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In a recent move by Five9, Inc. (NASDAQ:FIVN), a leader in cloud contact center solutions with annual revenue of $1.04 billion, Andy Dignan has been promoted to the position of President, effective immediately. The announcement comes as the company’s stock, currently trading at $30.54, has experienced significant volatility, down nearly 25% year-to-date. The announcement was made in an 8-K filing with the Securities and Exchange Commission on Monday. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates.
Dignan, who is 47 years old, has been part of Five9 since September 2018, initially joining as Senior Vice President, Professional Services. His ascent within the company has been steady, having served as Chief Customer Officer since December 2022, and as Chief Operating Officer since November 2023 before his current appointment. Dignan’s experience includes significant roles at Cisco Systems (NASDAQ:CSCO), Inc. and CDW (NASDAQ:CDW), where he focused on collaboration and contact center solutions. Eight analysts have recently revised their earnings estimates upward for the upcoming period, suggesting confidence in the company’s direction.
With this new role, Dignan will receive an annual base salary of $465,000 and is eligible for an annual bonus with a target of $395,250, contingent upon the achievement of corporate performance targets set by the Compensation Committee in February 2025. Additionally, he will participate in the company’s 2019 Key Employee Severance Benefit Plan as a Tier 3 Participant.
The compensation package for Dignan also includes equity incentives. He is set to receive a restricted stock unit (RSU) award valued at approximately $1.33 million, which will vest quarterly starting March 3, 2025, subject to continued service. Furthermore, Dignan is granted performance-based restricted stock units (PRSUs) with a target value of $666,667, with potential earnings ranging from 0% to 200% based on the company’s relative total shareholder return compared to the S&P Software (ETR:SOWGn) and Services Select Index over various performance periods from 2025 to 2027.
Five9’s commitment to Dignan’s leadership role is further underscored by an indemnification agreement, ensuring continued protection following his appointment as President. The company has clarified that there are no familial relationships or related party transactions involving Dignan that would require disclosure.
This strategic appointment reflects Five9’s focus on leadership and growth within the competitive cloud processing and data preparation industry. With a market capitalization of $2.32 billion and a robust gross profit margin of 54.4%, the company maintains a strong position in its sector. The information for this article is based on a press release statement and financial data from InvestingPro, which offers 12 additional valuable insights about Five9’s performance and prospects through its comprehensive Pro Research Report, available to subscribers.
In other recent news, Five9, Inc. reported strong financial results for the fourth quarter of 2024, exceeding analyst expectations with an earnings per share (EPS) of $0.79, compared to a forecast of $0.70. The company’s revenue reached $278.7 million, surpassing the expected $267.67 million, driven by a 17% year-over-year growth in revenue and a 19% increase in subscription revenue. Analysts at Rosenblatt Securities raised their price target for Five9 to $58, citing strong fourth-quarter results and a 16.6% year-over-year revenue growth. Similarly, Cantor Fitzgerald increased their price target to $57, highlighting Five9’s accelerated top-line growth and AI integration as key factors.
Five9’s AI initiatives have been particularly successful, with AI adoption now accounting for 9% of enterprise subscription revenue and a 46% year-over-year increase in AI revenue. The company achieved a 100% attach rate on new deals with annual recurring revenue exceeding $1 million, indicating strong market traction. Analysts at Needham maintained their Buy rating and $52 price target, noting robust bookings and a return to normal demand environments. In corporate developments, Five9 announced the retirement of CFO Barry Zwarenstein, with Bryan Lee stepping in as interim CFO, ensuring continuity in financial leadership. These recent developments reflect Five9’s strategic focus on AI and subscription services, positioning the company for continued growth in the coming year.
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