Five9 Reports $910.5M Revenue with $81.8M Loss in 2023

Five9, Inc. has recently released its 10-K report, detailing its operations and financial performance. The company is a leading provider of intelligent cloud contact centers, offering a virtual contact center cloud platform that enables the management and optimization of customer interactions across various channels. Five9 primarily generates revenue through monthly subscription fees for access to its solution, based on the number of agent seats and specific functionalities deployed by clients.

In the year ended December 31, 2023, Five9 reported a revenue of $910.5 million, marking a significant increase from $778.8 million in 2022 and $609.6 million in 2021. However, the company also reported a net loss of $81.8 million in 2023, compared to a net loss of $94.7 million in 2022 and $53.0 million in 2021. The increase in revenue was primarily driven by larger clients, increased sales and marketing activities, and improved brand awareness.

Five9's key operating and non-GAAP financial performance metrics indicate a decrease in the Annual Dollar-Based Retention Rate, which dropped from 115% in 2022 to 110% in 2023. This decrease was attributed to macroeconomic headwinds experienced in 2022 and 2023. Additionally, the company's adjusted EBITDA increased to $166.3 million in 2023 from $140.4 million in 2022, reflecting the company's ongoing operational performance and financial results.

The company highlighted that it continues to make significant expenditures and investments, particularly in sales and marketing, research and development, and infrastructure. While revenue growth remains a key focus, Five9 acknowledges the challenges posed by macroeconomic factors and geopolitical events, such as the Russia-Ukraine conflict and the conflict in Israel, which may impact its future revenue.

Overall, Five9's 10-K report reflects its strong revenue growth, ongoing investments in key areas, and the potential impact of external factors on its financial performance.

The market has reacted to these announcements by moving the company's shares -11.9% to a price of $62.62. For more information, read the company's full 10-K submission here.

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