Five9 shares fall more than 20% after CEO announces his resignation

Rowan Trollope, CEO, Five9

Scott Mill | CNBC

Shares of cloud software providers Five 9 closed down 25% on Monday, falling to its lowest since March 2020 after CEO Rowan Trollope announced his resignation.

Trollope is leaving to become CEO of a venture-backed pre-IPO startup, he said Twitter. He is succeeded by former Five9 CEO Mike Burkland, who stepped down as CEO in 2017 after being diagnosed with cancer. Burkland replaces Trollope effective November 28.

“It has been an honor and a privilege to serve our employees, our customers and our shareholders,” Trollope wrote in a tweet.

Five9 provides contact center software designed to help agents provide more efficient service over the phone and from any location. Zoom agreed to acquire Fem9 in mid-2021 in a stock purchase valued at $14.7 billion after shares of both companies soared during the pandemic with people across the country working from home.

However, Five9 shareholders were not satisfied with the small premium that Zoom was set to pay, and they ultimately rejected the deal. Investor appetite for cloud stocks has plummeted since then, as rising interest rates and inflation concerns combined with the reopening of many offices have changed the industry’s short-term trajectory.

Five9 has lost more than 70% of its value since the stock peaked in August 2021. Zoom is more than 85% below its record high reached in late 2020.

Trollope, who was chief executive of Cisco before taking the Five9 job in 2018, said the company is still in a “good position” and he remains optimistic about its ability to “attack the future.”

WATCH: Five9 CEO discusses the company’s voice recognition software

Five9 CEO discusses the company's voice recognition software

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