Five9(US:FIVN)2023-02-23 16:00Financial Performance - Gross profit for the year ended December 31, 2022, was $411,345, an increase of $72,853 or 22% compared to $338,492 in 2021, with a gross profit margin of 53%[145] - Net cash provided by operating activities for the year ended December 31, 2022, was $88,865, compared to $28,998 in 2021, reflecting a significant increase[150] - The company reported a net increase in cash, cash equivalents, and restricted cash of $89,596 for 2022, compared to a decrease of $128,981 in 2021[150] - Stockholders' equity increased significantly to $309,965 thousand, compared to $211,132 thousand in 2021, representing a growth of around 46.7%[189] - Cash and cash equivalents more than doubled, reaching $180,520 thousand, up from $90,878 thousand, indicating a growth of approximately 98.8%[189] Revenue and Costs - The increase in cost of revenue for 2022 was primarily due to a $37.9 million rise in personnel costs, a $29.4 million increase in depreciation, and a $19.4 million increase in third-party hosted software costs[144] - Research and development expenses increased by $35.2 million in 2022, driven mainly by higher personnel-related costs and a $2.3 million rise in office and facilities costs[146] - Deferred revenue increased to $57,816 thousand, up from $43,720 thousand, reflecting a growth of about 32.3%[189] - The company generates revenue primarily from subscription services and related usage, with clients typically billed monthly based on the number of agent seats[157] Assets and Liabilities - Total assets increased to $1,244,485 thousand as of December 31, 2022, compared to $1,192,942 thousand in 2021, reflecting a growth of approximately 4.3%[189] - Current assets rose to $778,710 thousand, up from $617,226 thousand in the previous year, marking an increase of about 26%[189] - Total liabilities decreased to $934,520 thousand from $981,810 thousand, a reduction of approximately 4.8%[189] Market Presence and Client Engagement - The company has a diverse client base of over 2,500 organizations across multiple industries, indicating strong market presence[214] - The platform is designed for rapid deployment and seamless updates, enhancing operational efficiency for clients[212] - The company emphasizes a high-touch engagement model for larger implementations, which accelerates agent activation and targets desired business outcomes[214] Technology and Innovation - The company leverages AI capabilities within its cloud software solutions to enhance customer experience and operational efficiency[212] Stock Information - The aggregate market value of the registrant's common stock held by non-affiliates was approximately $5,331.6 million as of June 30, 2022[219] - As of February 21, 2023, there were 71,151,340 shares of the registrant's common stock outstanding[219] Internal Controls and Financial Reporting - The company maintained effective internal control over financial reporting as of December 31, 2022, based on established criteria[184] - The company’s adjusted EBITDA calculation may differ from that of other companies in the industry, and it is used to evaluate performance and establish budgets[138] Debt Information - The company issued $258.8 million in convertible senior notes in May 2018, with approximately $0.2 million remaining outstanding as of December 31, 2022[153] Risk Management - The company has not utilized derivative financial instruments or other market risk-sensitive instruments in any material fashion, except for capped call transactions related to convertible senior notes[160]