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 February 16, 2017 |
FIVE9, INC. | ||||||||
Date: February 16, 2017 | By: | /s/ Barry Zwarenstein | ||||||
Barry Zwarenstein | ||||||||
Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release issued by the Company on February 16, 2017 |
• | 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. |
• | 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. |
• | 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 |
• | 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 |
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 |
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 | ) | ||||||||
Interest income and other | 54 | 28 | (12 | ) | 100 | |||||||||||
Extinguishment of debt | — | — | (1,026 | ) | — | |||||||||||
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 |
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 | ||||||
Changes in fair value of convertible preferred and common stock warrant liabilities | — | — | ||||||
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 provided by (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 revolving line of credit | 32,594 | — | ||||||
Repayments on revolving line of credit | (12,500 | ) | — | |||||
Payment of prepayment penalty and related fees | (368 | ) | — | |||||
Payments for debt issuance costs | (206 | ) | — | |||||
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 | ) | ||||
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 |
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 | % |
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 | ) |
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 | ) |
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 | $ | — | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.33 | ) | |||||
Diluted | $ | — | $ | (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 |
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 |
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 |