Five9 Reports Record Revenue of $280 Million for the First Quarter
Five9, Inc. (NASDAQ:FIVN), provider of the Intelligent CX Platform, today reported results for the first quarter ended March 31, 2025. First Quarter 2025 Financial Results Revenue for the first qua...
Q1 Subscription Revenue Growth of 14%
Q1 Record Operating Cash Flow of $48 Million
SAN RAMON, Calif.: Five9, Inc. (NASDAQ:FIVN), provider of the Intelligent CX Platform, today reported results for the first quarter ended March 31, 2025.
First Quarter 2025 Financial Results
- Revenue for the first quarter of 2025 increased 13% to a record $279.7 million, compared to $247.0 million for the first quarter of 2024.
- GAAP gross margin was 55.0% for the first quarter of 2025, compared to 53.6% for the first quarter of 2024.
- Adjusted gross margin was 62.4% for the first quarter of 2025, compared to 60.8% for the first quarter of 2024.
- GAAP net income for the first quarter of 2025 was $0.6 million, or $0.01 per diluted share, and 0.2% of revenue, compared to GAAP net loss of $(7.1) million, or $(0.10) per basic share, and (2.9)% of revenue, for the first quarter of 2024.
- Non-GAAP net income for the first quarter of 2025 was $47.3 million, or $0.62 per diluted share, and 16.9% of revenue, compared to non-GAAP net income of $35.7 million, or $0.48 per diluted share, and 14.5% of revenue, for the first quarter of 2024.
- Adjusted EBITDA for the first quarter of 2025 was $52.7 million, or 18.8% of revenue, compared to $37.6 million, or 15.2% of revenue, for the first quarter of 2024.
- GAAP operating cash flow for the first quarter of 2025 was $48.4 million, compared to GAAP operating cash flow of $32.4 million for the first quarter of 2024.
“We are very pleased to report strong first quarter results, exceeding expectations across key metrics, while remaining laser focused on delivering balanced growth for both top and bottom lines. Subscription revenue grew 14% year-over-year, and we achieved an adjusted EBITDA margin of 19%, which drove a Q1 record for operating cash flow of $48 million. Our customers are realizing meaningful benefits through our Genius AI suite of products as we continue to enable brands to deliver AI-elevated customer experiences. We are off to a strong start in 2025, with continued momentum in AI for CX and execution against the massive core CCaaS market opportunity, and we look forward to sharing our progress as the year unfolds.”
- Mike Burkland, Chairman and CEO, Five9
Business Outlook
Five9 provides guidance based on current market conditions and expectations. Five9 emphasizes that the guidance is subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements" below, including risks and uncertainties associated with the ongoing impact of macroeconomic challenges.
- For the full year 2025, Five9 expects to report:
- Revenue in the range of $1.140 to $1.144 billion.
- GAAP net income per share in the range of $0.14 to $0.24, assuming diluted shares outstanding of approximately 85.6 million.
- Non-GAAP net income per share in the range of $2.74 to $2.78, assuming diluted shares outstanding of approximately 77.3 million.
- For the second quarter of 2025, Five9 expects to report:
- Revenue in the range of $274.5 to $275.5 million.
- GAAP net loss per share in the range of $(0.15) to $(0.06), assuming basic shares outstanding of approximately 76.6 million.
- Non-GAAP net income per share in the range of $0.64 to $0.66, assuming diluted shares outstanding of approximately 76.7 million.
With respect to Five9’s guidance as provided above, please refer to the “Reconciliation of GAAP Net Income (Loss) to Non-GAAP net income - Guidance” table for more details, including important assumptions upon which such guidance is based.
Conference Call Details
Five9 will discuss its first quarter 2025 results today, May 1, 2025, via Zoom webinar at 4:30 p.m. Eastern Time. To access the webinar, please register by clicking here. A copy of this press release will be furnished to the Securities and Exchange Commission on a Current Report on Form 8-K and will be posted to our website, prior to the conference call.
A live webcast and a replay will be available on the Investor Relations section of the Company’s web-site at http://investors.five9.com/.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. We calculate adjusted gross profit and adjusted gross margin by adding back the following items to gross profit: depreciation, intangibles amortization, stock-based compensation, and lease amortization for finance leases. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net income (loss): depreciation and amortization, stock-based compensation, interest expense, gain on early extinguishment of debt, interest income and other, exit costs related to closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, lease amortization for finance leases, one-time expenses related to strategic consulting services for operational review, legal fees related to the securities class action, and provision for income taxes. We calculate non-GAAP operating income by adding back or removing the following items to or from GAAP loss from operations: stock-based compensation, intangibles amortization, exit costs related to the closure and relocation of our Russian operations, acquisition related transaction costs and one-time integration costs, one-time expenses related to strategic consulting services for operational review, and legal fees related to the securities class action. We calculate non-GAAP net income by adding back or removing the following items to or from GAAP net loss: stock-based compensation, intangibles amortization, amortization of discount and issuance costs on convertible senior notes, exit costs related to the closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, gain on early extinguishment of debt, one-time expenses related to strategic consulting services for operational review, and legal fees related to the securities class action. For the periods presented, these adjustments from GAAP net income (loss) to non-GAAP net income do not include any presentation of the net tax effect of such adjustments given our significant net operating loss carryforwards. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. The Company considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what we consider to be our core operating performance, as well as unusual events. The Company’s management uses these measures to (i) illustrate underlying trends in the Company’s business that could otherwise be masked by the effect of income or expenses that are excluded from non-GAAP measures, and (ii) establish budgets and operational goals for managing the Company’s business and evaluating its performance. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented only as supplemental information for purposes of understanding the Company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP. Please see the reconciliation of non-GAAP financial measures set forth in this release.
Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements in the quote from our Chairman and Chief Executive Officer, including statements regarding Five9's focus on balanced growth for both top and bottom lines, Five9’s AI platform and its customer benefits, market position and expected impact on the Company's growth, Five9's market opportunity and growth prospects, including as a result of AI, and the second quarter and full year 2025 financial projections and expectations set forth under the caption “Business Outlook,” that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) the impact of adverse economic conditions, including the impact of macroeconomic challenges, the global tariff increases, continued inflation, uncertainty regarding consumer spending, high interest rates, fluctuations in currency rates, the impact of the Russia-Ukraine conflict, the impact of the conflicts in the Middle East, and other factors, may continue to harm our business; (ii) if we are unable to attract new customers or sell additional services and functionality to our existing customers, our revenue and revenue growth will be harmed; (iii) if our existing customers terminate their subscriptions or reduce their subscriptions and related usage, or fail to grow subscriptions at the rate they have in the past or that we might expect, our revenues and gross margins will be harmed and we will be required to spend more money to grow our customer base; (iv) because a significant percentage of our revenue is derived from existing customers, downturns or upturns in new sales will not be immediately reflected in our operating results and may be difficult to discern; (v) if we fail to manage our technical operations infrastructure, our existing customers may experience service outages, our new customers may experience delays in the deployment of our solution and we could be subject to, among other things, claims for credits or damages; (vi) as AI solutions will likely perform an increasing proportion of contact center interactions, if we are unable to replace decreases in subscription revenue from licenses with revenue from the sale of additional AI solutions, our revenue, results of operations and business will be harmed; (vii) further development of our AI solutions may not be successful and may result in reputational harm and our future operating results could be materially harmed; (viii) we have established, and are continuing to increase, our network of technology solution distributors and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues; (ix) our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock; (x) if we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be harmed; (xi) our historical growth may not be indicative of our future growth, and even if we continue to grow rapidly, we may fail to manage our growth effectively; (xii) failure to adequately retain and expand our sales force will impede our growth; (xiii) the AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks; (xiv) the use of AI by our workforce may present risks to our business; (xv) the contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new solutions in order to maintain and grow our business; (xvi) our growth depends in part on the success of our strategic relationships with third parties and our failure to successfully maintain, grow and manage these relationships could harm our business; (xvii) the markets in which we participate involve a high number of competitors that is continuing to increase, and if we do not compete effectively, our operating results could be harmed; (xviii) we continue to expand our international operations, which exposes us to significant macroeconomic and other risks; (xix) security breaches, cybersecurity incidents, and improper access to, use of, or disclosure of our data or our customers’ data, or other cyber-attacks on our systems, could result in litigation and regulatory risk, harm our reputation, our business or financial results; (xx) we may acquire other companies, or technologies, or be the target of strategic transactions, or be impacted by transactions by other companies, which could divert our management’s attention, result in additional dilution to our stockholders or use a significant amount of our cash resources and otherwise disrupt our operations and harm our operating results; (xxi) we sell our solution to larger organizations that require longer sales and implementation cycles and often demand more configuration and integration services or customized features and functions that we may not offer, any of which could delay or prevent these sales and harm our growth rates, business and operating results; (xxii) we rely on third-party telecommunications and internet service providers to provide our customers and their customers with telecommunication services and connectivity to our cloud contact center software and any failure by these service providers to provide reliable services could cause us to lose customers and subject us to claims for credits or damages, among other things; (xxiii) we have a history of losses and we may be unable to achieve or sustain profitability; (xxiv) our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control; (xxv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxvi) failure to comply with laws and regulations could harm our business and our reputation; (xxvii) we may not have sufficient cash to service our convertible senior notes and repay such notes, if required, and other risks attendant to our convertible senior notes and increased debt levels; and (xxviii) the other risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent annual report on Form 10-K and quarterly reports on Form 10-Q. Such forward-looking statements speak only as of the date hereof and readers should not unduly rely on such statements. We undertake no obligation to update the information contained in this press release, including in any forward-looking statements.
About Five9
Five9 empowers organizations to create hyper-personalized and effortless AI-driven customer experiences that deliver better business outcomes. Powered by Five9 Genius AI and our people, the Five9 Intelligent CX Platform is trusted by 3,000+ customers and 1,400+ partners globally. The New CX starts here and it's at the heart of every winning experience. For more information, visit www.five9.com.
FIVE9, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | ||||||||
|
| March 31, 2025 |
| December 31, 2024 | ||||
ASSETS |
|
|
|
| ||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 370,344 |
|
| $ | 362,546 |
|
Marketable investments |
|
| 671,394 |
|
|
| 643,410 |
|
Accounts receivable, net |
|
| 118,614 |
|
|
| 115,172 |
|
Prepaid expenses and other current assets |
|
| 47,832 |
|
|
| 50,840 |
|
Deferred contract acquisition costs, net |
|
| 79,267 |
|
|
| 76,600 |
|
Total current assets |
|
| 1,287,451 |
|
|
| 1,248,568 |
|
Property and equipment, net |
|
| 146,460 |
|
|
| 144,888 |
|
Operating lease right-of-use assets |
|
| 36,444 |
|
|
| 38,880 |
|
Finance lease right-of-use assets |
|
| 21,113 |
|
|
| 19,269 |
|
Intangible assets, net |
|
| 61,532 |
|
|
| 65,632 |
|
Goodwill |
|
| 366,698 |
|
|
| 365,436 |
|
Other assets |
|
| 12,669 |
|
|
| 13,384 |
|
Deferred contract acquisition costs, net — less current portion |
|
| 157,557 |
|
|
| 155,157 |
|
Total assets |
| $ | 2,089,924 |
|
| $ | 2,051,214 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| ||||
Current liabilities: |
|
|
|
| ||||
Accounts payable |
| $ | 29,477 |
|
| $ | 26,282 |
|
Accrued and other current liabilities |
|
| 80,354 |
|
|
| 83,720 |
|
Operating lease liabilities |
|
| 11,131 |
|
|
| 11,258 |
|
Finance lease liabilities |
|
| 9,090 |
|
|
| 7,768 |
|
Deferred revenue |
|
| 74,809 |
|
|
| 79,173 |
|
Convertible senior notes |
|
| 434,031 |
|
|
| 433,490 |
|
Total current liabilities |
|
| 638,892 |
|
|
| 641,691 |
|
Convertible senior notes — less current portion |
|
| 732,721 |
|
|
| 731,855 |
|
Operating lease liabilities — less current portion |
|
| 34,987 |
|
|
| 37,071 |
|
Finance lease liabilities — less current portion |
|
| 12,321 |
|
|
| 11,688 |
|
Other long-term liabilities |
|
| 6,717 |
|
|
| 6,717 |
|
Total liabilities |
|
| 1,425,638 |
|
|
| 1,429,022 |
|
Stockholders’ equity: |
|
|
|
| ||||
Common stock |
|
| 76 |
|
|
| 76 |
|
Additional paid-in capital |
|
| 1,080,782 |
|
|
| 1,039,125 |
|
Accumulated other comprehensive income |
|
| 497 |
|
|
| 636 |
|
Accumulated deficit |
|
| (417,069 | ) |
|
| (417,645 | ) |
Total stockholders’ equity |
|
| 664,286 |
|
|
| 622,192 |
|
Total liabilities and stockholders’ equity |
| $ | 2,089,924 |
|
| $ | 2,051,214 |
|
FIVE9, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | ||||||||
|
| Three Months Ended | ||||||
|
| March 31, 2025 |
| March 31, 2024 | ||||
Revenue |
| $ | 279,705 |
|
| $ | 247,010 |
|
Cost of revenue |
|
| 125,973 |
|
|
|
If you liked this article and want to stay up to date with news from
InnovationOpenLab.com subscribe to ours
Free newsletter.
Related news
Last NewsRSA at Cybertech Europe 2024Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurityG11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem growAlways keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most readAlibaba Group Announces March Quarter 2025 and Fiscal Year 2025 Results$BABA #alibaba--Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba”, “Alibaba Group” or the “company”)… Workhuman Ignites Industry Momentum as the Undisputed Leader in Employee…#employeerecognition--In a bold validation of its innovative approach to culture-building through employee recognition, Workhuman®, the world’s leading… U.S. Data Center Construction Market Outlook Report 2025-2030 Featuring…The "U.S. Data Center Construction Market - Industry Outlook & Forecast 2025-2030" report has been added to ResearchAndMarkets.com's offering. The… Fiserv to Present at Upcoming Investor ConferencesFiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology solutions, announced its participation in the following… G11 Media Networks
InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , 
| |