Five9(US:FIVN)2023-05-03 16:00Revenue and Financial Performance - The company reported that subscription and related usage fees accounted for 92% of revenue for the three months ended March 31, 2023, compared to 91% for the same period in 2022[84]. - The company's revenue increased to $218.4 million for the three months ended March 31, 2023, up from $182.8 million for the same period in 2022, representing a growth of approximately 19%[183]. - Revenue for the three months ended March 31, 2023, increased by $35.7 million (20%) compared to the same period in 2022, totaling $218.4 million[205]. - The net loss for the three months ended March 31, 2023, was $27.2 million, an improvement from a net loss of $34.1 million for the same period in 2022[183]. - Adjusted EBITDA for the three months ended March 31, 2023, was $35.1 million, compared to $24.5 million for the same period in 2022, reflecting a growth of approximately 43%[164]. - Gross profit for the three months ended March 31, 2023, was $113.7 million, representing a 21% increase from $93.9 million in the same period of 2022[207]. Expenses and Costs - Cost of revenue for the three months ended March 31, 2023, was $104.8 million, up from $88.9 million in the same period in 2022, representing an 18% increase[173]. - Sales and marketing expenses increased to $76.3 million for the three months ended March 31, 2023, from $64.6 million in the same period in 2022, marking an 18% increase[176]. - General and administrative expenses rose by $5.2 million primarily due to increased personnel costs and stock-based compensation[202]. - Research and development expenses increased by $2.3 million (6%) for the three months ended March 31, 2023, totaling $38.1 million[208]. - The cost of revenue increased by $6.2 million due to higher third-party hosted software costs driven by increased client activities[206]. Assets and Liabilities - Total deferred contract acquisition costs, net increased to $170,365 thousand as of March 31, 2023, from $162,122 thousand as of December 31, 2022[89]. - As of March 31, 2023, accounts receivable, net was $88,085 thousand, an increase from $87,494 thousand as of December 31, 2022[89]. - The company had $640.2 million in working capital as of March 31, 2023, including $141.4 million in cash and cash equivalents[204]. - The company reported trade accounts receivable of $88,085,000 as of March 31, 2023, an increase from $87,494,000 as of December 31, 2022[104]. - The company’s total liabilities included accrued expenses and other current liabilities totaling $4,913,000 as of March 31, 2023[106]. Market and Economic Conditions - The company is subject to risks from macroeconomic factors, including inflation and supply chain disruptions, which could impact its financial results[85]. - The company continues to face risks and challenges, including macroeconomic deterioration and the impact of the Russia-Ukraine conflict, which may affect future growth[183]. - The company experienced macroeconomic headwinds impacting its installed base business, which typically contributes about 50% of annual revenue growth[159]. - The company expects adverse economic conditions to continue impacting revenue growth in future periods[193]. Client and Market Strategy - The company has focused on expanding its market opportunity to include larger contact centers, which has diversified its client base and enhanced future revenue growth potential[84]. - The company had over 2,500 clients across multiple industries as of March 31, 2023, with no single client accounting for more than 10% of total revenue[183]. - The company’s larger clients typically choose annual contracts, which include an implementation and ramp period of several months[84]. Stock and Shareholder Information - The company granted 35,921 market-based PRSUs in Q1 2023 with a fair value of $3.1 million, following a previous grant of 284,282 PRSUs valued at $30.6 million in 2022[91]. - The company's total shareholder return was -52.64% for 2022, resulting in a payout percentage of 58.7% of target for the PRSUs based on relative total shareholder return performance[91]. - The company had 71,544,294 shares of common stock issued and outstanding as of March 31, 2023, an increase from 71,047,179 shares as of December 31, 2022[129]. Cash Flow and Financing Activities - Net cash provided by operating activities was $33.4 million for the three months ended March 31, 2023, compared to $28.7 million in the same period of 2022[232]. - Net cash used in investing activities was $(75.7) million for the three months ended March 31, 2023, primarily due to $140.9 million in marketable investments purchases[218]. - Net cash provided by financing activities was $3.1 million for the three months ended March 31, 2023, related to cash proceeds from the exercise of stock options[236]. - The company may raise additional capital through equity or debt financings, but there are risks associated with market conditions and financial performance[215]. Legal and Regulatory Matters - The company is subject to various legal and regulatory proceedings, which may involve claims related to contractual disputes and regulatory compliance[256]. - The company assesses potential liabilities from litigation and regulatory matters based on probable losses that can be reasonably estimated[256]. Internal Controls and Reporting - There was no change in the company's internal control over financial reporting that materially affected its financial reporting during the three months ended March 31, 2023[249]. - The company's exposure to market risk has not changed materially since December 31, 2022, primarily due to fluctuations in interest rates and foreign currency exchange rates[246].