Five9 Inc

NASDAQ:FIVN   10:02AM EDT
66.03
+0.50 (+0.76%)
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Five9 (NASDAQ:FIVN) Reports a Beat and Raise on Earnings for C Q3 - Stock Pops After Hours





Date Published:

 

Quarter Reported Highlights

Revenue: $83.8 million versus analyst estimates of $78.66 million. Beat.

Adjusted EPS: $0.20 versus analyst estimates of $0.15. Beat.

 

Next Quarter Guidance Reported Highlights

Revenue: $86 million -$87 million versus analyst estimates of $83.2 million. Beat.

Adjusted EPS: $0.21 - $0.23 versus analyst estimates of $0.21. Beat.

 

Full Year Guidance Reported Highlights

Revenue: $321.7 to $322.7 million versus analyst estimates of $313.87 million. Beat.

Adjusted EPS: $0.77 - $0.78 versus analyst estimates of $0.71. Beat.

 

Third Quarter 2019 Financial Results

  • Revenue for the third quarter of 2019 increased 28% to a record $83.8 million, compared to $65.3 million for the third quarter of 2018.
  • GAAP gross margin was 58.8% for the third quarter of 2019, compared to 59.9% for the third quarter of 2018.
  • Adjusted gross margin was 64.0% for the third quarter of 2019, compared to 64.3% for the third quarter of 2018.
  • GAAP net loss for the third quarter of 2019 was $(1.6) million, or $(0.03) per basic share, compared to GAAP net loss of $(1.3) million, or $(0.02) per basic share, for the third quarter of 2018.
  • Non-GAAP net income for the third quarter of 2019 was $12.8 million, or $0.20 per diluted share, compared to non-GAAP net income of $11.1 million, or $0.18 per diluted share, for the third quarter of 2018.
  • Adjusted EBITDA for the third quarter of 2019 was $15.0 million, or 18.0% of revenue, compared to $12.8 million, or 19.6% of revenue, for the third quarter of 2018.
  • GAAP operating cash flow for the third quarter of 2019 was $17.7 million, compared to GAAP operating cash flow of $9.4 million for the third quarter of 2018.

“We delivered strong third quarter results. Revenue of $83.8 million grew 28% year-over-year and was driven by our Enterprise business, which delivered 36% growth in LTM Enterprise subscription revenue. More than ever before we are seeing that enterprises have learned to trust the cloud, and company leaders recognize that transforming their customer service experience is a necessity. As increasingly larger enterprises have begun to demand cloud contact centers, we have responded by hiring more engineers and scaling our team, resulting in a substantial increase in throughput and innovation. In the third quarter we maintained our strong momentum in strengthening the channel, and made excellent inroads expanding internationally. Overall, our balanced approach to growth is succeeding, and we believe the investments we have made in leadership and talent position Five9 for sustained long-term growth.”

- Rowan Trollope, CEO, Five9

Mike Burkland Transitions from Executive Chairman to Chairman of the Board

Five9 also announced that former CEO and current Executive Chairman Mike Burkland has transitioned from his role of Executive Chairman to Chairman of the Board of Directors effective October 29, 2019. Mike Burkland served as CEO at Five9 for 10 years before transitioning to Executive Chairman in December of 2017, after being diagnosed with stage 4 cancer.

“It’s extremely gratifying for me to see Five9 achieve continued success under Rowan’s leadership as CEO these last 18 months. Given my confidence in his leadership and the business performance, I’ve made the decision to transition to Chairman of the Board. I look forward to continuing to work with Rowan and the team as we work to take Five9 to even greater heights,” said Mike Burkland, Chairman of the Board, Five9.

“Under Mike’s 10 years as CEO, Five9 grew from an early-stage private company to a market leading public company in the cloud contact center software market. I would like to thank Mike for his tremendous leadership here at Five9 and look forward to his continued service as Chairman of the Board,” said Rowan Trollope, CEO, Five9.

Business Outlook

  • For the full year 2019, Five9 expects to report:
    • Revenue in the range of $321.7 to $322.7 million, up from the prior guidance range of $312.5 to $314.5 million that was previously provided on July 31, 2019.
    • GAAP net loss in the range of $(6.8) to $(5.8) million or $(0.11) to $(0.10) per basic share, improved from the prior guidance range of $(12.0) to $(10.0) million or $(0.20) to $(0.16) per basic share, that was previously provided on July 31, 2019.
    • Non-GAAP net income in the range of $48.8 to $49.8 million or $0.77 to $0.78 per diluted share, improved from the prior guidance range of $44.7 to $46.7 million or $0.70 to $0.73 per diluted share, that was previously provided on July 31, 2019.
  • For the fourth quarter of 2019, Five9 expects to report:
    • Revenue in the range of $86.0 to $87.0 million.
    • GAAP net loss in the range of $(1.4) to $(0.4) million, or $(0.02) to $(0.01) per basic share.
    • Non-GAAP net income in the range of $13.7 to $14.7 million, or $0.21 to $0.23 per diluted share.