Summary
Five9, Inc. reported revenue growth for the quarter ending March 31, 2018, with revenues climbing to $58.9 million, a 25% increase from the same period in 2017, primarily driven by expansion in larger client accounts. The contact center cloud software provider saw its net loss narrow to $0.6 million, compared to a $5.3 million loss in Q1 2017, suggesting improvements in operational efficiencies despite ongoing investments.
The company's Annual Dollar-Based Retention Rate for the trailing twelve months was 98%, a slight dip from the previous year's 99%, mainly attributed to the loss of two clients, one due to non-payment and another owing to bankruptcy. Despite this, Five9 continues to maintain a broad client base spanning various industries, with no single client contributing more than 10% of total revenue for the quarter.
Adjusted EBITDA improved markedly to $7.495 million, up from $2.617 million in the same quarter a year ago. This indicates significant progress in the company's pursuit of operational efficiency, even as it enhances its solutions and expands its market reach, especially within larger contact centers.
However, the quarter was not without risks. One high-impact risk highlighted in the filings relates to the volatility in quarterly and annual results. Such fluctuations, driven by factors like client acquisition rates, renewal rates, and external market dynamics, could adversely affect Five9's stock price and investor perceptions.
Operationally, Five9 continues to focus on diversifying its revenue streams and expanding its geographic presence. The firm has strategically positioned itself to adapt to market demands by broadening its technology offerings and optimizing its client engagement strategies.
Looking forward, Five9 anticipates that its revenue and client base will continue to grow. The company is expected to keep investing heavily in sales, marketing, and research and development to sustain this growth trajectory. It's critical for Five9 to manage these expenditures effectively to achieve economies of scale that could eventually bolster profit margins.
Overall, Five9's performance this quarter underscores its robust business model centered around SaaS, which allows for sustainable recurring revenue, critical for long-term growth. If the firm can navigate its highlighted risks effectively, it stands poised to capitalize on increasing demand for cloud-based contact center solutions.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2018 | Q4 FY2017 | QoQ | Q1 FY2017 | YoY |
|---|---|---|---|---|---|
| Revenue | $58.9M | $55.4M | +6.3% | $47.0M | +25.3% |
| Gross profit | $34.2M | $33.0M | +3.5% | $27.0M | +26.5% |
| Gross margin | 58.1% | 59.6% | -1.6 pp | 57.5% | +0.5 pp |
| Research & development | $7.8M | $6.7M | +15.2% | $6.8M | +13.5% |
| Sales & marketing | $17.5M | $17.4M | +0.7% | $15.8M | +10.8% |
| General & administrative | $9.1M | $8.8M | +3.8% | $8.9M | +2.7% |
| Total operating expenses | $34.4M | $32.9M | +4.5% | $31.5M | +9.1% |
| Operating income (loss) | -$150.0K | $167.0K | -189.8% | -$4.4M | +96.6% |
| Operating margin | -0.3% | 0.3% | -0.6 pp | -9.4% | +9.2 pp |
| Net income (loss) | -$607.0K | -$631.0K | +3.8% | -$5.3M | +88.4% |
| Net margin | -1.0% | -1.1% | +0.1 pp | -11.2% | +10.2 pp |
Risks
Our quarterly and annual financial results may fluctuate significantly due to factors outside our control, potentially impacting the price of our common stock.
SaaS KPIs
All quarters →Annual Dollar-Based Retention Rate
Adjusted EBITDA
Revenue
Summary, forecast, risks and KPIs are extracted from Five9, Inc.'s SEC filings for Q1 FY2018 (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.