Record Annual Revenue of $200 Million Reported by Five9
Five9 achieve 24% growth year-over-year
Leading cloud communications software provider for enterprise clients, Five9, recently revealed their financial results for the fourth quarter of the year ending 31st December 2017.
According to the documents, 2017 was a phenomenal year for Five9, despite a significant amount of confusion and complexity in the UC space. Interim Chief Financial Officer and CEO of Five9, Barry Zwarenstein, noted that 2017 had gone much better than expected for the company, with the fourth quarter results capping a record year for the brand. The revenue for the year grew by 24% in total, to a record of $200 million.
The phenomenal growth of the Five9 business is attributed primarily to its Enterprise segment, which saw a 37% growth in LTM subscriptions. The organisation also set an all-time-high record for their Enterprise bookings in the full year and the fourth quarter. They believe that their differentiated cloud product will continue to push them further ahead into a position of market leadership.
The Five9 Fourth Quarter 2017 Results
For 2017’s fourth quarter, Five9’s revenue increased by 25% to a total amount of $55.4 million. Additionally, the GAAP gross margin was 59.6%, compared with 64.3% for the fourth quarter of 2016. Other financial highlights include:
- 6% adjusted gross margin for 2017’s fourth quarter against 61.9% for the same period during 2016
- GAAP net loss of $0.6 million against to $2.7 million for 2016
- Non-GAAP net income for 2017’s fourth quarter was $4.0 million, compared to only $0.1 million in the same period of 2016
- Adjusted EBITDA for 2017’s fourth quarter was $6.9 million, compared with $2.9 million during the same quarter of 2016
- GAAP operating cash flow was $2.9 million by the end of 2017’s fourth quarter, compared against 2.8 million recorded in the same period of 2016
An Amazing Year-over-Year Growth
Key results from the whole of 2017 include:
- A total revenue of $200.2 million in total (compared with $162.1 million in 2016)
- GAAP margin of 58.5% (compared against 58.7% in 2016)
- Adjusted gross margin of $62.7 for 2017
- Adjusted EBITDA was a record of $17.6 million, compared against $8.4 million in 2016
- GAAP operating cash flow was $11.1 million (compared with $6.8 million in 2016)
Although 2017 turned out to be the best year that Five9 has seen so far, they expect the growth to keep coming thanks to their incredibly differentiated portfolio and reliable service offerings. By the end of 2018, the business expects to report:
- Revenue between $231 and $234 million
- GAAP net loss between $13.4 and $10.4 million
- Non-GAAP net income of between $12.6 and $15.6 million
Watch this space for more news about Five9 and their pursuit of more record-breaking financial success.