Five9(FIVN) - 2023 Q4 - Annual Results

Revenue - Revenue for Q4 2023 is expected to be in the range of $239.0 to $240.0 million[6] - Revenue for the fourth quarter of 2023 increased 15% to a record $239.1 million, compared to $208.3 million for the fourth quarter of 2022[31] - Total revenue for 2023 increased 17% to a record $910.5 million, compared to $778.8 million in 2022[33] - Revenue for the business outlook is projected to be in the range of $1.053 to $1.057 billion[74] - Revenue for the twelve months ended December 31, 2023, was $910.488 million, compared to $778.846 million in 2022[78] Non-GAAP Net Income - Non-GAAP net income for Q4 2023 was $45.1 million, or 18.9% of revenue and $0.61 per diluted share, compared to $39.0 million, or 18.7% of revenue and $0.54 per diluted share in Q4 2022[5] - Non-GAAP net income for 2023 was $149.9 million, or 16.5% of revenue and $2.05 per diluted share, compared to $106.7 million, or 13.7% of revenue and $1.50 per diluted share in 2022[21] - Non-GAAP net income per share for full year 2024 is expected to be in the range of $2.14 to $2.18, assuming diluted shares outstanding of approximately 75.9 million[17] - Non-GAAP net income per share is expected to be in the range of $0.37 to $0.39, with diluted shares outstanding of approximately 74.7 million[71] GAAP Net Loss - GAAP net loss for Q4 2023 was $(12.4) million, or (5.2)% of revenue and $(0.17) per basic share, compared to $(13.7) million, or (6.6)% of revenue and $(0.19) per basic share in Q4 2022[15] - GAAP net loss for 2023 was $(81.8) million, or (9.0)% of revenue and $(1.13) per basic share, compared to GAAP net loss of $(94.7) million, or (12.2)% of revenue and $(1.35) per basic share, in 2022[27] - GAAP net loss per share in the range of $(0.34) to $(0.28), assuming basic shares outstanding of approximately 73.6 million[28] - GAAP net loss per share in the range of $(0.61) to $(0.53), assuming basic shares outstanding of approximately 74.6 million[36] - Net loss for the year ended December 31, 2023 was $81.764 million, compared to $94.650 million in the previous year[63] - Net loss for the twelve months ended December 31, 2023, was $81.764 million, compared to $94.650 million in 2022[78] Adjusted EBITDA - Adjusted EBITDA for Q4 2023 was $48.3 million, or 20.2% of revenue, compared to $46.2 million, or 22.2% of revenue in Q4 2022[19] - Adjusted EBITDA for 2023 was $166.3 million, or 18.3% of revenue, compared to $140.4 million, or 18.0% of revenue in 2022[23] - Adjusted EBITDA for 2023 was $166.3 million, or 18.3% of revenue, compared to $140.4 million, or 18.0% of revenue, in 2022[76] GAAP Gross Margin - GAAP gross margin was 52.9% for Q4 2023, compared to 53.8% for Q4 2022[18] - GAAP gross margin was 52.5% for 2023, compared to 52.8% in 2022[33] Adjusted Gross Margin - Adjusted gross margin was 61.3% for the fourth quarter of 2023, compared to 62.3% for the fourth quarter of 2022[32] - Adjusted gross margin was 61.0% for 2023, compared to 61.3% in 2022[34] Operating Cash Flow - GAAP operating cash flow for 2023 was $128.8 million, compared to $88.9 million in 2022[9] - GAAP operating cash flow for Q4 2023 was $36.5 million, compared to $32.7 million in Q4 2022[70] - Net cash provided by operating activities increased to $128.838 million from $88.865 million year-over-year[63] Stock-Based Compensation - Stock-based compensation for Q4 2023 was $49.6 million, compared to $43.8 million in Q4 2022[3] - Stock-based compensation expenses increased to $206.292 million from $172.507 million year-over-year[63] Expenses - Research and development expenses increased to $50.4 million in 2023, compared to $44.4 million in 2022[25] - Sales and marketing expenses increased to $66.2 million in 2023, compared to $59.3 million in 2022[25] - Research and development expenses for the twelve months ended December 31, 2023, were $156.582 million, compared to $141.794 million in 2022[78] - Sales and marketing expenses for the twelve months ended December 31, 2023, were $296.713 million, compared to $261.990 million in 2022[78] - General and administrative expenses for the twelve months ended December 31, 2023, were $123.079 million, compared to $95.143 million in 2022[78] Assets and Investments - Total assets increased to $1.494568 billion from $1.244485 billion year-over-year[62] - Goodwill increased to $227.412 million from $165.420 million year-over-year[62] - Total current assets increased to $924.054 million from $778.710 million year-over-year[62] - Deferred contract acquisition costs increased to $136.571 million from $114.880 million year-over-year[62] - Purchases of marketable investments increased to $795.002 million from $435.768 million year-over-year[63] Cash and Cash Equivalents - Cash and cash equivalents decreased to $144.842 million from $180.987 million year-over-year[63] Exit Costs - Exit costs related to the closure and relocation of Russian operations were $2.8 million for the year ended December 31, 2023[64] Gross Profit - Gross profit for the twelve months ended December 31, 2023, was $477.798 million, compared to $411.345 million in 2022[78]