Five9 (NASDAQ: FIVN) shares fell 22% on Monday and tumbled to their lowest since March 2020 after CEO Rowan Trollope officially resigned. Trollope tweeted that he will be leaving the position to lead a venture-backed pre-IPO startup. Former Five9 CEO Mike Burkland will be returning to the position effective November 28.
“It has been an honor and privilege to serve our employees, our customers, and our shareholders as we’ve quadrupled revenue and accelerated our growth rate. We’ve expanded into AI and Automation and rearchitected our platform,” Trollope wrote in a tweet.
The cloud software company provides contact center software that strives to help agents improve their service over the phone, from any location. Zoom announced it was to acquire Five9 in mid-2021 in an all-stock deal valued at USD14.7 billion. Nevertheless, Five9 shareholders were not happy with the premium that zoom was prepared to pay, and the deal was rejected.
“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,” said Sterling Auty, analyst at MoffettNathanson in a report.
Five9 has lost over 70% of its value since the stock reached its peak in August 2021 and its current market cap is USD4.02 Billion.