Rowan Trollope, CEO, Five9
Scott Mlyn | CNBC
Shares of cloud software vendor Five9 closed down 25% Monday and fell to their lowest since March 2020 after CEO Rowan Trollope announced his resignation.
Trollope is leaving to develop into CEO of a venture-backed pre-IPO startup, he said on Twitter. He’s being succeeded by former Five9 CEO Mike Burkland, who resigned as CEO in 2017 after he was diagnosed with cancer. Burkland will replace Trollope effective Nov. 28.
“It has been an honor and privilege to serve our employees, our customers and our shareholders,” Trollope wrote in a tweet.
Five9 provides contact center software that goals to assist agents offer simpler service over the phone and from any location. Zoom agreed to amass Five9 in mid-2021 in an all-stock purchase valued at $14.7 billion, after shares of each firms soared through the pandemic with people across the country working from home.
Nonetheless, Five9 shareholders weren’t satisfied with the small premium that Zoom was set to pay, they usually ultimately rejected the deal. Investor appetite for cloud stocks has plummeted since then as rising rates of interest and inflationary concerns coupled with the reopening of many offices has modified the industry’s near-term trajectory.
Five9 has lost greater than 70% of its value for the reason that stock peaked in August 2021. Zoom is greater than 85% below its record reached in late 2020.
Trollope, who was a top executive at Cisco before taking the Five9 job in 2018, said the corporate continues to be in a “great position,” and he stays bullish on its ability to “tackle the long run.”
WATCH: Five9 CEO discusses company’s voice recognition software
