Slide 1: Q4 2021 Investor Presentation
Q4 2021 Investor Presentation Five9 (NASDAQ: FIVN) © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
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”
Slide 3: Q4'21 and 2021 Highlights
Q4’21 and 2021 Highlights Strong Financial Results ◦ All-time record bookings for any quarter ◦ Q4'21 revenue was a record $173.6M, representing 36% YoY and 12% QoQ growth ◦ 2021 revenue was a record $609.6M, representing 40% YoY growth ◦ LTM DBBR of 122% ◦ Q4'21 adjusted EBITDA margin of 21.3% ◦ 20
Slide 4: Q4'21 and 2021 Highlights (cont'd)
Q4’21 and 2021 Highlights (cont’d) Product Leadership and Innovation ◦ IVAs accounted for approximately 10% of Enterprise bookings to new logos, including $1.7M standalone IVA deal with a global hotel chain ◦ IVA usage tripled YoY ◦ Recently launched Studio 7, which enables new technologies such as
Slide 5: Strong, Consistent Revenue Growth
Strong, Consistent Revenue Growth Quarterly Revenue ($M) Annual Revenue ($M) +36% YoY Growth +40% YoY Growth 5 © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
Slide 6: Attractive Revenue Visibility
Attractive Revenue Visibility Recurring as a % of Total Revenue 6 © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
Slide 7: Executing on Enterprise Opportunity
Executing on Enterprise Opportunity % YoY Enterprise Subscription Revenue Growth (LTM) 7 © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
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 (Q4’21 Ann.) Note: Historical results prior to 2018 based on ASC 605; $1M+ ARR based on Q4’21 annualized 8 © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9
Slide 9: High Customer Retention
High Customer Retention % Annual Dollar Based Retention Rate (DBRR) New Methodology Based on Net Revenue Note: Annual DBRR based on last 12 months at the end of each respective quarter 9 © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
Slide 10: Exceeding "Rule of 40" Despite Increased Investments
Exceeding “Rule of 40” Despite Increased Investments YoY Revenue Growth EBITDA Margin 61% 61% 61% 57% 56% 55% 53% 50% 49% 45% 46% 47% 44% 42% 42% 38% 38% 34% 34% 33% 31% 29% 29% 29% 27% 4% 14% 15% 21% 5% Note: Historical results prior to 2018 based on ASC 605 10 © 2021 Five9, Inc. All rights reserve
Slide 11: Robust Margin Expansion and Operating Leverage
Robust Margin Expansion and Operating Leverage Non-GAAP Adj. Gross Margin Non-GAAP Opex (% of revenue) Adj. EBITDA Margin 11.3% expansion 37.8% improvement 49.1% expansion IPO Today IPO Today IPO Today G&A S&M R&D Q2'14 Q4'21 Q2'14 Q4'21 Q2'14 Q4'21 Note: Non-GAAP metrics exclude depreciation, intan
Slide 12: Operating Cash Flow and Margin
Operating Cash Flow and Margin LTM Operating Cash Flow ($M) 2021 impacted by higher DSO in Q4 due to new billing system and one-time transaction expenses in Q3 Note: Historical operating cash flow margin prior to 2018 based on ASC 605 revenue 12 © 2021 Five9, Inc. All rights reserved. Proprietary an
Slide 13: Q1'22 and 2022 Guidance
Q1’22 and 2022 Guidance Q1’22 2022 Revenue $170.0M - $171.0M $754.5M - $757.5M Non-GAAP Net Income Per Diluted Share $0.12 - $0.14 $1.12 - $1.16 Diluted Shares 71M 73M Taxes $250K $1M Capital Expenditures $16.5M - $17.5M $65M - $67M 13 © 2021 Five9, Inc. All rights reserved. Proprietary and confiden
Slide 14: Long-Term Operating Model
Long-Term Operating Model Non-GAAP IPO Year Today Long-Term % of Revenue 2014 2021 Model Subscription / PS margin expansion Adj. Gross Margin 53% 64% 70%+ and increasing subscription mix Continue to invest in GTM in line S&M 35% 26% 26% - 30% with revenue growth Current acceleration offset by R&D 19
Slide 15: Appendix
Appendix 15 © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
Slide 16: Balance Sheet Summary
Balance Sheet Summary Quarter Ended $ in Millions December 31, 2021 December 31, 2020 Cash, cash equivalents and marketable investments $617.2 $645.7 Working capital 459.7 585.6 Total assets 1,192.9 1,063.7 Total finance leases — 0.6 Total debt 768.6 643.3 Total stockholders’ equity 211.1 279.2 16 ©
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 $
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,
Slide 19: GAAP to Adjusted Gross Profit Reconciliation
GAAP to Adjusted Gross Profit Reconciliation 2014 – 2021 Year Ended 2014 2015 2016 2017 2018 2019 2020 2021 GAAP gross profit $ 48,441 $ 69,373 $ 95,156 $ 117,121 $ 153,630 $ 193,495 $ 254,624 $ 338,492 % GAAP gross margin 47.0 % 53.8 % 58.7 % 58.5 % 59.6 % 59.0 % 58.5 % 55.5 % Depreciation & amorti
Slide 20: 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 $
Slide 21: 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
Slide 22: GAAP Net Loss to Adjusted EBITDA Reconciliation
GAAP Net Loss to Adjusted EBITDA Reconciliation 2014 – 2021 Year Ended 2014 2015 2016 2017 2018 2019 2020 2021 GAAP net income (loss) $ (37,786) $ (25,838) $ (11,860) $ (8,969) $ (221) $ (4,552) $ (42,130) $ (53,000) Non-GAAP adjustments: Depreciation and amortization 6,463 7,388 8,390 8,314 10,274
Slide 23: 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 $
Slide 24: 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 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 $ 17,3
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 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 rev
Slide 26: 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,
Slide 27: 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 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,
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 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 $ 22,90
Slide 29: GAAP to Non-GAAP COR and OpEx Reconciliation
GAAP to Non-GAAP COR and OpEx Reconciliation 2014 – 2021 Year Ended 2014 2015 2016 2017 2018 2019 2020 2021 GAAP COR $ 54,661 $ 59,495 $ 66,934 $ 83,104 $ 104,034 $ 134,511 $ 180,284 $ 271,099 % of revenue 53.0 % 46.2 % 41.3 % 41.5 % 40.4 % 41.0 % 41.5 % 44.5 % Depreciation & amortization (5,138) (5
Slide 30: GAAP to Non-GAAP COR and OpEx Reconciliation
GAAP to Non-GAAP COR and OpEx Reconciliation 2014 – 2021 Year Ended 2014 2015 2016 2017 2018 2019 2020 2021 GAAP G&A $ 24,416 $ 25,822 $ 25,072 $ 29,151 $ 40,448 $ 49,446 $ 65,769 $ 93,916 % of revenue 23.7 % 20.0 % 15.5 % 14.6 % 15.7 % 15.1 % 15.1 % 15.4 % Depreciation & amortization (900) (777) (8
Slide 31: GAAP to Non-GAAP Net Income (Loss) Reconciliation
GAAP to Non-GAAP Net Income (Loss) Reconciliation Three Months Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 GAAP net loss $ (3,601) $ (7,210) $ (53,000) $ (42,130) Non-GAAP adjustments: Stock-based compensation 35,601 16,876 108,805 64,747 Intangibles amor
Slide 32: Capital Expenditure and Free Cash Flow
Capital Expenditure and Free Cash Flow 12 mo ended 12 mo ended $ in Thousands Q1'20 Q2'20 Q3'20 Q4'20 12/31/2020 Q1'21 Q2'21 Q3'21 Q4'21 12/31/2021 Net cash provided by operating activities $ 10,394 $ 14,765 $ 22,831 $ 19,312 $ 67,302 $ 13,765 $ 11,392 $ (4,808) $ 8,136 $ 28,485 (Refer to cash flows
Slide 33: Thank You
Thank You © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
Slide 34: © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
34 © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.