Trollope will become a president of Zoom and remain as CEO of Five9, reporting to Yuan. He stayed at Cisco until he left to start Zoom. Yuan, who founded Zoom in 2011, previously helped build WebEx, which Cisco bought in 2007 for $3.2 billion. The deal brings together two former Cisco executives. "We're not having to convince customers that cloud is an acceptable option anymore," he said. CEO Rowan Trollope told CNBC's Jim Cramer in May that the company signed two of its largest deals during the latest period, expecting them to generate more than $20 million combined annually.
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Companies had to quickly adapt to cloud software of all sorts, including for their contact centers.įive9's revenue climbed 33% to $435 million last year. Zoom's stock price jumped almost 400% last year, though it's dropped 36% since reaching its peak in October.įive9 has seen rapid growth of its own since early 2020, as demand surged for call center technology that would allow representatives to do their jobs from home.
It also needs new revenue sources as Microsoft ramps up competition in video chat with Teams. While the company has launched new products to reckon with coming changes to its business, it's now so big that organic growth alone is unlikely to satisfy Wall Street. Zoom has been among the top growth stories in the 16 months since Covid-19 caused a sudden shutdown of offices across the globe, forcing workers in finance, retail, tech and law offices to communicate from remote locations.Īfter expanding revenue by 326% in 2020, Zoom faces a natural slowdown, especially as companies reopen and face-to-face meetings resume. That values Five9 at $200.28 a share, a 13% premium, and represents about 14% of Zoom's market cap of close to $107 billion. Zoom said Five9 stockholders will receive 0.5533 shares of Zoom Video Communications for every Five9 share. "We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers," said Zoom CEO Eric Yuan in a press release.įive9 closed on Friday with a market cap of $11.9 billion, or $177.60 a share.
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