Results of Operations and Financial Condition.
On August 8, 2024, Five9, Inc. (the “Company”) announced its financial results for the fiscal quarter ended June 30, 2024. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1 furnished herewith) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
 
Exhibit No.  Description
  
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   FIVE9, INC.
Date: August 8, 2024
   By: /s/ Barry Zwarenstein
    Barry Zwarenstein
    
Chief Financial Officer



Document

Exhibit 99.1
https://cdn.kscope.io/4991514831a21efe5e35727974100b67-newfive9logo.jpg

Five9 Surpasses $1 Billion in Annual Revenue Run Rate

21% Growth in LTM Enterprise Subscription Revenue
$126 Million in LTM Operating Cash Flow
SAN RAMON, Calif. - August 8, 2024 - Five9, Inc. (NASDAQ:FIVN), the Intelligent CX Platform provider, today reported results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Results
Revenue for the second quarter of 2024 increased 13% to a record $252.1 million, compared to $222.9 million for the second quarter of 2023.
GAAP gross margin was 53.0% for the second quarter of 2024, compared to 53.2% for the second quarter of 2023.
Adjusted gross margin was 60.5% for the second quarter of 2024, compared to 61.8% for the second quarter of 2023.
GAAP net loss for the second quarter of 2024 was $(12.8) million, or $(0.17) per basic share, and (5.1)% of revenue, compared to GAAP net loss of $(21.7) million, or $(0.30) per basic share, and (9.8)% of revenue, for the second quarter of 2023.
Non-GAAP net income for the second quarter of 2024 was $38.9 million, or $0.52 per diluted share, and 15.4% of revenue, compared to non-GAAP net income of $37.4 million, or $0.52 per diluted share, and 16.8% of revenue, for the second quarter of 2023.
Adjusted EBITDA for the second quarter of 2024 was $41.8 million, or 16.6% of revenue, compared to $41.5 million, or 18.6% of revenue, for the second quarter of 2023.
GAAP operating cash flow for the second quarter of 2024 was $19.9 million, compared to GAAP operating cash flow of $21.9 million for the second quarter of 2023.

“We are pleased to report strong second quarter results, achieving a key milestone with annual revenue run rate exceeding $1 billion, primarily driven by LTM enterprise subscription revenue growing 21% year-over-year. Adjusted EBITDA margin reached 17%, helping drive robust LTM operating cash flow of $126 million. As we look to the remainder of the year, we are reducing our annual revenue guidance by 3.8%, reflecting recent bookings trends and the uncertain economic conditions. We remain confident in our massive market opportunity and are committed to driving balanced growth and profitability.
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Additionally, we are excited to announce our agreement to acquire Acqueon, which we believe will be a significant step in advancing our AI-powered CX platform and market reach. Also, our latest innovations to our Five9 Genius AI suite, including GenAI Studio and AI Knowledge, further demonstrate our leadership in AI. Our AI solutions are driving tangible business outcomes, enabling some of the world’s largest brands to elevate their customer experiences.”

- 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 the ongoing macroeconomic conditions.
For the full year 2024, Five9 now expects to report:
Revenue in the range of $1.013 to $1.017 billion.
GAAP net loss per share in the range of $(0.29) to $(0.19), assuming basic shares outstanding of approximately 74.5 million.
Non-GAAP net income per share in the range of $2.25 to $2.29, assuming diluted shares outstanding of approximately 75.2 million.
For the third quarter of 2024, Five9 expects to report:
Revenue in the range of $254.5 to $255.5 million.
GAAP net loss per share in the range of $(0.06) to $(0.01), assuming basic shares outstanding of approximately 74.9 million.
Non-GAAP net income per share in the range of $0.57 to $0.59, assuming diluted shares outstanding of approximately 75.5 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 second quarter 2024 results today, August 8, 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-
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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, and lease amortization for finance leases. 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 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 and related transaction costs and one-time integration costs. 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, and gain on early extinguishment of debt. 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 Five9’s market opportunity and size and ability to capitalize on that opportunity, the Company’s commitment to drive balanced growth and profitability, the Company’s agreement to acquire Acqueon and, if the transaction closes, the anticipated benefits thereof, innovations in Five9’s GenAI solutions and the anticipated benefits thereof, Five9’s AI market position, and the third 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 deterioration, 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 Israel, 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
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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) 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; (vii) 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; (viii) if we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be adversely affected; (ix) 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; (x) failure to adequately retain and expand our sales force will impede our growth; (xi) 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; (xii) the AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks, may not be accepted by our customers, and may not result in sales that exceed lost revenue opportunities due to any decline in agent seats due to the use of AI solutions; (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 cloud contact center solutions, which we refer to as our solution, 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) our proposed acquisition of Acqueon may not close, including if we are unable to obtain regulatory clearance in the U.S., (xxi) 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; (xxii) 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; (xxiii) we have a history of losses and we may be unable to achieve or sustain profitability; (xxiv) our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control; (xxv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxvi) failure to comply with laws and regulations could harm our business and our reputation; (xxvii) we may not have sufficient cash to service our convertible senior notes and
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repay such notes, if required, and other risks attendant to our convertible senior notes and increased debt levels; and (xxviii) 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.


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FIVE9, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, 2024December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$175,699 $143,201 
Marketable investments930,639 587,096 
Accounts receivable, net104,382 97,424 
Prepaid expenses and other current assets41,760 34,622 
Deferred contract acquisition costs, net69,622 61,711 
Total current assets1,322,102 924,054 
Property and equipment, net124,600 108,572 
Operating lease right-of-use assets34,107 38,873 
Finance lease right-of-use assets3,653 4,564 
Intangible assets, net33,027 38,323 
Goodwill227,269 227,412 
Other assets17,755 16,199 
Deferred contract acquisition costs, net — less current portion147,867 136,571 
Total assets$1,910,380 $1,494,568 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$29,405 $24,399 
Accrued and other current liabilities76,320 62,131 
Operating lease liabilities9,509 10,731 
Finance lease liabilities1,819 1,767 
Deferred revenue65,286 68,187 
Convertible senior notes432,364 — 
Total current liabilities614,703 167,215 
Convertible senior notes — less current portion730,012 742,125 
Operating lease liabilities — less current portion32,177 36,378 
Finance lease liabilities — less current portion1,949 2,877 
Other long-term liabilities5,661 7,888 
Total liabilities1,384,502 956,483 
Stockholders’ equity:
Common stock75 73 
Additional paid-in capital951,048 942,280 
Accumulated other comprehensive (loss) income (502)582 
Accumulated deficit(424,743)(404,850)
Total stockholders’ equity525,878 538,085 
Total liabilities and stockholders’ equity$1,910,380 $1,494,568 
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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months EndedSix Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Revenue$252,086 $222,882 $499,096 $441,321 
Cost of revenue118,414 104,361 232,944 209,117 
Gross profit133,672 118,521 266,152 232,204 
Operating expenses:
Research and development40,717 39,210 82,235 77,318 
Sales and marketing78,332 74,077 159,441 150,391 
General and administrative33,988 30,477 64,536 58,735 
Total operating expenses153,037 143,764 306,212 286,444 
Loss from operations(19,365)(25,243)(40,060)(54,240)
Other income (expense), net:
Interest expense(3,906)(1,866)(6,473)(3,711)
Gain on early extinguishment of debt— — 6,615 — 
Interest income and other13,800 6,123 24,359 10,244 
Total other income (expense), net9,894 4,257 24,501 6,533 
Loss before income taxes(9,471)(20,986)(15,559)(47,707)
Provision for income taxes3,345 753 4,334 1,280 
Net loss$(12,816)$(21,739)$(19,893)$(48,987)
Net loss per share:
Basic and diluted$(0.17)$(0.30)$(0.27)$(0.69)
Shares used in computing net loss per share:
Basic and diluted74,203 71,627 73,845 71,444 


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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30, 2024June 30, 2023
Cash flows from operating activities:
Net loss$(19,893)$(48,987)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization25,121 23,071 
Amortization of operating lease right-of-use assets6,312 5,838 
Amortization of deferred contract acquisition costs33,825 25,710 
Accretion of discount on marketable investments(11,217)(4,315)
Provision for credit losses677 528 
Stock-based compensation88,316 104,110 
Amortization of discount and issuance costs on convertible senior notes 2,509 1,839 
Gain on early extinguishment of debt(6,615)— 
Deferred taxes356 250 
Other(64)622 
Changes in operating assets and liabilities:
Accounts receivable(7,635)(1,494)
Prepaid expenses and other current assets(7,137)(8,764)
Deferred contract acquisition costs(53,032)(44,606)
Other assets(1,868)(5,344)
Accounts payable3,931 2,316 
Accrued and other current liabilities3,934 4,453 
Deferred revenue(3,484)(680)
Other liabilities(1,805)717 
Net cash provided by operating activities52,231 55,264 
Cash flows from investing activities:
Purchases of marketable investments(816,492)(337,595)
Proceeds from sales of marketable investments12,517 245 
Proceeds from maturities of marketable investments470,755 227,836 
Purchases of property and equipment(18,722)(16,642)
Capitalization of software development costs(8,260)(3,565)
Cash paid to acquire Aceyus99 — 
Net cash used in investing activities(360,103)(129,721)
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 notes539 — 
Proceeds from exercise of common stock options397 6,981 
Proceeds from sale of common stock under ESPP9,522 9,444 
Payment of finance lease liabilities(966)— 
Net cash provided by financing activities340,412 90,709 
Net increase in cash, cash equivalents and restricted cash32,540 16,252 
Cash, cash equivalents and restricted cash:
Beginning of period144,842 180,987 
End of period$177,382 $197,239 

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FIVE9, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT
(In thousands, except percentages)
(Unaudited)
Three Months EndedSix Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
GAAP gross profit$133,672 $118,521 $266,152 $232,204 
GAAP gross margin53.0 %53.2 %53.3 %52.6 %
Non-GAAP adjustments:
Depreciation7,773 6,424 14,738 12,485 
Intangibles amortization2,648 2,845 5,296 5,691 
Stock-based compensation7,789 9,888 15,392 19,221 
Exit costs related to closure and relocation of Russian operations— 51 — 75 
Acquisition and related transaction costs and one-time integration costs72 — 125 34 
Lease amortization for finance leases455 — 912 — 
Adjusted gross profit$152,409 $137,729 $302,615 $269,710 
Adjusted gross margin60.5 %61.8 %60.6 %61.1 %


FIVE9, INC.
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(In thousands, except percentages)
(Unaudited)
Three Months EndedSix Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
GAAP net loss$(12,816)$(21,739)$(19,893)$(48,987)
Non-GAAP adjustments:
Depreciation and amortization12,938 11,724 25,121 23,071 
Stock-based compensation43,632 53,367 88,316 104,110 
Interest expense3,906 1,866 6,473 3,711 
Gain on early extinguishment of debt— — (6,615)— 
Interest income and other (13,800)(6,123)(24,359)(10,244)
Exit costs related to closure and relocation of Russian operations (1)
32 815 57 1,411 
Acquisition and related transaction costs and one-time integration costs4,089 877 5,020 2,332 
Lease amortization for finance leases455 — 912 — 
Provision for income taxes3,345 753 4,334 1,280 
Adjusted EBITDA$41,781 $41,540 $79,366 $76,684 
Adjusted EBITDA as % of revenue16.6 %18.6 %15.9 %17.4 %
(1) Exit costs related to the closure and relocation of our Russian operations was $(0.1) million and $0.0 million during the three and six months ended June 30, 2024. The $0.0 million and $0.1 million adjustments presented above were net of $(0.1) million and $(0.1) million included in “Interest income and other.” Exit costs related to the closure and relocation of our Russian operations was $1.1 million and $1.8 million during the three and six months ended June 30, 2023. The $0.8 million and $1.4 million adjustments presented above were net of $0.3 million and $0.4 million included in “Interest income and other.”

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FIVE9, INC.
RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP OPERATING INCOME
(In thousands)
(Unaudited)
Three Months EndedSix Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Loss from operations$(19,365)$(25,243)$(40,060)$(54,240)
Non-GAAP adjustments:
Stock-based compensation43,632 53,367 88,316 104,110 
Intangibles amortization2,648 2,845 5,296 5,691 
Exit costs related to closure and relocation of Russian operations32 815 57 1,411 
Acquisition and related transaction costs and one-time integration costs4,089 877 5,020 2,332 
Non-GAAP operating income$31,036 $32,661 $58,629 $59,304 

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FIVE9, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME
(In thousands, except per share data)
(Unaudited)
Three Months EndedSix Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
GAAP net loss$(12,816)$(21,739)$(19,893)$(48,987)
Non-GAAP adjustments:
Stock-based compensation43,632 53,367 88,316 104,110 
Intangibles amortization2,648 2,845 5,296 5,691 
Amortization of discount and issuance costs on convertible senior notes1,435 931 2,509 1,839 
Gain on early extinguishment of debt— — (6,615)— 
Exit costs related to closure and relocation of Russian operations(114)1,110 (20)1,851 
Acquisition and related transaction costs and one-time integration costs4,089 877 5,020 2,332 
Income tax expense effects (1)
— — — — 
Non-GAAP net income$38,874 $37,391 $74,613 $66,836 
GAAP net loss per share:
Basic and diluted$(0.17)$(0.30)$(0.27)$(0.69)
Non-GAAP net income per share:
Basic$0.52 $0.52 $1.01 $0.94 
Diluted$0.52 $0.52 $1.00 $0.92 
Shares used in computing GAAP net loss per share:
Basic and diluted74,203 71,627 73,845 71,444 
Shares used in computing non-GAAP net income per share:
Basic74,203 71,627 73,845 71,444 
Diluted74,647 72,600 74,415 72,474 
(1)Non-GAAP adjustments do not have a material impact on our worldwide income tax provision due to available tax loss and credit attributes.
11


FIVE9, INC.
SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION
(In thousands)
(Unaudited)
Three Months Ended
June 30, 2024June 30, 2023
Stock-Based CompensationDepreciationIntangibles AmortizationStock-Based CompensationDepreciationIntangibles Amortization
Cost of revenue$7,789 $7,773 $2,648 $9,888 $6,424 $2,845 
Research and development9,827 741 — 13,013 868 — 
Sales and marketing13,824 26 — 17,391 — 
General and administrative12,192 1,750 — 13,075 1,586 — 
Total$43,632 $10,290 $2,648 $53,367 $8,879 $2,845 
Six Months Ended
June 30, 2024June 30, 2023
Stock-Based CompensationDepreciationIntangibles AmortizationStock-Based CompensationDepreciationIntangibles Amortization
Cost of revenue$15,392 $14,738 $5,296 $19,221 $12,485 $5,691 
Research and development20,757 1,631 — 25,395 1,740 — 
Sales and marketing27,844 53 — 34,436 — 
General and administrative24,323 3,403 — 25,058 3,153 — 
Total$88,316 $19,825 $5,296 $104,110 $17,380 $5,691 



12



FIVE9, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME – GUIDANCE(1)
(In thousands, except per share data)
(Unaudited)

Three Months EndingYear Ending
September 30, 2024December 31, 2024
LowHighLowHigh
GAAP net loss$(4,608)$(1,098)$(21,511)$(14,503)
Non-GAAP adjustments:
Stock-based compensation(2)
42,053 40,053 173,848 169,848 
Intangibles amortization2,643 2,643 10,580 10,580 
Amortization of discount and issuance costs on convertible senior notes1,480 1,480 5,397 5,397 
Exit costs related to closure and relocation of Russian operations— — 94 94 
Acquisition and related transaction costs and one-time integration costs(3)
1,467 1,467 7,680 7,680 
Gain on early extinguishment of debt— — (6,615)(6,615)
Income tax expense effects(4)
— — — — 
Non-GAAP net income$43,035 $44,545 $169,473 $172,481 
GAAP net loss per share, basic and diluted$(0.06)$(0.01)$(0.29)$(0.19)
Non-GAAP net income per share:
Basic$0.57 $0.59 $2.27 $2.32 
Diluted$0.57 $0.59 $2.25 $2.29 
Shares used in computing GAAP net loss per share and non-GAAP net income per share:
Basic74,900 74,900 74,500 74,500 
Diluted75,500 75,500 75,200 75,200 
(1)Represents guidance discussed on August 8, 2024. Reader shall not construe presentation of this information after August 8, 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 available tax loss and credit attributes.



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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


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