Empowers human agents with real-time guidance in the flow of customer conversationsSUNNYVALE, Calif., March 18, 2025 (GLOBE NEWSWIRE) -- eGain (NASDAQ: EGAN), the leader in AI Knowledge Management, today announced the launch of eGain AI Agent for Contact Center, a groundbreaking solution to address the challenge of variable agent performance in contact centers. Using this solution, all agents can help customers like experts do, improving agent experience and customer satisfaction. "84% of contact center age ...

SUNNYVALE, Calif., March 11, 2025 (GLOBE NEWSWIRE) -- eGain (NASDAQ: EGAN), the AI knowledge platform for service, today announced that CEO Ashu Roy and CFO Eric Smit will be hosting meetings with investors on March 17, 2025, at the 37th Annual Roth Conference taking place March 16-18, 2024 in Dana Point, California. In its recently released earnings press release, eGain CEO Ashu Roy said, “We won several new enterprise logos in the second quarter. As a result, our annual recurring revenue from AI Knowledge ...

Group 1 - eGain (NASDAQ: EGAN) reported weak Q2 results and lowered its full-year revenue guidance [1] - Despite the weak performance, the bullish investment thesis for eGain remains intact [1] Group 2 - The author has a long position in eGain shares, indicating confidence in the company's future performance [2] - The analysis focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $22.4 million, down 6% year over year, primarily due to the impact of two large client losses last year [21] - SaaS revenue accounted for 93% of total revenue, exceeding internal expectations, while PS revenue came in lower than expected [22] - Non-GAAP net income was $1.3 million or $0.05 per share, compared to $3.4 million or $0.11 per share in the year-ago quarter [25] - Non-GAAP gross margin for SaaS was 78%, unchanged from a year ago, while total gross margin was 71%, down from 72% a year ago [24] Business Line Data and Key Metrics Changes - AI knowledge hub ARR increased by 17% year over year, while total SaaS ARR decreased by 3% year over year but was up 2% sequentially [20][28] - The number of seven-figure deals in the pipeline has more than doubled in the last six months, indicating larger knowledge opportunities [14] Market Data and Key Metrics Changes - SaaS ARR for AI knowledge customers accounted for 55% of total SaaS ARR at the end of the quarter, up from 46% a year ago [28] - LTM dollar-based SaaS net retention for AI knowledge customers was 99%, while net retention for all customers was 89% [28] Company Strategy and Development Direction - The company is focusing on knowledge centralization in enterprises, which is critical for AI projects [12] - eGain AI Agent, an omnichannel conversational product, is set to launch in the current quarter, reflecting strong customer interest [17][19] - The company is actively investing in shaping the AI knowledge market to automate business operations, starting with customer service [19] Management's Comments on Operating Environment and Future Outlook - Management noted that larger deals are taking more time to close due to increased scrutiny and vetting processes [14] - The company is lowering its PS revenue targets for fiscal 2025 by approximately $2 million due to product improvements leading to faster deployment [23] - Updated guidance for total revenue is now $88.5 million to $90 million, down from $92 million to $93 million [32] Other Important Information - The company repurchased 121,000 shares at an average price of $5.73 per share, totaling $2.4 million [26] - Total cash and cash equivalents at the end of the quarter were $70.5 million, indicating a strong balance sheet [26] Q&A Session Summary Question: Can you discuss the evolution of professional services and the substantial reduction in guidance? - Management explained that the reduction is due to efforts to add more connectors and prebuilt capabilities, which decreases the need for custom integration [41] Question: What was the competitive landscape in winning the US airline deal? - The airline had multiple knowledge systems and was looking for a consolidation solution, which eGain provided by replacing their legacy systems [45][46]

Group 1: Earnings Performance - eGain reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, but down from $0.11 per share a year ago, representing an earnings surprise of 100% [1] - Over the last four quarters, eGain has surpassed consensus EPS estimates four times [2] - The company posted revenues of $22.39 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.32%, compared to $23.82 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - eGain shares have not increased since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.07 on revenues of $23.37 million, and $0.23 on revenues of $92.13 million for the current fiscal year [7] Group 3: Industry Context - The Internet - Software industry, to which eGain belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Another company in the same industry, Synchronoss, is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year change of +111.8% [9]

Revenue Performance - Total revenue for Q2 2025 was $22.4 million, down 6% year over year[4] - Total revenue for Q2 2024 was $22,389 million, a decrease of 6% compared to $23,815 million in Q2 2023[15] - SaaS revenue was $20,847 million, down 5% from $21,996 million year-over-year[19] - GAAP total revenue decreased by 8% to $44,188 million compared to $47,991 million in the previous year[21] - GAAP SaaS revenue declined by 8% to $40,667 million from $44,319 million year-over-year[21] - Annual recurring revenue from AI Knowledge Hub customers grew by 17% year over year and 5% sequentially[2] Income Metrics - GAAP net income for Q2 2025 was $671,000, or $0.02 per share, compared to $2.2 million, or $0.07 per share in Q2 2024[4] - Non-GAAP net income for Q2 2025 was $1.3 million, or $0.05 per share, compared to $3.4 million, or $0.11 per share in Q2 2024[4] - Net income for Q2 2024 was $671 million, a significant drop from $2,185 million in Q2 2023, marking a decrease of 69%[15] - Non-GAAP net income for Q2 2024 was $1,293 million, compared to $3,380 million in Q2 2023, reflecting a decline of 62%[17] - eGain is raising its GAAP net income guidance range to $1.1 million to $1.7 million, or $0.04 to $0.06 per share[9] - eGain is lowering its non-GAAP net income range to $4.1 million to $4.7 million, or $0.14 to $0.16 per share[9] Cash Flow and Assets - Cash provided by operating activities was $6.4 million, with an operating cash flow margin of 29%[4] - Total cash and cash equivalents were $70.5 million, down from $86.8 million in Q2 2024[4] - Total assets decreased from $127.9 million in June 2024 to $111.3 million in December 2024[13] Expenses - Operating expenses increased to $15,059 million in Q2 2024, up from $14,400 million in Q2 2023, representing a rise of 4.6%[15] - Research and development expenses rose to $7,708 million in Q2 2024, up from $6,660 million in Q2 2023, an increase of 15.7%[15] - Non-GAAP research and development expenses increased by 19% to $14,878 million from $12,528 million[21] - GAAP operating expenses slightly increased by 1% to $29,683 million from $30,322 million[21] - Non-GAAP sales and marketing expenses decreased by 11% to $9,832 million compared to $11,097 million last year[21] - Non-GAAP general and administrative expenses decreased by 14% to $4,181 million from $4,875 million[21] Profitability - Gross profit for Q2 2024 was $15,709 million, compared to $16,825 million in Q2 2023, reflecting a decline of 6.6%[15] - Adjusted EBITDA for Q2 2024 was $1,632 million, down from $3,771 million in Q2 2023, a decrease of 57%[17] - Non-GAAP gross profit fell by 10% to $31,304 million compared to $34,744 million in the prior year[21] Guidance and Future Strategy - eGain is lowering its total revenue guidance range to $88.5 million to $90.0 million for fiscal 2025[9] - The company is focusing on new product development and market expansion strategies to drive future growth[21]

Core Insights - eGain reported a 17% year-over-year growth in annual recurring revenue from AI Knowledge Hub customers, indicating strong demand for customer service automation solutions [2] - Total revenue for the second quarter of fiscal 2025 was $22.4 million, a decrease of 6% year-over-year [5] - The company expects total revenue for fiscal 2025 to be between $88.5 million and $90.0 million, reflecting a downward adjustment from previous guidance [5] Financial Highlights for Q2 Fiscal 2025 - GAAP net income was $671,000, or $0.02 per share, compared to $2.2 million, or $0.07 per share, in Q2 2024 [5] - Non-GAAP net income was $1.3 million, or $0.05 per share, down from $3.4 million, or $0.11 per share, in the same quarter last year [5] - Adjusted EBITDA for the quarter was $1.6 million, compared to $3.8 million in Q2 2024 [5] Financial Performance for the First Six Months of Fiscal 2025 - Total revenue for the first six months was $44.2 million, down 8% year-over-year [5] - GAAP net income for the first half was $1.3 million, or $0.05 per share, compared to $4.8 million, or $0.15 per share, in the same period last year [5] - Non-GAAP net income for the first six months was $2.6 million, or $0.09 per share, down from $7.2 million, or $0.23 per share, in the prior year [5] Financial Guidance for Q3 and Full Year Fiscal 2025 - For Q3 fiscal 2025, eGain anticipates total revenue between $21.0 million and $21.5 million, with a GAAP net loss projected between $300,000 and $800,000 [5] - The company has raised its GAAP net income guidance for the full fiscal year to a range of $1.1 million to $1.7 million, or $0.04 to $0.06 per share [5] - Non-GAAP net income guidance for the full year has been lowered to a range of $4.1 million to $4.7 million, or $0.14 to $0.16 per share [5]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-35314 eGain Corporation (Exact name of registrant as specified in its charter) Delaware 77-0466366 (State or o ...

Core Viewpoint - eGain (EGAN) is set to report its second-quarter fiscal 2025 results on February 13, with expectations of non-GAAP earnings between break-even and 2 cents per share, and revenues anticipated between $22.2 million and $22.6 million [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for earnings is 2 cents per share, reflecting an 81.82% decline from the previous year's quarter, while the revenue consensus is $22.46 million, indicating a 5.71% drop year-over-year [3]. - eGain has consistently surpassed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 162.95% [3]. Key Factors Influencing Results - eGain has been expanding its AI Knowledge Hub, integrating it with customer service, sales, and support platforms to enhance response times [4]. - In the first quarter of fiscal 2025, the company reported a 16% year-over-year increase in SaaS annual recurring revenues from AI Knowledge Hub customers, indicating strong demand and high customer retention [5]. - A significant increase in new bookings in the first quarter highlights the growing adoption of eGain's AI-powered solutions, which is expected to positively impact revenue growth and customer retention in the upcoming quarter [6]. Business Developments - eGain has secured new and expansion business, including the launch of the eGain AI Agent and a major contract with a multibillion-dollar data center builder, which are likely to drive revenue growth and improve customer retention [7]. - However, a cautious outlook for the second quarter may have weakened client confidence, potentially leading to slower decision-making and delays in investments [8].

Core Points - eGain will announce its fiscal 2025 second quarter financial results on February 13, 2025, after market close [1] - The announcement will be followed by an investor conference call and webcast at 2:00 p.m. Pacific Time (5:00 p.m. ET) [2] - CEO Ashu Roy and CFO Eric Smit will host the call and webcast [1] Additional Information - A phone replay of the conference call will be available starting two hours after the call and will remain accessible for one week [3] - The replay can be accessed by dialing 877-344-7529 (U.S. toll free) or +1 412-317-0088 (International) with the access code 6223725 [3] - A live and archived webcast of the conference call can be accessed from the investors section of eGain's website [5]