Shares Of Five9 Plunge More Than 20% After The Resignation Of The CEO

(CTN News) – The stocks of cloud software vendor Five9 have been rising since the beginning of the year, but on Monday they closed down 25% from their highs and fell to their lowest level since March 2020 after CEO Rowan Trollope announced his resignation from the company.

Trollope has announced on Twitter that he is leaving to become CEO of a venture-backed startup that is getting ready to go public.

As a result, he has been succeeded by Five9’s former CEO Mike Burkland, who resigned from his position as CEO at the end of 2017 after being diagnosed with cancer.

As of November 28, it is expected that Burkland will be replacing Trollope on a permanent basis.

“It has been an honor and a pleasure to serve our employees, our customers and our shareholders over the last few years,” Trollope wrote in a tweet.

A contact center software company called Five9 provides agents with a way to offer better service over the phone and from any location they choose.

The two companies agreed to be acquired by Cox in mid-2021 as part of a stock purchase valued at $14.7 billion, after the shares of both companies rose during the pandemic as people across the country worked from home during the period.

Five9 shareholders, however, were not satisfied with the small premium that Zoom was set to pay for the company’s shares, so the deal was ultimately rejected by the shareholders.

The appetite for cloud stocks has plummeted since then, as rising interest rates and inflationary concerns along with the reopening of many offices have altered the near-term trajectory of the industry as a whole.

Since August 2021, when the stock of Five9 peaked, the stock has lost more than 70% of its value. As of the end of the year, Zoom is more than 85% below the record it reached in late 2020.

As a top Cisco executive before taking the job at Five9 in 2018, Trollope says the company is in a “great position,” and he remains confident that the company is well positioned to tackle the future.

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