Five9 shares fall 22% after CEO Trollope moves to pre-IPO company to be replaced by Burkland

By ChrisWack

Five9 Inc. shares fell 22% to $59.81 after the company announced Monday that Rowan Trollope has resigned as chief executive and from the board of directors after assuming a role as CEO of a privately held pre-IPO had accepted the IPO.

The cloud software company said Mike Burkland, chairman and former CEO of Five9, has been named CEO. Mr. Burkland previously served as CEO of Five9 in 2008.

This transition will take effect on November 28th.

“I made a personal career decision to join a unique venture-backed pre-IPO company that I couldn’t say no to and I’m confident that Five9 is in great hands,” said Mr. Trollope.

The stock hit its 52-week low of $59.38 earlier in the session and is down 56% year-to-date.

Five9 also raised its third-quarter revenue guidance to $198 million, compared to its original revenue guidance in the range of $192.5 million to $193.5 million. Analysts polled by FactSet are expecting revenue of $193.4 million for the third quarter.

The company said it expects adjusted earnings per share of 38 cents, compared to its original guidance of 31 cents to 33 cents per share. Analysts expect adjusted EPS of 32 cents.

Write to Chris Wack at [email protected]