Five9, Inc (FIVN) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.41 million, or $ 0.01 a share in the quarter, against a net loss of $3.52 million, or $0.07 a share in the last year period. On an adjusted basis, net profit for the quarter was $0.15 million, when compared with net loss $1.58 million in the last year period.
Revenue during the quarter grew 22.68 percent to $44.21 million from $36.03 million in the previous year period. Gross margin for the quarter expanded 772 basis points over the previous year period to 64.33 percent. Operating margin for the quarter period stood at positive 2.74 percent as compared to a negative 6.48 percent for the previous year period.
Operating income for the quarter was $1.21 million, compared with an operating loss of $2.34 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $0.93 million compared to operating loss of $0.49 million in prior year period.
"Our strong fourth quarter results capped off a record year for Five9. For the year, we grew revenue by 26% to a record $162.1 million. This revenue growth was driven by our faster growing Enterprise business, which delivered 43% growth in LTM Enterprise subscription revenue, and where we saw average deal size increase to approximately $560,000 in annual revenue. I'm also very pleased that we set an all-time record for Enterprise bookings in the fourth quarter and full year. In addition, we continued to enjoy leverage in our business model as we delivered strong improvements to our bottom line, including reaching the new milestone of positive net income in the fourth quarter. We believe our continued execution combined with our differentiated cloud contact center software, positions Five9 extremely well in this large contact center market that is still in the early days of a massive shift to the cloud." Mike Burkland, president and chief executive officer, Five9
For fiscal year 2017, Five9, Inc projects revenue to be in the range of $187 million to $190 million for financial year 2017. The company expects net loss to be in the range of $17.33 million to $20.33 million. The company forecasts adjusted net loss to be in the range of $1.50 million to $4.50 million. The company forecasts diluted loss per share to be in the range of $0.32 to $0.38. The company forecasts diluted loss per share to be in the range of $0.03 to $0.08 on adjusted basis.
For the first-quarter 2017, Five9, Inc projects revenue to be in the range of $44 million to $45 million. The company expects net loss to be in the range of $5.25 million to $6.25 million. The company forecasts adjusted net loss to be in the range of $1.70 million to $2.70 million. The company forecasts diluted loss per share to be in the range of $0.10 to $0.12. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.03 to $0.05.
Operating cash flow turns positive
Five9, Inc has generated cash of $6.84 million from operating activities during the year as against cash outgo of $12.94 million in the last year.
The company has spent $2.40 million cash to meet investing activities during the year as against cash inflow of $19.69 million in the last year.
The company has spent $4.80 million cash to carry out financing activities during the year as against cash outgo of $6.56 million in the last year period.
Cash and cash equivalents stood at $58.12 million as on Dec. 31, 2016, down 0.62 percent or $0.36 million from $58.48 million on Dec. 31, 2015.
Working capital increases sharply
Five9, Inc has recorded an increase in the working capital over the last year. It stood at $40.93 million as at Dec. 31, 2016, up 80.23 percent or $18.22 million from $22.71 million on Dec. 31, 2015. Current ratio was at 2.20 as on Dec. 31, 2016, up from 1.47 on Dec. 31, 2015.
Days sales outstanding were almost stable at 14 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 10 days for the quarter from 8 for the same period last year.
Debt comes down marginally
Five9, Inc has recorded a decline in total debt over the last one year. It stood at $45.80 million as on Dec. 31, 2016, down 1.75 percent or $0.82 million from $46.62 million on Dec. 31, 2015. Total debt was 43.52 percent of total assets as on Dec. 31, 2016, compared with 46.98 percent on Dec. 31, 2015. Debt to equity ratio was at 1.51 as on Dec. 31, 2016, down from 1.77 as on Dec. 31, 2015.
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