Five9, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved revenue of $264.2 million for the three months ended September 30, 2024, marking a 15% increase from $230.1 million in the same period of 2023. For the nine months ended September 30, 2024, revenue rose to $763.3 million, up 14% from $671.4 million year-over-year. This growth was primarily driven by increases in subscription and related usage fees, which accounted for 92% of total revenue.
Gross profit for the third quarter was $142.2 million, reflecting a 20% increase from $119.0 million in the prior year, while gross profit for the nine-month period reached $408.4 million, a 16% increase from $351.2 million. The gross profit margin improved slightly to 54% for both the three and nine months ended September 30, 2024, compared to 52% in the same periods of 2023.
Despite the revenue growth, Five9 reported a net loss of $4.5 million for the third quarter, a significant reduction from a net loss of $20.4 million in the same quarter of 2023. For the nine months, the net loss was $24.4 million, down from $69.4 million in the previous year. The company’s loss from operations also improved, with a loss of $15.4 million for the third quarter compared to $25.7 million in 2023.
Five9's total assets increased to $2.0 billion as of September 30, 2024, up from $1.5 billion at the end of 2023. Cash and cash equivalents rose to $291.0 million, significantly higher than $143.2 million at the end of 2023. The company also reported $675.7 million in marketable investments, up from $587.1 million.
Strategically, Five9 completed the acquisition of Acqueon Inc. in August 2024 for approximately $173.8 million, which added $138.2 million in goodwill and $39.9 million in intangible assets. This acquisition aims to enhance Five9’s AI-powered customer experience platform. Additionally, the company announced a restructuring plan in August 2024, resulting in a 6% reduction in its global workforce, with associated costs of $9.6 million recorded in the third quarter.
The company issued $747.5 million in convertible senior notes in March 2024, with net proceeds used to repurchase a portion of its 2025 convertible senior notes. As of September 30, 2024, Five9 had $434.4 million in outstanding 2025 notes and $747.5 million in 2029 notes. The company’s annual dollar-based retention rate decreased slightly to 108% from 110% in the previous year, attributed to macroeconomic challenges.
About Five9, Inc.
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