Five9, Inc. Files 8-K on Exit/Disposal Costs

TL;DR

Five9 8-K: Costs related to exiting/disposing of activities filed. Details to follow.

AI Summary

On August 20, 2024, Five9, Inc. filed an 8-K report detailing costs associated with exit or disposal activities. The filing also included other events and financial statements/exhibits. Specific financial figures related to these activities were not detailed in the provided text.

Why It Matters

This filing indicates potential restructuring or divestitures by Five9, Inc., which could impact future financial performance and operational focus.

Risk Assessment

Risk Level: medium — The filing suggests potential business changes or restructuring, which can introduce uncertainty and financial risk.

Key Players & Entities

• Five9, Inc. (company) — Registrant
• August 20, 2024 (date) — Date of earliest event reported
• Delaware (jurisdiction) — State of incorporation
• 001-36383 (identifier) — Commission File Number
• 94-3394123 (identifier) — I.R.S. Employer Identification No.
• 3001 Bishop Drive, Suite 350 San Ramon, CA 94583 (address) — Principal Executive Offices
• ( 925 ) 201-2000 (phone_number) — Registrant's telephone number

FAQ

Key Financial Figures

• $0.001 — ich Registered Common stock, par value $0.001 per share FIVN The NASDAQ Global Market
• $12 million — iated with the Plan to be approximately $12 million to $15 million, primarily consisting of
• $15 m — Plan to be approximately $12 million to $15 million, primarily consisting of notice p
• $15 million — d on August 8, 2024. The $12 million to $15 million aggregate costs associated with the Pla

Filing Documents

• fivn-20240820.htm (8-K) — 40KB
• exhibit991.htm (EX-99.1) — 4KB
• 0001288847-24-000125.txt ( ) — 175KB
• fivn-20240820.xsd (EX-101.SCH) — 2KB
• fivn-20240820_lab.xml (EX-101.LAB) — 22KB
• fivn-20240820_pre.xml (EX-101.PRE) — 13KB
• fivn-20240820_htm.xml (XML) — 3KB

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On August 20, 2024, Five9, Inc. (the "Company") announced a reduction in force plan (the "Plan") as part of the Company's broader efforts to drive balanced, profitable growth, further supporting our positive, long-term outlook and focus on increasing shareholder value. The Plan is expected to reduce the Company's global full-time employees by approximately 7%. The Company estimates the aggregate costs associated with the Plan to be approximately $12 million to $15 million, primarily consisting of notice period payments, severance payments, employee benefits and related costs, all of which are cash expenditures. The Company expects to incur these expenses primarily in the third and fourth quarters of 2024. The estimate of the charges that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Plan. The actions associated with the Plan are expected to be substantially complete by the end of 2024. In addition, the projected cost savings associated with the Plan were incorporated into the Q3 and 2024 guidance the Company issued on August 8, 2024. The $12 million to $15 million aggregate costs associated with the Plan were not included in the Q3 and 2024 GAAP EPS guidance issued on August 8, 2024. The Company intends to exclude these costs from its non-GAAP financial measures.

01 Other Events

Item 8.01 Other Events. On August 20, 2024, the Company's Chief Executive Officer, Mike Burkland, sent an email to employees about the Plan, which is attached to this Current Report on Form 8-K as Exhibit 99.1, and is incorporated herein by reference.

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Plan, the estimated total charges and the timing thereof in connection with the Plan, the impact of the Plan on the Company's results of operations and workforce, the Company's long-term outlook and goal of balanced profitable growth, the expected timing for completion of the actions associated with Plan, and the information regarding the projected cost savings and their impact, that are based on the Company's current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) our ability to realize the anticipated benefits of the Plan; (ii) the risk that the restructuring costs and charges for the Plan may be greater than anticipated or that the timing of such charges may change (iii) the risk that our restructuring efforts may be distracting to employees and management and harm our internal programs and ability to attract and retain the highly skilled employees we need to support our business; (iv) potential disruptions to our business or operations as we execute on the Plan (v) the risk that our restructuring efforts may harm our revenue, business, operations and reputation with or ability to serve our clients or partners; (vi) the risk that the Plan and the expense reductions therefrom may not generate the intended benefits to the extent or as quickly as anticipated (vii) the impact of adverse economic conditions, including the impact of macroeconomic deterioration, including continued inflation, increased interest rates, supply chain disruptions, decreased economic output and fluctuations in currency rates, the impact of the Russia-Ukraine conflict, the impact of the conflict in Israel, and

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 99.1 Email to employees. 104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FIVE9, INC. Date: August 20, 2024 By: /s/ Barry Zwarenstein Barry Zwarenstein Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR