Five9 stock took a dive Monday after the company said Chief Executive Rowan Trollope will step down from his post to lead a privately held firm. The software maker raised September-quarter guidance for FIVN stock.
Trollope also will resign from Five9's board. Former Five9 CEO and current Chairman Mike Burkland will return as chief executive effective Nov. 28, the company said.
FIVN stock collapsed 25.6% to close at 57.30 on the stock market today.
"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.
Auty added: "Mr. Burkland stepped aside from the CEO role in 2017 after being diagnosed with cancer following a very successful tenure leading the company. Given the moderation in growth post pandemic, we could argue that business execution comes back into focus for the company and that plays to Mr. Burkland's strengths."
The company is due to report third-quarter earnings on Nov. 7.
FIVN Stock: Third-Quarter Guidance Raised
Five9 raised its adjusted earnings guidance for the third quarter to 38 cents a share, up from a range of 31 cents to 33 cents. Five9 said it expects revenue of about $198 million, up from prior guidance of $193 million.
Started in 2001, Five9 automates call center services with website chatbots, or virtual assistants.
Zoom Video Communications' proposed acquisition of Five9 fell through in 2021. Five9 competes with RingCentral, Twilio, startup Talkdesk and others.
The company's shares are down 44% for the year as of Friday's market close. FIVN stock owned a Relative Strength Rating of 19 out of a best-possible 99, according to IBD Stock Check-Up.
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