Financial Performance - Revenue for Q2 2024 increased 13% to a record $252.1 million, compared to $222.9 million for Q2 2023[2] - GAAP net loss for Q2 2024 was $(12.8) million, or $(0.17) per basic share, improving from a net loss of $(21.7) million, or $(0.30) per basic share, in Q2 2023[2] - Non-GAAP net income for Q2 2024 was $38.9 million, or $0.52 per diluted share, compared to $37.4 million, or $0.52 per diluted share, in Q2 2023[2] - Adjusted EBITDA for Q2 2024 was $41.8 million, or 16.6% of revenue, compared to $41.5 million, or 18.6% of revenue, in Q2 2023[3] - Annual revenue run rate exceeded $1 billion, driven by a 21% year-over-year growth in LTM enterprise subscription revenue[3] - For the full year 2024, revenue guidance is now expected in the range of $1.013 to $1.017 billion[4] - For Q3 2024, revenue is expected in the range of $254.5 to $255.5 million[5] - GAAP gross profit for Q2 2024 was $133,672 thousand, compared to $118,521 thousand in Q2 2023, reflecting a growth of 12.5%[22] - Adjusted gross profit for Q2 2024 was $152,409 thousand, up from $137,729 thousand in Q2 2023, representing an increase of 10.0%[22] - Non-GAAP net income for Q2 2024 was $38,874 thousand, compared to $37,391 thousand in Q2 2023, marking a growth of 4.0%[27] Cash Flow and Assets - GAAP operating cash flow for Q2 2024 was $19.9 million, down from $21.9 million in Q2 2023[3] - Cash provided by operating activities for the six months ended June 30, 2024, was $52,231, compared to $55,264 in the same period of 2023[20] - The company reported cash and cash equivalents of $177,382 at the end of the period, down from $197,239 in the previous year[20] - Total current assets increased to $1,322,102 as of June 30, 2024, compared to $924,054 at the end of 2023, reflecting a growth of 43%[16] - Total liabilities increased to $1,384,502 as of June 30, 2024, from $956,483 at the end of 2023, marking a rise of 45%[16] Operating Expenses - Operating expenses for the three months ended June 30, 2024, totaled $153,037, which is a 6.5% increase from $143,764 in the prior year[18] - Research and development expenses for the three months ended June 30, 2024, were $40,717, slightly up from $39,210 in the same period last year[18] - Stock-based compensation for Q2 2024 totaled $43,632 thousand, down from $53,367 thousand in Q2 2023, a decrease of 18.2%[29] - Total stock-based compensation for the first half of 2024 was $88,316 thousand, compared to $104,110 thousand in the same period of 2023, a decrease of 15.2%[30] Acquisitions and Innovations - The company announced an agreement to acquire Acqueon to enhance its AI-powered CX platform and market reach[4] - Innovations in the Five9 Genius AI suite, including GenAI Studio and AI Knowledge, were highlighted as key advancements[4] - The company incurred acquisition and related transaction costs of $4,089 thousand in Q2 2024, compared to $877 thousand in Q2 2023, indicating a significant increase in costs associated with acquisitions[24] - Acquisition and related transaction costs for the three months ending September 30, 2024, were $1.467 million, with a total of $7.680 million for the year ending December 31, 2024[33] Future Outlook - The company anticipates no new acquisitions in the near term, focusing on completed acquisitions and related costs[33] - GAAP net loss for the three months ending September 30, 2024, was $4.608 million, with a high estimate of $1.098 million for the year ending December 31, 2024[33] - Non-GAAP net income for the three months ending September 30, 2024, was $43.035 million, with a high estimate of $44.545 million for the year ending December 31, 2024[33] - Non-GAAP net income per share (basic and diluted) for the three months ending September 30, 2024, was $0.57, with a high estimate of $0.59[33] - The company reported a GAAP net loss per share of $(0.06) for the three months ending September 30, 2024, with a high estimate of $(0.01) for the year ending December 31, 2024[33] - Non-GAAP adjustments do not have a material impact on the company's worldwide income tax provision due to available tax loss and credit attributes[33]

Business: Five9 provides intelligent cloud software for contact centers in the United States and internationally. It offers a virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales and marketing functions. The platform also matches each customer interaction with an agent resource and delivers customer data to the agent in real-time through integrations with adjacent enterprise applications. The company serves c ...

2 This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data and accordingly, we cannot guarantee their accuracy or completeness. Strong Financial Results ◦ Strong LTM operating cash flow of $128M, or 14% of revenue ◦ Significant enterprise wins ▪ American radiology company: $2.8M in anticipated ARR Q1'24 Highlights ...

Revenue and Growth - Revenue increased to $247.0 million for the three months ended March 31, 2024, up from $218.4 million for the same period in 2023, representing a growth of approximately 13.5%[127] - Subscription and related usage fees accounted for 93% of total revenue for the three months ended March 31, 2024, compared to 92% for the same period in 2023[122] - Revenue for the three months ended March 31, 2024, was $247,010,000, representing a 13% increase from $218,439,000 in the same period of 2023[147] Profitability and Loss - The net loss for the three months ended March 31, 2024, was $7.1 million, significantly improved from a net loss of $27.2 million for the same period in 2023[127] - The net loss for the three months ended March 31, 2024, was $7,410,000, or 3% of revenue, compared to a net loss of $26,195,000, or 12% of revenue, in the same period of 2023[146] - Adjusted EBITDA for the three months ended March 31, 2024, was $37.6 million, compared to $35.1 million for the same period in 2023, indicating a year-over-year increase of approximately 7%[134] Expenses - Cost of revenue increased to $114,530,000 for the three months ended March 31, 2024, up 9% from $104,756,000 in the same period of 2023, with a decrease in cost of revenue as a percentage of revenue from 48% to 46%[148] - Gross profit for the three months ended March 31, 2024, was $132,480,000, a 17% increase from $113,683,000 in the same period of 2023, with gross margin improving from 52% to 54%[149] - Research and development expenses increased to $41,518,000, a 9% rise from $38,108,000 in the same period of 2023, maintaining 17% of revenue[150] - Sales and marketing expenses rose to $81,109,000, a 6% increase from $76,314,000 in the same period of 2023, accounting for 33% of revenue[152] - General and administrative expenses increased to $30,548,000, an 8% rise from $28,258,000 in the same period of 2023, representing 12% of revenue[153] Client and Market Dynamics - The company has over 3,000 clients across multiple industries, with no single client accounting for more than 10% of total revenue for the periods presented[127] - The company offers a SaaS business model with recurring subscriptions, allowing clients to adjust the number of agent seats based on their contact center volume needs[122] Future Outlook and Challenges - The Annual Dollar-Based Retention Rate decreased to 109% for the twelve months ended March 31, 2024, down from 114% for the same period in 2023, primarily due to macroeconomic headwinds[131] - Macroeconomic factors, including inflation and geopolitical conflicts, are expected to adversely impact revenue in future periods[125] Cash Flow and Capital Management - Net cash provided by operating activities was $32.4 million for the three months ended March 31, 2024, compared to $33.4 million for the same period in 2023, reflecting a decrease of 3%[165][166] - Net cash used in investing activities was $(266.8) million in Q1 2024, significantly higher than $(75.7) million in Q1 2023, primarily due to increased purchases of marketable investments[167][168] - Net cash provided by financing activities was $331.4 million in Q1 2024, a substantial increase from $3.1 million in Q1 2023, driven by proceeds from the issuance of convertible senior notes[169][170] - As of March 31, 2024, the company had $1,105.8 million in working capital, including $240.2 million in cash and cash equivalents[157] - The company plans to enter into a potential revolving credit facility of up to $200 million in the second half of 2024 to support general corporate purposes and potential acquisitions[159] Financial Instruments and Risk Management - The aggregate principal amount outstanding of the company's 2025 and 2029 convertible senior notes was $1,181.9 million as of March 31, 2024[187] - The company’s investment policy focuses on capital preservation and liquidity needs, investing primarily in highly rated securities[186] - The fair value of the convertible senior notes is subject to interest rate risk and market risk due to their conversion features[187] - The company does not invest in financial instruments for trading or speculative purposes[186] - The company’s sales are primarily denominated in U.S. dollars, reducing direct exposure to foreign currency risk[189] - A hypothetical 10% change in foreign currency exchange rates could have a maximum impact of $2.3 million on the company's operating expenses during Q1 2024[190] - The company has not entered into any hedging arrangements with respect to foreign currency risk or other derivative financial instruments[190] Internal Controls and Reporting - There was no change in the company's internal control over financial reporting that materially affected its effectiveness during the three months ended March 31, 2024[194] - The company's disclosure controls and procedures were effective as of March 31, 2024, ensuring timely reporting of required information[192]

Exhibit 99.1 Five9 Reports First Quarter 2024 Results 13% Year-Over-Year Growth in Total Revenue 20% Year-Over-Year Growth in Subscription Revenue GAAP Operating Cash Flow of $32.4 Million SAN RAMON, Calif. - May 2, 2024 - Five9, Inc. (NASDAQ:FIVN), the Intelligent CX Platform provider, today reported results for the first quarter ended March 31, 2024. First Quarter 2024 Financial Results "We are pleased to report strong first quarter results with subscription revenue growing 20% year-over-year and adjusted ...

The company stands to benefit from a notable trend in the youth market, says one pundit.A young demographic could help lift the fortunes of contact center solutions provider Five9 (FIVN 3.54%). In a new research note published Tuesday, one analyst tracking the company pointed out that it could benefit strongly from catering to such a user base. Investors clearly took this argument to heart, as they ended up piling in to Five9 shares and sending them nearly 4% higher in price.Teens like to use their phones f ...

SAN RAMON, Calif.--(BUSINESS WIRE)--Five9, (NASDAQ: FIVN), provider of the Intelligent CX Platform, today announced the appointment of Steve Blood as Vice President of Market Intelligence and Evangelism at Five9. Based in Europe, Blood will focus on shaping and elevating Five9’s positioning as it expands its global leadership in customer experience. “As one of the most prominent industry analysts in CX, Steve’s addition to the Five9 team underscores our role as an innovator,” said Five9 CMO Niki Hall. “H ...

SAN RAMON, Calif.--(BUSINESS WIRE)--Five9, Inc. (NASDAQ: FIVN), the Intelligent CX Platform provider, today announced the exercise of the entire $97.5 million aggregate principal amount option to purchase additional 1.00% convertible senior notes due 2029 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (the “Act”), resulting in a total offering size of $747.5 million. The notes to be sold in connection with the exercise of the opt ...

fizkes/iStock via Getty Images Five9 (NASDAQ:FIVN) is a cloud contact center software (CCaaS) provider that empowers businesses to manage customer interactions through the cloud. They offer a suite of features including call center functionality, omnichannel communication, and customer analytics. FIVN went public in 2014, with an initial share price of $7.6. Since its IPO, the stock has experienced significant volatility. I first covered FIVN in 2020, when I rated the stock a buy due to the seemingly st ...

Five9 (FIVN) has been on a downward spiral lately with significant selling pressure. After declining 22.5% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ove ...