Five9 (FIVN) shares are soaring 5.02% in pre-market trading on Wednesday, following the company's announcement of a significant share repurchase agreement. The cloud software provider's stock price jump comes as investors react positively to the news of the buyback program.

According to the announcement made late Tuesday, Five9 has entered into an accelerated share repurchase agreement with JPMorgan for $50 million worth of its common stock. This move demonstrates the company's confidence in its financial position and commitment to enhancing shareholder value.

Share buyback programs are often viewed favorably by investors as they reduce the number of outstanding shares, potentially increasing earnings per share and the stock's value. Additionally, such programs can signal that the company's management believes its stock is undervalued. The market's strong positive reaction to Five9's announcement suggests that investors are optimistic about the company's future prospects and financial health.