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Dec 31, 2022

Five9 Q4 2022 Earnings Report

Reported record revenue with strong enterprise growth and international expansion.

Key Takeaways

Five9 reported a strong fourth quarter with revenue growing 20% year-over-year to a record $208.3 million. The growth was driven by the continued strength of the Enterprise business where LTM subscription revenue grew 32% year-over-year and investments in international expansion where 2022 international revenue grew 44%.

Q4 revenue increased 20% year-over-year to a record $208.3 million.

GAAP gross margin was 53.8% compared to 54.1% for the fourth quarter of 2021.

GAAP net loss was $(13.7) million, or $(0.19) per basic share, compared to GAAP net loss of $(3.6) million, or $(0.05) per basic share, for the fourth quarter of 2021.

GAAP operating cash flow was $32.7 million, compared to $8.6 million for the fourth quarter of 2021.

Total Revenue
$208M
Previous year: $174M
+20.0%
EPS
$0.54
Previous year: $0.42
+28.6%
Gross Profit
$112M
Previous year: $93.8M
+19.4%
Cash and Equivalents
$181M
Previous year: $90.9M
+98.6%
Free Cash Flow
$26.5M
Previous year: -$5.6M
-573.0%
Total Assets
$1.24B
Previous year: $1.19B
+4.3%

Five9

Five9

Forward Guidance

Five9 provides guidance based on current market conditions and expectations.

Positive Outlook

  • Full year 2023 revenue is expected to be in the range of $900.0 to $903.0 million.
  • Full year 2023 GAAP net loss per share is expected to be in the range of $(1.72) to $(1.62).
  • Full year 2023 non-GAAP net income per share is expected to be in the range of $1.67 to $1.71.
  • First quarter 2023 revenue is expected to be in the range of $207.0 to $208.0 million.
  • First quarter 2023 non-GAAP net income per share is expected to be in the range of $0.23 to $0.25.

Challenges Ahead

  • Guidance is subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements".
  • Risks and uncertainties associated with the ongoing macroeconomic deterioration.
  • Full year 2023 GAAP net loss per share assumes diluted shares outstanding of approximately 72.1 million.
  • Full year 2023 non-GAAP net income per share assumes diluted shares outstanding of approximately 73.4 million.
  • First quarter 2023 GAAP net loss per share is expected to be in the range of $(0.63) to $(0.58).