Five9 (FIVN) Shares Plunge as CEO Leaves

October 10, 2022 10:23 AM EDT
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Shares of Five9 (NASDAQ: FIVN) shares plunged 19% in early trading after the company announced today that Rowan Trollope has resigned as CEO and from the Board of Directors and accepted another role as CEO of a privately held pre-IPO company outside of the CCaaS space.

Mike Burkland, long-time Chairman and former CEO of Five9, has been appointed to the CEO position. Burkland returned after a successful battle with cancer.

This transition will be effective on November 28, 2022.

“I’m thrilled to resume the role of CEO and once again lead the amazing team at Five9 on our exciting journey ahead,” stated Mike Burkland, Chairman of Five9. “When I was diagnosed with cancer in 2017, I resigned from the CEO post to focus on my health, while remaining very close to the business as Chairman. Now, following successful treatments, I am pleased to report that my doctors have given me a favorable long-term prognosis. I’m so excited to get ‘back on the field’ with the Five9 team, which is a special, tight-knit group working passionately on the important mission of enabling our clients to reimagine their customer experience. We are still in the early innings of the shift to the cloud, driven by key trends such as digital transformation and the strategic importance of customer experience. I believe Five9 is very well positioned in this massive market as we continue to execute on product innovation, our march up market and international expansion. I would like to thank Rowan for his outstanding leadership over these last four and a half years.”

The company also provided preliminary results for the September quarter. The company sees revenue of approximately $198 million and EPS of $0.38, versus the consensus of $193.14 million and $0.32, respectively.

Commenting on the news, MoffettNathonson analyst Sterling Auty said,"The timing of the departure is not ideal as it follows the recent termination of the head of EMEA and coincides with what appears to be the smallest beat in revenue since 2014."

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