Summary
Five9 delivered strong revenue growth for Q2 2016, reaching $38.9 million, a 28% increase from $30.3 million in Q2 2015. This performance is driven by the expansion of business with larger clients and an improved Annual Dollar-Based Retention Rate, which reached 100% up from 94% in the prior year period. These results indicate effective client retention and growth execution, underscoring the value proposition of Five9's cloud-based contact center solutions.
As expected in SaaS business models, the majority of Five9's revenue, 94% for Q2 2016, comes from subscription and related usage fees, reflecting robust engagement from over 2,000 clients. The company also highlighted its diversified clientele, where no single client accounted for more than 10% of total revenue, which mitigates concentration risks and stabilizes revenue streams.
Operational efficiency is another focus, as Five9 continues to make significant investments in sales and marketing, R&D, and infrastructure to scale its operations. However, it anticipates these expenditures to grow in absolute terms, though they are expected to decline as a percentage of revenue as the company capitalizes on economies of scale.
The narrative around risks primarily centers on the potential fluctuations in quarterly and annual results that might not fully capture the company's overall performance. Influencing factors include market acceptance of Five9's solutions, competitive pressures, especially as the market matures, and potential seasonal trends that could affect sales dynamics. Additionally, the challenge of attracting new clients while expanding services with existing ones is noted as a critical component for sustained growth.
Despite these challenges, Five9's strong adjusted EBITDA performance for Q2 2016, $2.3 million compared to a $2.2 million loss in Q2 2015, demonstrates effective cost management and revenue utilization, affirming its strategic expansion approach.
Looking forward, no specific numerical guidance was disclosed. Nevertheless, Five9's strategic focus on expanding its market presence, particularly in larger contact centers, combined with its robust SaaS business model, positions it well for future scalability and continued revenue growth amidst competitive and operational challenges.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2016 | Q1 FY2016 | QoQ | Q2 FY2015 | YoY |
|---|---|---|---|---|---|
| Revenue | $38.9M | $38.0M | +2.3% | $30.3M | +28.4% |
| Gross profit | $22.1M | $21.4M | +3.3% | $16.0M | +38.2% |
| Gross margin | 56.9% | 56.3% | +0.6 pp | 52.9% | +4.0 pp |
| Research & development | $5.8M | $5.8M | -0.1% | $5.6M | +4.1% |
| Sales & marketing | $12.6M | $12.7M | -0.5% | $10.6M | +19.3% |
| General & administrative | $5.9M | $6.5M | -10.0% | $6.0M | -2.4% |
| Total operating expenses | $24.3M | $25.0M | -2.9% | $22.2M | +9.6% |
| Operating income (loss) | -$2.2M | -$3.6M | +39.7% | -$6.2M | +64.5% |
| Operating margin | -5.7% | -9.6% | +3.9 pp | -20.4% | +14.8 pp |
| Net income (loss) | -$3.5M | -$4.9M | +29.4% | -$7.4M | +52.9% |
| Net margin | -8.9% | -12.9% | +4.0 pp | -24.3% | +15.4 pp |
Risks
Our revenue growth has been significant, growing by 28% in Q2 2016 compared to Q2 2015. However, quarterly and annual results may not fully reflect our underlying business performance due to factors such as market acceptance, competitive dynamics, and seasonal variations.
SaaS KPIs
All quarters →Annual Dollar-Based Retention Rate
Summary, forecast, risks and KPIs are extracted from Five9, Inc.'s SEC filings for Q2 FY2016 (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.