Five9(US:FIVN)2025-02-21 01:04Financial Performance - The company recorded $1,041.9 million in revenue for the year ended December 31, 2024, primarily from subscription fees based on the number of licenses and usage of AI solutions [384]. - Revenue for the year ended December 31, 2024, was $1,041,938 thousand, representing a 14.4% increase from $910,488 thousand in 2023 [396]. - Gross profit for 2024 was $564,398 thousand, up from $477,798 thousand in 2023, indicating a gross margin improvement [396]. - The company reported a net loss of $12,795 thousand for 2024, a significant reduction compared to a net loss of $81,764 thousand in 2023 [396]. - The company’s adjusted net loss for the year ended December 31, 2024, was $12.8 million, an improvement from a net loss of $81.8 million in 2023 [551]. - The company generated $927.8 million in revenue from the United States and $114.2 million from international markets for the year ended December 31, 2024 [549]. Cash and Liquidity - As of December 31, 2024, the company had cash and cash equivalents, and marketable securities totaling $1,006.0 million, focusing on capital preservation and liquidity needs [365]. - Cash and cash equivalents increased to $362,546 thousand in 2024, compared to $143,201 thousand in 2023, indicating improved cash flow [394]. - Cash and cash equivalents at the end of 2024 totaled $362.5 million, compared to $144.8 million at the end of 2023, marking a substantial increase of 150% [404]. - The net cash provided by operating activities increased to $143.2 million in 2024, up from $128.8 million in 2023, reflecting a growth of approximately 11% [403]. Investments and Acquisitions - The company made significant investments in marketable securities, with purchases totaling $1.29 billion in 2024, compared to $795 million in 2023 [403]. - The company acquired Acqueon Inc. for $167.2 million in cash, indicating a strategic move for market expansion [403]. - The company capitalized $22.2 million in internal-use software development costs in 2024, up from $9.5 million in 2023, indicating a focus on technology development [403]. Liabilities and Debt - The aggregate principal amount outstanding of the company's convertible senior notes was $1,181.9 million, with fair values subject to interest rate and market risks [366]. - Total liabilities rose to $1,429,022 thousand in 2024 from $956,483 thousand in 2023, primarily due to the issuance of new convertible senior notes [394]. - The Company had outstanding convertible senior notes of $434.4 million due on June 1, 2025, and $747.5 million due on March 15, 2029 [536]. - The total interest expense related to the 2029 convertible senior notes for the year ended December 31, 2024, was $9.242 million, which includes $6.229 million in contractual interest expense and $3.013 million in amortization of issuance costs [484]. Research and Development - Research and development expenses for 2024 were $166,197 thousand, up from $156,582 thousand in 2023, reflecting continued investment in innovation [396]. - The company’s stock-based compensation expense for research and development decreased to $37.3 million in 2024 from $50.4 million in 2023, a decline of approximately 26% [520]. Stock and Compensation - Total stock-based compensation expenses for 2024 were $166.3 million, down from $206.3 million in 2023, reflecting a decrease of approximately 19.4% [520]. - The Company granted 4,433,000 RSUs during the year ended December 31, 2024, with a weighted average grant date fair value of $46.32 per share [510]. - The intrinsic value of options exercised in 2024 was $901,000, while the total fair value of options vested during the period was $3,249,000 [509]. Taxation - The company recognized a current income tax expense of $4.9 million in 2024, primarily due to U.S. taxable income [527]. - Deferred tax assets amounted to $209.1 million in 2024, with a valuation allowance of $123.1 million, resulting in net deferred tax assets of $86.0 million [530]. - The company’s total provision for income taxes in 2024 was $40, compared to $2.3 million in 2023, indicating a significant reduction [529]. Operational Risks - The company is exposed to foreign currency risk, with a potential maximum impact of $10.6 million on operating expenses from a hypothetical 10% change in foreign currency exchange rates [370]. - The company continues to expand its international operations, which exposes it to significant macroeconomic risks [16]. - The company relies on third-party telecommunications and internet service providers, and any failure in their services could lead to customer loss and claims for damages [16]. Asset Management - The company’s total stockholders' equity increased to $622,192 thousand in 2024 from $538,085 thousand in 2023, showing growth in shareholder value [394]. - Goodwill increased to $365.4 million in 2024 due to the acquisition of Acqueon, up from $227.4 million in 2023, marking a 61% rise [469]. - Intangible assets net value reached $65.6 million in 2024, up from $38.3 million in 2023, showing an increase of 71% [470].