Five9 Inc (FIVN) Reports 16% Revenue Growth to $230.1 Million in Q3 2023
Five9 Inc (NASDAQ:FIVN) reported a 16% increase in Q3 2023 revenue to a record $230.1 million, compared to $198.3 million for the same period in 2022.
GAAP net loss for Q3 2023 was $(20.4) million, a decrease from $(23.2) million in Q3 2022.
Non-GAAP net income for Q3 2023 was $38.0 million, an increase from $27.8 million in Q3 2022.
GAAP operating cash flow for Q3 2023 was a record $37.0 million, compared to $30.5 million for the same period in 2022.
Five9 Inc (NASDAQ:FIVN), the Intelligent CX Platform provider, released its Q3 2023 earnings report on November 2, 2023. The company reported a 16% year-over-year increase in revenue, reaching a record $230.1 million. This growth was primarily driven by the company's Enterprise business, where LTM subscription revenue grew 28% year-over-year.
Financial Highlights
Five9's GAAP gross margin for Q3 2023 was 51.7%, slightly down from 52.6% in Q3 2022. The company reported a GAAP net loss of $(20.4) million, or $(0.28) per basic share, and (8.9)% of revenue, compared to a GAAP net loss of $(23.2) million, or $(0.33) per basic share, and (11.7)% of revenue, for the same period in 2022.
Non-GAAP net income for Q3 2023 was $38.0 million, or $0.52 per diluted share, and 16.5% of revenue, compared to non-GAAP net income of $27.8 million, or $0.39 per diluted share, and 14.0% of revenue, for the same period in 2022. Adjusted EBITDA for Q3 2023 was $41.3 million, or 17.9% of revenue, compared to $36.7 million, or 18.5% of revenue, for Q3 2022.
GAAP operating cash flow for Q3 2023 was a record $37.0 million, compared to $30.5 million for the same period in 2022.
CEO Commentary
We are pleased to report strong third quarter results with revenue growing 16% year-over-year to a record $230.1 million. This growth continues to be driven by our Enterprise business where LTM subscription revenue grew 28% year-over-year. In the third quarter, we achieved adjusted EBITDA margin of 18%, which drove an all-time record for GAAP operating cash flow. We continue to focus on innovation with our industry leading AI and Automation portfolio, where we are seeing unprecedented adoption. We also continue to see strong momentum up-market as our pipeline increased to a record level. We are confident in the market opportunity ahead as we empower enterprises to enhance their customer experience and we continue to execute on product innovation, our march up-market and international expansion." - Mike Burkland, Chairman and CEO, Five9
Business Outlook
For the full year 2023, Five9 expects to report revenue in the range of $908.5 to $909.5 million. GAAP net loss per share is expected to be in the range of $(1.39) to $(1.33), assuming basic shares outstanding of approximately 72.1 million. Non-GAAP net income per share is expected to be in the range of $1.91 to $1.93, assuming diluted shares outstanding of approximately 73.0 million.
For Q4 2023, Five9 expects to report revenue in the range of $237.1 to $238.1 million. GAAP net loss per share is expected to be in the range of $(0.42) to $(0.36), assuming basic shares outstanding of approximately 73.0 million. Non-GAAP net income per share is expected to be in the range of $0.47 to $0.49, assuming diluted shares outstanding of approximately 73.8 million.
Explore the complete 8-K earnings release (here) from Five9 Inc for further details.
This article first appeared on GuruFocus.
