Five9, Inc (FIVN) saw its loss widen to $5.26 million, or $0.10 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.91 million, or $0.10 a share. On an adjusted basis, net loss for the quarter was $0.26 million, when compared with $2.70 million in the last year period.
Revenue during the quarter grew 23.67 percent to $47.01 million from $38.02 million in the previous year period. Gross margin for the quarter expanded 121 basis points over the previous year period to 57.52 percent. Operating margin for the quarter stood at negative 9.45 percent as compared to a negative 9.57 percent for the previous year period.
Operating loss for the quarter was $4.44 million, compared with an operating loss of $3.64 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $0.64 million compared to operating loss of $1.52 million in prior year period.
"Our first quarter revenue exceeded expectations, growing 24% to a record $47 million. This revenue growth continues to be driven by our Enterprise business, which delivered 40% growth in LTM Enterprise subscription revenue. I am extremely pleased that we had our second best quarter ever for Enterprise bookings in the first quarter and our sales pipeline reached another all-time high. Furthermore, we continued to deliver leverage in our business model even as we accelerated hiring in a number of areas, most notably in our professional services capacity, in response to the ongoing momentum in our Enterprise bookings. In light of our first quarter results and the strength of our pipeline, we are raising our guidance for 2017." stated Mike Burkland, president and chief executive officer, Five9.
For financial year 2017, Five9, Inc forecasts revenue to be in the range of $190.60 million to $193.60 million. The company projects net loss to be in the range of $16.78 million to $19.78 million. It company expects diluted loss per share to be in the range of $0.31 to $0.37.
For the second-quarter 2017, Five9, Inc forecasts revenue to be in the range of $45.30 million to $46.30 million. The company projects net loss to be in the range of $5.40 million to $6.40 million and expects adjusted net loss to be in the range of $1.30 million to $2.30 million. It company expects diluted loss per share to be in the range of $0.10 to $0.12. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.02 to $0.04.
Operating cash flow improves significantly
Five9, Inc has generated cash of $0.16 million from operating activities during the quarter, up 205.77 percent or $0.11 million, when compared with the last year period. The company has spent $0.51 million cash to meet investing activities during the quarter as against cash outgo of $0.25 million in the last year period.
The company has spent $1.32 million cash to carry out financing activities during the quarter as against cash outgo of $0.52 million in the last year period.
Cash and cash equivalents stood at $56.45 million as on Mar. 31, 2017, down 2.28 percent or $1.32 million from $57.77 million on Mar. 31, 2016.
Working capital increases sharply
Five9, Inc has recorded an increase in the working capital over the last year. It stood at $38.87 million as at Mar. 31, 2017, up 83.99 percent or $17.75 million from $21.13 million on Mar. 31, 2016. Current ratio was at 2.02 as on Mar. 31, 2017, up from 1.40 on Mar. 31, 2016.
Days sales outstanding went down to 25 days for the quarter compared with 28 days for the same period last year.
At the same time, days payable outstanding went down to 13 days for the quarter from 16 for the same period last year.
Debt moves up marginally
Five9, Inc has witnessed an increase in total debt over the last one year. It stood at $45.88 million as on Mar. 31, 2017, up 1.50 percent or $0.68 million from $45.20 million on Mar. 31, 2016. Total debt was 42.34 percent of total assets as on Mar. 31, 2017, compared with 44.46 percent on Mar. 31, 2016. Debt to equity ratio was at 1.58 as on Mar. 31, 2017, down from 1.75 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
