SAN RAMON, Calif.—Leena Mansharamani, Senior Vice President and Chief Accounting Officer at Five9, Inc. (NASDAQ:FIVN), a cloud software company valued at $3.2 billion, recently sold a portion of her holdings in the company. According to InvestingPro data, the stock is currently trading below its Fair Value, with 15 analysts recently revising their earnings expectations upward. According to a filing with the Securities and Exchange Commission, Mansharamani sold a total of 1,346 shares of common stock on December 4, 2024. The sales were executed at prices ranging from $41.20 to $41.85 per share, amounting to a total transaction value of $55,632. Five9 maintains strong liquidity with a current ratio of 1.85, indicating healthy short-term financial stability.
The transactions were part of a strategy to cover taxes upon the vesting of restricted stock units, as per Five9's established sell-to-cover policy. Additionally, a portion of the sales was conducted under a Rule 10b5-1 trading plan, which Mansharamani adopted on September 13, 2023.
Following these transactions, Mansharamani now holds 35,526 shares of Five9 common stock directly.
In other recent news, Five9 has delivered a robust financial performance in the third quarter. The company's total revenue rose by 15% year-over-year to $264.2 million, with subscription revenue, which constitutes nearly 80% of the total revenue, seeing a 20% increase. Five9 also reported an adjusted EBITDA margin of 20%, contributing to a record operating cash flow of $41 million.
In response to these strong results, Baird upgraded Five9's stock target from $40.00 to $43.00, while maintaining a neutral rating. The firm's new outlook follows the company's release of these impressive third-quarter results and the subsequent upward revision of its full-year guidance.
Five9 also announced the acquisition of Acqueon, a move expected to bolster its intelligent customer experience platform with advanced omnichannel capabilities. In addition, the company has launched a new data center in India, aiming to cater to local requirements for large customers and tap into the substantial contact center opportunity in the region.
Despite reporting a GAAP net loss of $4.5 million due to a one-time charge of $9.6 million, Five9 remains optimistic about its future, particularly with the anticipated launch of AI agents set to significantly enhance customer interactions. The company 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.
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