SAN RAMON, CA—Five9, Inc. (NASDAQ:FIVN), a cloud software company with a market capitalization of $3.2 billion, has reported that its Chief Operating Officer, Andy Dignan, sold a portion of his holdings in the company. According to a recent SEC filing, Dignan sold 4,109 shares of common stock on December 4, 2024, at a weighted average price of $41.85 per share, totaling approximately $171,961. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value assessment, with 15 analysts recently revising their earnings estimates upward.
The transaction was conducted as part of a previously established policy by Five9 to cover taxes upon the vesting of restricted stock units. Following the sale, Dignan retains ownership of 115,818 shares in the company.
This move is aligned with the corporation's sell-to-cover withholding policy, which is designed to manage tax obligations associated with stock-based compensation.
In other recent news, Five9 reported an impressive financial performance for the third quarter, with total revenue increasing by 15% year-over-year to $264.2 million. The company's subscription revenue, which comprises nearly 80% of the total revenue, saw a 20% increase. The adjusted EBITDA margin was reported at 20%, contributing to a record operating cash flow of $41 million. Five9 also raised its Q4 revenue guidance to a midpoint of $267.5 million and expects non-GAAP EPS to be $0.70 per diluted share.
In light of these developments, Baird upgraded Five9's stock target from $40.00 to $43.00, maintaining a Neutral rating. The firm cited the company's strong third-quarter results and the potential for higher earnings per share (EPS) in 2025 as reasons for the upgrade.
In other company news, Five9 recently acquired Acqueon, a move expected to enhance its intelligent customer experience platform. The company also opened a new data center in India to support local requirements and tap into the significant contact center opportunity in the region. Despite these advancements, Five9 reported a GAAP net loss of $4.5 million due to a one-time charge of $9.6 million.
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