Rendering

Component: (Network and Table)
Network
2322301 - Disclosure - Stockholders' Equity (Tables)
(http://www.five9.com/role/StockholdersEquityTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Equity [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Equity [Abstract]
 
Schedule of Warrant Disclosures
As of December 31, 2016, the Company had outstanding warrants to purchase shares of common stock as follows (in thousands, except per share data):
Expiration Date
 
Exercise Price
 
Warrants Outstanding at December 31, 2016
October 2023
 
$
5.76

 
13

February 2024
 
$
10.12

 
119

Total
 
 
 
132

The table below is a summary of the Company’s common stock warrant activity during the year ended December 31, 2016 (in thousands, except per share data).
 
 
Shares
 
Weighted
Average
Exercise
Price
Outstanding as of December 31, 2015
 
191

 
$
9.96

Issued
 

 

Exercised
 

 

Canceled
 
(59
)
(1)
$
10.31

Outstanding as of December 31, 2016
 
132

 
$
9.80

 
 
 
 
 

(1) In February 2016, warrants to purchase 59,288 shares of common stock issuable pertaining to the undrawn $10.0 million under the 2014 Loan and Security Agreement did not vest and were no longer exercisable, and were therefore canceled (See Note 6).
 
 
Schedule of Valuation Assumptions, Warrants
 
 
IPO Date
April 3, 2014
 
December 31, 2013
 
Fair value of Series A-2 preferred stock
 
$
1.75

(1)
$
2.69

(2)
Fair value of Series D-2 preferred stock
 
$
1.75

(1)
$
2.81

(2)
Fair value of common stock
 
$
7.00

(1)
*
 
Risk-free interest rate
 
0.13% to 2.73%
 
0.33% to 2.60%
 
Expected life
 
Remaining
contractual life
 
Remaining
contractual life
 
Expected dividends
 
 
 
Volatility
 
40% - 50%
 
45 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Fair value of the underlying stock is based on the Company's IPO price of $7.00 per share calculated on a pre-reverse split basis for preferred stock and post-reverse split basis for common stock.
(2) The per share data is on a pre-reverse split basis for preferred stock.
* There were no liability-classified common stock warrants at December 31, 2013.
 
 
Schedule of Common Stock Reserved for Future Issuance
As of December 31, 2016, shares of common stock reserved for future issuance related to outstanding equity awards, warrants, and employee equity incentive plans were as follows (in thousands):
 
 
December 31, 2016
Stock options outstanding
 
5,556

Restricted stock units outstanding
 
2,019

Shares available for future grant under 2014 Plan
 
6,095

Shares available for future issuance under ESPP
 
1,102

Common stock warrants outstanding
 
132

Total shares of common stock reserved
 
14,904

 
 
Schedule of Stock Option Activities
A summary of the Company’s stock option activity during the year ended December 31, 2016 is as follows (in thousands, except years and per share data):
 
 
Number of Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life
(Years)
 
Aggregate
Intrinsic
Value
(1)
Outstanding as of December 31, 2015
 
6,092

 
$
4.58

 
 
 
 
Options granted
 
867

 
9.48

 
 
 
 
Options exercised
 
(982
)
 
4.37

 
 
 
 
Options forfeited or expired
 
(421
)
 
6.56

 
 
 
 
Outstanding as of December 31, 2016
 
5,556

 
$
5.23

 
5.9
 
$
49,895

Vested and expected to vest as of December 31, 2016
 
5,489

 
5.18

 
5.9
 
49,570

Exercisable as of December 31, 2016
 
4,065

 
4.13

 
5.0
 
40,996

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The aggregate intrinsic value amounts are computed based on the difference between the exercise price of the stock options and the fair market value of the Company’s common stock of $14.19 per share as of December 31, 2016 for all in-the-money stock options outstanding.

Following is additional information pertaining to the Company’s stock option activities (in thousands, except per share data):
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
Weighted-average grant date fair value per share of options granted
 
$
4.50

 
$
2.38

 
$
3.42

Intrinsic value of options exercised (1)
 
5,865

 
3,233

 
9,808

Proceeds received from options exercised
 
4,286

 
1,268

 
1,127

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Intrinsic value of options exercised is the difference between the fair market value of the Company’s common stock at the time of exercise and the exercise price paid.
 
 
Schedule of RSU Activities
A summary of RSU activity during the year ended December 31, 2016 is as follows (in thousands, except years and per share data):
 
 
Number of Shares
 
Weighted Average Grant Date Fair Value Per Share
Outstanding as of December 31, 2015
 
1,818

 
$
5.01

RSUs granted
 
1,308

 
9.71

RSUs vested and released
 
(896
)
 
5.59

RSUs forfeited
 
(211
)
 
6.47

Outstanding as of December 31, 2016
 
2,019

 
$
7.65

 
 
Schedule of Stock-based Compensation Expense
Stock-based compensation expenses for the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands):
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
Cost of revenue
 
$
1,375

 
$
866

 
$
542

Research and development
 
2,059

 
1,790

 
1,931

Sales and marketing
 
2,363

 
1,800

 
1,510

General and administrative
 
3,846

 
3,274

 
2,770

Total stock-based compensation
 
$
9,643

 
$
7,730

 
$
6,753

As of December 31, 2016, unrecognized stock-based compensation expense by award type, net of estimated forfeitures, and their expected weighted-average recognition periods are summarized in the following table (in thousands, except years).
 
 
Stock Option
 
RSU
 
ESPP
Unrecognized stock-based compensation expense
 
$
5,722

 
$
12,619

 
$
409

Weighted-average amortization period
 
2.4 years

 
2.9 years

 
0.4 years

 
 
Schedule of Valuation Assumptions, Stock Option and ESPP
The weighted-average assumptions used to value stock options and purchase rights under the ESPP granted during the years ended December 31, 2016, 2015 and 2014 were as follows:
Stock Options
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
Expected term (years)
 
5.7
 
6.1
 
6.1
Volatility
 
46%
 
49%
 
55%
Risk-free interest rate
 
1.4%
 
1.6%
 
1.8%
Dividend yield
 
 
 
ESPP
 
Granted In
 
 
November 2016
 
May 2016
 
November 2015
 
May 2015
 
November 2014
 
April 2014
Expected term (years)
 
0.5
 
0.5
 
0.5
 
0.5
 
0.5
 
0.8
Volatility
 
42%
 
58%
 
54%
 
43%
 
56%
 
39%
Risk-free interest rate
 
0.6%
 
0.4%
 
0.3%
 
0.1%
 
0.1%
 
0.1%
Dividend yield