Delaware | 001-36383 | 94-3394123 | |
(State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | |
Bishop Ranch 8 | |||
4000 Executive Parkway, Suite 400 | |||
San Ramon, California 94583 | |||
(Address of principal executive offices and Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press Release issued by the Company on August 3, 2015 |
FIVE9, INC. | ||||||||
Date: August 3, 2015 | By: | /s/ Barry Zwarenstein | ||||||
Barry Zwarenstein | ||||||||
Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release issued by the Company on August 3, 2015 |
• | Revenue increased 23% year-over-year to $30.3 million |
• | Adjusted gross margin improved by over 700 basis points year-over-year |
• | Adjusted EBITDA margin improved by over 2,000 basis points year-over-year |
• | Total revenue for the second quarter of 2015 increased 23% to $30.3 million compared to $24.7 million for the second quarter of 2014. |
• | Annual dollar-based retention rate for the period ended June 30, 2015 was 94%. |
• | GAAP gross margin was 52.9% in the second quarter of 2015 compared to 45.4% for the same period in 2014. |
• | Adjusted gross margin was 58.7% for the second quarter of 2015 compared to 51.5% for the same period in 2014. |
• | Adjusted EBITDA for the second quarter of 2015 was a loss of $(2.3) million, or 7% of revenue, compared to a loss of $(6.9) million, or 28% of revenue, for the second quarter of 2014. |
• | GAAP net loss for the second quarter of 2015 was $(7.4) million, or $(0.15) per share, compared to a GAAP net loss of $(8.7) million, or $(0.18) per share, for the second quarter of 2014. |
• | Non-GAAP net loss for the second quarter of 2015 was $(5.1) million, or $(0.10) per share, compared to a non-GAAP net loss of $(9.5) million, or $(0.20) per share, for the second quarter of 2014. |
• | For the third quarter of 2015, Five9 expects to report: |
◦ | Revenue in the range of $30.0 to $31.0 million |
◦ | GAAP net loss in the range of $(8.2) to $(9.2) million or $(0.16) to $(0.18) per share |
◦ | Non-GAAP net loss in the range of $(6.1) to $(7.1) million or $(0.12) to $(0.14) per share |
• | For the full year 2015, Five9 expects to report: |
◦ | Revenue in the range of $122.5 to $124.5 million, up from the guidance range of $120.0 to $124.0 million that was previously provided on May 12, 2015 |
◦ | GAAP net loss of $(31.1) to $(33.1) million or $(0.62) to $(0.66) per share, improved from the guidance range of $(34.7) to $(37.7) million or $(0.69) to $(0.75) per share, that was previously provided on May 12, 2015 |
◦ | Non-GAAP net loss in the range of $(21.5) to $(23.5) million or $(0.43) to $(0.47) per share, improved from the guidance range of $(24.4) to $(27.4) million or $(0.49) to $(0.54) per share, that was previously provided on May 12, 2015 |
June 30, 2015 | December 31, 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 65,333 | $ | 58,289 | ||||
Short-term investments | — | 20,000 | ||||||
Accounts receivable, net | 8,250 | 8,335 | ||||||
Prepaid expenses and other current assets | 4,228 | 1,960 | ||||||
Total current assets | 77,811 | 88,584 | ||||||
Property and equipment, net | 11,964 | 12,571 | ||||||
Intangible assets, net | 2,297 | 2,553 | ||||||
Goodwill | 11,798 | 11,798 | ||||||
Other assets | 709 | 1,428 | ||||||
Total assets | $ | 104,579 | $ | 116,934 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,766 | $ | 4,179 | ||||
Accrued and other current liabilities | 8,718 | 7,318 | ||||||
Accrued federal fees | 5,658 | 7,215 | ||||||
Sales tax liability | 863 | 297 | ||||||
Notes payable | 5,081 | 3,146 | ||||||
Capital leases | 4,365 | 4,849 | ||||||
Deferred revenue | 5,525 | 5,346 | ||||||
Total current liabilities | 32,976 | 32,350 | ||||||
Revolving line of credit | 12,500 | 12,500 | ||||||
Sales tax liability — less current portion | 2,063 | 2,582 | ||||||
Notes payable — less current portion | 21,117 | 22,778 | ||||||
Capital leases — less current portion | 4,676 | 4,423 | ||||||
Other long-term liabilities | 672 | 548 | ||||||
Total liabilities | 74,004 | 75,181 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 50 | 49 | ||||||
Additional paid-in capital | 175,379 | 170,286 | ||||||
Accumulated deficit | (144,854 | ) | (128,582 | ) | ||||
Total stockholders’ equity | 30,575 | 41,753 | ||||||
Total liabilities and stockholders’ equity | $ | 104,579 | $ | 116,934 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||
Revenue | $ | 30,274 | $ | 24,685 | $ | 60,548 | $ | 48,959 | ||||||||
Cost of revenue | 14,270 | 13,469 | 29,048 | 26,617 | ||||||||||||
Gross profit | 16,004 | 11,216 | 31,500 | 22,342 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 5,568 | 5,554 | 11,606 | 10,779 | ||||||||||||
Sales and marketing | 10,594 | 9,674 | 20,525 | 18,696 | ||||||||||||
General and administrative | 6,027 | 3,515 | 13,302 | 9,686 | ||||||||||||
Total operating expenses | 22,189 | 18,743 | 45,433 | 39,161 | ||||||||||||
Loss from operations | (6,185 | ) | (7,527 | ) | (13,933 | ) | (16,819 | ) | ||||||||
Other income (expense), net: | ||||||||||||||||
Change in fair value of convertible preferred and common stock warrant liabilities | — | — | — | 1,745 | ||||||||||||
Interest expense | (1,155 | ) | (1,092 | ) | (2,294 | ) | (1,870 | ) | ||||||||
Interest income and other | (49 | ) | (28 | ) | (47 | ) | 4 | |||||||||
Total other income (expense), net | (1,204 | ) | (1,120 | ) | (2,341 | ) | (121 | ) | ||||||||
Loss before provision for (benefit from) income taxes | (7,389 | ) | (8,647 | ) | (16,274 | ) | (16,940 | ) | ||||||||
Provision for (benefit from) income taxes | (20 | ) | 12 | (2 | ) | 39 | ||||||||||
Net loss | $ | (7,369 | ) | $ | (8,659 | ) | $ | (16,272 | ) | $ | (16,979 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.15 | ) | $ | (0.18 | ) | $ | (0.33 | ) | $ | (0.64 | ) | ||||
Shares used in computing net loss per share: | ||||||||||||||||
Basic and diluted | 49,980 | 46,898 | 49,708 | 26,367 |
Six Months Ended | ||||||||
June 30, 2015 | June 30, 2014 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (16,272 | ) | $ | (16,979 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 3,685 | 3,291 | ||||||
Provision for doubtful accounts | 134 | 39 | ||||||
Stock-based compensation | 4,065 | 2,919 | ||||||
Loss on the disposal of property and equipment | 9 | — | ||||||
Non-cash interest expense | 171 | 129 | ||||||
Changes in fair value of convertible preferred and common stock warrant liabilities | — | (1,745 | ) | |||||
Others | (1 | ) | (2 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (57 | ) | (126 | ) | ||||
Prepaid expenses and other current assets | (2,268 | ) | (1,070 | ) | ||||
Other assets | (87 | ) | (55 | ) | ||||
Accounts payable | (1,394 | ) | (508 | ) | ||||
Accrued and other current liabilities | 2,035 | 1,985 | ||||||
Accrued federal fees and sales tax liability | 165 | (2,808 | ) | |||||
Deferred revenue | 163 | 634 | ||||||
Other liabilities | (58 | ) | (102 | ) | ||||
Net cash used in operating activities | (9,710 | ) | (14,398 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (414 | ) | (336 | ) | ||||
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 | 20,392 | (30,354 | ) | |||||
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 | 349 | 705 | ||||||
Proceeds from sale of common stock under ESPP | 680 | — | ||||||
Proceeds from notes payable | — | 19,561 | ||||||
Repayments of notes payable | (1,572 | ) | (519 | ) | ||||
Payments of capital leases | (3,095 | ) | (2,625 | ) | ||||
Net cash provided by (used in) financing activities | (3,638 | ) | 88,581 | |||||
Net increase in cash and cash equivalents | 7,044 | 43,829 | ||||||
Cash and cash equivalents: | ||||||||
Beginning of period | 58,289 | 17,748 | ||||||
End of period | $ | 65,333 | $ | 61,577 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||
GAAP gross profit | $ | 16,004 | $ | 11,216 | $ | 31,500 | $ | 22,342 | ||||||||
GAAP gross margin | 52.9 | % | 45.4 | % | 52.0 | % | 45.6 | % | ||||||||
Non-GAAP adjustments: | ||||||||||||||||
Depreciation | 1,470 | 1,285 | 2,821 | 2,399 | ||||||||||||
Intangibles amortization | 88 | 88 | 176 | 176 | ||||||||||||
Stock-based compensation | 218 | 121 | 406 | 208 | ||||||||||||
Adjusted gross profit | $ | 17,780 | $ | 12,710 | $ | 34,903 | $ | 25,125 | ||||||||
Adjusted gross margin | 58.7 | % | 51.5 | % | 57.6 | % | 51.3 | % |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||
GAAP net loss | $ | (7,369 | ) | $ | (8,659 | ) | $ | (16,272 | ) | $ | (16,979 | ) | ||||
Non-GAAP adjustments: | ||||||||||||||||
Depreciation and amortization | 1,910 | 1,699 | 3,685 | 3,291 | ||||||||||||
Stock-based compensation | 1,830 | 1,723 | 4,065 | 2,919 | ||||||||||||
Interest expense | 1,155 | 1,092 | 2,294 | 1,870 | ||||||||||||
Interest income and other | 49 | 28 | 47 | (4 | ) | |||||||||||
Provision for (benefit from) income taxes | (20 | ) | 12 | (2 | ) | 39 | ||||||||||
Reversal of contingent sales tax liability (G&A) | — | (2,766 | ) | — | (2,766 | ) | ||||||||||
Change in fair value of convertible preferred and common stock warrant liabilities | — | — | — | (1,745 | ) | |||||||||||
Out of period adjustment for sales tax liability (G&A) | 190 | — | 765 | — | ||||||||||||
Adjusted EBITDA | $ | (2,255 | ) | $ | (6,871 | ) | $ | (5,418 | ) | $ | (13,375 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||
GAAP net loss | $ | (7,369 | ) | $ | (8,659 | ) | $ | (16,272 | ) | $ | (16,979 | ) | ||||
Non-GAAP adjustments: | ||||||||||||||||
Stock-based compensation | 1,830 | 1,723 | 4,065 | 2,919 | ||||||||||||
Intangibles amortization | 128 | 128 | 256 | 256 | ||||||||||||
Non-cash interest expense | 87 | 78 | 171 | 129 | ||||||||||||
Reversal of contingent sales tax liability (G&A) | — | (2,766 | ) | — | (2,766 | ) | ||||||||||
Change in fair value of convertible preferred and common stock warrant liabilities | — | — | — | (1,745 | ) | |||||||||||
Out of period adjustment for sales tax liability (G&A) | 190 | — | 765 | — | ||||||||||||
Non-GAAP net loss | $ | (5,134 | ) | $ | (9,496 | ) | $ | (11,015 | ) | $ | (18,186 | ) | ||||
Non-GAAP net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.10 | ) | $ | (0.20 | ) | $ | (0.22 | ) | $ | (0.69 | ) | ||||
Shares used in computing non-GAAP net loss per share: | ||||||||||||||||
Basic and diluted | 49,980 | 46,898 | 49,708 | 26,367 |
Three Months Ended | ||||||||||||||||||||||||
June 30, 2015 | June 30, 2014 | |||||||||||||||||||||||
Stock-Based Compensation | Depreciation | Intangibles Amortization | Stock-Based Compensation | Depreciation | Intangibles Amortization | |||||||||||||||||||
Cost of revenue | $ | 218 | $ | 1,470 | $ | 88 | $ | 121 | $ | 1,285 | $ | 88 | ||||||||||||
Research and development | 340 | 102 | — | 471 | 50 | — | ||||||||||||||||||
Sales and marketing | 458 | 23 | 28 | 368 | 20 | 28 | ||||||||||||||||||
General and administrative | 814 | 187 | 12 | 763 | 216 | 12 | ||||||||||||||||||
Total | $ | 1,830 | $ | 1,782 | $ | 128 | $ | 1,723 | $ | 1,571 | $ | 128 | ||||||||||||
Six Months Ended | ||||||||||||||||||||||||
June 30, 2015 | June 30, 2014 | |||||||||||||||||||||||
Stock-Based Compensation | Depreciation | Intangibles Amortization | Stock-Based Compensation | Depreciation | Intangibles Amortization | |||||||||||||||||||
Cost of revenue | $ | 406 | $ | 2,821 | $ | 176 | $ | 208 | $ | 2,399 | $ | 176 | ||||||||||||
Research and development | 914 | 189 | — | 821 | 96 | — | ||||||||||||||||||
Sales and marketing | 982 | 44 | 56 | 694 | 40 | 56 | ||||||||||||||||||
General and administrative | 1,763 | 375 | 24 | 1,196 | 500 | 24 | ||||||||||||||||||
Total | $ | 4,065 | $ | 3,429 | $ | 256 | $ | 2,919 | $ | 3,035 | $ | 256 |
Three Months Ending | Year Ending | |||||||||||||||
September 30, 2015 | December 31, 2015 | |||||||||||||||
Low | High | Low | High | |||||||||||||
GAAP net loss | $ | (8,246 | ) | $ | (9,246 | ) | $ | (31,073 | ) | $ | (33,073 | ) | ||||
Non-GAAP adjustments: | ||||||||||||||||
Stock-based compensation | 1,930 | 1,930 | 7,948 | 7,948 | ||||||||||||
Intangibles amortization | 128 | 128 | 512 | 512 | ||||||||||||
Non-cash interest expense | 88 | 88 | 348 | 348 | ||||||||||||
Out of period adjustment for sales tax liability (G&A) | — | — | 765 | 765 | ||||||||||||
Non-GAAP net loss | $ | (6,100 | ) | $ | (7,100 | ) | $ | (21,500 | ) | $ | (23,500 | ) | ||||
GAAP net loss per share, basic and diluted | $ | (0.16 | ) | $ | (0.18 | ) | $ | (0.62 | ) | $ | (0.66 | ) | ||||
Non-GAAP net loss per share, basic and diluted | $ | (0.12 | ) | $ | (0.14 | ) | $ | (0.43 | ) | $ | (0.47 | ) | ||||
Shares used in computing GAAP and non-GAAP net loss per share: | ||||||||||||||||
Basic and diluted | 50,300 | 50,300 | 50,100 | 50,100 |