Five9(FIVN) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 increased 8% to a record $285.8 million, compared to $264.2 million for Q3 2024[3] - GAAP net income for Q3 2025 was $18.0 million, or $0.21 per diluted share, compared to a net loss of $(4.5) million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $71.7 million, or 25.1% of revenue, compared to $52.4 million, or 19.8% of revenue, in Q3 2024[3] - Non-GAAP net income for Q3 2025 was $60,604,000, compared to $50,461,000 in Q3 2024[30] - Basic GAAP net income per share for Q3 2025 was $0.23, compared to a loss of $0.06 per share in Q3 2024[30] - Adjusted EBITDA for the nine months ended September 30, 2025, was $192,372,000, compared to $131,726,000 for the same period in 2024[24] Revenue Expectations - For the full year 2025, Five9 expects revenue in the range of $1.1435 to $1.1495 billion[9] - For Q4 2025, Five9 expects revenue in the range of $294.7 to $300.7 million[9] Cash Flow and Assets - GAAP operating cash flow for Q3 2025 was $59.2 million, up from $41.1 million in Q3 2024[3] - Cash flows from operating activities for the nine months ended September 30, 2025, were $142,641,000, up from $93,353,000 in the same period of 2024[20] - Total current assets decreased to $949,413,000 as of September 30, 2025, down from $1,248,568,000 at the end of 2024[16] - Total liabilities decreased to $993,119,000 as of September 30, 2025, compared to $1,429,022,000 at the end of 2024[16] Share Repurchase and Stock Compensation - Five9 announced a $150 million share repurchase program, including a $50 million accelerated share repurchase[4] - The company plans to execute an accelerated share repurchase agreement in November 2025 to repurchase $50 million of its common stock, expecting an upfront delivery of approximately 1.7 million shares[40] - Stock-based compensation for Q3 2025 totaled $33,339,000, down from $39,556,000 in Q3 2024[27] - Stock-based compensation expenses are estimated to be between $34,232 million and $36,232 million for the three months ending December 31, 2025[38] Expenses and Costs - Research and development expenses for the three months ended September 30, 2025, were $35,218,000, down from $42,482,000 in the same period of 2024[18] - Acquisition-related transaction costs for Q3 2025 were $1,620,000, down from $4,486,000 in Q3 2024[27] - The company reported a reduction in force plan cost of $403,000 in Q3 2025, significantly lower than $9,625,000 in Q3 2024[27] - Acquisition and related transaction costs, along with one-time integration costs, are projected to be around $2,668 million to $3,668 million for the three months ending December 31, 2025[38] - The company anticipates a reduction in force plan will incur costs of approximately $8,169 million[37] - Legal fees related to the securities class action are expected to be around $400 million for the three months ending December 31, 2025[37] Growth and Market Strategy - Enterprise AI revenue grew 41% year-over-year in Q3 2025[3] - The company emphasizes the importance of AI in driving growth and customer engagement in the evolving CX market[12] Future Projections - GAAP net income for the three months ending December 31, 2025, is projected to be between $11,986 million and $18,098 million, with a year-end estimate of $31,681 million to $37,769 million[37] - Non-GAAP net income for the same period is expected to range from $59,213 million to $62,325 million, with a year-end forecast of $225,423 million to $228,511 million[37] - Diluted GAAP net income per share is anticipated to be between $0.14 and $0.21 for the three months ending December 31, 2025, and between $0.36 and $0.43 for the year[37] - Diluted non-GAAP net income per share is projected to be between $0.76 and $0.80 for the three months ending December 31, 2025, and between $2.92 and $2.96 for the year[37]