Five9, Inc. · NASDAQ:FIVN

Five9 — Q1 2024 Earnings Presentation

40 slides from Five9's earnings presentation, 2024

  1. Slide 1: Q1 2024 Investor Presentation

    Q1 2024 Investor Presentation Five9 (NASDAQ: FIVN) © 2024 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation is proprietary and is intended solely for the information of the persons to whom it is presented. Disclosure of this presentation, its contents, extracts or abstracts to third parties is not authorized without the express written permission of Five9, Inc. (the “Company”

  3. Slide 3: Q1'24 Highlights

    Q1’24 Highlights Strong Financial Results ◦ Q1’24 revenue was a record $247.0M ◦ Total subscription revenue growth of 20% YoY, representing nearly 80% of total revenue ◦ Q1’24 adjusted EBITDA margin of 15.2% of revenue ◦ Strong LTM operating cash flow of $128M, or 14% of revenue Up-market Execution

  4. Slide 4: Q1'24 Highlights (cont'd)

    Q1’24 Highlights (cont’d) Channel and International Momentum ◦ Increased momentum with enablement and certification, further incentivizing SIs to lead with Five9 in some of the largest global opportunities ◦ First and only CCaaS partner of Salesforce to reach Summit status ◦ BT partnership continues

  5. Slide 5: Consistent Revenue Growth

    Consistent Revenue Growth Quarterly Revenue ($M) Annual Revenue ($M) 13% YoY Growth 17% YoY Growth 910 247 239 779 223 230 218 208 198 183 189 610 174 154 138 144 128 435 112 95 100 328 258 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 2018 201

  6. Slide 6: Attractive Revenue Visibility

    Attractive Revenue Visibility Recurring as a % of Total Revenue 92% 93% 93% 92% 92% 92% 93% 92% 92% 92% 92% 93% 91% 91% 91% 91% 91% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 6 © 2024 Five9, Inc. All rights reserved. Proprietary and confiden

  7. Slide 7: Executing on Enterprise Opportunity

    Executing on Enterprise Opportunity % YoY Enterprise Subscription Revenue Growth (LTM) 51% 51% 50% 45% 46% 39% 41% 37% 35% 33% 33% 32% 31% 28% 28% 25% 23% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 7 © 2024 Five9, Inc. All rights reserved. P

  8. Slide 8: Executing on Enterprise Opportunity (cont'd)

    Executing on Enterprise Opportunity (cont’d) Enterprise as a % of Total Revenue (LTM) Enterprise Customers $1M+ ARR (Q4’23 Ann.) 183 88% 60% 3 Q2'14 (IPO) Q1'24 Q2'14 (IPO) Q4'23 Note: Historical results prior to 2018 based on ASC 605; $1M+ ARR based on Q4’23 annualized 8 © 2024 Five9, Inc. All righ

  9. Slide 9: High Customer Retention

    High Customer Retention % Annual Dollar Based Retention Rate (DBRR) 121% 123% 123% 122% 117% 120% 118% 118% 114% 115% 114% 111% 111% 112% 110% 110% 109% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Note: Annual DBRR based on last 12 months at

  10. Slide 10: Continuing to Drive Balanced Growth

    Continuing to Drive Balanced Growth % YoY Revenue Growth % EBITDA Margin 61% 61% 61% 57% 55% 55% 53% 50% 16% 17% 49% 49% 47% 47% 23% 44% 45% 46% 46% 42% 42% 18% 21% 42% 21% 38% 38% 23% 18% 34% 34% 20% 21% 18% 13% 19% 36% 36% 34% 35% 16% 18% 31% 33% 16% 19% 15% 29% 29% 29% 12% 13% 28% 3% 27% 6% 7% 22

  11. Slide 11: Robust Margin Expansion and Operating Leverage

    Robust Margin Expansion and Operating Leverage Non-GAAP Adj. Gross Margin Non-GAAP Opex (% of revenue) Adj. EBITDA Margin 9.3% point expansion 33.7% point improvement 43.0% point expansion 60.8% 79.3% 51.5% G&A 21.4% 45.6% 15.2% 6.6% S&M 37.5% 27.1% R&D 20.4% (27.8%) 11.9% Q2'14 (IPO) Q1'24 Q2'14 (I

  12. Slide 12: Operating Cash Flow and Margin

    Operating Cash Flow and Margin LTM Operating Cash Flow ($M) DSO of 33 days in Q1'24 150 .0 LTM Operating Cash Flow 15.3% 14.5% 14.8% 13.6% % LTM Operating Cash Flow Margin 11.5% 8.9% 127.8 6.6% 130 .0 10. 0% 4.1% 110 .0 93.6 0.0 % 90.0 70.7 (10.0%) 70.0 50.4 50.0 41.8 43.3 (20.0%) 30.0 18.9 (30.0%)

  13. Slide 13: Balance Sheet Summary

    Balance Sheet Summary Quarter Ended $ in Millions March 31, 2024 December 31, 2023 Cash, cash equivalents and marketable investments $1,083.4 $730.3 Working capital 1,105.8 756.8 Total assets 1,871.3 1,494.6 Total debt 1,161.0 742.1 Total stockholders’ equity 483.6 538.1 13 © 2024 Five9, Inc. All ri

  14. Slide 14: Q2'24 and 2024 Guidance

    Q2’24 and 2024 Guidance Q2’24 2024 Revenue $244.0M – $245.0M $1.053B – $1.057B GAAP Net Loss Per Basic Share ($0.28) – ($0.23) ($0.44) – ($0.35) Non-GAAP Net Income Per Diluted Share $0.42 – $0.44 $2.15 – $2.19 Basic Shares 74.3M 74.2M Diluted Shares 74.9M 75.2M Taxes $1.1M $4.5M Purchase of PP&E $1

  15. Slide 15: Long-Term Operating Model

    Long-Term Operating Model Non-GAAP Today Long-Term % of Revenue Q1’24 Model 2027 Revenue $247M Continued growth in Enterprise subscriptions $2.4B Subscription margin expansion and increasing Adj. Gross Margin 61% 70%+ subscription mix Continued investments in GTM in line with S&M 27% 26% - 30% reven

  16. Slide 16: Appendix

    Appendix 16 © 2024 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.

  17. Slide 17: GAAP to Adjusted Gross Profit Reconciliation

    GAAP to Adjusted Gross Profit Reconciliation Q2’14 – Q4’17 Quarter Ended Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 GAAP gross profit $ 11,216 $ 12,365 $ 13,734 $ 15,496 $ 16,004 $ 17,475 $ 20,398 $ 21,405 $ 22,122 $ 23,192 $ 28,437 $ 27,043 $ 27,454 $

  18. Slide 18: GAAP to Adjusted Gross Profit Reconciliation

    GAAP to Adjusted Gross Profit Reconciliation Q1’18 – Q4’21 Quarter Ended Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 GAAP gross profit $ 34,203 $ 36,306 $ 39,125 $ 43,996 $ 43,687 $ 46,188 $ 49,297 $ 54,323 $ 55,051 $ 57,339 $ 65,582 $ 76,652 $ 78,

  19. Slide 19: GAAP to Adjusted Gross Profit Reconciliation

    GAAP to Adjusted Gross Profit Reconciliation Q1’22 – Q1’24 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 GAAP gross profit $ 93,910 $ 101,153 $ 104,231 $ 112,051 $ 113,683 $ 118,521 $ 119,025 $ 126,569 $ 132,480 % GAAP gross margin 51.4 % 53.4 % 52.6 % 53.8 % 52.0 % 53.0 % 51.7

  20. Slide 20: GAAP to Adjusted Gross Profit Reconciliation

    GAAP to Adjusted Gross Profit Reconciliation 2014 – 2023 Year Ended 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP gross profit $ 48,441 $ 69,373 $ 95,156 $ 117,121 $ 153,630 $ 193,495 $ 254,624 $ 338,492 $ 411,345 $ 477,798 % GAAP gross margin 47.0 % 53.8 % 58.7 % 58.5 % 59.6 % 59.0 % 58.5

  21. Slide 21: GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation

    GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation Q2’14 – Q4’17 Quarter Ended Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 GAAP net income (loss) $ (8,659) $ (11,435) $ (9,372) $ (8,903) $ (7,369) $ (6,048) $ (3,518) $ (4,911) $ (3,468) $ (3,890) $ 409 $

  22. Slide 22: GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation

    GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation Q1’18 – Q4’21 Quarter Ended Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 GAAP net income (loss) $ (607) $ (2,042) $ (1,305) $ 3,733 $ (1,924) $ (1,860) $ (1,604) $ 836 $ (7,437) $ (16,052) $ (11,431

  23. Slide 23: GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation

    GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation Q1’22 – Q1’24 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 GAAP net income (loss) $ (34,120) $ (23,670) $ (23,207) $ (13,653) $ (27,248) $ (21,739) $ (20,419) $ (12,358) $ (7,077) Non-GAAP adjustments: Depreciation and amortiz

  24. Slide 24: GAAP Net Loss to Adjusted EBITDA Reconciliation

    GAAP Net Loss to Adjusted EBITDA Reconciliation 2014 – 2023 Year Ended 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP net income (loss) $ (37,786) $ (25,838) $ (11,860) $ (8,969) $ (221) $ (4,552) $ (42,130) $ (53,000) $ (94,650) $ (81,764) Non-GAAP adjustments: Depreciation and amortization

  25. Slide 25: GAAP to Non-GAAP COR and OpEx Reconciliation

    GAAP to Non-GAAP COR and OpEx Reconciliation Q2’14 – Q4’17 Quarter Ended Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 GAAP COR $ 13,469 $ 13,504 $ 14,540 $ 14,778 $ 14,270 $ 14,812 $ 15,635 $ 16,610 $ 16,764 $ 17,790 $ 15,770 $ 19,971 $ 20,273 $ 20,497 $

  26. Slide 26: GAAP to Non-GAAP OpEx Reconciliation

    GAAP to Non-GAAP OpEx Reconciliation Q2’14 – Q4’17 Quarter Ended Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 GAAP S&M $ 9,674 $ 9,296 $ 9,453 $ 9,931 $ 10,594 $ 10,797 $ 10,720 $ 12,706 $ 12,637 $ 12,925 $ 14,480 $ 15,778 $ 16,932 $ 16,502 $ 17,358 % of

  27. Slide 27: GAAP to Non-GAAP OpEx Reconciliation

    GAAP to Non-GAAP OpEx Reconciliation Q2’14 – Q4’17 Quarter Ended Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 GAAP G&A $ 3,515 $ 7,967 $ 6,763 $ 7,275 $ 6,027 $ 6,087 $ 6,433 $ 6,536 $ 5,882 $ 6,143 $ 6,511 $ 8,860 $ 6,845 $ 4,679 $ 8,767 % of revenue 14.

  28. Slide 28: GAAP to Non-GAAP COR and OpEx Reconciliation

    GAAP to Non-GAAP COR and OpEx Reconciliation Q1’18 – Q4’21 Quarter Ended Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 GAAP COR $ 24,702 $ 24,814 $ 26,179 $ 28,339 $ 30,851 $ 31,248 $ 34,472 $ 37,940 $ 40,037 $ 42,453 $ 46,561 $ 51,233 $ 59,803 $ 64,

  29. Slide 29: GAAP to Non-GAAP COR and OpEx Reconciliation

    GAAP to Non-GAAP COR and OpEx Reconciliation Q1’22 – Q1’24 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 GAAP COR $ 88,867 $ 88,229 $ 94,111 $ 96,294 $ 104,756 $ 104,361 $ 111,080 $ 112,493 $ 114,530 % of revenue 48.6 % 46.6 % 47.4 % 46.2 % 48.0 % 46.8 % 48.3 % 47.1 % 46.4 % De

  30. Slide 30: GAAP to Non-GAAP OpEx Reconciliation

    GAAP to Non-GAAP OpEx Reconciliation Q1’18 – Q4’21 Quarter Ended Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 GAAP S&M $ 17,478 $ 17,912 $ 17,818 $ 18,793 $ 21,701 $ 23,250 $ 25,014 $ 25,627 $ 30,160 $ 32,231 $ 32,969 $ 37,053 $ 44,799 $ 46,024 $ 49

  31. Slide 31: GAAP to Non-GAAP OpEx Reconciliation

    GAAP to Non-GAAP OpEx Reconciliation Q1’22 – Q1’24 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 GAAP S&M $ 64,611 $ 64,098 $ 67,353 $ 65,928 $ 76,314 $ 74,077 $ 73,366 $ 72,956 $ 81,109 % of revenue 35.3 % 33.8 % 34.0 % 31.6 % 34.9 % 33.2 % 31.9 % 30.5 % 32.8 % Depreciation &

  32. Slide 32: GAAP to Non-GAAP OpEx Reconciliation

    GAAP to Non-GAAP OpEx Reconciliation Q1’18 – Q4’21 Quarter Ended Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 GAAP G&A $ 9,103 $ 9,833 $ 10,746 $ 10,766 $ 11,762 $ 12,042 $ 12,146 $ 13,496 $ 14,658 $ 16,129 $ 16,724 $ 18,258 $ 22,245 $ 22,909 $ 26,7

  33. Slide 33: GAAP to Non-GAAP OpEx Reconciliation

    GAAP to Non-GAAP OpEx Reconciliation Q1’22 – Q1’24 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 GAAP G&A $ 24,314 $ 23,824 $ 24,496 $ 22,509 $ 28,258 $ 30,477 $ 31,006 $ 33,338 $ 30,548 % of revenue 13.3 % 12.6 % 12.4 % 10.8 % 12.9 % 13.7 % 13.5 % 13.9 % 12.4 % Depreciation &

  34. Slide 34: GAAP to Non-GAAP COR and OpEx Reconciliation

    GAAP to Non-GAAP COR and OpEx Reconciliation 2014 – 2023 Year Ended 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP COR $ 54,661 $ 59,495 $ 66,934 $ 83,104 $ 104,034 $ 134,511 $ 180,284 $ 271,099 $ 367,501 $ 432,690 % of revenue 53.0 % 46.2 % 41.3 % 41.5 % 40.4 % 41.0 % 41.5 % 44.5 % 47.2 % 4

  35. Slide 35: GAAP to Non-GAAP OpEx Reconciliation

    GAAP to Non-GAAP OpEx Reconciliation 2014 – 2023 Year Ended 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP G&A $ 24,416 $ 25,822 $ 25,072 $ 29,151 $ 40,448 $ 49,446 $ 65,769 $ 93,916 $ 95,143 $ 123,079 % of revenue 23.7 % 20.0 % 15.5 % 14.6 % 15.7 % 15.1 % 15.1 % 15.4 % 12.2 % 13.5 % Depreci

  36. Slide 36: GAAP to Non-GAAP Net Income (Loss) Reconciliation

    GAAP to Non-GAAP Net Income (Loss) Reconciliation Three Months Ended March 31, 2024 March 31, 2023 GAAP net loss $ (7,077) $ (27,248) Non-GAAP adjustments: Stock-based compensation 44,684 50,743 Intangibles amortization 2,648 2,846 Amortization of discount and issuance costs on convertible senior no

  37. Slide 37: Capital Expenditure and Free Cash Flow (Q1'22 - Q1'24)

    Capital Expenditure and Free Cash Flow (Q1'22 - Q1'24) 12 mo 12 mo ended ended $ in Thousands Q1'22 Q2'22 Q3'22 Q4'22 12/31/2022 Q1'23 Q2'23 Q3'23 Q4'23 12/31/2023 Q1'24 Net cash provided by operating activities $ 28,724 $ (3,125) $ 30,526 $ 32,740 $ 88,865 $ 33,412 $ 21,852 $ 37,030 $ 36,544 $128,8

  38. Slide 38: GAAP to Non-GAAP Net Income (Loss) Reconciliation - Guidance

    GAAP to Non-GAAP Net Income (Loss) Reconciliation Guidance(1) Three Months Ended Twelve Months Ended June 30, 2024 December 31, 2024 Low High Low High GAAP net loss $ (20,587) $ (17,089) $ (32,884) $ (25,876) Non-GAAP adjustments: Stock-based compensation(2) 46,315 44,315 179,560 175,560 Intangibles

  39. Slide 39: Thank You

    Thank You 39 © 2024 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.

  40. Slide 40: © 2024 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.

    40 © 2024 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.

Five9 — Q1 2024 Earnings Presentation on 6ix