Why is Five9 stock dropping?

Why is Five9 stock dropping? The major culprit was its stock-based compensation, which rose 50% year over year to $45.8 million — or 16% of its revenue — in the first half of 2021. As a result, Five8’s cash and equivalents declined 25% year over year to $175.2 million in the second quarter, while its number of outstanding shares rose 7%.

The major culprit was its stock-based compensation, which rose 50% year over year to $45.8 million — or 16% of its revenue — in the first half of 2021. As a result, Five8’s cash and equivalents declined 25% year over year to $175.2 million in the second quarter, while its number of outstanding shares rose 7%.