Five9(US:FIVN)2025-11-06 21:28Financial Performance - Revenue for Q3 2025 reached $285.8 million, a 8.5% increase from $264.2 million in Q3 2024[18] - Gross profit for Q3 2025 was $157.3 million, compared to $142.2 million in Q3 2024, reflecting a gross margin improvement[18] - Net income for Q3 2025 was $18.0 million, compared to a net loss of $4.5 million in Q3 2024, marking a significant turnaround[18] - Total revenue for the nine months ended September 30, 2025, was $848,806,000, up from $763,278,000 in the same period of 2024, marking a growth of 11.2%[109] - Net income for the three and nine months ended September 30, 2025, was $18.0 million and $19.7 million, compared to net losses of $4.5 million and $24.4 million for the same periods in 2024[139] - Adjusted EBITDA for the three and nine months ended September 30, 2025, was $71.7 million and $192.4 million, compared to $52.4 million and $131.7 million for the same periods in 2024[147] Assets and Liabilities - Total assets decreased to $1.77 billion as of September 30, 2025, down from $2.05 billion at the end of 2024[15] - Total liabilities decreased to $993.1 million as of September 30, 2025, compared to $1.43 billion at the end of 2024[15] - Total stockholders' equity increased to $775.3 million as of September 30, 2025, up from $622.2 million at the end of 2024[15] - Cash and cash equivalents decreased to $193.4 million from $362.5 million at the end of 2024[15] - Total cash, cash equivalents, and restricted cash decreased to $195.4 million at the end of the period from $292.9 million at the end of the previous year[30] Expenses - Research and development expenses for Q3 2025 were $35.2 million, down from $42.5 million in Q3 2024[18] - Sales and marketing expenses for Q3 2025 were $71.7 million, a decrease from $78.6 million in Q3 2024[18] - General and administrative expenses for the three months ended September 30, 2025, decreased by $2.2 million (6%) compared to the same period in 2024, primarily due to a $1.1 million decrease in office and facilities costs[170] - For the nine months ended September 30, 2025, general and administrative expenses increased by $4.8 million (5%) compared to the same period in 2024, driven by a $2.9 million increase in personnel-related costs[171] Cash Flow - Net cash provided by operating activities increased to $142.6 million, compared to $93.4 million for the nine months ended September 30, 2024, reflecting a 52.8% increase[30] - Net cash provided by investing activities was $119.2 million for the nine months ended September 30, 2025, primarily from cash proceeds of $736.4 million from sales and maturities of marketable investments[183] - Net cash used in financing activities was $(430.5) million for the nine months ended September 30, 2025, mainly due to $434.4 million paid for the maturity of the 2025 convertible senior notes[185] Stock and Equity - The company issued $747.5 million in convertible senior notes in March 2024, with an estimated fair value of $662.1 million as of September 30, 2025[54] - The net carrying amount of the 2029 convertible senior notes was $734.6 million as of September 30, 2025, slightly up from $731.9 million at the end of 2024[75] - The Company repurchased approximately $313.1 million of 2025 convertible senior notes for about $304.9 million in cash, resulting in an extinguishment gain of approximately $6.6 million[65][67] - As of September 30, 2025, the Company had 78,214,059 shares of common stock issued and outstanding, an increase from 75,807,505 shares as of December 31, 2024[81] Customer and Revenue Composition - Subscription and related usage fees accounted for 93% of total revenue for the three and nine months ended September 30, 2025, compared to 92% for the same periods in 2024[134] - The company has over 3,000 customers across multiple industries, with no single customer accounting for more than 10% of total revenue[139] Future Outlook and Challenges - The company expects to recognize revenue on approximately 75% of the remaining performance obligations over the next 24 months[47] - Macroeconomic challenges, including global tariff increases and geopolitical conflicts, are expected to continue impacting revenue in future periods[135] - The company anticipates continued investment in professional services and cloud operations to maintain service quality, which may lead to long-term declines in cost of revenue as a percentage of revenue[153] Acquisitions and Restructuring - The company acquired Acqueon for approximately $173.8 million on August 27, 2024, to enhance its AI-powered customer experience platform[120] - The company implemented a reduction in force plan in 2024, resulting in a 6% decrease in global full-time employees, incurring $9.6 million in restructuring costs[126] - A further reduction of approximately 4% in global full-time employees was executed under the 2025 Plan, with restructuring costs totaling $7.9 million during the nine months ended September 30, 2025[138]