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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): November 7, 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 November 7, 2024, Five9, Inc. (the “Company”) announced its financial results for the fiscal quarter ended September 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: November 7, 2024
   By: /s/ Barry Zwarenstein
    Barry Zwarenstein
    
Chief Financial Officer




Exhibit 99.1
newfive9logoa.jpg

Five9 Reports Third Quarter 2024
Accelerated Revenue Growth of 15% to $264 Million

20% Growth in Subscription Revenue
Record $41 Million in Operating Cash Flow
Raises 2024 Guidance for Revenue and Bottom Line

SAN RAMON, Calif. - November 7, 2024 - Five9, Inc. (NASDAQ:FIVN), the Intelligent CX Platform provider, today reported results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial Results
•Revenue for the third quarter of 2024 increased 15% to a record $264.2 million, compared to $230.1 million for the third quarter of 2023.
•GAAP gross margin was 53.8% for the third quarter of 2024, compared to 51.7% for the third quarter of 2023.
•Adjusted gross margin was 61.8% for the third quarter of 2024, compared to 60.6% for the third quarter of 2023.
•GAAP net loss for the third quarter of 2024 was $(4.5) million, or $(0.06) per basic share, and (1.7)% of revenue, compared to GAAP net loss of $(20.4) million, or $(0.28) per basic share, and (8.9)% of revenue, for the third quarter of 2023.
•Non-GAAP net income for the third quarter of 2024 was $50.5 million, or $0.67 per diluted share, and 19.1% of revenue, compared to non-GAAP net income of $38.0 million, or $0.52 per diluted share, and 16.5% of revenue, for the third quarter of 2023.
•Adjusted EBITDA for the third quarter of 2024 was $52.4 million, or 19.8% of revenue, compared to $41.3 million, or 17.9% of revenue, for the third quarter of 2023.
•GAAP operating cash flow for the third quarter of 2024 was $41.1 million, compared to GAAP operating cash flow of $37.0 million for the third quarter of 2023.

“We are very pleased to report strong third quarter results, which exceeded our guidance across all key metrics. Subscription revenue grew 20% year-over-year, and we achieved an adjusted EBITDA margin of 20%, helping drive robust operating cash flow of $41 million. With the acceleration of AI, CX is at an inflection point. We believe our AI-powered platform is at the forefront of enabling a hyper-personalized experience, continuous engagement, and seamless customer journeys, all while
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creating a pathway for durable growth. We are energized by the momentum we are seeing with our AI products and believe that the market opportunity ahead is stronger than ever.”

- 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 ongoing impact of macroeconomic challenges.
•For the full year 2024, Five9 now expects to report:
•Revenue in the range of $1.030 to $1.031 billion.
•GAAP net loss per share in the range of $(0.30) to $(0.23), assuming basic shares outstanding of approximately 74.5 million.
•Non-GAAP net income per share in the range of $2.36 to $2.38, assuming diluted shares outstanding of approximately 75.0 million.
•For the fourth quarter of 2024, Five9 expects to report:
•Revenue in the range of $267.0 to $268.0 million.
•GAAP net income per share in the range of $0.03 to $0.08, assuming diluted shares outstanding of approximately 88.6 million.
•Non-GAAP net income per share in the range of $0.69 to $0.71, assuming diluted shares outstanding of approximately 76.0 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 third quarter 2024 results today, November 7, 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-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
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and related transaction costs and one-time integration costs, lease amortization for finance leases and costs related to a reduction in force plan. 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, costs related to a reduction in force plan 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 related transaction costs and one-time integration costs, and costs related to a reduction in force plan. 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, gain on early extinguishment of debt, impairment charge of an equity investment, costs related to a reduction in force plan, and tax benefit associated with an acquired company. 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 the effect of AI on the CX market,
Five9’s AI platform and its market position and expected impact on the Company's growth, Five9's market opportunity and ability to capitalize on that opportunity, and the fourth 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 challenges, 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 the Middle East, 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 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
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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) 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; (vii) 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; (viii) 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; (ix) if we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be adversely affected; (x) 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; (xi) failure to adequately retain and expand our sales force will impede our growth; (xii) the AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks; (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 solutions 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) 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; (xxi) 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; (xxii) we have a history of losses and we may be unable to achieve or sustain profitability; (xxiii) our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control; (xxiv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxv) failure to comply with laws and regulations could harm our business and our reputation; (xxvi) we may not have sufficient cash to service our convertible senior notes and repay such notes, if required, and other risks attendant to our convertible senior notes and increased debt levels; and (xxvii) 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
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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)
September 30, 2024December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$290,959 $143,201 
Marketable investments675,704 587,096 
Accounts receivable, net116,430 97,424 
Prepaid expenses and other current assets48,640 34,622 
Deferred contract acquisition costs, net72,534 61,711 
Total current assets1,204,267 924,054 
Property and equipment, net136,052 108,572 
Operating lease right-of-use assets43,480 38,873 
Finance lease right-of-use assets21,262 4,564 
Intangible assets, net69,731 38,323 
Goodwill365,450 227,412 
Other assets17,765 16,199 
Deferred contract acquisition costs, net — less current portion149,885 136,571 
Total assets$2,007,892 $1,494,568 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$33,876 $24,399 
Accrued and other current liabilities84,297 62,131 
Operating lease liabilities11,446 10,731 
Finance lease liabilities7,695 1,767 
Deferred revenue80,000 68,187 
Convertible senior notes432,927 — 
Total current liabilities650,241 167,215 
Convertible senior notes — less current portion730,932 742,125 
Operating lease liabilities — less current portion39,976 36,378 
Finance lease liabilities — less current portion13,716 2,877 
Other long-term liabilities7,441 7,888 
Total liabilities1,442,306 956,483 
Stockholders’ equity:
Common stock75 73 
Additional paid-in capital992,905 942,280 
Accumulated other comprehensive income 1,828 582 
Accumulated deficit(429,222)(404,850)
Total stockholders’ equity565,586 538,085 
Total liabilities and stockholders’ equity$2,007,892 $1,494,568 
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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months EndedNine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Revenue$264,182 $230,105 $763,278 $671,426 
Cost of revenue121,933 111,080 354,877 320,197 
Gross profit142,249 119,025 408,401 351,229 
Operating expenses:
Research and development42,482 40,391 124,717 117,709 
Sales and marketing78,615 73,366 238,056 223,757 
General and administrative36,575 31,006 101,111 89,741 
Total operating expenses157,672 144,763 463,884 431,207 
Loss from operations(15,423)(25,738)(55,483)(79,978)
Other income (expense), net:
Interest expense(4,068)(1,972)(10,541)(5,683)
Gain on early extinguishment of debt— — 6,615 — 
Interest income and other11,144 8,233 35,503 18,477 
Total other income (expense), net7,076 6,261 31,577 12,794 
Loss before income taxes(8,347)(19,477)(23,906)(67,184)
(Benefit from) provision for income taxes(3,868)942 466 2,222 
Net loss$(4,479)$(20,419)$(24,372)$(69,406)
Net loss per share:
Basic and diluted$(0.06)$(0.28)$(0.33)$(0.97)
Shares used in computing net loss per share:
Basic and diluted74,876 72,356 74,192 71,751 


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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30, 2024September 30, 2023
Cash flows from operating activities:
Net loss$(24,372)$(69,406)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization38,265 35,553 
Amortization of operating lease right-of-use assets10,631 9,234 
Amortization of deferred contract acquisition costs52,152 40,088 
Accretion of discount on marketable investments(16,833)(7,684)
Provision for credit losses806 795 
Stock-based compensation127,872 156,721 
Amortization of discount and issuance costs on convertible senior notes 3,991 2,793 
Gain on early extinguishment of debt(6,615)— 
Impairment charge of an equity investment1,250 — 
Interest on finance lease obligations258 77 
Deferred taxes441 438 
Tax benefit of valuation allowance associated with an acquisition(4,831)— 
Other(145)592 
Changes in operating assets and liabilities:
Accounts receivable(15,559)(6,661)
Prepaid expenses and other current assets(9,562)(6,537)
Deferred contract acquisition costs(76,288)(68,410)
Other assets(1,452)(4,892)
Accounts payable8,651 5,562 
Accrued and other current liabilities5,380 (1,149)
Deferred revenue184 1,544 
Other liabilities(871)3,636 
Net cash provided by operating activities93,353 92,294 
Cash flows from investing activities:
Purchases of marketable investments(993,483)(544,713)
Proceeds from sales of marketable investments93,995 971 
Proceeds from maturities of marketable investments829,122 415,117 
Purchases of property and equipment(33,097)(19,941)
Capitalization of software development costs(14,211)(5,820)
Cash paid to acquire Acqueon Inc.(167,166)— 
Cash paid to acquire Aceyus, Inc.99 (80,588)
Net cash used in investing activities(284,741)(234,974)
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 options423 8,315 
Proceeds from sale of common stock under ESPP9,522 9,444 
Payment of holdback related to an acquisition— (500)
Payment of finance lease liabilities(2,006)(496)
Net cash provided by financing activities339,398 91,047 
Net increase (decrease) in cash, cash equivalents and restricted cash148,010 (51,633)
Cash, cash equivalents and restricted cash:
Beginning of period144,842 180,987 
End of period$292,852 $129,354 

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FIVE9, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT
(In thousands, except percentages)
(Unaudited)
Three Months EndedNine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
GAAP gross profit$142,249 $119,025 $408,401 $351,229 
GAAP gross margin53.8 %51.7 %53.5 %52.3 %
Non-GAAP adjustments:
Depreciation7,218 6,893 21,956 19,378 
Intangibles amortization3,196 3,182 8,492 8,873 
Stock-based compensation7,512 9,856 22,904 29,077 
Exit costs related to closure and relocation of Russian operations— 18 — 93 
Acquisition and related transaction costs and one-time integration costs94 — 219 34 
Lease amortization for finance leases895 492 1,807 492 
Costs related to a reduction in force plan2,115 — 2,115 — 
Adjusted gross profit$163,279 $139,466 $465,894 $409,176 
Adjusted gross margin61.8 %60.6 %61.0 %60.9 %


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FIVE9, INC.
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(In thousands, except percentages)
(Unaudited)
Three Months EndedNine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
GAAP net loss$(4,479)$(20,419)$(24,372)$(69,406)
Non-GAAP adjustments:
Depreciation and amortization13,144 12,482 38,265 35,553 
Stock-based compensation39,556 52,611 127,872 156,721 
Interest expense4,068 1,972 10,541 5,683 
Gain on early extinguishment of debt— — (6,615)— 
Interest income and other (11,144)(8,233)(35,503)(18,477)
Exit costs related to closure and relocation of Russian operations (1)
21 659 78 2,070 
Acquisition and related transaction costs and one-time integration costs4,486 778 9,506 3,110 
Lease amortization for finance leases951 492 1,863 492 
Costs related to a reduction in force plan9,625 — 9,625 — 
(Benefit from) provision for income taxes(3,868)942 466 2,222 
Adjusted EBITDA$52,360 $41,284 $131,726 $117,968 
Adjusted EBITDA as % of revenue19.8 %17.9 %17.3 %17.6 %
(1) Exit costs related to the closure and relocation of our Russian operations were $0.2 million during both the three and nine months ended September 30, 2024. The $0.0 million and $0.1 million adjustments presented above were net of $0.2 million and $0.1 million included in “Interest income and other.” Exit costs related to the closure and relocation of our Russian operations was $0.9 million and $2.7 million during the three and nine months ended September 30, 2023. The $0.7 million and $2.1 million adjustments presented above were net of $0.2 million and $0.6 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 EndedNine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Loss from operations$(15,423)$(25,738)$(55,483)$(79,978)
Non-GAAP adjustments:
Stock-based compensation39,556 52,611 127,872 156,721 
Intangibles amortization3,196 3,182 8,492 8,873 
Exit costs related to closure and relocation of Russian operations21 659 78 2,070 
Acquisition and related transaction costs and one-time integration costs4,486 778 9,506 3,110 
Costs related to a reduction in force plan9,625 — 9,625 — 
Non-GAAP operating income$41,461 $31,492 $100,090 $90,796 

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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 EndedNine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
GAAP net loss$(4,479)$(20,419)$(24,372)$(69,406)
Non-GAAP adjustments:
Stock-based compensation39,556 52,611 127,872 156,721 
Intangibles amortization3,196 3,182 8,492 8,873 
Amortization of discount and issuance costs on convertible senior notes1,482 954 3,991 2,793 
Gain on early extinguishment of debt— — (6,615)— 
Exit costs related to closure and relocation of Russian operations176 854 156 2,705 
Acquisition and related transaction costs and one-time integration costs4,486 778 9,506 3,110 
Impairment charge of an equity investment1,250 — 1,250 — 
Costs related to a reduction in force plan9,625 — 9,625 — 
Tax benefit associated with an acquired company(4,831)— (4,831)— 
Income tax expense effects (1)
— — — — 
Non-GAAP net income$50,461 $37,960 $125,074 $104,796 
GAAP net loss per share:
Basic and diluted$(0.06)$(0.28)$(0.33)$(0.97)
Non-GAAP net income per share:
Basic$0.67 $0.52 $1.69 $1.46 
Diluted$0.67 $0.52 $1.68 $1.44 
Shares used in computing GAAP net loss per share:
Basic and diluted74,876 72,356 74,192 71,751 
Shares used in computing non-GAAP net income per share:
Basic74,876 72,356 74,192 71,751 
Diluted75,137 73,426 74,653 72,790 
(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 the Company’s domestic valuation allowance position.
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FIVE9, INC.
SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION
(In thousands)
(Unaudited)
Three Months Ended
September 30, 2024September 30, 2023
Stock-Based CompensationDepreciationIntangibles AmortizationStock-Based CompensationDepreciationIntangibles Amortization
Cost of revenue$7,512 $7,218 $3,196 $9,856 $6,893 $3,182 
Research and development8,244 721 — 12,980 831 — 
Sales and marketing12,490 32 — 16,404 36 — 
General and administrative11,310 1,977 — 13,371 1,540 — 
Total$39,556 $9,948 $3,196 $52,611 $9,300 $3,182 
Nine Months Ended
September 30, 2024September 30, 2023
Stock-Based CompensationDepreciationIntangibles AmortizationStock-Based CompensationDepreciationIntangibles Amortization
Cost of revenue$22,904 $21,956 $8,492 $29,077 $19,378 $8,873 
Research and development29,001 2,352 — 38,375 2,571 — 
Sales and marketing40,334 85 — 50,840 38 — 
General and administrative35,633 5,380 — 38,429 4,693 — 
Total$127,872 $29,773 $8,492 $156,721 $26,680 $8,873 



13


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
December 31, 2024December 31, 2024
LowHighLowHigh
GAAP net income (loss)$2,687 $7,207 $(22,000)$(17,500)
Non-GAAP adjustments:
Stock-based compensation(2)
43,479 41,479 171,351 169,351 
Intangibles amortization2,643 2,643 11,135 11,135 
Amortization of discount and issuance costs on convertible senior notes1,485 1,485 5,476 5,476 
Exit costs related to closure and relocation of Russian operations— — 156 156 
Acquisition and related transaction costs and one-time integration costs(3)
2,146 1,146 11,652 10,652 
Gain on early extinguishment of debt— — (6,615)(6,615)
Impairment charge of an equity investment— — 1,250 1,250 
Costs related to a reduction in force plan— — 9,625 9,625 
Tax benefit of valuation allowance associated with an acquisition— — (4,831)(4,831)
Income tax expense effects(4)
— — — — 
Non-GAAP net income$52,440 $53,960 $177,199 $178,699 
GAAP net income (loss) per share:
Basic$0.04 $0.10 $(0.30)$(0.23)
Diluted$0.03 $0.08 $(0.30)$(0.23)
Non-GAAP net income per share:
Basic$0.69 $0.71 $2.38 $2.40 
Diluted$0.69 $0.71 $2.36 $2.38 
Shares used in computing GAAP net income (loss) per share:
Basic75,600 75,600 74,500 74,500 
Diluted88,600 88,600 74,500 74,500 
Shares used in computing non-GAAP net income per share:
Basic75,600 75,600 74,500 74,500 
Diluted76,000 76,000 75,000 75,000 
(1)Represents guidance discussed on November 7, 2024. Reader shall not construe presentation of this information after November 7, 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.
14

(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 the Company’s domestic valuation allowance position.


15

FIVE9, INC.
TAXES AND PURCHASES OF PROPERTY AND EQUIPMENT – GUIDANCE(1)
(In thousands)
(Unaudited)


Three Months EndingYear Ending
December 31, 2024December 31, 2024
LowHighLowHigh
Taxes - Non-GAAP$2,500 $2,700 $7,797 $7,997 
Purchases of property and equipment13,000 14,000 46,097 47,097 
(1)Represents guidance discussed on November 7, 2024. Reader shall not construe presentation of this information after November 7, 2024 as an update or reaffirmation of such guidance.
16

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


# # #

17
v3.24.3
Cover Page
Nov. 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 07, 2024
Entity Registrant Name FIVE9, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-36383
Entity Tax Identification Number 94-3394123
Entity Address, Address Line One 3001 Bishop Drive,
Entity Address, Address Line Two Suite 350
Entity Address, City or Town San Ramon,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94583
City Area Code 925
Local Phone Number 201-2000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.001 per share
Trading Symbol FIVN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001288847
Amendment Flag false
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