FIVN
Five9, INC
NASDAQ
8-K: Five9 Reports Record Full Year 2024 Revenue of $1 Billion
Sentiment:
Earnings Release
20 February 2025 4:08 PM
Five9 announces record full-year 2024 revenue of $1 billion, driven by strong Q4 performance with 17% total revenue growth and 19% subscription revenue growth.
Better than expected
Five9's full year revenue exceeded $1 billion, a record for the company.
Q4 revenue growth accelerated to 17%, driven by subscription revenue growing 19%.
Adjusted EBITDA margin reached a record 23% in Q4.
GAAP net loss significantly improved from $(81.8) million in 2023 to $(12.8) million in 2024.
Summary
- Five9 reported record full-year 2024 revenue of $1.0419 billion, a 14% increase compared to $910.5 million in 2023.
- Fourth-quarter revenue increased by 17% to a record $278.7 million, compared to $239.1 million in the fourth quarter of 2023.
- GAAP net loss for 2024 was $(12.8) million, an improvement from the $(81.8) million loss in 2023.
- Non-GAAP net income for 2024 was $185.3 million, compared to $149.9 million in 2023.
- Adjusted EBITDA for 2024 was $196.0 million, compared to $166.3 million in 2023.
- The company's GAAP gross margin for the fourth quarter of 2024 was 56.0%, compared to 52.9% for the fourth quarter of 2023.
- Adjusted gross margin for the fourth quarter of 2024 was 63.5%, compared to 61.3% for the fourth quarter of 2023.
- For 2025, Five9 expects revenue in the range of $1.140 to $1.144 billion.
- GAAP net income per share for 2025 is projected to be in the range of $0.09 to $0.16.
- Non-GAAP net income per share for 2025 is projected to be in the range of $2.58 to $2.62.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with record revenue, improved profitability, and strong growth in key areas like subscription and AI revenue. The guidance for 2025 is also optimistic, contributing to a favorable sentiment.
Positives
- Five9 achieved record full-year revenue of $1 billion in 2024.
- The company's Q4 revenue growth accelerated to 17%, driven by a 19% increase in subscription revenue.
- Adjusted EBITDA margin reached a record 23% in Q4.
- GAAP net loss significantly improved from $(81.8) million in 2023 to $(12.8) million in 2024.
- Enterprise AI revenue grew 46% year-over-year in Q4.
Negatives
- Five9 reported a GAAP net loss of $(12.8) million for 2024, although this is an improvement from the previous year.
- The company anticipates a GAAP net loss per share in the range of $(0.15) to $(0.09) for the first quarter of 2025.
Risks
- Adverse economic conditions, including macroeconomic challenges, may harm the business.
- Failure to attract new customers or sell additional services to existing customers could harm revenue growth.
- Customer subscription terminations or reductions could negatively impact revenues and gross margins.
- Failure to manage the technical operations infrastructure could lead to service outages and customer claims.
- The company's quarterly and annual results may fluctuate significantly.
- Security breaches and cyberattacks could harm the company's reputation and financial results.
- The company may not be able to secure additional financing on favorable terms.
Future Outlook
Five9 expects full-year 2025 revenue in the range of $1.140 to $1.144 billion, GAAP net income per share in the range of $0.09 to $0.16, and non-GAAP net income per share in the range of $2.58 to $2.62.
Management Comments
- Mike Burkland, Chairman and CEO, stated that the company is pleased to report strong year-end results, with 2024 annual revenue exceeding $1 billion.
- He highlighted the acceleration of fourth-quarter revenue growth to 17%, driven by subscription revenue growing 19%.
- Burkland also mentioned the record adjusted EBITDA margin of 23% and the highest-ever quarterly operating cash flow of $50 million.
- He emphasized the company's leadership position in AI and its ability to deliver the New CX, evidenced by the 46% YoY growth in Enterprise AI revenue in the fourth quarter.
- Burkland believes Five9 is well-positioned with its AI-powered platform and trusted AI experts to continue driving durable long-term growth in 2025.
Industry Context
Five9's results reflect the ongoing demand for cloud-based contact center solutions and the increasing importance of AI in customer experience. The company's focus on AI-powered solutions aligns with industry trends and positions it to capitalize on the growing market for intelligent CX platforms.
Comparison to Industry Standards
- Five9's revenue growth of 14% for the full year 2024 is comparable to other cloud-based communication platform providers such as Twilio and RingCentral, although specific growth rates may vary based on company size and market focus.
- The adjusted EBITDA margin of 18.8% for 2024 is within the typical range for SaaS companies in the contact center space, but can be compared to companies like Zoom and Salesforce to assess relative profitability.
- Five9's focus on AI in its CX platform aligns with the industry-wide trend of integrating AI to enhance customer interactions, similar to initiatives by competitors like Genesys and NICE.
Stakeholder Impact
- Shareholders will likely react positively to the record revenue and improved profitability.
- Employees may benefit from the company's growth and success.
- Customers can expect continued innovation and enhancements to the Five9 platform.
- Suppliers and partners may see increased business opportunities as Five9 expands its operations.
Next Steps
- Five9 will discuss its fourth-quarter 2024 results via Zoom webinar on February 20, 2025.
- The company will continue to focus on enhancing its AI-powered platform and driving long-term growth in 2025.
Key Dates
- February 20, 2025: Date of the earnings release and conference call.
- March 25, 2025: Record date for stockholders eligible to vote at the 2025 Annual Meeting.
- May 21, 2025: Date of the 2025 Annual Meeting of Stockholders.
- December 31, 2024: End of the reported fiscal year.
Keywords
Five9, revenue, EBITDA, AI, CX Platform, cloud contact center, financial results, earnings, subscription revenue
FIVN
Five9, INC
NASDAQ
Sector: TBD
Filings with Classifications
Better than expected
1 May 2025 8:07 PM
Earnings Release
- The company's Q1 revenue exceeded expectations, reaching a record $279.7 million.
- GAAP net income improved significantly compared to the previous year's net loss.
- Operating cash flow reached a record $48.4 million, surpassing previous performance.
Better than expected
1 May 2025 4:11 PM
Quarterly Report
- The company's net income improved to $0.6 million, compared to a net loss of $7.1 million for the same quarter of the previous year.
- Adjusted EBITDA increased to $52.7 million, up from $37.6 million in Q1 2024.
Worse than expected
20 February 2025 8:04 PM
Annual Results
- The Annual Dollar-Based Retention Rate decreased year-over-year primarily due to continued macroeconomic headwinds on the installed base.
Better than expected
20 February 2025 4:08 PM
Earnings Release
- Five9's full year revenue exceeded $1 billion, a record for the company.
- Q4 revenue growth accelerated to 17%, driven by subscription revenue growing 19%.
- Adjusted EBITDA margin reached a record 23% in Q4.
- GAAP net loss significantly improved from $(81.8) million in 2023 to $(12.8) million in 2024.
Better than expected
7 November 2024 4:15 PM
Quarterly Report
- The company's net loss improved significantly compared to the same period last year.
- The company's revenue increased by 15% year-over-year.
- The company's adjusted EBITDA increased year-over-year.
Better than expected
7 November 2024 4:09 PM
Quarterly Report
- Five9's Q3 results exceeded their own guidance across all key metrics, indicating better than expected performance.
- The company's revenue growth, subscription growth, and adjusted EBITDA all surpassed expectations.
- The raised full-year guidance also suggests that the company expects to continue performing better than previously anticipated.
Better than expected
8 August 2024 4:11 PM
Quarterly Report
- The company's net loss improved year-over-year, indicating progress towards profitability.
Worse than expected
8 August 2024 4:08 PM
Quarterly Report
- The company reduced its full-year revenue guidance by 3.8%, indicating a worse outlook than previously expected.
Capital raise
2 May 2024 4:11 PM
Quarterly Report
- The company issued $747.5 million in convertible senior notes due 2029.
- The company is in discussions regarding a potential revolving credit facility of up to $200 million.
Worse than expected
2 May 2024 4:11 PM
Quarterly Report
- The annual dollar-based retention rate decreased from 114% to 109%, indicating a potential weakening in customer loyalty or spending.
Better than expected
2 May 2024 4:08 PM
Quarterly Report
- The company's GAAP net loss improved significantly year-over-year, indicating better than expected profitability.
- Non-GAAP net income and earnings per share both increased year-over-year, exceeding expectations.
- The company secured its largest deal ever, demonstrating strong market traction.
Capital raise
1 March 2024 5:01 PM
Debt Issuance
- The document details a capital raise of $747.5 million through the issuance of convertible senior notes.
- The company granted initial purchasers an option to buy an additional $97.5 million in notes, which was fully exercised.
Capital raise
28 February 2024 6:07 AM
Debt Offering Announcement
- Five9 is raising $650 million through a private placement of convertible senior notes.
- The offering was upsized from an initial $600 million due to strong demand.
- The company has granted the initial purchasers an option to purchase an additional $97.5 million in notes.
Capital raise
27 February 2024 6:04 AM
Capital Raise Announcement
- Five9 is proposing a $600 million convertible senior notes offering.
- The company is also in discussions for a potential revolving credit facility of up to $200 million.
Capital raise
21 February 2024 9:55 PM
Annual Results
- The company may not be able to secure additional financing on favorable terms, or at all, to meet its future capital needs.
- The company may require additional capital to respond to business opportunities, challenges, acquisitions, a decline in sales, increased regulatory obligations or unforeseen circumstances and may engage in equity or debt financings or enter into credit facilities.
Worse than expected
21 February 2024 9:55 PM
Annual Results
- The company's net loss increased from $53.0 million in 2021 to $81.8 million in 2023.
- The company's Annual Dollar-Based Retention Rate decreased from 115% in 2022 to 110% in 2023.
Better than expected
21 February 2024 4:08 PM
Quarterly Report
- The company's full-year revenue of $910 million exceeded expectations.
- The 25% growth in enterprise subscription revenue was a positive surprise.
- The GAAP net loss improved year-over-year, indicating better than expected cost management.
- The company's cash flow from operations increased significantly year-over-year, exceeding expectations.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.