Summary
Five9, a cloud software provider for contact centers, demonstrated robust financial performance in Q1 FY2017, with revenue climbing to $47 million from $38 million year-over-year. This 24% increase in revenue was largely attributed to the expansion in client base and increased adoption by larger clients. Notably, the firm's Annual Dollar-Based Retention Rate improved to 99%, indicating strong customer loyalty and revenue growth from existing clients.
Despite these achievements, Five9's quarterly results may not fully represent its business performance due to fluctuations and other impacting factors. Its stock prices could be affected by these quarterly and annual financial variations. Moreover, the company faces significant risks from network instability, such as outages or security incidents, that can lead to client loss and damage to its reputation.
From an operational standpoint, Five9 continues to invest heavily in sales, marketing, research, and development to strengthen its position in the market. The company is focused on expanding its presence among larger contact center opportunities and tapping into the international market for further growth.
Five9 operates on a SaaS business model, providing subscriptions for its Virtual Contact Center platform. The firm's revenue structure relies significantly on subscription fees, with the majority of clients purchasing related telephony usage. Larger clients typically opt for annual contracts, which include an implementation and ramp period to cater to their demands. With revenues driven primarily by larger customers, no single client surpassed the 10% contribution threshold, indicating diversification in its client portfolio.
Looking ahead, Five9 plans to continue expanding its operations and headcount to capitalize on growth opportunities. While it expects cost increases in absolute terms due to ongoing investments, these are projected to decrease as a percentage of revenue, facilitated by economies of scale. Overall, the company is on a promising trajectory, assuming it can manage the inherent risks and stabilize its network effectively.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2017 | Q4 FY2016 | QoQ | Q1 FY2016 | YoY |
|---|---|---|---|---|---|
| Revenue | $47.0M | $44.2M | +6.3% | $38.0M | +23.7% |
| Gross profit | $27.0M | $28.4M | -4.9% | $21.4M | +26.3% |
| Gross margin | 57.5% | 64.3% | -6.8 pp | 56.3% | +1.2 pp |
| Research & development | $6.8M | $6.2M | +9.8% | $5.8M | +18.0% |
| Sales & marketing | $15.8M | $14.5M | +9.0% | $12.7M | +24.2% |
| General & administrative | $8.9M | $6.5M | +36.1% | $6.5M | +35.6% |
| Total operating expenses | $31.5M | $27.2M | +15.6% | $25.0M | +25.7% |
| Operating income (loss) | -$4.4M | $1.2M | -467.1% | -$3.6M | -22.1% |
| Operating margin | -9.4% | 2.7% | -12.2 pp | -9.6% | +0.1 pp |
| Net income (loss) | -$5.3M | $409.0K | -1384.8% | -$4.9M | -7.0% |
| Net margin | -11.2% | 0.9% | -12.1 pp | -12.9% | +1.7 pp |
Risks
Our quarterly and annual results have fluctuated significantly and may not fully reflect the underlying performance, potentially affecting stock prices.
Network outages or security incidents could lead to additional expenses, loss of clients, and harm to our reputation, as highlighted in recent events.
SaaS KPIs
All quarters →Annual Dollar-Based Retention Rate
Summary, forecast, risks and KPIs are extracted from Five9, Inc.'s SEC filings for Q1 FY2017 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Aug 4, 2026.