Five9 (FIVN) plunges 24% after the announcement that the company’s CEO Rowan Trollope will resign to become the CEO at a pre-IPO company in a different sector. Rowan Trollope was in the CEO position for the last four years. Mike Burkland the former CEO will return to the CEO position, Burkland quit in 2017 after he was diagnosed with cancer.
The company also raised its third-quarter financial forecasts. The revenue is now expected for the third quarter to be $198 billion topping the analysts’ estimate who forecast revenues of around $193 billion. The adjusted earnings per share (EPS) are now expected at $0.38 per share also above the consensus estimates of $0.32 per share.
The company reported a 32% increase in revenue for the 2Q, 2022 to $189.4 million, compared to $143.8 million for the first quarter. Adjusted EBITDA was $33.1 million in the 2Q, compared to $24.0 million, for the 1Q of 2021.
Zoom (ZM) agreed to buy Five9 in 2021 in an all-stock purchase at $14.7 billion value but FIVN stockholders rejected the deal.
FIVN stock has lost 57% since the beginning of the year and is down 38% in the last three months. The market capitalization for Five9 stocks stands now at $5.4 billion. The stock has hit a 52-week high at $168.56 and the 52-week low is today’s low at $58.52.
The technical picture has deteriorated since the previous Monday when the stock price broke below the 100-day moving average at $109. The FIVN stock is trading today at the lowest level since March 2020.
Five9 stock is also a victim of a falling stock market. The S&P500 continues lower for one more day and is trading 0.55% lower at 3,616 while Nasdaq is 0.76% lower at 10,967 and Dow Jones is 0.03% lower at 29,265.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).