Item 5. Market for Registrant’s Common Equity
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information for Common Stock
Our common stock trades on The NASDAQ Global Market, or NASDAQ, under the symbol “FIVN.”
Number of Common Stock Holders
On February 19, 2021, there were 18 stockholders of record of our common stock who held an aggregate of 66,659,859 shares of our common stock. We believe that there are a substantially greater number of beneficial owners of our common stock.
Dividend Policy
We have never declared or paid any cash dividends on our common stock. We currently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future. In addition, while our convertible senior notes do not prohibit payment of dividends, any dividends declared and paid by our board of directors would result in an adjustment to the conversion rate of such notes such that additional shares would be issuable upon conversion. Any future determination to declare cash dividends will be made at the discretion of our board of directors, subject to applicable laws, and will depend on a number of factors, including our financial condition, results of operations, capital requirements, contractual restrictions, including under any future loan facilities, general business conditions and other factors that our board of directors may deem relevant.
Stock-Based Compensation
For information on securities authorized for issuance under our equity compensation plans, see Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
Recent Sales of Unregistered Securities
None.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
None.
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Stock Performance Graph
The graph below compares the cumulative total return on our common stock with that of the Russell 2000 Index and the NASDAQ Computer and Data Processing Index. The period shown commences on December 31, 2015 and ends on December 31, 2020. The graph assumes $100 was invested at the close of market on December 31, 2015 in the common stock of Five9, the Russell 2000 Index and the NASDAQ Computer and Data Processing Index, and assumes the reinvestment of any dividends. The stock price performance on the following graph is not intended to forecast or be indicative of future stock price performance of our common stock.
This performance graph shall not be deemed “soliciting material” or to be “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of Five9, Inc. under the Securities Act of 1933, as amended, or the Securities Act of 1934 Exchange, as amended.
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ITEM 6. Selected Financial Data
The following selected consolidated statement of operations data for the years ended December 31, 2020, 2019 and 2018 and the selected consolidated balance sheet data as of December 31, 2020 and 2019 are derived from our audited consolidated financial statements included elsewhere in this Form 10-K. The following selected consolidated statement of operations data for the years ended December 31, 2017 and 2016 and the selected consolidated balance sheet data as of December 31, 2018, 2017 and 2016 are derived from our audited consolidated financial statements that are not included in this report.
Our historical results are not necessarily indicative of the results that may be expected in the future. You should read the following selected financial data in conjunction with the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” our consolidated financial statements, related notes, and other financial information included elsewhere in this Form 10-K.
Year Ended December 31,
2020 2019 2018 2017 2016
(in thousands, except per share data)
Revenue $ 434,908 $ 328,006 $ 257,664 $ 200,225 $ 162,090
Cost of revenue (1)(2)
180,284 134,511 104,034 83,104 66,934
Gross profit 254,624 193,495 153,630 117,121 95,156
Operating expenses:
Research and development (1)(2)
68,747 45,190 34,172 27,120 23,878
Sales and marketing (1)(2)
132,413 95,592 72,001 66,570 52,748
General and administrative (1)(2)
65,769 49,446 40,448 29,151 25,072
Total operating expenses 266,929 190,228 146,621 122,841 101,698
Income (loss) from operations (12,305) 3,267 7,009 (5,720) (6,542)
Other income (expense), net:
Loss on early extinguishment of debt (6,964) — — — (1,026)
Interest and other (25,314) (7,715) (6,930) (2,981) (4,238)
Total other income (expense), net (32,278) (7,715) (6,930) (2,981) (5,264)
Income (loss) before income taxes (44,583) (4,448) 79 (8,701) (11,806)
Provision for (benefit from) income taxes (2,453) 104 300 268 54
Net loss $ (42,130) $ (4,552) $ (221) $ (8,969) $ (11,860)
Net loss per share:
Basic and diluted $ (0.66) $ (0.08) $ — $ (0.16) $ (0.23)
Shares used in computing net loss per share:
Basic and diluted 64,154 60,371 58,076 54,946 52,342
(1) Depreciation and amortization expenses included in our results of operations are as follows (in thousands):
Year Ended December 31,
2020 2019 2018 2017 2016
Cost of revenue $ 20,179 $ 10,856 $ 7,808 $ 6,300 $ 6,573
Research and development 1,964 1,801 1,036 795 737
Sales and marketing 5 6 95 120 221
General and administrative 2,939 1,711 1,335 1,099 859
Total depreciation and amortization $ 25,087 $ 14,374 $ 10,274 $ 8,314 $ 8,390
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(2) Stock-based compensation expense is included in our results of operations as follows (in thousands):
Year Ended December 31,
2020 2019 2018 2017 2016
Cost of revenue $ 9,422 $ 6,334 $ 3,333 $ 2,202 $ 1,375
Research and development 14,043 7,658 5,303 3,042 2,059
Sales and marketing 20,164 11,368 6,307 4,364 2,363
General and administrative 21,118 16,705 13,541 5,735 3,846
Total stock-based compensation $ 64,747 $ 42,065 $ 28,484 $ 15,343 $ 9,643
December 31,
2020 2019 2018 2017 2016
(in thousands)
Consolidated Balance Sheet Data:
Cash, cash equivalents and marketable investments $ 645,670 $ 319,949 $ 291,819 $ 68,947 $ 58,122
Working capital 585,557 315,282 286,008 53,317 40,933
Total assets 1,063,742 482,380 394,666 128,196 105,239
Total debt and finance leases 643,928 213,931 207,919 46,742 45,799
Additional paid-in capital 474,678 351,870 294,279 222,202 196,555
Total stockholders’ equity 279,164 196,458 142,748 46,838 30,328