Slide 1: Q4 2023 Investor Presentation
Q4 2023 Investor Presentation Five9 (NASDAQ: FIVN) © 2024 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: 2023 and Q4 Highlights
2023 and Q4 Highlights Strong Financial Results ◦ 2023 revenue was a record $910.5M, representing 17% YoY growth ◦ Q4’23 revenue was a record $239.1M, representing 15% YoY growth ◦ LTM ENT subscription revenue growth of 25% YoY ◦ 2023 adjusted EBITDA margin of 18.3% ◦ Q4’23 adjusted EBITDA margin of
Slide 4: 2023 and Q4'23 Highlights (cont'd)
2023 and Q4’23 Highlights (cont’d) Channel and International Momentum ◦ 2023 international revenue grew 28% YoY ◦ Expanded footprint in the DACH region ◦ Listed our intelligent CX platform on Google Cloud Marketplace ◦ In 2023, number of global partner sales certifications tripled YoY, and partner i
Slide 5: Consistent Revenue Growth
Consistent Revenue Growth Quarterly Revenue ($M) Annual Revenue ($M) 15% YoY Growth 17% YoY Growth 910 239 779 223 230 218 208 198 183 189 610 174 154 138 144 128 435 112 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 2018 2019 2020 202
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% 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 6 © 2024 Five9, Inc. All rights reserved. Proprietary and confidential to Fi
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% 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 7 © 2024 Five9, Inc. All rights reserved. Proprietary
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 87% 60% 3 Q2'14 (IPO) Q4'23 Q2'14 (IPO) Q4'23 Note: Historical results prior to 2018 based on ASC 605; $1M+ ARR based on Q4’23 annualized 8 © 2024 Five9, Inc. All righ
Slide 9: High Customer Retention
High Customer Retention % Annual Dollar Based Retention Rate (DBRR) 121% 123% 123% 122% 117% 120% 118% 118% 114% 115% 114% 111% 111% 112% 110% 110% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Note: Annual DBRR based on last 12 months at the end of
Slide 10: Continuing to Drive Balanced Growth
Continuing to Drive Balanced Growth % YoY Revenue Growth % EBITDA Margin 61% 61% 61% 57% 55% 55% 53% 50% 16% 17% 49% 49% 47% 47% 23% 44% 45% 46% 46% 42% 42% 18% 21% 42% 21% 38% 38% 23% 18% 34% 34% 20% 21% 18% 13% 19% 36% 36% 34% 35% 16% 18% 31% 33% 16% 19% 15% 29% 29% 29% 12% 13% 27% 6% 7% 22% 14% 2
Slide 11: Robust Margin Expansion and Operating Leverage
Robust Margin Expansion and Operating Leverage Non-GAAP Adj. Gross Margin Non-GAAP Opex (% of revenue) Adj. EBITDA Margin 9.8% expansion 38.2% improvement 48.0% expansion 61.3% 79.3% 51.5% G&A 21.4% 41.1% 20.2% S&M 37.5% 6.3% 24.1% R&D 20.4% (27.8%) 10.7% Q2'14 (IPO) Q4'23 Q2'14 (IPO) Q4'23 Q2'14 (I
Slide 12: Operating Cash Flow and Margin
Operating Cash Flow and Margin LTM Operating Cash Flow ($M) DSO of 32 days in Q4'23 LTM Operating Cash Flow 15.0% 15.6% 15.5% 14.2% 150 .0 % LTM Operating Cash Flow Margin 11.4% 130 .0 128.8 10. 0% 4.2% 5.5% 4.8% 110 .0 0.0 % 90.0 88.9 70.0 67.3 (10.0%) 51.2 50.0 38.6 (20.0%) 29.0 30.0 11.1 (30.0%)
Slide 13: Balance Sheet Summary
Balance Sheet Summary Quarter Ended $ in Millions December 31, 2023 December 31, 2022 Cash, cash equivalents and marketable investments $730.3 $615.1 Working capital 756.8 627.9 Total assets 1,494.6 1,244.5 Total debt 742.1 738.5 Total stockholders’ equity 538.1 310.0 13 © 2024 Five9, Inc. All right
Slide 14: Q1'24 and 2024 Guidance
Q1’24 and 2024 Guidance Q1’24 2024 Revenue $239.0M - $240.0M $1.053B - $1.057B GAAP Net Loss Per Basic Share ($0.34) – ($0.28) ($0.61) – ($0.53) Non-GAAP Net Income Per Diluted Share $0.37 - $0.39 $2.14 - $2.18 Basic Shares 73.6M 74.6M Diluted Shares 74.7M 75.9M Taxes $850K $3.9M Purchase of PP&E $1
Slide 15: Long-Term Operating Model
Long-Term Operating Model Non-GAAP Today Long-Term % of Revenue Q4’23 Model 2027 Revenue $239M 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 24% 26% - 30% reven
Slide 16: Appendix
Appendix 16 © 2024 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
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 Q1’22 – Q4’23 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GAAP gross profit $ 93,910 $ 101,153 $ 104,231 $ 112,051 $ 113,683 $ 118,521 $ 119,025 $ 126,569 % GAAP gross margin 51.4 % 53.4 % 52.6 % 53.8 % 52.0 % 53.0 % 51.7 % 52.9 % Deprec
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
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 $
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
Slide 23: GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation
GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation Q1’22 – Q4’23 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GAAP net income (loss) $ (34,120) $ (23,670) $ (23,207) $ (13,653) $ (27,248) $ (21,739) $ (20,419) $ (12,358) Non-GAAP adjustments: Depreciation and amortization 10,795 11,
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
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 $
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
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.
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,
Slide 29: GAAP to Non-GAAP COR and OpEx Reconciliation
GAAP to Non-GAAP COR and OpEx Reconciliation Q1’22 – Q4’23 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GAAP COR $ 88,867 $ 88,229 $ 94,111 $ 96,294 $ 104,756 $ 104,361 $ 111,080 $ 112,493 % of revenue 48.6 % 46.6 % 47.4 % 46.2 % 48.0 % 46.8 % 48.3 % 47.1 % Depreciation & amortizati
Slide 30: Non-GAAP OpEx Reconciliation Q1'18 – Q4'21
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
Slide 31: Non-GAAP OpEx Reconciliation Q1'22 – Q4'23
GAAP to Non-GAAP OpEx Reconciliation Q1’22 – Q4’23 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GAAP S&M $ 64,611 $ 64,098 $ 67,353 $ 65,928 $ 76,314 $ 74,077 $ 73,366 $ 72,956 % of revenue 35.3 % 33.8 % 34.0 % 31.6 % 34.9 % 33.2 % 31.9 % 30.5 % Depreciation & amortization (1) (1) (
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
Slide 33: GAAP to Non-GAAP OpEx Reconciliation
GAAP to Non-GAAP OpEx Reconciliation Q1’22 – Q4’23 Quarter Ended Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GAAP G&A $ 24,314 $ 23,824 $ 24,496 $ 22,509 $ 28,258 $ 30,477 $ 31,006 $ 33,338 % of revenue 13.3 % 12.6 % 12.4 % 10.8 % 12.9 % 13.7 % 13.5 % 13.9 % Depreciation & amortization (1,469) (
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
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
Slide 36: GAAP to Non-GAAP Net Income (Loss) Reconciliation
GAAP to Non-GAAP Net Income (Loss) Reconciliation Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 GAAP net loss $ (12,358) $ (13,653) $ (81,764) $ (94,650) Non-GAAP adjustments: Stock-based compensation 49,571 43,824 206,292 172,507 Inta
Slide 37: Capital Expenditure and Free Cash Flow (Q1'21 - Q4'23)
Capital Expenditure and Free Cash Flow (Q1'21 - Q4'23) 12 mo 12 mo 12 mo ended ended ended 12/31/20 12/31/20 12/31/20 $ in Thousands Q1'21 Q2'21 Q3'21 Q4'21 21 Q1'22 Q2'22 Q3'22 Q4'22 22 Q1'23 Q2'23 Q3'23 Q4'23 23 Net cash provided by operating activities $ 13,765 $ 11,392 $ (4,808) $ 8,649 $ 28,998
Slide 38: GAAP to Non-GAAP Net Income (Loss) Reconciliation
GAAP to Non-GAAP Net Income (Loss) Reconciliation Guidance(1) Three Months Ended Twelve Months Ended March 31, 2024 December 31, 2024 Low High Low High GAAP net loss $ (25,349) $ (20,855) $ (45,238) $ (39,202) Non-GAAP adjustments: Stock-based compensation(2) 46,249 44,249 184,415 182,415 Intangible
Slide 39: Thank You
Thank You © 2024 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
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.