Slide 1: Q1 2021 Investor Presentation
Q1 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: Q1'21 Highlights
Q1’21 Highlights Strong Financial Results • Q1’21 new logo bookings set an all-time record for any quarter • Q1’21 installed base bookings set an all-time record for any Q1 • Q1’21 revenue was a record $137.9M, representing 45% YoY and 8% QoQ growth • LTM DBRR increased to 121%, up from 117% last qu
Slide 4: Q1'21 Highlights (cont'd)
Q1’21 Highlights (cont’d) Go-to-Market Traction • Strategic sales teams winning landmark deals in partnership with channels • Ecosystem of partners influenced over two-thirds of Q1’21 deals International Expansion • Q1’21 EMEA bookings increased ~3x YoY • Q1’21 Latin America bookings increased ~2.5x
Slide 5: Strong, Consistent Revenue Growth
Strong, Consistent Revenue Growth Quarterly Revenue ($M) Annual Revenue ($M) +45% YoY Growth +33% YoY Growth 138 435 128 112 100 328 92 95 84 258 75 77 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 2018 2019 2020 5 © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9
Slide 6: Attractive Revenue Visibility
Attractive Revenue Visibility Recurring as a % of Total Revenue 93% 92% 91% 91% 91% 92% 93% 93% 92% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 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) 45% 39% 36% 36% 36% 35% 34% 33% 33% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 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 (Q4’20 Ann.) 83% 91 60% 3 Q2'14 (IPO) Q1'21 Q2'14 (IPO) Q4'20 Note: Historical results prior to 2018 based on ASC 605; $1M+ ARR based on Q4’20 annualized 8 © 2021 Five9, Inc. All right
Slide 9: High Customer Retention
High Customer Retention % Annual Dollar Based Retention Rate (DBRR) New Methodology Based on Net Revenue 121% 117% 112% 113% 112% 111% 111% 114% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Note: Annual DBRR based on last 12 months at the end of each respective quarter 9 © 2021 Five9, Inc. All ri
Slide 10: Exceeding "Rule of 40" Despite Increased Investments
Exceeding “Rule of 40” Despite Increased Investments YoY Revenue Growth EBITDA Margin 61% 61% 55% 53% 50% 16% 49% 46% 47% 23% 45% 44% 42% 42% 21% 38% 38% 23% 20% 34% 18% 21% 18% 34% 33% 16% 19% 31% 16% 15% 6% 29% 29% 29% 12% 13% 3% 27% 7% 14% 21% 6% 10% 4% 15% 1% 7% 6% 5% 45% 39% 34% 28% 28% 30% 31%
Slide 11: Robust Margin Expansion and Operating Leverage
Robust Margin Expansion and Operating Leverage Non-GAAP Adj. Gross Margin Non-GAAP Opex (% of revenue) Adj. EBITDA Margin 12.6% expansion 31.4% improvement 43.9% expansion IPO Today IPO Today IPO Today 79.3% 64.0% G&A 21.4% 51.5% 48.0% 8.5% S&M 37.5% 27.6% 16.1% R&D 20.4% 11.9% (27.8%) Q2’14 Q1’21 Q
Slide 12: Strong Operating Cash Flow
Strong Operating Cash Flow LTM Operating Cash Flow ($M) LTM Operating Cash Flow % LTM Operating Cash Flow Margin 15.3% 14.5% 14.8% 8.9% 71 4.1% 50 (5.2%) 42 19 (21.9%) 7 (7) (24) Q1'15 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 Q1'21 Note: Historical operating cash flow margin prior to 2018 based on ASC 605 reve
Slide 13: Q2'21 and 2021 Guidance
Q2’21 and 2021 Guidance $ in Millions Q2’21 2021 Revenue $131.5M - $132.5M $548.5M - $551.5M Taxes $325K $450K GAAP Net Income (Loss) $(25.9)M - $(24.9)M $(63.4)M - $(60.4)M Non-GAAP Net Income $9.1M - $10.1M $65.2M - $68.2M Basic Shares 68.5M 69.4M Diluted Shares 72.5M 73.4M GAAP Basic & Diluted EP
Slide 14: Long-Term Operating Model
Long-Term Operating Model Non-GAAP IPO Year Today Long-Term % of Revenue 2014 2020 Q1’21 Model Subscription / PS margin expansion Adj. Gross Margin 53% 65% 64% and increasing subscription mix 70%+ Continue to invest in GTM in line S&M 35% 26% 28% 26% - 30% with revenue growth Current acceleration of
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 March 31, 2021 December 31, 2020 Cash, cash equivalents and marketable investments $643.5 $645.7 Working capital 624.7 585.6 Total assets 1,118.7 1,063.7 Total finance leases 0.2 0.6 Total debt 782.2 643.3 Total stockholders’ equity $144.2 $279.2 16
Slide 17: GAAP to Adjusted Gross Profit Reconciliation
GAAP to Adjusted Gross Profit Reconciliation Q2’14 – Q1’21 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 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 GAAP gross profit 11,216 12,365 13,734 15,496 16,004 17,475
Slide 18: GAAP to Adjusted Gross Profit Reconciliation
GAAP to Adjusted Gross Profit Reconciliation 2014 – 2020 Year Ended 2014 2015 2016 2017 2018 2019 2020 GAAP gross profit 48,441 69,373 95,156 117,121 153,630 193,495 254,624 % GAAP gross margin 47.0% 53.8% 58.7% 58.5% 59.6% 59.0% 58.5% Depreciation & amortization 5,138 5,950 6,573 6,300 7,808 10,856
Slide 19: GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation
GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation Q2’14 – Q1’21 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 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 GAAP net income (loss) (8,659) (11,435) (9,372) (8,90
Slide 20: GAAP Net Loss to Adjusted EBITDA Reconciliation
GAAP Net Loss to Adjusted EBITDA Reconciliation 2014 – 2020 Year Ended 2014 2015 2016 2017 2018 2019 2020 GAAP net income (loss) ($37,786) ($25,838) ($11,860) ($8,969) ($221) ($4,552) ($42,130) Non-GAAP adjustments: Depreciation and amortization 6,463 7,388 8,390 8,314 10,274 14,374 25,087 Stock-bas
Slide 21: GAAP to Non-GAAP COR and OpEx Reconciliation
GAAP to Non-GAAP COR and OpEx Reconciliation Q2’14 – Q1’21 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 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 GAAP COR 13,469 13,504 14,540 14,778 14,270 14,812 15,635 1
Slide 22: GAAP to Non-GAAP COR and OpEx Reconciliation (cont'd)
GAAP to Non-GAAP COR and OpEx Reconciliation (cont’d) Q2’14 – Q1’21 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 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 GAAP G&A 3,515 7,967 6,763 7,275 6,027 6,087 6,433
Slide 23: GAAP to Non-GAAP COR and OpEx Reconciliation
GAAP to Non-GAAP COR and OpEx Reconciliation 2014 – 2020 Year Ended 2014 2015 2016 2017 2018 2019 2020 GAAP COR $54,661 $59,495 $66,934 $83,104 $104,034 $134,511 $180,284 % of revenue 53.0% 46.2% 41.3% 41.5% 40.4% 41.0% 41.5% Depreciation & amortization (5,138) (5,950) (6,573) (6,300) (7,808) (10,85
Slide 24: GAAP to Non-GAAP Net Income (Loss) Reconciliation
GAAP to Non-GAAP Net Income (Loss) Reconciliation Three Months Ended March 31, 2021 March 31, 2020 GAAP net income (loss) $ (12,332) $ (7,437) Non-GAAP adjustments: Stock-based compensation 20,908 13,794 Intangibles amortization 2,947 1,090 Amortization of discount and issuance costs on convertible
Slide 25: GAAP to Non-GAAP Net Income (Loss) Reconciliation
GAAP to Non-GAAP Net Income (Loss) Reconciliation Guidance Three Months Ending Year Ending June 30, 2021 December 31, 2021 Low High Low High GAAP net loss $ (25,862) $ (24,862) $ (63,388) $ (60,388) Non-GAAP adjustments: Stock-based compensation 25,011 25,011 96,196 96,196 Intangibles amortization 2
Slide 26: Capital Expenditure and Free Cash Flow
Capital Expenditure and Free Cash Flow 12 mo ended $ in Thousands Q1'20 Q2'20 Q3'20 Q4'20 12/31/20 Q1'21 Net cash provided by operating activities $10,394 $14,765 $22,831 $19,312 $67,302 $13,765 (Refer to cash flows from operating activities in cash flow statement) Capital expenditure Purchases of p
Slide 27: © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
© 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
Slide 28: © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.
28 © 2021 Five9, Inc. All rights reserved. Proprietary and confidential to Five9, Inc.