FIVN Stock Price Increases Over 10% Pre-Market: Why It Happened

By Amit Chowdhry ● February 23, 2021
  • The stock price of Five9 Inc (NASDAQ: FIVN) is trading at over 10% pre-market. This is why it happened.

The stock price of leading provider of cloud contact center software Five9 Inc (NASDAQ: FIVN) is trading at over 10% pre-market. Investors are responding to Five9 reporting results for the fourth quarter and full year ended December 31, 2020.

Q4 2020 Financial Results:

– Revenue for the fourth quarter of 2020 increased 39% to a record $127.9 million, compared to $92.3 million for the fourth quarter of 2019.

-GAAP gross margin was 59.9% for the fourth quarter of 2020, compared to 58.9% for the fourth quarter of 2019.

-Adjusted gross margin was 66.4% for the fourth quarter of 2020, compared to 64.4% for the fourth quarter of 2019.

-GAAP net loss for the fourth quarter of 2020 was $(7.2) million, or $(0.11) per diluted share, compared to GAAP net income of $0.8 million, or $0.01 per diluted share, for the fourth quarter of 2019.

-Non-GAAP net income for the fourth quarter of 2020 was $23.7 million, or $0.34 per diluted share, compared to non-GAAP net income of $17.0 million, or $0.27 per diluted share, for the fourth quarter of 2019.

-Adjusted EBITDA for the fourth quarter of 2020 was $29.2 million, or a record 22.8% of revenue, compared to $19.6 million, or 21.2% of revenue, for the fourth quarter of 2019.

-GAAP operating cash flow for the fourth quarter of 2020 was $19.3 million, compared to GAAP operating cash flow of $15.6 million for the fourth quarter of 2019.

Full Year 2020 Financial Results:

-Total revenue for 2020 increased 33% to a record $434.9 million, compared to $328.0 million in 2019.

-GAAP gross margin was 58.5% for 2020, compared to 59.0% in 2019.

-Adjusted gross margin was 65.5% for 2020, compared to 64.2% in 2019.

-GAAP net loss for 2020 was $(42.1) million, or $(0.66) per basic share, compared to a GAAP net loss of $(4.6) million, or $(0.08) per basic share, in 2019.

-Non-GAAP net income for 2020 was $67.4 million, or $0.99 per diluted share, compared to a non-GAAP net income of $52.1 million, or $0.82 per diluted share, in 2019.

-Adjusted EBITDA for 2020 was $85.7 million, or a record 19.7% of revenue, compared to $60.8 million, or 18.5% of revenue, in 2019.

-GAAP operating cash flow for 2020 was $67.3 million, compared to GAAP operating cash flow of $51.2 million in 2019.

Business Outlook

Five9 also provided guidance based on current market conditions and expectations. And the company emphasized that the guidance is subject to various important cautionary factors such as risks and uncertainties associated with the COVID-19 pandemic.

For the full year 2021, Five9 said expects to report:

-Revenue in the range of $518.5 to $521.5 million.

-GAAP net loss in the range of $(63.9) to $(60.9) million, or $(0.92) to $(0.88) per basic share.

-Non-GAAP net income in the range of $59.1 to $62.1 million, or $0.75 to $0.79 per diluted share.

For the first quarter of 2021, Five9 expects to report:

-Revenue in the range of $122.0 to $123.0 million.

-GAAP net loss in the range of $(19.2) to $(18.2) million, or a loss of $(0.28) to $(0.27) per basic share.

-Non-GAAP net income in the range of $9.5 to $10.5 million, or $0.12 to $0.14 per diluted share.

KEY QUOTES:

“Our outstanding fourth quarter results capped a tremendous year for Five9. We delivered fourth quarter revenue of $127.9 million, accelerating 39% year-over-year and 14% sequentially, both all-time highs, and Adjusted EBITDA margin was a record 22.8%. Our performance underscores our leadership in the market and momentum on our mission to help customers modernize and transform their contact center and reimagine their customer experience. Our results were driven by continued exceptional execution, new product innovation, including AI-powered automation technologies, and portfolio expansion along with international traction and positive market tailwinds. I’m incredibly proud of what we achieved, particularly during these challenging times. We enter 2021 well positioned to capture the massive market opportunity and expand our leadership position.”

– Rowan Trollope, CEO, Five9

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.