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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
 CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 20, 2025
FIVE9, INC.
(Exact name of Registrant as specified in its charter)
 
Delaware001-3638394-3394123
(State or other jurisdiction
of incorporation)
(Commission File No.)
(I.R.S. Employer
Identification No.)
3001 Bishop Drive, Suite 350
San Ramon, CA 94583
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (925) 201-2000
Not Applicable
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
_______________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common stock, par value $0.001 per shareFIVNThe NASDAQ Global Market
Indicated by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐ 



Item 2.02 Results of Operations and Financial Condition.
On February 20, 2025, Five9, Inc. (the “Company”) announced its financial results for the fiscal quarter and year ended December 31, 2024. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1 furnished herewith) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 8.01 Other Events.
The Company’s Board of Directors has determined that the Company’s 2025 Annual Meeting of Stockholders (the “Annual Meeting”) will be held on May 21, 2025 virtually via the Internet beginning at 8:30 a.m. Pacific Daylight Time. Stockholders of record at the close of business on the record date, March 25, 2025, may vote at the Annual Meeting, including any adjournment or postponement thereof.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
 
Exhibit No.  Description
  
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   FIVE9, INC.
Date: February 20, 2025
   By: /s/ Barry Zwarenstein
    Barry Zwarenstein
    
Chief Financial Officer




Exhibit 99.1
newfive9logoa.jpg

Five9 Reports Record Full Year 2024 Revenue of $1 Billion
Q4 Subscription Revenue Growth of 19%
Q4 Total Revenue Growth of 17%
Q4 Record Operating Cash Flow of $50 Million
SAN RAMON, Calif. - February 20, 2025 - Five9, Inc. (NASDAQ:FIVN), the Intelligent CX Platform provider, today reported results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Results
•Revenue for the fourth quarter of 2024 increased 17% to a record $278.7 million, compared to $239.1 million for the fourth quarter of 2023.
•GAAP gross margin was 56.0% for the fourth quarter of 2024, compared to 52.9% for the fourth quarter of 2023.
•Adjusted gross margin was 63.5% for the fourth quarter of 2024, compared to 61.3% for the fourth quarter of 2023.
•GAAP net income for the fourth quarter of 2024 was $11.6 million, or 4.2% of revenue and $0.13 per diluted share, compared to GAAP net loss of $(12.4) million, or (5.2)% of revenue and $(0.17) per basic share, for the fourth quarter of 2023.
•Non-GAAP net income for the fourth quarter of 2024 was $60.3 million, or 21.6% of revenue and $0.79 per diluted share, compared to non-GAAP net income of $45.1 million, or 18.9% of revenue and $0.61 per diluted share, for the fourth quarter of 2023.
•Adjusted EBITDA for the fourth quarter of 2024 was $64.3 million, or 23.1% of revenue, compared to $48.3 million, or 20.2% of revenue, for the fourth quarter of 2023.
•GAAP operating cash flow for the fourth quarter of 2024 was $49.8 million, compared to GAAP operating cash flow of $36.5 million for the fourth quarter of 2023.

2024 Financial Results
•Total revenue for 2024 increased 14% to a record $1,041.9 million, compared to $910.5 million in 2023.
•GAAP gross margin was 54.2% for 2024, compared to 52.5% in 2023.
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•Adjusted gross margin was 61.7% for 2024, compared to 61.0% in 2023.
•GAAP net loss for 2024 was $(12.8) million, or (1.2)% of revenue and $(0.17) per basic share, compared to GAAP net loss of $(81.8) million, or (9.0)% of revenue and $(1.13) per basic share, in 2023.
•Non-GAAP net income for 2024 was $185.3 million, or 17.8% of revenue and $2.47 per diluted share, compared to non-GAAP net income of $149.9 million, or 16.5% of revenue and $2.05 per diluted share, in 2023.
•Adjusted EBITDA for 2024 was $196.0 million, or 18.8% of revenue, compared to $166.3 million, or 18.3% of revenue, in 2023.
•GAAP operating cash flow for 2024 was $143.2 million, compared to GAAP operating cash flow of $128.8 million, in 2023.

“We are very pleased to report strong year end results, with 2024 annual revenue exceeding $1 billion. Fourth quarter revenue growth accelerated to 17%, driven by our subscription revenue growing 19%. We reached an all-time record adjusted EBITDA margin of 23%, helping drive our highest ever quarterly operating cash flow of $50 million. Throughout the year, we extended our leadership position in AI by further enhancing our AI-powered platform to deliver the New CX. Our record results and strong traction in our AI business continue to demonstrate the power of our platform in enabling brands to elevate their CX in this rapidly evolving world of AI as evidenced by our Enterprise AI revenue growing 46% YoY in the fourth quarter. We believe we are well positioned with our AI-powered platform and trusted AI experts to continue driving durable long-term growth and look forward to building on our momentum in 2025.”

- Mike Burkland, Chairman and CEO, Five9
Business Outlook
Five9 provides guidance based on current market conditions and expectations. Five9 emphasizes that the guidance is subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements" below, including risks and uncertainties associated with the ongoing impact of macroeconomic challenges.
•For the full year 2025, Five9 expects to report:
•Revenue in the range of $1.140 to $1.144 billion.
•GAAP net income per share in the range of $0.09 to $0.16, assuming diluted shares outstanding of approximately 90.0 million.
•Non-GAAP net income per share in the range of $2.58 to $2.62, assuming diluted shares outstanding of approximately 77.3 million.
•For the first quarter of 2025, Five9 expects to report:
•Revenue in the range of $271.5 to $272.5 million.
•GAAP net loss per share in the range of $(0.15) to $(0.09), assuming basic shares outstanding of approximately 76.0 million.
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•Non-GAAP net income per share in the range of $0.47 to $0.49, assuming diluted shares outstanding of approximately 76.8 million.

With respect to Five9’s guidance as provided above, please refer to the “Reconciliation of GAAP Net Loss to Non-GAAP net income - Guidance” table for more details, including important assumptions upon which such guidance is based.

Conference Call Details
Five9 will discuss its fourth quarter 2024 results today, February 20, 2025, via Zoom webinar at 4:30 p.m. Eastern Time. To access the webinar, please register by clicking here. A copy of this press release will be furnished to the Securities and Exchange Commission on a Current Report on Form 8-K and will be posted to our website, prior to the conference call.
A live webcast and a replay will be available on the Investor Relations section of the Company’s web-site at http://investors.five9.com/.

Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. We calculate adjusted gross profit and adjusted gross margin by adding back the following items to gross profit: depreciation, intangibles amortization, stock-based compensation, exit costs related to the closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, lease amortization for finance leases and costs related to a reduction in force plan. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net loss: depreciation and amortization, stock-based compensation, interest expense, gain on early extinguishment of debt, interest income and other, exit costs related to closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, impairment charge related to closure of operating lease facilities, lease amortization for finance leases, costs related to a reduction in force plan and provision for income taxes. We calculate non-GAAP operating income by adding back or removing the following items to or from GAAP loss from operations: stock-based compensation, intangibles amortization, exit costs related to the closure and relocation of our Russian operations, and acquisition related transaction costs and one-time integration costs, and costs related to a reduction in force plan. We calculate non-GAAP net income by adding back or removing the following items to or from GAAP net loss: stock-based compensation, intangibles amortization, amortization of discount and issuance costs on convertible senior notes, exit costs related to the closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, gain on early extinguishment of debt, impairment charge of an equity investment, impairment charge related to closure of operating lease facilities, costs related to a reduction in force plan, and tax benefit associated with an acquired company. For the periods presented, these adjustments from GAAP net loss to non-GAAP net income do not include any presentation of the net tax effect of such adjustments given our significant net operating loss carryforwards. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. The Company considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what we consider to be our core operating performance, as well as unusual events. The Company’s management uses these measures to (i) illustrate underlying trends in the Company’s
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business that could otherwise be masked by the effect of income or expenses that are excluded from non-GAAP measures, and (ii) establish budgets and operational goals for managing the Company’s business and evaluating its performance. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented only as supplemental information for purposes of understanding the Company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP. Please see the reconciliation of non-GAAP financial measures set forth in this release.

Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements in the quote from our Chairman and Chief Executive Officer, including statements regarding Five9’s AI platform and its market position and expected impact on the Company's growth, Five9's market opportunity and growth prospect, and the first quarter and full year 2025 financial projections and expectations set forth under the caption “Business Outlook,” that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) the impact of adverse economic conditions, including the impact of macroeconomic challenges, including continued inflation, uncertainty regarding consumer spending, high interest rates, fluctuations in currency rates, the impact of the Russia-Ukraine conflict, the impact of the conflicts in the Middle East, and other factors, may continue to harm our business; (ii) if we are unable to attract new customers or sell additional services and functionality to our existing customers, our revenue and revenue growth will be harmed; (iii) if our existing customers terminate their subscriptions or reduce their subscriptions and related usage, or fail to grow subscriptions at the rate they have in the past or that we might expect, our revenues and gross margins will be harmed and we will be required to spend more money to grow our customer base; (iv) because a significant percentage of our revenue is derived from existing customers, downturns or upturns in new sales will not be immediately reflected in our operating results and may be difficult to discern; (v) if we fail to manage our technical operations infrastructure, our existing customers may experience service outages, our new customers may experience delays in the deployment of our solution and we could be subject to, among other things, claims for credits or damages; (vi) as AI solutions will likely perform an increasing proportion of contact center interactions, if we are unable to replace decreases in subscription revenue from licenses with revenue from the sale of additional AI solutions, our revenue, results of operations and business will be harmed; (vii) further development of our AI solutions may not be successful and may result in reputational harm and our future operating results could be materially harmed; (viii) we have established, and are continuing to increase, our network of technology solution distributors and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues; (ix) our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock; (x) if we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be harmed; (xi) our historical growth may not be indicative of our future growth, and even if we continue to grow rapidly, we may fail to manage our growth effectively; (xii) failure to adequately retain and expand our sales force will impede our growth; (xiii) the AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks; (xiv) the use of AI by our workforce may present risks to our business; (xv) the contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new solutions in order to maintain and grow
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our business; (xvi) our growth depends in part on the success of our strategic relationships with third parties and our failure to successfully maintain, grow and manage these relationships could harm our business; (xvii) the markets in which we participate involve a high number of competitors that is continuing to increase, and if we do not compete effectively, our operating results could be harmed; (xviii) we continue to expand our international operations, which exposes us to significant macroeconomic and other risks; (xix) security breaches, cybersecurity incidents, and improper access to, use of, or disclosure of our data or our customers’ data, or other cyber-attacks on our systems, could result in litigation and regulatory risk, harm our reputation, our business or financial results; (xx) we may acquire other companies, or technologies, or be the target of strategic transactions, or be impacted by transactions by other companies, which could divert our management’s attention, result in liabilities from the acquired company, additional dilution to our stockholders or use a significant amount of our cash resources and otherwise disrupt our operations and harm our operating results; (xxi) we sell our solution to larger organizations that require longer sales and implementation cycles and often demand more configuration and integration services or customized features and functions that we may not offer, any of which could delay or prevent these sales and harm our growth rates, business and operating results; (xxii) we rely on third-party telecommunications and internet service providers to provide our customers and their customers with telecommunication services and connectivity to our cloud contact center software and any failure by these service providers to provide reliable services could cause us to lose customers and subject us to claims for credits or damages, among other things; (xxiii) we have a history of losses and we may be unable to achieve or sustain profitability; (xxiv) our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control; (xxv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxvi) failure to comply with laws and regulations could harm our business and our reputation; (xxvii) we may not have sufficient cash to service our convertible senior notes and repay such notes, if required, and other risks attendant to our convertible senior notes and increased debt levels; and (xxviii) the other risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent annual report on Form 10-K and quarterly reports on Form 10-Q. Such forward-looking statements speak only as of the date hereof and readers should not unduly rely on such statements. We undertake no obligation to update the information contained in this press release, including in any forward-looking statements.

About Five9
The Five9 Intelligent CX Platform provides a comprehensive suite of solutions for orchestrating fluid customer experiences. Our cloud-native, multi-tenant, scalable, reliable, and secure platform includes contact center; omni-channel engagement; Workforce Engagement Management; extensibility through more than 1,000 partners; and innovative, practical AI, automation and journey analytics that are embedded as part of the platform. Five9 brings the power of people, technology, and partners to more than 3,000 organizations worldwide. For more information, visit www.five9.com.

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FIVE9, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, 2024December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$362,546 $143,201 
Marketable investments643,410 587,096 
Accounts receivable, net115,172 97,424 
Prepaid expenses and other current assets50,840 34,622 
Deferred contract acquisition costs, net76,600 61,711 
Total current assets1,248,568 924,054 
Property and equipment, net144,888 108,572 
Operating lease right-of-use assets38,880 38,873 
Finance lease right-of-use assets19,269 4,564 
Intangible assets, net65,632 38,323 
Goodwill365,436 227,412 
Other assets13,384 16,199 
Deferred contract acquisition costs, net — less current portion155,157 136,571 
Total assets$2,051,214 $1,494,568 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$26,282 $24,399 
Accrued and other current liabilities83,720 62,131 
Operating lease liabilities11,258 10,731 
Finance lease liabilities7,768 1,767 
Deferred revenue79,173 68,187 
Convertible senior notes433,490 — 
Total current liabilities641,691 167,215 
Convertible senior notes - less current portion731,855 742,125 
Operating lease liabilities — less current portion37,071 36,378 
Finance lease liabilities — less current portion11,688 2,877 
Other long-term liabilities6,717 7,888 
Total liabilities1,429,022 956,483 
Stockholders’ equity:
Common stock76 73 
Additional paid-in capital1,039,125 942,280 
Accumulated other comprehensive income 636 582 
Accumulated deficit(417,645)(404,850)
Total stockholders’ equity622,192 538,085 
Total liabilities and stockholders’ equity$2,051,214 $1,494,568 

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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months EndedTwelve Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Revenue$278,660 $239,062 $1,041,938 $910,488 
Cost of revenue122,663 112,493 477,540 432,690 
Gross profit155,997 126,569 564,398 477,798 
Operating expenses:
Research and development41,480 38,873 166,197 156,582 
Sales and marketing73,898 72,956 311,954 296,713 
General and administrative36,439 33,338 137,550 123,079 
Total operating expenses151,817 145,167 615,701 576,374 
Income (loss) from operations4,180 (18,598)(51,303)(98,576)
Other income (expense), net:
Interest expense(4,271)(1,963)(14,812)(7,646)
Gain on early extinguishment of debt— — 6,615 — 
Interest income and other 11,242 8,322 46,745 26,799 
Total other income (expense), net6,971 6,359 38,548 19,153 
Income (loss) before income taxes11,151 (12,239)(12,755)(79,423)
(Benefit from) provision for income taxes(426)119 40 2,341 
Net income (loss)$11,577 $(12,358)$(12,795)$(81,764)
Net income (loss) per share:
Basic$0.15 $(0.17)$(0.17)$(1.13)
Diluted$0.13 $(0.17)$(0.17)$(1.13)
Shares used in computing net income (loss) per share:
Basic75,430 72,926 74,503 72,048 
Diluted88,645 72,926 74,503 72,048 


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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Twelve Months Ended
December 31, 2024December 31, 2023
Cash flows from operating activities:
Net loss$(12,795)$(81,764)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization52,905 48,515 
Reduction in the carrying amount of right-of-use assets15,358 12,642 
Amortization of deferred contract acquisition costs71,483 55,384 
Accretion of discount on marketable investments(20,818)(11,351)
Provision for credit losses1,150 989 
Stock-based compensation166,315 206,292 
Amortization of discount and issuance costs on convertible senior notes 5,478 3,749 
Gain on early extinguishment of debt(6,615)— 
Impairment charge of an equity investment1,250 — 
Impairment charge related to closure of operating lease facilities2,202 — 
Interest on finance lease obligations264 150 
Deferred taxes - excluding tax benefit from acquisition647 53 
Deferred taxes - tax benefit from acquisition(5,482)— 
Other(1,051)657 
Changes in operating assets and liabilities:
Accounts receivable(14,645)(9,844)
Prepaid expenses and other current assets(12,148)(3,532)
Deferred contract acquisition costs(104,957)(91,544)
Other assets3,115 (3,988)
Accounts payable1,057 2,932 
Accrued and other current liabilities2,839 (9,274)
Deferred revenue(425)4,958 
Other liabilities(1,959)3,814 
Net cash provided by operating activities143,168 128,838 
Cash flows from investing activities:
Purchases of marketable investments(1,289,357)(795,002)
Proceeds from sales of marketable investments122,138 1,211 
Proceeds from maturities of marketable investments1,132,332 655,588 
Purchases of property and equipment(42,388)(31,234)
Capitalization of software development costs(22,223)(9,537)
Cash paid to acquire Acqueon Inc.(167,151)— 
Cash settlement to acquire Aceyus, Inc.99 (80,588)
Net cash used in investing activities(266,550)(259,562)
Cash flows from financing activities:
Proceeds from issuance of 2029 convertible senior notes 731,055 — 
Payment of debt issuance costs(2,212)— 
Payments for capped call transactions associated with the 2029 convertible senior notes(93,438)— 
Repurchase of a portion of 2025 convertible senior notes(304,485)— 
Repayment of outstanding 2023 convertible senior notes at maturity— (169)
Cash received from the settlement at maturity of the outstanding capped calls associated with the 2023 convertible senior notes— 74,453 
Cash received from partial termination of capped calls associated with the 2025 convertible senior notes539 — 
Proceeds from exercise of common stock options481 9,127 
Proceeds from sale of common stock under ESPP14,797 15,927 
Payment of employee taxes related to vested RSUs— (3,270)
Payment of holdback related to acquisition— (500)
Payments of finance leases(4,012)(989)
Net cash provided by financing activities342,725 94,579 
Net increase (decrease) in cash and cash equivalents219,343 (36,145)
Cash, cash equivalents and restricted cash:
Beginning of period144,842 180,987 
End of period$364,185 $144,842 

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FIVE9, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT
(In thousands, except percentages)
(Unaudited)
Three Months EndedTwelve Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
GAAP gross profit$155,997 $126,569 $564,398 $477,798 
GAAP gross margin56.0 %52.9 %54.2 %52.5 %
Non-GAAP adjustments:
Depreciation7,988 7,162 29,944 26,540 
Intangibles amortization4,099 3,146 12,591 12,019 
Stock-based compensation6,921 9,182 29,825 38,259 
Exit costs related to closure and relocation of Russian operations— 12 — 105 
Acquisition and related transaction costs and one-time integration costs40 — 259 34 
Lease amortization for finance leases1,802 449 3,609 941 
Costs related to a reduction in force plan— — 2,115 — 
Adjusted gross profit$176,847 $146,520 $642,741 $555,696 
Adjusted gross margin63.5 %61.3 %61.7 %61.0 %


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FIVE9, INC.
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(In thousands, except percentages)
(Unaudited)
Three Months EndedTwelve Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
GAAP net income (loss)$11,577 $(12,358)$(12,795)$(81,764)
Non-GAAP adjustments:
Depreciation and amortization14,640 12,962 52,905 48,515 
Stock-based compensation38,443 49,571 166,315 206,292 
Interest expense4,271 1,963 14,812 7,646 
Gain on early extinguishment of debt— — (6,615)— 
Interest income and other(11,242)(8,322)(46,745)(26,799)
Exit costs related to closure and relocation of Russian operations— 243 78 2,313 
Acquisition related transaction costs and one-time integration costs2,797 3,670 12,303 6,780 
Impairment charges related to closure of operating lease facilities2,202 — 2,202 — 
Lease amortization for finance leases1,994 449 3,857 941 
Costs related to a reduction in force plan— — 9,625 — 
(Benefit from) provision for income taxes(1)
(426)119 40 2,341 
Adjusted EBITDA$64,256 $48,297 $195,982 $166,265 
Adjusted EBITDA as % of revenue23.1 %20.2 %18.8 %18.3 %
(1) Non-GAAP adjustments do not have an impact on our federal income tax provision due to past non-GAAP losses, and state taxes are immaterial.
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FIVE9, INC.
RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP OPERATING INCOME
(In thousands)
(Unaudited)
Three Months EndedTwelve Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Loss from operations$4,180 $(18,598)$(51,303)$(98,576)
Non-GAAP adjustments:
Stock-based compensation38,443 49,571 166,315 206,292 
Intangibles amortization4,099 3,146 12,591 12,019 
Exit costs related to closure and relocation of Russian operations— 243 78 2,313 
Acquisition and related transaction costs and one-time integration costs2,797 3,670 12,303 6,780 
Costs related to reduction in force plan— — 9,625 — 
Non-GAAP operating income$49,519 $38,032 $149,609 $128,828 

11

FIVE9, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME
(In thousands, except per share data)
(Unaudited)
Three Months EndedTwelve Months Ended
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
GAAP net income (loss)$11,577 $(12,358)$(12,795)$(81,764)
Non-GAAP adjustments:
Stock-based compensation38,443 49,571 166,315 206,292 
Intangibles amortization4,099 3,146 12,591 12,019 
Amortization of discount and issuance costs on convertible senior notes1,487 956 5,478 3,749 
Gain on early extinguishment of debt— — (6,615)— 
Exit costs related to closure and relocation of Russian operations296 91 452 2,796 
Acquisition and related transaction costs and one-time integration costs2,797 3,670 12,303 6,780 
Impairment charge of an equity investment— — 1,250 — 
Impairment charge related to closure of operating lease facilities2,202 — 2,202 — 
Costs related to a reduction in force plan— — 9,625 — 
Tax benefit associated with an acquired company(650)— (5,482)— 
Income tax expense effects (1)
— — — — 
Non-GAAP net income$60,251 $45,076 $185,324 $149,872 
GAAP net income (loss) per share:
Basic$0.15 $(0.17)$(0.17)$(1.13)
Diluted$0.13 $(0.17)$(0.17)$(1.13)
Non-GAAP net income per share:
Basic$0.80 $0.62 $2.49 $2.08 
Diluted$0.79 $0.61 $2.47 $2.05 
Shares used in computing GAAP net income (loss) per share:
Basic75,430 72,926 74,503 72,048 
Diluted88,645 72,926 74,503 72,048 
Shares used in computing non-GAAP net income per share:
Basic75,430 72,926 74,503 72,048 
Diluted75,999 73,785 75,060 73,011 
(1)Non-GAAP adjustments do not have an impact on our federal income tax provision due to past non-GAAP losses, and state taxes are immaterial.


12

FIVE9, INC.
SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION
(In thousands)
(Unaudited)
Three Months Ended
December 31, 2024December 31, 2023
Stock-Based CompensationDepreciationIntangibles AmortizationStock-Based CompensationDepreciationIntangibles Amortization
Cost of revenue$6,921 $7,988 $4,099 $9,182 $7,162 $3,146 
Research and development8,259 620 — 12,055 1,012 — 
Sales and marketing10,880 38 — 15,389 27 — 
General and administrative12,383 1,895 — 12,945 1,615 — 
Total$38,443 $10,541 $4,099 $49,571 $9,816 $3,146 
Twelve Months Ended
December 31, 2024December 31, 2023
Stock-Based CompensationDepreciationIntangibles AmortizationStock-Based CompensationDepreciationIntangibles Amortization
Cost of revenue$29,825 $29,944 $12,591 $38,259 $26,540 $12,019 
Research and development37,260 2,972 — 50,430 3,583 — 
Sales and marketing51,214 123 — 66,229 65 — 
General and administrative48,016 7,275 — 51,374 6,308 — 
Total$166,315 $40,314 $12,591 $206,292 $36,496 $12,019 



13

FIVE9, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME – GUIDANCE(1)
(In thousands, except per share data)
(Unaudited)

Three Months EndingYear Ending
March 31, 2025December 31, 2025
LowHighLowHigh
GAAP net (loss) income$(11,071)$(6,535)$8,381 $14,473 
Non-GAAP adjustments:
Stock-based compensation(2)
40,448 38,448 166,902 164,902 
Intangibles amortization2,643 2,643 10,570 10,570 
Amortization of discount and issuance costs on convertible senior notes1,405 1,405 4,543 4,543 
Acquisition and related transaction costs and one-time integration costs(3)
2,671 1,671 9,023 8,023 
Income tax expense effects(4)
— — — — 
Non-GAAP net income$36,096 $37,632 $199,419 $202,511 
GAAP net (loss) income per share:
Basic$(0.15)$(0.09)$0.11 $0.19 
Diluted$(0.15)$(0.09)$0.09 $0.16 
Non-GAAP net income per share:
Basic$0.47 $0.50 $2.61 $2.65 
Diluted$0.47 $0.49 $2.58 $2.62 
Shares used in computing GAAP net (loss) income per share:
Basic76,000 76,000 76,500 76,500 
Diluted76,000 76,000 90,000 90,000 
Shares used in computing non-GAAP net income per share:
Basic76,000 76,000 76,500 76,500 
Diluted76,800 76,800 77,300 77,300 

(1)Represents guidance discussed on February 20, 2025. Reader shall not construe presentation of this information after February 20, 2025 as an update or reaffirmation of such guidance.
(2)Stock-based compensation expenses are based on a range of probable significance, assuming market price for our common stock that is approximately consistent with current levels.
(3)Acquisition and related transaction costs and one-time integration costs are based on a range of probable significance for completed acquisitions, and no new acquisitions assumed.
(4)Non-GAAP adjustments do not have an impact on our federal income tax provision due to past non-GAAP losses, and state taxes are immaterial.
14

Investor Relations Contacts:

Five9, Inc.
Barry Zwarenstein
Chief Financial Officer
925-201-2000 ext. 5959
IR@five9.com

The Blueshirt Group for Five9, Inc.
Lisa Laukkanen
415-217-4967
Lisa@blueshirtgroup.com


# # #

15
v3.25.0.1
Cover Page
Feb. 20, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 20, 2025
Entity Registrant Name FIVE9, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-36383
Entity Tax Identification Number 94-3394123
Entity Address, Address Line One 3001 Bishop Drive,
Entity Address, Address Line Two Suite 350
Entity Address, City or Town San Ramon,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94583
City Area Code 925
Local Phone Number 201-2000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.001 per share
Trading Symbol FIVN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001288847
Amendment Flag false
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