eGain (EGAN) closed at $7.75 in the latest trading session, marking a +1.97% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.22%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.32%.The maker of customer engagement software's shares have seen a decrease of 8.54% over the last month, not keeping up with the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 1.61%.Investors will be eag ...

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 September 30, 2023 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 ...

Financial Data and Key Metrics Changes - Total revenue for Q1 was $24.2 million, down 2% year-over-year, but above expectations [32] - Non-GAAP net income for the quarter was $3.8 million or $0.12 per share, up approximately 90% from $2 million or $0.06 per share in the year-ago quarter [35] - Adjusted EBITDA margin for the quarter was 12%, up 600 basis points from 6% in the year-ago quarter [35] - Total cash and cash equivalents at the end of the quarter were $79.8 million, up from $71.5 million a year ago [36] Business Line Data and Key Metrics Changes - North America accounted for 79% of total revenue this quarter, up from 77% in the year-ago quarter [33] - SaaS ARR for North America customers increased 4% year-over-year, while total SaaS ARR decreased 1% [38] - Knowledge management now makes up 25% of total SaaS ARR [38] Market Data and Key Metrics Changes - Total revenue from Europe was $5.2 million, down 8% year-over-year [33] - LTM dollar-based SaaS retention for North America customers was 103%, while EMEA customer retention was 84% [37] Company Strategy and Development Direction - The launch of AssistGPT is a key focus, leveraging generative AI to automate knowledge management and reduce human effort by up to 80% [11] - The company aims to capitalize on the global opportunity to automate knowledge management for customer service [29] - The macro environment remains challenging, but there is an increase in RFP activity and reengagement from previously on-hold deals [43] Management's Comments on Operating Environment and Future Outlook - The macro environment is characterized by geopolitical uncertainty and cautious budgeting, but there is a slight loosening expected for calendar '24 [17] - Management sees a significant growth opportunity with the new AssistGPT offering and believes the market for knowledge management is large and exciting [44] Other Important Information - eGain was named a visionary in Gartner's 2023 Magic Quadrant for CRM Customer Engagement, highlighting its operationalized AI capabilities [26] - The company has a strong balance sheet and cash flow generation, which positions it well for future opportunities [44] Q&A Session Summary Question: What are the early indications of interest in AssistGPT? - Management noted that there is significant interest in improving productivity in knowledge creation and management cycles [49] Question: How is pricing structured for AssistGPT? - The pricing is based on actual usage of the generative capability on the platform, with a focus on driving adoption [50] Question: Is the focus on existing customers or new opportunities? - The market interest is in a platform that includes generative capability, with a core need for knowledge management still being essential [53]

eGain Corporation (NASDAQ:EGAN) Q4 2023 Earnings Call Transcript September 14, 2023 5:00 PM ET Company Participants Jim Byers - IR, MKR IR Ashu Roy - CEO Eric Smit - CFO Conference Call Participants Richard Baldry - ROTH MKM Jeff Van Rhee - Craig-Callum Operator Good day and welcome to the eGain Fiscal 2023 Fourth Quarter and Full Year Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask que ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended June 30, 2023 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 Number: 001-35314 eGain Corporation (Exact name of registrant as specified in its charter) Delaware 77-0466366 (State or other jur ...

eGain Corporation (NASDAQ:EGAN) Q3 2023 Earnings Conference Call May 11, 2023 5:00 PM ET Company Participants Ashu Roy - Chief Executive Officer Eric Smit - Chief Financial Officer Jim Byers - MKR Investor Relations Conference Call Participants Jeff Van Rhee - Craig Hallum Richard Baldry - Roth Operator Good day, and welcome to the eGain Fiscal 2023 Third Quarter Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be ...

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 March 31, 2023 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 othe ...

eGain Corporation (NASDAQ:EGAN) Q2 2023 Earnings Conference Call February 14, 2023 5:00 PM ET Company Participants Jim Byers - MKR Investor Relations Ashu Roy - Chief Executive Officer Eric Smit - Chief Financial Officer Conference Call Participants Richard Baldry - ROTH Capital Jeff Van Rhee - Craig Hallum Operator Good day, and welcome to the eGain Fiscal 2023 Second Quarter Financial Results Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements detail financial positions for the periods ended December 31, 2022, and 2021 Key Financial Highlights (Six Months Ended Dec 31, 2022 vs 2021) | Metric | Six Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2021 | | :--- | :--- | :--- | | **Total Revenue** | $50.4 million | $44.5 million | | **Gross Profit** | $37.3 million | $33.1 million | | **Income (Loss) from Operations** | ($0.46 million) | $0.06 million | | **Net Loss** | ($0.12 million) | ($0.28 million) | | **Net Cash from Operations** | $8.2 million | $4.7 million | - As of December 31, 2022, the company held **$80.9 million in cash and cash equivalents**, an increase from $72.2 million at June 30, 2022[11](index=11&type=chunk) - On November 14, 2022, the Board of Directors authorized a **stock repurchase program of up to $20 million**, with no shares repurchased as of December 31, 2022[115](index=115&type=chunk)[117](index=117&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets of $122.7 million and total stockholders' equity of $61.4 million as of December 31, 2022 Condensed Consolidated Balance Sheet Data (in thousands) | Account | Dec 31, 2022 | June 30, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $101,511 | $104,135 | | **Total Assets** | $122,675 | $126,009 | | **Total Current Liabilities** | $55,501 | $62,022 | | **Total Liabilities** | $61,304 | $69,152 | | **Total Stockholders' Equity** | $61,371 | $56,857 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue grew 13% to $50.4 million for the six-month period, significantly narrowing the net loss from the prior year Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 FY2023 (3 mo) | Q2 FY2022 (3 mo) | H1 FY2023 (6 mo) | H1 FY2022 (6 mo) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $25,600 | $23,093 | $50,363 | $44,543 | | **Gross Profit** | $18,848 | $16,992 | $37,329 | $33,143 | | **Income (Loss) from Operations** | $213 | ($630) | ($457) | $60 | | **Net Loss** | ($104) | ($826) | ($120) | ($275) | | **Basic & Diluted Loss per Share** | ($0.00) | ($0.03) | ($0.00) | ($0.01) | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to $8.2 million for the six-month period, driven by working capital changes Cash Flow Summary (Six Months Ended Dec 31, in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $8,175 | $4,681 | | **Net cash used in investing activities** | ($293) | ($276) | | **Net cash provided by financing activities** | $1,005 | $1,088 | | **Net increase in cash** | $8,694 | $5,250 | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes highlight the successful SaaS transition, with SaaS revenue growing 16% and significant remaining performance obligations Disaggregation of Revenue (Six Months Ended Dec 31, in thousands) | Revenue Type | 2022 | 2021 | | :--- | :--- | :--- | | SaaS revenue | $46,057 | $39,645 | | Legacy revenue | $480 | $1,806 | | **Total subscription revenue** | **$46,537** | **$41,451** | | Professional services revenue | $3,826 | $3,092 | | **Total revenue** | **$50,363** | **$44,543** | - As of December 31, 2022, **remaining performance obligations were $92.1 million**, of which $56.5 million is expected to be recognized as revenue within one year[90](index=90&type=chunk) - For the three months ended December 31, 2022, **two customers accounted for 19% and 10% of total revenue**, respectively, with one being a partner[59](index=59&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis highlights a successful SaaS transition, revenue growth, and a strong liquidity position despite increased operating expenses - The company has transitioned to a **SaaS-only business model for new clients** and is actively migrating legacy perpetual license clients to SaaS, expecting legacy revenue to continue its decline[130](index=130&type=chunk) SaaS and Legacy Revenue Growth (Six Months Ended Dec 31) | Revenue Type | 2022 (in thousands) | 2021 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | SaaS revenue | $46,057 | $39,645 | 16% | | Legacy revenue | $480 | $1,806 | (73)% | - As of December 31, 2022, **remaining performance obligations were $92.1 million**, with $56.5 million expected to be recognized as revenue within one year[150](index=150&type=chunk) - The company believes its existing capital resources, including **$80.9 million in cash and cash equivalents**, are sufficient to maintain operations for at least the next 12 months[202](index=202&type=chunk)[203](index=203&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) Revenue increased 13% driven by SaaS growth, though higher operating expenses led to a small operating loss for the six-month period Revenue by Geography (Six Months Ended Dec 31, in thousands) | Region | 2022 | 2021 | Change (%) | | :--- | :--- | :--- | :--- | | North America | $38,922 | $31,992 | 22% | | Europe, Middle East, & Africa | $11,441 | $12,551 | (9)% | - Cost of subscription revenue increased by 20% for the six months ended Dec 31, 2022, primarily due to a **$1.4 million increase in cloud-computing costs**[174](index=174&type=chunk)[177](index=177&type=chunk) - For the six months ended Dec 31, 2022, **R&D expenses increased 19% to $14.1 million** and **Sales & Marketing expenses increased 18% to $18.4 million** compared to the prior year period[185](index=185&type=chunk)[189](index=189&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $80.9 million in cash and cash equivalents, with operating cash flow improving year-over-year - As of December 31, 2022, principal sources of liquidity were **cash and cash equivalents of $80.9 million** and accounts receivable of $16.5 million[202](index=202&type=chunk)[11](index=11&type=chunk) - **Net cash from operating activities increased to $8.2 million** for the six months ended Dec 31, 2022, compared to $4.7 million in the prior year, driven by timing of payments for accounts payable and accrued liabilities[204](index=204&type=chunk)[205](index=205&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks involve foreign currency exchange and interest rates, with no current use of hedging instruments - The company is exposed to foreign currency risk, with **identifiable assets denominated in foreign currency totaling approximately $19.1 million** as of December 31, 2022[213](index=213&type=chunk) - A hypothetical **10% increase in the value of the U.S. dollar** relative to other currencies would decrease the value of these foreign assets by $1.9 million[213](index=213&type=chunk) - Interest rate risk is related to cash and cash equivalents, and management believes a **10% change in interest rates would not have a material impact** on fair value or income[215](index=215&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2022, with no material internal control changes - The CEO and CFO concluded that as of December 31, 2022, the company's **disclosure controls and procedures were effective** at the reasonable assurance level[217](index=217&type=chunk) - There were **no material changes** to the company's internal control over financial reporting during the last fiscal quarter[219](index=219&type=chunk) [PART II. OTHER INFORMATION](index=68&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any material legal proceedings but is involved in routine matters in the ordinary course of business - The company is **not currently a party to any material legal proceedings**[221](index=221&type=chunk) - In the ordinary course of business, the company is involved in various legal proceedings and claims, including those related to alleged infringement of third-party intellectual property rights[221](index=221&type=chunk) [Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) Significant risks include intense competition, customer concentration, international operations, cybersecurity threats, and substantial CEO stock ownership - The company faces **intense competition** from larger software companies like Microsoft, Oracle, and Salesforce, and depends on a relatively small number of customers for a substantial portion of its revenue[236](index=236&type=chunk)[237](index=237&type=chunk) - The company conducts a significant portion of its business internationally, with **23% of revenue from EMEA** in Q2 FY23 and **43% of its workforce in India** as of Dec 31, 2022, exposing it to geopolitical and currency risks[247](index=247&type=chunk)[249](index=249&type=chunk) - **Cybersecurity breaches and evolving data privacy regulations**, such as GDPR and CCPA, pose significant risks of noncompliance, financial penalties, and reputational damage[284](index=284&type=chunk)[293](index=293&type=chunk)[299](index=299&type=chunk) - As of December 31, 2022, the CEO, Ashutosh Roy, beneficially owned approximately **27% of the company's outstanding capital stock**, giving him significant control over matters requiring stockholder approval[323](index=323&type=chunk) [Exhibits](index=100&type=section&id=Item%206.%20Exhibits) Filed exhibits include required CEO/CFO certifications under Sarbanes-Oxley and Interactive Data Files (XBRL) - The exhibits filed include Rule 13a-15(e)/15d-15(e) certifications from the CEO and CFO, Section 1350 certifications, and Inline XBRL data files[325](index=325&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was a record $24.8 million, up 20% year-over-year in constant currency [7][20] - SaaS revenue grew 23% year-over-year in constant currency, reaching $22.6 million [7][20] - Non-GAAP operating income was $1.4 million, with an operating margin of 6%, compared to 13% in the prior year [23] - Non-GAAP net income for Q1 was $2 million, or $0.06 per share, down from $2.7 million or $0.08 per share in the year-ago quarter [23] - Cash flow from operations was $760,000, with a 3% operating cash flow margin [24] Business Line Data and Key Metrics Changes - Legacy revenue decreased to $295,000, now accounting for less than 2% of total revenue [20] - The knowledge hub now constitutes 50% of total SaaS ARR, with knowledge deals accounting for two-thirds of new bookings in the last 12 months [26] Market Data and Key Metrics Changes - North America accounted for 77% of total revenue, up from 71% in the year-ago quarter, with revenue from North America increasing by 26% year-over-year [20] - Total revenue from Europe was $5.7 million, a decrease of 9% year-over-year [20] - The LTM dollar-based net retention rate was 103%, down from 113% a year ago, with U.S. retention closer to 110 and European retention dropping below 100 [25] Company Strategy and Development Direction - The company plans to take a more balanced approach to growth and profitability, pausing the hiring of new sales reps to focus on current rep productivity [16][17] - The company remains optimistic about the market opportunity in knowledge management and AI-powered automation [17][18] - A $20 million stock repurchase program was announced, indicating confidence in the current stock price and a strong balance sheet [27][28] Management's Comments on Operating Environment and Future Outlook - Management noted that decision-making timelines are extending due to economic uncertainty, particularly in Europe [15][19] - There is a healthy pipeline with new inbound interest, but caution is advised due to the current economic environment [15][18] - The company expects total revenue for Q2 2023 to be between $25 million to $25.4 million, representing growth of 8% to 10% year-over-year [29] Other Important Information - The company received accolades for its eGain knowledge hub, including a perfect score from Gartner and the 2022 Readers' Choice Award from KMWorld [14] - The eGain marketplace was announced, showcasing value-added solutions built by the company and partners [13] Q&A Session Summary Question: Changes to the sales funnel and slower sales cycles - Management indicated that the primary issue is the delaying of decision-making rather than a decrease in interest levels [37] Question: Legacy maintenance revenue sunset - Management stated that there are no significant cost impacts from the remaining legacy revenue, which is minimal [38] Question: Decision to slow down hiring - Management explained that they want to see stabilization in decision cycles before resuming hiring [40] Question: EMEA NRR and customer behavior - Management noted that larger customers in Europe are reducing spend, impacting NRR significantly [43] Question: Lengthening sales cycles - Management observed that budgets expected in fiscal calendar '22 have been pushed to calendar '23, contributing to longer decision cycles [47] Question: Channel-related sales momentum - Both direct and channel sales efforts are experiencing similar changes, with potential for channel sales to be beneficial in the future [48] Question: Customer trading down to lower quality services - Management confirmed that some customers are opting for lower-priced solutions, which may not meet their needs [50] Question: Overall industry impact - Management believes that the macroeconomic effects are more pronounced in Europe, with potential impacts on contact centers [53]