Five9 shares plunge more than 20% after CEO announces resignation

Rowan Trollope, CEO, Five9

Scott Mlyn | CNBC

Cloud Software Provider Actions Five9 fell 22% on Monday and fell to its lowest level since March 2020 after CEO Rowan Trollope announcement his resignation.

Trollope is leaving to become CEO of a company-backed pre-IPO startup, he said on Twitter. He is replaced by former Five9 CEO Mike Burkland, who stepped down as CEO in 2017 after being diagnosed with cancer. Burkland will replace Trollope effective Nov. 28.

“It has been an honor and a privilege to serve our employees, our customers and our shareholders,” Trollope wrote in a tweet.

Five9 provides contact center software that aims to help agents deliver more efficient service over the phone and from anywhere. Zoom agreed to to acquire Five9 in mid-2021 in an all-stock buyout worth $14.7 billion, after the two companies’ shares soared during the pandemic with people across the country working home.

However, Five9 shareholders were unhappy with the small premium Zoom had to pay, and they ultimately rejected the deal. Investor appetite for cloud stocks has plummeted since then as rising interest rates and inflationary concerns coupled with the reopening of many offices have changed the near-term trajectory of the industry.

Five9 has lost more than 70% of its value since the stock peaked in August 2021. Zoom is more than 85% below its all-time high reached in late 2020.

Trollope, who was a senior executive at Cisco before taking over the job at Five9 in 2018, said the company was still in a “great position” and that he remained optimistic about its ability to “face the future”.

LOOK: Five9 CEO discusses the company’s voice recognition software

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