Q2 2020 Investor Presentation
Five9 (NASDAQ: FIVN)
© 2019 Five9, Inc. All rights Reserved. Proprietary and Confidential to Five9 Inc.
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This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning events, trends, expectations and beliefs that may affect our industry or the Company, including potential growth drivers, projections and guidance concerning our future results of operations including our long-term model, our market opportunity and our long-term growth prospects. Our actual results may be materially different from what we discuss here and you should not unduly rely on such forward looking statements. Please refer to our most recent Form 10-K and 10-Q under the caption "Risk Factors" and elsewhere in such reports, for detailed information about factors that could cause our results to differ from those set forth in such forward- looking statements, including risks related to the ongoing COVID-19 pandemic. We undertake no obligation to update any such forward-looking information.
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP and may differ from non-GAAP measures used by other companies in our industry. 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 unusual events, as well as factors that do not directly affect what we consider to be our core operating performance. 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 to the most directly comparable GAAP measure set forth in the Appendix to this presentation.
This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data.
2
Leader in Cloud Software for Contact Centers
Annual Revenue ($M)
400
33% | 328 |
CAGR | 258 |
(2009 - 2019)
Adj. EBITDA Margin Since IPO
18%
19 26
43
200 | |
162 | |
129 | |
84 | 103 |
64 |
46%
Adj. EBITDA
Margin Expansion (percentage point)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
(G)
(28%)
Q2'14 | Q2'20 |
100% | 100% | 82% | 33% | 59 |
Cloud | Organic | Enterprise | Enterprise Subscription | $1M+ ARR Enterprise |
(LTM) | YoY Growth (LTM) | Customers (Q4'19 Ann.) |
Note: 2020 (G) represents the midpoint of revenue guidance disclosed on 8/3/20. Reader shall not construe presentation of this information after 8/3/20 as an update or reaffirmation of such guidance. LTM metrics as of 6/30/20. $1M+ ARR based on Q4'19 annualized. Historical results prior to 2018 based on ASC 605
3
The Problem:
Consumers Dislike Customer Service
84%
Of end customers say being treated like a person, not a number, is very important to winning their business
- Difficulty speaking to an agent
- Depersonalized and disconnected experiences
- Labyrinthian IVR trees
- Long wait times
Source: State of Marketing, Salesforce Research, Dec 2018
4
Customer Service Must Transform
(one of the most important parts of Digital Transformation)
Of service decision makers
82% say their company's customer service must transform
to stay competitive
Source: State of Service, Salesforce Research, Mar 2019
5
Five9 Enables Companies to Engage Better
1
2
3
Serve customers in the channel(s) they prefer
Unify customer information into a single view
Modern engagement platform
6
Customer
Live | |
Interactions | |
Web |
1
Serve customers in the channel(s) they prefer
Social | Chat |
Voice | SMS |
• | Fully blended, omnichannel | |
System of | platform | |
• | Any channel, voice or digital | |
Engagement | ||
• | Any interaction, live or live-ish | |
• | Anytime and anywhere |
7
2
Unify customer information into a single view
•Hand-in-glove CRM integration
- Enrich CRM insights with Five9's computable interaction data
- Personalize service across the customer journey
Business
ComputableSales
Interactioncloud
Data
Marketing
cloud
System of | CRM | Service |
Engagement | Data | cloud |
8
3
Modern engagement platform
- Intelligently route customers to agents that best address needs
- Provide best-in-class tools to agents, supervisors and admins
- Turn interaction data into actionable insights
Customer | Business |
Live | Computable |
Interactions | Interaction |
Data | |
Agent Assist | Intelligent Routing |
APIs | |
Smart Dialer | Chatbot |
Live iinteraction++
customerer data
Integration | Provisioning
| Reporting
WFO | Dashboards |
CRM | |
Agent, Supervisor, | Data |
Reporting & Analytics | |
Admin | |
9
The Market is Strong
Legacy to cloud | Digital |
transformation | |
10
Large and Underpenetrated Market Opportunity
$24B
Contact center software
market opportunity
15% Cloud penetration of contact center software market
Current addressable market opportunity
Source: Company estimates; Gartner estimates, Oct 2018; MZA estimates, Oct 2018
Note: 15% penetration represents estimated penetration in North America
11
Longer-Term Expansion into the Market for Contact Center Labor Spend
16%
Percentage of customer service
representatives that will be displaced
due to automation by 2030
- McKinsey
$234B
$24B contact center software
+ $210B contact center labor spend
$58B
$24B contact center software
- $34B automated contact center labor spend
$24B
Contact center
software
Cloud penetration
Long-term addressable market opportunity
Source: Company estimates; Gartner estimates, Oct 2018; MZA estimates, Oct 2018; Statista estimates, Jul 2018; McKinsey estimates, Jul 2019
12
Why Enterprise Customers Choose Five9
• Full Feature Set: ACD, IVR, dialer, | • | Reliable: 99.99% uptime | ||||
inbound, outbound, blending, omni- | • Secure Architecture: Security zones, | |||||
channel, WFO, reporting, APIs… | ||||||
IPS / IDS, Next-Gen Firewalls | ||||||
• | Superior User Experience / | |||||
• | Compliant: PCI DSS, HIPAA, CPNI, | |||||
Customer Experience | ||||||
GDPR, CCPA | ||||||
• | Innovation: Customer journey, | |||||
• Scalable: 6B+ call minutes annually | ||||||
analytics, mobile… | ||||||
• | End-to-End Network Connectivity: | |||||
• | Deepest CRM Integrations: | |||||
End-to-End | Five9 TRUST | Tier 1 carrier redundancy, MPLS | ||||
Salesforce, Oracle, Zendesk, | ||||||
Agent Connect, high QOS | ||||||
Microsoft, ServiceNow… | Solution | Platform | ||||
• Our People: Recruit and retain top | • | High-Touch /On-Site | ||||
talent with a customer-first attitude | Implementation | |||||
• Chemistry: "Whatever it takes | • | Detailed Discovery | ||||
mentality," teamwork and | Customer-First | Implementation | • | Design & Testing | ||
communication | • | Training & Optimization | ||||
• | KPIs: Cross-functional metrics | Culture | & Support | • | Premium Support: Ongoing | |
focused on customer success | dedicated TAM |
13
Five9 is a Leader in Cloud Contact Center Software
Five9 Named a Leader for the 5th Year | Five9 Named a Leader in The Forrester |
in a Row in Gartner Magic Quadrant | |
Wave™: Cloud Contact Center | |
Contact Center as a Service | |
Source: Magic Quadrant for Contact Center as a Service, North America, Gartner, Oct 2019; The Forrester Wave™: Cloud Contact Centers, Q3 2018, Forrester, Sep 2018
14
Vibrant Partner Ecosystem
CRM | Systems | Technology / | ISV | Master Agents / |
Integrator | WFO / UC | Resellers | ||
15
Multiple Vectors for Long-Term Growth
Add | Expand | Add | Expand | Extend | Leverage Data | Selective |
New Enterprise | Existing | Channel | Internationally | the Platform | Advantage & AI | Acquisitions |
Logos | Customers | Partners | Advancements |
16
Leadership Team
Rowan | Dan | Barry | Kimberly | Jonathan | Ryan |
Trollope | Burkland | Zwarenstein | Lytikainen | Rosenberg | Kam |
CEO | President | CFO | General Counsel and | CTO and Head of AI | CMO |
Chief Compliance Officer |
David | Scott | Anand | James | Tricia |
Pickering | Welch | Chandrasekaran | Doran | Yankovich |
EVP, Engineering | EVP, Cloud Operations | EVP, Product | EVP, Strategy & | SVP, Human Resources |
Management | Operations |
17
Strong, Consistent Revenue Growth
Annual Revenue ($M) | Quarterly Revenue ($M) |
19 26 43
64 84 103
328
258
200
162
129
92 95100
84
72 75 77
14 15 16 18 19 20 21 24 24 25 26 28 30 30 32 36 38 39 41 44 47 48 50 55 59 61 65
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 | Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 | |||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
105% | 92% | No Single |
Client | ||
Annual | Recurring | >5% |
DBRR | Revenue | of Revenue |
High Retention | High Visibility | No Concentration |
Note: Annual DBRR, recurring revenue and client concentration as of Q2'20. Historical results prior to 2018 based on ASC 605
18
Enterprise Driving Strong Growth and Profitability
Enterprise Customers $1M+ ARR (Q4'19 Ann.) | Strong Unit Economics |
59 | Cumulative |
Profit | |
$6 |
Truncated
5 Years
Customer
3 | Acquisition Cost | ||
$1 | |||
Q2'14 (IPO) | Q4'19 |
Note: Unit economics calculated as estimated cumulative profit from Enterprise customers over a 5-year period divided by direct costs attributable to customer acquisition. $1M+ ARR based on Q4'19 annualized
19
Exceeding "Rule of 40" Despite Increased Investments
50% | 53% | |||||||||||||||||||||||
46% | 49% | 47% | ||||||||||||||||||||||
44% | 45% | |||||||||||||||||||||||
42% | 42% | |||||||||||||||||||||||
23% | ||||||||||||||||||||||||
34% | 38% | 38% | 20% | 18% | 21% | 18% | ||||||||||||||||||
31% | 34% | 33% | 16% | 16% | 19% | 15% | ||||||||||||||||||
6% | 7% | 29% | 29% | 29% | 12% | 13% | ||||||||||||||||||
3% | 27% | |||||||||||||||||||||||
14% | 21% | 6% | 10% | |||||||||||||||||||||
4% | 5% | 15% | 1% | 7% | 6% | |||||||||||||||||||
22% | 23% | 25% | 23% | 25% | 27% | 26% | 28% | 27% | 23% | 24% | 23% | 22% | 25% | 25% | 28% | 30% | 31% | 27% | 27% | 28% | 28% | 28% | 29% | |
20% | ||||||||||||||||||||||||
(19%) (15%) | (10%) | (7%) | (3%) | |||||||||||||||||||||
(28%) | ||||||||||||||||||||||||
YoY Revenue Growth | EBITDA Margin | |||||||||||||||||||||||
(6%) | ||||||||||||||||||||||||
Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 |
Note: Historical results prior to 2018 based on ASC 605
20
Margin Expansion and Operating Leverage
Non-GAAP
Adj. Gross Margin | Non-GAAP Opex (% of revenue) | Adj. EBITDA Margin | |||||||||
14.2% expansion | 31.9% improvement | 46.1% expansion | |||||||||
IPO | Today | IPO | Today | IPO | Today | ||||||
79.3% | |||||||||||
65.7% | G&A | 21.4% | |||||||||
51.5% | 47.4% | ||||||||||
S&M | 37.5% | 8.7% | |||||||||
26.3% | 18.3% | ||||||||||
R&D | 20.4% | 12.4% | |||||||||
(27.8%) | |||||
Q2'14 | Q2'20 | Q2'14 | Q2'20 | Q2'14 | Q2'20 |
Note: Non-GAAP metrics exclude depreciation, intangibles amortization, stock-based compensation and unusual transactions. Q2'14 metrics based on ASC 605. See appendix for reconciliation of non- GAAP measures to most comparable GAAP measure
21
Long-Term Operating Model
Non-GAAP
% of | |||||||
Revenue | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Q2'20 |
Adj. Gross | 53% | 59% | 62% | 63% | 64% | 64% | 66% |
Margin | |||||||
S&M | 35% | 31% | 31% | 31% | 25% | 26% | 26% |
R&D | 19% | 16% | 13% | 12% | 11% | 11% | 12% |
G&A | 21% | 16% | 13% | 11% | 10% | 9% | 9% |
Adj. EBITDA | (22%) | (4%) | 5% | 9% | 18% | 19% | 18% |
Subscription / PS margin expansion and increasing subscription mix
Continue to invest in GTM in line with revenue growth
Current acceleration offset by long-term leverage
Economies of scale
Long-Term
Model
70%+
26% - 30%
8% - 10%
5% - 7%
27%+
Based on ASC 605 | Based on ASC 606 |
Note: Non-GAAP metrics exclude depreciation, intangibles amortization, stock-based compensation and unusual transactions. 2014-2017 metrics based on ASC 605. See appendix for reconciliation of non-GAAP measures to most comparable GAAP measure
22
Balance Sheet
Quarter Ended | ||
$ in Millions | June 30, 2020 | March 31, 2020 |
Cash, cash equivalents and marketable investments1 | $768.0 | $326.3 |
Working capital | 675.5 | 322.9 |
Total assets | 993.3 | 503.7 |
Total finance leases | 2.1 | 3.1 |
Total debt | 642.2 | 212.9 |
Total stockholders' equity | $254.4 | $206.5 |
1 Includes long-term investments of $82.1M
23
Investment Highlights
Largest 100% Cloud Contact
Center Provider
Disrupting Large Market
Strong Revenue Growth
Marching to Long-Term 27%+
Adjusted EBITDA
Comprehensive Solution
Vibrant Partner Ecosystem
Proven Leadership Team
~$400M Revenue Run Rate (Q2'20)
$24B current addressable market
33% Growth in LTM Enterprise
Subscription Revenue
Powerful Business Model /
Excellent Unit Economics
Enables Digital Transformation
>60% of Enterprise Deal Flow
Influenced by Channels
Recognized as a leader in Gartner
MQ and Forrester Wave
24
Appendix
25 | © 2019 Five9, Inc. All rights Reserved. Proprietary and Confidential to Five9 Inc. |
GAAP to Adjusted Gross Profit Reconciliation
Q2'14 - Q2'20
Quarter Ended | |||||||||||||||||||||||||
Q2'14 | Q3'14 | Q4'14 | Q1'15 | Q2'15 | Q3'15 | Q4'15 | Q1'16 | Q2'16 | Q3'16 | Q4'16 | Q1'17 | Q2'17 | Q3'17 | Q4'17 | Q1'18 | Q2'18 | Q3'18 | Q4'18 | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | |
GAAP gross profit | 11,216 | 12,365 | 13,734 | 15,496 | 16,004 | 17,475 | 20,398 | 21,405 | 22,122 | 23,192 | 28,437 | 27,043 | 27,454 | 29,584 | 33,040 | 34,203 | 36,306 | 39,125 | 43,996 | 43,687 | 46,188 | 49,297 | 54,323 | 55,051 | 57,339 |
% GAAP gross | 45.4% | 47.8% | 48.6% | 51.2% | 52.9% | 54.1% | 56.6% | 56.3% | 56.9% | 56.6% | 64.3% | 57.5% | 57.5% | 59.1% | 59.6% | 58.1% | 59.4% | 59.9% | 60.8% | 58.6% | 59.6% | 58.8% | 58.9% | 57.9% | 57.5% |
margin | |||||||||||||||||||||||||
Depreciation & | 1,373 | 1,272 | 1,291 | 1,439 | 1,558 | 1,470 | 1,483 | 1,680 | 1,616 | 1,668 | 1,608 | 1,576 | 1,716 | 1,397 | 1,611 | 1,794 | 1,864 | 2,021 | 2,129 | 2,366 | 2,504 | 2,602 | 3,384 | 3,940 | 5,120 |
amortization | |||||||||||||||||||||||||
Stock-based | 121 | 158 | 176 | 188 | 218 | 233 | 227 | 265 | 329 | 357 | 424 | 434 | 575 | 599 | 594 | 678 | 853 | 860 | 942 | 1,229 | 1,658 | 1,702 | 1,745 | 1,989 | 2,499 |
compensation | |||||||||||||||||||||||||
Reversal of | - | - | - | - | - | - | - | - | - | (3,114) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |
accrued federal | - | ||||||||||||||||||||||||
fees | |||||||||||||||||||||||||
Out of period adj. | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||
for accrued | - | - | 235 | ||||||||||||||||||||||
federal fees | |||||||||||||||||||||||||
COVID-19 relief | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 618 | |||||
bonus for | - | - | - | - | - | ||||||||||||||||||||
employees | |||||||||||||||||||||||||
Adjusted gross | 12,710 | 13,795 | 15,436 | 17,123 | 17,780 | 19,178 | 22,108 | 23,350 | 24,067 | 25,217 | 27,355 | 29,053 | 29,745 | 31,580 | 35,245 | 36,675 | 39,023 | 42,006 | 47,067 | 47,282 | 50,350 | 53,601 | 59,452 | 60,980 | 65,576 |
profit | |||||||||||||||||||||||||
% adjusted gross | 51.5% | 53.3% | 54.6% | 56.6% | 58.7% | 59.4% | 61.4% | 61.4% | 61.9% | 61.5% | 61.9% | 61.8% | 62.3% | 63.1% | 63.6% | 62.3% | 63.8% | 64.3% | 65.1% | 63.4% | 65.0% | 64.0% | 64.4% | 64.1% | 65.7% |
margin | |||||||||||||||||||||||||
Note: Historical results prior to 2018 based on ASC 605
26
GAAP to Adjusted Gross Profit Reconciliation
2014 - 2019
Year Ended | ||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
GAAP gross profit | 48,441 | 69,373 | 95,156 | 117,121 | 153,630 | 193,495 |
% GAAP gross margin | 47.0% | 53.8% | 58.7% | 58.5% | 59.6% | 59.0% |
Depreciation & amortization | 5,138 | 5,950 | 6,573 | 6,300 | 7,808 | 10,856 |
Stock-based compensation | 542 | 866 | 1,375 | 2,202 | 3,333 | 6,334 |
Reversal of accrued federal fees | - | - | (3,114) | - | - | - |
Out of period adj. for accrued | 235 | - | - | - | - | - |
federal fees | ||||||
Adjusted gross profit | 54,356 | 76,189 | 99,990 | 125,623 | 164,771 | 210,685 |
% adjusted gross margin | 52.7% | 59.1% | 61.7% | 62.7% | 63.9% | 64.2% |
Note: Historical results prior to 2018 based on ASC 605
27
GAAP Net Inc. (Loss) to Adj. EBITDA Reconciliation
Q2'14 - Q2'20
Quarter Ended | |||||||||||||||||||||||||
Q2'14 | Q3'14 | Q4'14 | Q1'15 | Q2'15 | Q3'15 | Q4'15 | Q1'16 | Q2'16 | Q3'16 | Q4'16 | Q1'17 | Q2'17 | Q3'17 | Q4'17 | Q1'18 | Q2'18 | Q3'18 | Q4'18 | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | |
GAAP net income (loss) | (8,659) | (11,435) | (9,372) | (8,903) | (7,369) | (6,048) | (3,518) | (4,911) | (3,468) | (3,890) | 409 | (5,255) | (4,007) | 924 | (631) | (607) | (2,042) | (1,305) | 3,733 | (1,924) | (1,860) | (1,604) | 836 | (7,437) | (16,052) |
Non-GAAP adjustments: | |||||||||||||||||||||||||
Depreciation and amortization | 1,699 | 1,567 | 1,605 | 1,775 | 1,910 | 1,840 | 1,863 | 2,103 | 2,060 | 2,140 | 2,086 | 2,095 | 2,270 | 1,881 | 2,068 | 2,320 | 2,449 | 2,667 | 2,838 | 3,192 | 3,361 | 3,497 | 4,324 | 4,970 | 6,243 |
Stock-based compensation | 1,723 | 1,877 | 1,957 | 2,235 | 1,830 | 1,945 | 1,720 | 1,994 | 2,414 | 2,519 | 2,716 | 3,129 | 3,854 | 3,720 | 4,640 | 5,325 | 6,797 | 8,869 | 7,493 | 8,686 | 10,436 | 11,075 | 11,868 | 13,794 | 16,791 |
Interest expense | 1,092 | 1,116 | 1,175 | 1,139 | 1,155 | 1,235 | 1,198 | 1,199 | 1,197 | 961 | 869 | 882 | 888 | 865 | 836 | 810 | 2,378 | 3,595 | 3,462 | 3,396 | 3,406 | 3,486 | 3,506 | 3,484 | 5,734 |
Interest income and other | 28 | (95) | (146) | (2) | 49 | (119) | (28) | 45 | 33 | (12) | (54) | (118) | (90) | (118) | (164) | (398) | (206) | (1,352) | (1,359) | (1,745) | (1,490) | (1,460) | (1,384) | (1,072) | 4,965 |
Provision for (benefit from) | 12 | 13 | 33 | 18 | (20) | 50 | 13 | 28 | 42 | (2) | (14) | 49 | 50 | 43 | 126 | 45 | 64 | 41 | 150 | (49) | 29 | 50 | 74 | 69 | (2,876) |
income taxes | |||||||||||||||||||||||||
Extinguishment of debt | - | - | - | - | - | - | - | - | - | 1,026 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Reversal of accrued federal fees | - | - | - | - | - | - | - | - | - | - | (3,114) | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Legal settlement | - | - | - | - | - | - | - | - | - | - | - | 1,700 | - | - | - | - | - | - | - | - | 420 | - | - | - | - |
Legal and indemnification fees | - | - | - | - | - | - | - | - | - | - | - | 135 | - | - | - | - | 241 | 258 | 93 | 292 | 64 | - | - | - | - |
related to settlement | |||||||||||||||||||||||||
Acquisition-related transaction | |||||||||||||||||||||||||
costs and one-time integration | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 338 | 329 | 1,637 |
costs | |||||||||||||||||||||||||
COVID-19 relief bonus for | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 1,817 |
employees | |||||||||||||||||||||||||
Change in fair value of | |||||||||||||||||||||||||
convertible preferred and | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
common stock warrant | |||||||||||||||||||||||||
liabilities | |||||||||||||||||||||||||
Reversal of contingent sales tax | (2,766) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
liability (G&A) | |||||||||||||||||||||||||
Reversal of interest and | |||||||||||||||||||||||||
penalties on accrued federal | - | - | - | - | - | - | - | - | - | - | - | - | - | (2,133) | - | - | - | - | - | - | - | - | - | - | - |
fees (G&A) | |||||||||||||||||||||||||
Accrued FCC charge (G&A) | - | 2,000 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Out of period adj. for accrued | - | - | 235 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
federal fees (COR) | |||||||||||||||||||||||||
Out of period adj. for sales tax | - | - | 183 | 575 | 190 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
liability (G&A) | |||||||||||||||||||||||||
Adjusted EBITDA | (6,871) | (4,957) (4,330) (3,163) (2,255) (1,097) | 1,248 | 458 | 2,278 | 2,742 | 2,898 | 2,617 | 2,965 | 5,182 | 6,875 | 7,495 | 9,681 | 12,773 | 16,410 | 11,848 | 14,366 | 15,044 | 19,562 | 14,137 | 18,259 | ||||
% adjusted EBITDA margin | (27.8%) | (19.2%) | (15.3%) | (10.4%) | (7.4%) | (3.4%) | 3.5% | 1.2% | 5.9% | 6.7% | 6.6% | 5.6% | 6.2% | 10.3% | 12.4% | 12.7% | 15.8% | 19.6% | 22.7% | 15.9% | 18.6% | 18.0% | 21.2% | 14.9% | 18.3% |
Note: Historical results prior to 2018 based on ASC 605
28
GAAP Net Loss to Adjusted EBITDA Reconciliation
2014 - 2019
Year Ended | ||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
GAAP net income (loss) | ($37,786) | ($25,838) | ($11,860) | ($8,969) | ($221) | ($4,552) |
Non-GAAP adjustments: | ||||||
Depreciation and amortization | 6,463 | 7,388 | 8,390 | 8,314 | 10,274 | 14,374 |
Stock-based compensation | 6,753 | 7,730 | 9,643 | 15,343 | 28,484 | 42,065 |
Interest expense | 4,161 | 4,727 | 4,226 | 3,471 | 10,245 | 13,794 |
Interest income and other | (245) | (100) | 13 | (490) | (3,315) | (6,079) |
Provision for (benefit from) income taxes | 85 | 61 | 54 | 268 | 300 | 104 |
Extinguishment of debt | - | - | 1,026 | - | - | - |
Reversal of accrued federal fees | - | - | (3,114) | - | - | - |
Legal settlement | - | - | - | 1,700 | - | 420 |
Legal and indemnification fees related to settlement | - | - | - | 135 | 592 | 356 |
Acquisition related transaction costs | - | - | - | - | - | 338 |
Change in fair value of convertible preferred and common stock warrant liabilities | (1,745) | - | - | - | - | - |
Reversal of contingent sales tax liability (G&A) | (2,766) | - | - | - | - | - |
Reversal of interest and penalties on accrued federal fees (G&A) | - | - | - | (2,133) | - | - |
Accrued FCC charge (G&A) | 2,000 | - | - | - | - | - |
Out of period adj. for accrued federal fees (COR) | 235 | - | - | - | - | - |
Out of period adj. for sales tax liability (G&A) | 183 | 765 | - | - | - | - |
Adjusted EBITDA | ($22,662) | ($5,267) | $8,378 | $17,639 | $46,359 | $60,820 |
% adjusted EBITDA margin | (22.0%) | (4.1%) | 5.2% | 8.8% | 18.0% | 18.5% |
Note: Historical results prior to 2018 based on ASC 605
29
GAAP to Non-GAAP COR and OpEx Reconciliation
Q2'14 - Q2'20
Quarter Ended | ||||||||||||||||||||||||||
Q2'14 | Q3'14 | Q4'14 | Q1'15 | Q2'15 | Q3'15 | Q4'15 | Q1'16 | Q2'16 | Q3'16 | Q4'16 | Q1'17 | Q2'17 | Q3'17 | Q4'17 | Q1'18 | Q2'18 | Q3'18 | Q4'18 | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | ||
GAAP COR | 13,469 | 13,504 | 14,540 | 14,778 | 14,270 | 14,812 | 15,635 | 16,610 | 16,764 | 17,790 | 15,770 | 19,971 | 20,273 | 20,497 | 22,363 | 24,702 | 24,814 | 26,179 | 28,339 | 30,851 | 31,248 | 34,472 | 37,940 | 40,037 | 42,453 | |
% of revenue | 54.6% | 52.2% | 51.4% | 48.8% | 47.1% | 45.9% | 43.4% | 43.7% | 43.1% | 43.4% | 35.7% | 42.5% | 42.5% | 40.9% | 40.4% | 41.9% | 40.6% | 40.1% | 39.2% | 41.4% | 40.4% | 41.2% | 41.1% | 42.1% | 42.5% | |
Depreciation & amortization | (1,373) | (1,272) | (1,291) | (1,439) | (1,558) | (1,470) | (1,483) | (1,680) | (1,616) | (1,668) | (1,608) | (1,576) | (1,716) | (1,397) | (1,611) | (1,794) | (1,864) | (2,021) | (2,129) | (2,366) | (2,504) (2,602) (3,384) (3,940) (5,120) | |||||
Stock-based compensation | (121) | (158) | (176) | (188) | (218) | (233) | (227) | (265) | (329) | (357) | (424) | (434) | (575) | (599) | (594) | (678) | (853) | (860) | (942) | (1,229) | (1,658) | (1,702) | (1,745) | (1,989) | (2,499) | |
Reversal of accrued federal | - | - | - | - | - | - | - | - | - | - | 3,114 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |
fees | ||||||||||||||||||||||||||
Out of period adj. for accrued | - | - | (235) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |
federal fees | ||||||||||||||||||||||||||
COVID-19 relief bonus for | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (618) | |
employees | ||||||||||||||||||||||||||
Non-GAAP COR | 11,975 | 12,074 | 12,838 | 13,151 | 12,494 | 13,109 | 13,925 | 14,665 | 14,819 | 15,765 | 16,852 | 17,961 | 17,982 | 18,501 | 20,158 | 22,230 | 22,097 | 23,298 | 25,268 | 27,256 | 27,086 | 30,168 | 32,811 | 34,108 | 34,216 | |
% of revenue | 48.5% | 46.7% | 45.4% | 43.4% | 41.3% | 40.6% | 38.6% | 38.6% | 38.1% | 38.5% | 38.1% | 38.2% | 37.7% | 36.9% | 36.4% | 37.7% | 36.2% | 35.7% | 34.9% | 36.6% | 35.0% | 36.0% | 35.6% | 35.9% | 34.3% | |
GAAP R&D | 5,554 | 5,503 | 5,828 | 6,038 | 5,568 | 5,473 | 5,580 | 5,802 | 5,799 | 6,041 | 6,236 | 6,847 | 6,836 | 6,689 | 6,748 | 7,772 | 8,367 | 9,582 | 8,451 | 10,546 | 10,811 | 11,665 | 12,168 | 15,189 | 17,208 | |
% of revenue | 22.5% | 21.3% | 20.6% | 19.9% | 18.4% | 17.0% | 15.5% | 15.3% | 14.9% | 14.7% | 14.1% | 14.6% | 14.3% | 13.4% | 12.2% | 13.2% | 13.7% | 14.7% | 11.7% | 14.1% | 14.0% | 13.9% | 13.2% | 16.0% | 17.2% | |
Depreciation & amortization | (50) | (58) | (75) | (87) | (102) | (126) | (140) | (148) | (161) | (204) | (224) | (206) | (237) | (182) | (170) | (194) | (233) | (278) | (331) | (440) | (450) | (450) | (461) | (465) | (497) | |
Stock-based compensation | (471) | (583) | (527) | (574) | (340) | (475) | (401) | (435) | (528) | (547) | (549) | (637) | (801) | (797) | (807) | (877) | (1,064) | (2,352) | (1,010) | (1,470) | (1,907) | (2,022) | (2,259) | (2,806) | (3,684) | |
Acquisition-related | ||||||||||||||||||||||||||
transaction costs and one- | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (248) | |
time integration costs | ||||||||||||||||||||||||||
COVID-19 relief bonus for | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (365) | |
employees | ||||||||||||||||||||||||||
Non-GAAP R&D | 5,033 | 4,862 | 5,226 | 5,377 | 5,126 | 4,872 | 5,039 | 5,219 | 5,110 | 5,290 | 5,463 | 6,004 | 5,798 | 5,710 | 5,771 | 6,701 | 7,070 | 6,952 | 7,110 | 8,636 | 8,454 | 9,193 | 9,448 | 11,918 | 12,414 | |
% of revenue | 20.4% | 18.8% | 18.5% | 17.8% | 16.9% | 15.1% | 14.0% | 13.7% | 13.1% | 12.9% | 12.4% | 12.8% | 12.1% | 11.4% | 10.4% | 11.4% | 11.6% | 10.6% | 9.8% | 11.6% | 10.9% | 11.0% | 10.2% | 12.5% | 12.4% | |
GAAP S&M | 9,674 | 9,296 | 9,453 | 9,931 | 10,594 | 10,797 | 10,720 | 12,706 | 12,637 | 12,925 | 14,480 | 15,778 | 16,932 | 16,502 | 17,358 | 17,478 | 17,912 | 17,818 | 18,793 | 21,701 | 23,250 | 25,014 | 25,627 | 30,160 | 32,231 | |
% of revenue | 39.2% | 35.9% | 33.4% | 32.8% | 35.0% | 33.4% | 29.8% | 33.4% | 32.5% | 31.5% | 32.8% | 33.6% | 35.5% | 33.0% | 31.3% | 29.7% | 29.3% | 27.3% | 26.0% | 29.1% | 30.0% | 29.9% | 27.8% | 31.7% | 32.3% | |
Depreciation & amortization | (48) | (50) | (50) | (49) | (51) | (52) | (54) | (53) | (54) | (56) | (58) | (30) | (30) | (30) | (30) | (29) | (30) | (30) | (6) | (1) | (1) | (2) | (2) | (2) | (2) | |
Stock-based compensation | (368) | (361) | (455) | (524) | (458) | (448) | (370) | (434) | (544) | (626) | (759) | (928) | (1,224) | (1,084) | (1,128) | (1,362) | (1,585) | (1,613) | (1,747) | (2,249) | (2,749) | (3,017) | (3,353) | (4,106) | (5,265) | |
Acquisition-related | ||||||||||||||||||||||||||
transaction costs and one- | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (169) | |
time integration costs | ||||||||||||||||||||||||||
COVID-19 relief bonus for | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (596) | |
employees | ||||||||||||||||||||||||||
Non-GAAP S&M | 9,258 | 8,885 | 8,948 | 9,358 | 10,085 | 10,297 | 10,296 | 12,219 | 12,039 | 12,243 | 13,663 | 14,820 | 15,678 | 15,388 | 16,200 | 16,087 | 16,297 | 16,175 | 17,040 | 19,451 | 20,500 | 21,995 | 22,272 | 26,052 | 26,199 | |
% of revenue | 37.5% | 34.3% | 31.6% | 30.9% | 33.3% | 31.9% | 28.6% | 32.1% | 31.0% | 29.9% | 30.9% | 31.5% | 32.8% | 30.7% | 29.2% | 27.3% | 26.7% | 24.8% | 23.6% | 26.1% | 26.5% | 26.3% | 24.1% | 27.4% | 26.3% |
Note: Historical results prior to 2018 based on ASC 605
30
GAAP to Non-GAAP COR and OpEx Reconciliation (cont'd)
Q2'14 - Q2'20
GAAP G&A % of revenue
Depreciation & amortization Stock-based compensation Legal settlement
Legal and indemnification fees related to settlement
Acquisition-related transaction costs and onetime integration costs COVID-19 relief bonus for employees
Reversal of contingent sales tax liability
Reversal of interest & penalties on accrued federal fees
Accrued FCC charge
Out of period adj. for sales tax liability
Non-GAAP G&A % of revenue
Quarter Ended
Q2'14 | Q3'14 | Q4'14 | Q1'15 | Q2'15 | Q3'15 | Q4'15 | Q1'16 | Q2'16 | Q3'16 | Q4'16 | Q1'17 | Q2'17 | Q3'17 | Q4'17 | Q1'18 | Q2'18 | Q3'18 | Q4'18 | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 |
3,515 | 7,967 | 6,763 | 7,275 | 6,027 | 6,087 | 6,433 | 6,536 | 5,882 | 6,143 | 6,511 | 8,860 | 6,845 | 4,679 | 8,767 | 9,103 | 9,833 | 10,746 | 10,766 | 11,762 | 12,042 | 12,146 | 13,496 | 14,658 | 16,129 |
14.2% | 30.8% | 23.9% | 24.0% | 19.9% | 18.9% | 17.9% | 17.2% | 15.1% | 15.0% | 14.7% | 18.8% | 14.3% | 9.3% | 15.8% | 15.5% | 16.1% | 16.5% | 14.9% | 15.8% | 15.6% | 14.5% | 14.6% | 15.4% | 16.2% |
(228) | (187) | (189) | (200) | (199) | (192) | (186) | (222) | (229) | (212) | (196) | (283) | (287) | (272) | (257) | (303) | (322) | (338) | (372) | (385) | (406) | (443) | (477) | (563) | (624) |
(763) | (775) | (799) | (949) | (814) | (789) | (722) | (860) | (1,013) | (989) | (984) | (1,130) | (1,254) | (1,240) | (2,111) | (2,408) | (3,295) | (4,044) | (3,794) | (3,738) | (4,122) | (4,334) | (4,511) | (4,893) | (5,343) |
- | - | - | - | - | - | - | - | - | - | - | (1,700) | - | - | - | - | - | - | - | - | (420) | - | - | - | - |
- | - | - | - | - | - | - | - | - | - | - | (135) | - | - | - | - | (241) | (258) | (93) | (292) | (64) | - | - | - | - |
- | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (338) | (329) | (1,220) |
- | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (238) |
2,766 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - | - | - | - | - | - | 2,133 | - | - | - | - | - | - | - | - | - | - | - |
- | (2,000) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
- | - | (183) | (575) | (190) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
5,290 | 5,005 | 5,592 | 5,551 | 4,824 | 5,106 | 5,525 | 5,454 | 4,640 | 4,942 | 5,331 | 5,612 | 5,304 | 5,300 | 6,399 | 6,392 | 5,975 | 6,106 | 6,507 | 7,347 | 7,030 | 7,369 | 8,170 | 8,873 | 8,704 |
21.4% | 19.3% | 19.8% | 18.3% | 15.9% | 15.8% | 15.3% | 14.3% | 11.9% | 12.1% | 12.1% | 11.9% | 11.1% | 10.6% | 11.5% | 10.9% | 9.8% | 9.4% | 9.0% | 9.9% | 9.1% | 8.8% | 8.9% | 9.3% | 8.7% |
Note: Historical results prior to 2018 based on ASC 605
31
GAAP to Non-GAAP COR and OpEx Reconciliation
2014 - 2019
Year Ended | |||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||
GAAP COR | $54,661 | $59,495 | $66,934 | $83,104 | $104,034 | $134,511 | |
% of revenue | 53.0% | 46.2% | 41.3% | 41.5% | 40.4% | 41.0% | |
Depreciation & amortization | (5,138) | (5,950) | (6,573) | (6,300) | (7,808) | (10,856) | |
Stock-based compensation | (542) | (866) | (1,375) | (2,202) | (3,333) | (6,334) | |
Reversal of accrued federal fees | - | - | 3,114 | - | - | - | |
Out of period adj. for accrued federal fees | (235) | - | - | - | - | - | |
Non-GAAP COR | $48,746 | $52,679 | $62,100 | $74,602 | $92,893 | $117,321 | |
% of revenue | 47.3% | 40.9% | 38.3% | 37.3% | 36.1% | 35.8% | |
GAAP R&D | $22,110 | $22,659 | $23,878 | $27,120 | $34,172 | $45,190 | |
% of revenue | 21.4% | 17.6% | 14.7% | 13.5% | 13.3% | 13.8% | |
Depreciation & amortization | (229) | (455) | (737) | (795) | (1,036) | (1,801) | |
Stock-based compensation | (1,931) | (1,790) | (2,059) | (3,042) | (5,303) | (7,658) | |
Non-GAAP R&D | $19,950 | $20,414 | $21,082 | $23,283 | $27,833 | $35,731 | |
% of revenue | 19.3% | 15.8% | 13.0% | 11.6% | 10.8% | 10.9% | |
GAAP S&M | $37,445 | $42,042 | $52,748 | $66,570 | $72,001 | $95,592 | |
% of revenue | 36.3% | 32.6% | 32.5% | 33.2% | 27.9% | 29.1% | |
Depreciation & amortization | (196) | (206) | (221) | (120) | (95) | (6) | |
Stock-based compensation | (1,510) | (1,800) | (2,363) | (4,364) | (6,307) | (11,368) | |
Non-GAAP S&M | $35,739 | $40,036 | $50,164 | $62,086 | $65,599 | $84,218 | |
% of revenue | 34.7% | 31.1% | 30.9% | 31.0% | 25.5% | 25.7% | |
GAAP G&A | $24,416 | $25,822 | $25,072 | $29,151 | $40,448 | $49,446 | |
% of revenue | 23.7% | 20.0% | 15.5% | 14.6% | 15.7% | 15.1% | |
Depreciation & amortization | (900) | (777) | (859) | (1,099) | (1,335) | (1,711) | |
Stock-based compensation | (2,770) | (3,274) | (3,846) | (5,735) | (13,541) | (16,705) | |
Legal settlement | - | - | - | (1,700) | - | (420) | |
Legal and indemnification fees related to settlement | - | - | - | (135) | (592) | (356) | |
Acquisition related transaction costs | - | - | - | - | - | (338) | |
Reversal of contingent sales tax liability | 2,766 | - | - | - | - | - | |
Reversal of interest & penalties on accrued federal fees | - | - | - | 2,133 | - | - | |
Accrued FCC charge | (2,000) | - | - | - | - | - | |
Out of period adj. for sales tax liability | (183) | (765) | - | - | - | - | |
Non-GAAP G&A | $21,329 | $21,006 | $20,367 | $22,615 | $24,980 | $29,916 | |
% of revenue | 20.7% | 16.3% | 12.6% | 11.3% | 9.7% | 9.1% |
Note: Historical results prior to 2018 based on ASC 605
32
GAAP Operating Income (Loss) to Non-GAAP Operating Income Reconciliation
Three Months Ended | Six Months Ended | ||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||
Income (loss) from operations | $ | (8,229) | $ | 85 | $ | (13,185) | $ | (237) | |||||
Non-GAAP adjustments: | |||||||||||||
Stock-based compensation | 16,791 | 10,436 | 30,585 | 19,122 | |||||||||
Intangibles amortization | 1,738 | 88 | 2,828 | 176 | |||||||||
Legal settlement | - | 420 | - | 420 | |||||||||
Legal and indemnification fees related to settlement | - | 64 | - | 356 | |||||||||
Acquisition-related transaction costs and one-time | 1,637 | - | |||||||||||
integration costs | 1,966 | - | |||||||||||
COVID-19 relief bonus for employees | 1,817 | - | 1,817 | - | |||||||||
Non-GAAP operating income | $ | 13,754 | $ | 11,093 | $ | 24,011 | $ | 19,837 |
33
GAAP to Non-GAAP Net Income (Loss) Reconciliation
Three Months Ended | Six Months Ended | |||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 |
GAAP net loss | $ |
Non-GAAP adjustments: | |
Stock-based compensation | |
Intangibles amortization | |
Amortization of discount and issuance costs on convertible senior notes | |
Legal settlement | |
Legal and indemnification fees related to settlement | |
Acquisition-related transaction costs and one-time integration costs | |
COVID-19 relief bonus for employees | |
Loss on early extinguishment of debt | |
Gain on sale of convertible note held for investment | |
Tax benefit of valuation allowance associated with an acquisition | |
Non-GAAP net income | $ |
GAAP net loss per share: | |
Basic and diluted | $ |
Non-GAAP net income per share: | |
Basic | $ |
Diluted | $ |
Shares used in computing GAAP net loss per share: | |
Basic and diluted | |
Shares used in computing non-GAAP net income per share: | |
Basic | |
Diluted |
(16,052) | $ | (1,860) | $ | (23,489) | $ | (3,784) | |||
16,791 | 10,436 | 30,585 | 19,122 | ||||||
1,738 | 88 | 2,828 | 176 | ||||||
5,251 | 3,155 | 8,571 | 6,234 | ||||||
- | 420 | - | 420 | ||||||
- | 64 | - | 356 | ||||||
1,637 | - | 1,966 | - | ||||||
1,817 | - | 1,817 | - | ||||||
5,794 | - | 5,794 | - | ||||||
- | - | - | (217) | ||||||
(2,910) | - | (2,910) | - | ||||||
14,066 | $ | 12,303 | $ | 25,162 | $ | 22,307 | |||
(0.25) | $ | (0.03) | $ | (0.38) | $ | (0.06) | |||
0.22 | $ | 0.20 | $ | 0.40 | $ | 0.37 | |||
0.21 | |||||||||
$ | 0.20 | $ | 0.38 | $ | 0.35 | ||||
63,282 | 60,058 | 62,494 | 59,714 | ||||||
63,282 | 60,058 | 62,494 | 59,714 | ||||||
67,171 | 62,950 | 65,960 | 62,843 |
34
Summary of Stock-Based Compensation, Depreciation and Intangibles Amortization
Three Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | ||||||||||||||||||||||||||||||||||
Stock-Based | Intangibles | Stock-Based | Intangibles | ||||||||||||||||||||||||||||||||
Compensation | Depreciation | Amortization | Compensation | Depreciation | Amortization | ||||||||||||||||||||||||||||||
Cost of revenue | $ | 2,499 | $ | 3,382 | $ | 1,738 | $ | 1,658 | $ | 2,416 | $ | 88 | |||||||||||||||||||||||
Research and development | 3,684 | 497 | - | 1,907 | 450 | - | |||||||||||||||||||||||||||||
Sales and marketing | 5,265 | 2 | - | 2,749 | 1 | - | |||||||||||||||||||||||||||||
General and administrative | 5,343 | 624 | - | 4,122 | 406 | - | |||||||||||||||||||||||||||||
Total | $ | 16,791 | $ | 4,505 | $ | 1,738 | $ | 10,436 | $ | 3,273 | $ | 88 | |||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | ||||||||||||||||||||||||||||||||||
Stock-Based | Intangibles | Stock-Based | Intangibles | ||||||||||||||||||||||||||||||||
Compensation | Depreciation | Amortization | Compensation | Depreciation | Amortization | ||||||||||||||||||||||||||||||
Cost of revenue | $ | 4,488 | $ | 6,232 | $ | 2,828 | $ | 2,887 | $ | 4,694 | $ | 176 | |||||||||||||||||||||||
Research and development | 6,491 | 963 | - | 3,377 | 890 | - | |||||||||||||||||||||||||||||
Sales and marketing | 9,371 | 3 | - | 4,998 | 2 | - | |||||||||||||||||||||||||||||
General and administrative | 10,235 | 1,187 | - | 7,860 | 791 | - | |||||||||||||||||||||||||||||
Total | $ | 30,585 | $ | 8,385 | $ | 2,828 | $ | 19,122 | $ | 6,377 | $ | 176 |
35
GAAP to Non-GAAP Net Income (Loss) Reconciliation
Guidance
Three Months Ending | Year Ending | ||||||
September 30, 2020 | December 31, 2020 | ||||||
Low | High | Low | High |
GAAP net loss | $ |
Non-GAAP adjustments: | |
Stock-based compensation | |
Intangibles amortization | |
Amortization of discount and issuance costs on convertible senior notes | |
Loss on early extinguishment of debt | |
Acquisition-related transaction costs and one-time integration costs | |
COVID-19 relief bonus for employees | |
Tax benefit of valuation allowance associated with an acquisition | |
Income tax expense effects (1) | |
Non-GAAP net income | $ |
GAAP net loss per share, basic and diluted | $ |
Non-GAAP net income per share: | |
Basic | $ |
Diluted | $ |
Shares used in computing GAAP net loss per share and non-GAAP net income | |
per share: | |
Basic | |
Diluted |
(18,938) $
17,618
1,738
8,637
-
2,545
-
-
-
11,600 $
(0.29) $
0.18 $
0.17 $
64,900
69,100
(17,938) $
17,618
1,738
8,637
-
2,545
-
-
-
12,600 $
(0.28) $
0.19 $
0.18 $
64,900
69,100
(56,402) | $ | (54,402) | |
66,191 | 66,191 | ||
6,232 | 6,232 | ||
25,975 | 25,975 | ||
5,794 | 5,794 | ||
6,003 | 6,003 | ||
1,817 | 1,817 | ||
(2,910) | (2,910) | ||
- | - | ||
52,700 | $ | 54,700 | |
(0.88) | $ | (0.85) | |
0.82 | $ | 0.85 | |
0.77 | $ | 0.80 | |
64,200 | 64,200 | ||
68,100 | |||
68,100 | |||
Note: Represents guidance disclosed on 8/3/20. Reader shall not construe presentation of this information after 8/3/20 as an update or reaffirmation of such guidance
- Non-GAAPadjustments do not have an impact on our income tax provision due to past non-GAAP losses
36
Capital Expenditure and Free Cash Flow
12 mo ended | |||||||
$ in Thousands | Q1'19 | Q2'19 | Q3'19 | Q4'19 | 12/31/19 | Q1'20 | Q2'20 |
Net cash provided by operating activities | $11,190 | $6,788 | $17,677 | $15,566 | $51,221 | $10,394 | $14,759 |
(Refer to cash flows from operating activities in cash flow statement) | |||||||
Capital expenditure | |||||||
Purchases of property and equipment | 3,985 | 4,241 | 4,550 | 6,452 | 19,228 | 6,045 | 8,846 |
(Refer to cash flows from investing activities in cash flow statement) | |||||||
Equipment obtained under capital lease | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
(Refer to non-cash investing and financing activities in cash flow statement) | |||||||
Equipment purchased and unpaid at period-end | |||||||
Beginning balance | 1,583 | 1,875 | 1,602 | 862 | 2,890 | 2,280 | |
Ending balance | 1,875 | 1,602 | 862 | 2,890 | 2,890 | 2,280 | 2,838 |
(Refer to non-cash investing and financing activities in cash flow statement) | |||||||
Change in equipment purchased and unpaid during period | 292 | (273) | (740) | 2,028 | 1,307 | (610) | 558 |
Total capital expenditure | $4,277 | $3,968 | $3,810 | $8,480 | $20,535 | $5,435 | $9,404 |
Free cash flow | $7,205 | $2,547 | $13,127 | $9,114 | $31,993 | $4,349 | $5,913 |
(operating cash flow less capex paid in cash) | |||||||
37
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Five9 Inc. published this content on 03 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2020 20:21:07 UTC