Michael Burkland, the Chief Executive Officer of Five9, Inc. (NASDAQ:FIVN), recently sold 12,594 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The shares were sold at an average price of $41.40, amounting to a total transaction value of approximately $521,391. The company, currently valued at $3.16 billion, has shown robust revenue growth of ~14% over the last twelve months, with InvestingPro analysis indicating the stock is currently trading below its Fair Value.
After the sale, Burkland retains 240,894 shares directly, with an additional 133,026 shares held indirectly through a trust. According to InvestingPro data, Five9 maintains strong financial health with liquid assets exceeding short-term obligations, demonstrated by a current ratio of 1.85. The sale was conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan for selling stocks in compliance with insider trading laws. The transaction was also intended to cover taxes upon the vesting of restricted stock units. For comprehensive analysis and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, covering this and 1,400+ other US stocks.
In other recent news, Five9 reported strong third-quarter results, with total revenue increasing by 15% year-over-year to $264.2 million, and subscription revenue, which constitutes nearly 80% of total revenue, seeing a 20% rise. The company also reported an adjusted EBITDA margin of 20%, contributing to a record operating cash flow of $41 million. Baird, an independent analyst firm, revised its stock price target for Five9 from $40.00 to $43.00, maintaining a neutral rating on the shares. This adjustment followed the company's robust Q3 performance and its raised full-year guidance.
Five9 also expressed confidence in meeting the current consensus revenue forecast for 2025, with potential for higher earnings per share. The company's recent acquisition of Acqueon is expected to strengthen its intelligent customer experience platform with advanced omnichannel capabilities. Despite contributing slightly less than 1% to Q3 revenue, this strategic move is part of Five9's future growth plans.
In addition, Five9 has opened a new data center in India to support local requirements for large customers and tap into the significant contact center opportunity in the region. Despite a reported GAAP net loss of $4.5 million due to a one-time charge of $9.6 million, the company remains optimistic about its leadership in AI and future market opportunities.
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