SAN RAMON, CA—Barry Zwarenstein, Chief Financial Officer of Five9, Inc. (NASDAQ:FIVN), recently sold 3,336 shares of the company's common stock. The shares were sold at an average price of $41.85, totaling approximately $139,611. Following this transaction, Zwarenstein now directly owns 98,396 shares of Five9, a cloud solutions provider currently valued at $3.2 billion. According to InvestingPro analysis, the stock appears undervalued, with 15 analysts recently revising their earnings expectations upward.
The sale was conducted to cover taxes upon the vesting of restricted stock units, as per Five9's established sell-to-cover withholding policy. This policy applies to all individuals subject to the corporation's guidelines. Additionally, Zwarenstein holds 85,121 shares indirectly through a trust.
This transaction highlights Zwarenstein's ongoing management of his equity position in Five9, a provider of cloud-based contact center solutions.
In other recent news, Five9 exhibited a robust financial performance in the third quarter, with total revenue escalating by 15% year-over-year to $264.2 million. The company's subscription revenue, constituting nearly 80% of the total revenue, saw a 20% rise. This performance led Baird to adjust its outlook on Five9, raising the stock's price target from $40.00 to $43.00 while maintaining a Neutral rating.
In addition to the strong Q3 results, Five9 also raised its full-year guidance and expressed confidence in meeting the current consensus revenue forecast for 2025, hinting at a potential increase in earnings per share. Despite these positive developments, Baird remains cautious due to potential broader economic challenges and a competitive landscape.
In other recent developments, Five9 has acquired Acqueon, a move expected to enhance its customer experience platform. The company also opened a new data center in India, aiming to meet local requirements for large customers and seize the significant contact center opportunity in the region. However, it is important to note that Five9 reported a GAAP net loss of $4.5 million due to a one-time charge of $9.6 million.
These recent developments reflect Five9's strategic initiatives and its confidence in its future performance, especially with the anticipation of the launch of Five9 AI agents set to significantly enhance customer interactions.
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