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Jun 30, 2020
Five9 Q2 2020 Earnings Report
Reported record revenue growth and raised 2020 guidance.
Key Takeaways
Five9 reported a strong second quarter with revenue increasing by 29% to a record $99.8 million. The company's eighteenth consecutive quarter of positive operating cash flow was at $14.8 million. Five9 raised its 2020 guidance for both revenue and bottom line.
Revenue for the second quarter of 2020 increased 29% to a record $99.8 million.
GAAP gross margin was 57.5% for the second quarter of 2020.
Non-GAAP net income for the second quarter of 2020 was $14.1 million, or $0.21 per diluted share.
GAAP operating cash flow for the second quarter of 2020 was $14.8 million.
Five9
Five9
Forward Guidance
Five9 provides revenue guidance for the third quarter of 2020 in the range of $100.5 to $101.5 million.
Positive Outlook
- Revenue in the range of $399.0 to $401.0 million for the full year 2020.
- Non-GAAP net income in the range of $52.7 to $54.7 million for the full year 2020.
- Revenue in the range of $100.5 to $101.5 million for the third quarter of 2020.
- Non-GAAP net income in the range of $11.6 to $12.6 million for the third quarter of 2020.
- Increased go-to-market investments are paying dividends.
Challenges Ahead
- GAAP net loss in the range of $(56.4) to $(54.4) million for the full year 2020.
- GAAP net loss in the range of $(18.9) to $(17.9) million for the third quarter of 2020.
- Decline is primarily due to a $12.6 million increase in amortization of discount and issuance costs related to 2025 convertible senior notes.
- Decline is also due to a $5.8 million loss on early extinguishment of a portion of 2023 convertible senior notes.
- Effects of the COVID-19 pandemic have materially affected operations.