Revenue Performance - SaaS revenue for Q2 2024 was $20,847,000, a decrease of 5% from $21,996,000 in Q2 2023, and for the first half of 2024, it was $40,667,000, down 8% from $44,319,000 in the same period last year[149] - Professional services revenue for Q2 2024 was $1,542,000, a decline of 15% from $1,819,000 in Q2 2023, and for the first half of 2024, it was $3,521,000, down 4% from $3,672,000 in the same period last year[149] - Total SaaS and professional services revenue for Q2 2024 was $22,389,000, a decrease of 6% from $23,815,000 in Q2 2023, and for the first half of 2024, it was $44,188,000, down 8% from $47,991,000 in the same period last year[149] - Total revenue for the three months ended December 31, 2024 decreased by $1.4 million (6%) to $22.4 million, while SaaS revenue decreased by $1.1 million (5%) to $20.8 million[170] - Total revenue for the six months ended December 31, 2024 decreased by $3.8 million (8%) to $44.2 million, with SaaS revenue down by $3.7 million (8%)[170] - Revenue from North America decreased by 8% to $17.3 million for the three months ended December 31, 2024, primarily due to a $1.1 million decrease in SaaS revenue[177] Operating Performance - Non-GAAP income from operations for Q2 2024 was $1,272,000 compared to $3,620,000 in Q2 2023, and for the first half of 2024, it was $2,413,000 compared to $6,244,000 in the same period last year[152] - Income from operations was $650,000 for the three months ended December 31, 2024, down 73% from $2.4 million in the same period in 2023[203] - Income from operations for the six months ended December 31, 2024, was $1.2 million, a decrease of 70% from $3.8 million in the same period in 2023[204] - Net cash provided by operating activities decreased by $8.4 million to $7.4 million for the six months ended December 31, 2024, from $15.8 million in the same period in 2023[214] Cost and Expenses - Cost of revenue for the three months ended December 31, 2024 was $6.7 million, a decrease of $310,000 (4%) compared to the same period in 2023[182] - Gross profit margin for the three months ended December 31, 2024 was 70%, down from 71% in the same period in 2023[168] - Operating expenses increased to 67% of total revenue for the three months ended December 31, 2024, compared to 60% in the same period in 2023[168] - Research and development expenses increased by 16% to $7.7 million for the three months ended December 31, 2024, compared to $6.7 million in the same period in 2023[193] - Research and development expenses for the six months ended December 31, 2024, rose by 14% to $15.1 million from $13.3 million in the same period in 2023[194] - Sales and marketing expenses decreased by 2% to $5.3 million for the three months ended December 31, 2024, compared to $5.3 million in the same period in 2023[198] - Sales and marketing expenses for the six months ended December 31, 2024, decreased by 13% to $10.0 million from $11.5 million in the same period in 2023[199] - General and administrative expenses decreased by 12% to $2.1 million for the three months ended December 31, 2024, from $2.4 million in the same period in 2023[201] - General and administrative expenses for the six months ended December 31, 2024, decreased by 19% to $4.5 million from $5.6 million in the same period in 2023[202] Market and Competitive Environment - The company operates in a competitive market for customer engagement software, including generative AI product offerings, which may impact future revenue growth[142] - The lengthy sales cycles and reliance on a small number of customers for a significant portion of revenue pose risks to the company's financial stability[142] - The company is focused on expanding its SaaS and professional services revenue streams to enhance overall business valuation[148] - The company is exposed to risks related to cybersecurity, regulatory changes, and market demand fluctuations that could affect operational performance[140] - The company aims to innovate and respond to rapid technological changes to maintain competitive advantages in the market[142] Future Obligations and Liquidity - As of December 31, 2024, remaining performance obligations were $73.6 million, with $50.9 million expected to be recognized as revenue within one year[163] - As of December 31, 2024, the company's principal sources of liquidity totaled $86.3 million, down from $101.7 million as of June 30, 2024[211] Legal and Compliance - The company is not currently involved in any legal proceedings that could materially affect its business or financial condition[228] - The company evaluates all claims and lawsuits for their potential merits and expected effects on operations[229] - The company may face injunctions if its technologies are found to infringe third-party rights[229] - The company is required to indemnify customers for third-party intellectual property infringement claims, which could increase costs[229] Internal Controls - As of December 31, 2024, the company's disclosure controls and procedures were effective at the reasonable assurance level[225] - There were no changes in internal control over financial reporting that materially affected the company during the last fiscal quarter[226]

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]

Core Insights - eGain (EGAN) shares have increased by 31.6% over the past three months, outperforming the broader Zacks Computer & Technology sector and the Zacks Internet - Software industry [1] - The company is experiencing strong business momentum, particularly in its AI Knowledge Hub segment, which has seen a 16% year-over-year growth in annual recurring revenues [2][4] Revenue Composition - The AI Knowledge Hub segment contributes 50% of eGain's total revenues, with the remaining 50% coming from the Conversation Hub and Analytics Hub, indicating a balanced product portfolio [3] Client Acquisition and Demand - eGain achieved a 50% increase in client acquisitions in 2024 compared to the previous year, reflecting the rising demand for AI-driven knowledge management solutions [8] - Virginia529's adoption of eGain's AI Knowledge Hub highlights the company's expanding presence in the financial services sector [5] Product Innovation - eGain launched the eGain AI Agent, enhancing customer self-service capabilities and positioning the company to meet the growing demand for AI-driven solutions in customer engagement [6] - The introduction of AssistGPT, a generative AI-driven solution, aims to automate tasks and significantly reduce knowledge-building costs by up to 5X while doubling agent productivity [7] Financial Outlook - For the second quarter of fiscal 2025, eGain expects total revenues between $22.2 million and $22.6 million, with non-GAAP earnings anticipated between break-even to 2 cents per share [9] - For fiscal 2025, total revenues are projected between $92 million and $93 million, with non-GAAP earnings expected between 17 cents and 20 cents per share [10] Performance Metrics - eGain has consistently outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings surprise of 187.50% [11] - The company's operational excellence is demonstrated through robust recurring revenue growth, strong new bookings, and effective cost management [12] Investment Potential - eGain's operational advancements and market positioning indicate strong potential for sustained growth, making it a compelling choice for investors [13]

Company Overview - eGain (EGAN) shares increased by 14.6% to $6.19 in the last trading session, with a higher-than-average trading volume, compared to a 5.3% gain over the past four weeks [1] - eGain is experiencing strong momentum in its AI Knowledge offering, with a 16% year-over-year growth in Annual Recurring Revenue (ARR) for AI Knowledge customers in Q1 of fiscal 2025, driven by increased interest in AI and knowledge management solutions [1] Earnings Expectations - eGain is expected to report quarterly earnings of $0.02 per share, reflecting a year-over-year decline of 81.8%, with revenues projected at $22.46 million, down 5.7% from the same quarter last year [2] - The consensus EPS estimate for eGain has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - eGain belongs to the Zacks Internet - Software industry, which includes other companies like Paycor HCM, Inc. (PYCR), that closed 0.8% higher at $19.33, with a 5.8% return over the past month [3] - Paycor HCM's consensus EPS estimate for the upcoming report has also remained unchanged at $0.11, showing no change from the previous year, and it currently holds a Zacks Rank of 2 (Buy) [4]

eGain (EGAN) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual inves ...

Evaluation based on Completeness of Vision and Ability to ExecuteSUNNYVALE, Calif., Dec. 13, 2024 (GLOBE NEWSWIRE) -- eGain (NASDAQ: EGAN), the AI knowledge management platform for service, today announced that it has been named a Visionary in the Gartner Magic Quadrant for the CRM Customer Engagement Center. Published on December 11, 2024, the report evaluated 12 vendors who satisfied inclusion requirements, based on 15 criteria. Powered by Conversational and Generative AI and built on a trusted knowledge ...

Company Overview - eGain (NASDAQ: EGAN) has experienced a significant decline in its share price this year due to challenges impacting revenue growth in the current fiscal year [1] - The recent loss of two large customers has raised concerns regarding the company's future performance [1] Investor Insights - The article reflects the perspective of an individual investor focused on undercovered companies, with a watchlist of over 50 companies across various sectors including technology, software, electronics, and energy transition [1] - The investor has over 7 years of personal capital investment experience and emphasizes the importance of identifying asymmetric investment opportunities for achieving market-beating returns [1]

SUNNYVALE, Calif., Nov. 21, 2024 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), the AI Knowledge Management platform for business, announced today that its Board of Directors approved an extension to the stock repurchase program from November 14, 2024, until the earlier of (i) the date the aggregate amount of shares that can be repurchased under the stock repurchase program have been repurchased and (ii) November 14, 2025. "This extension underscores our belief that our shares are undervalued and reinforces our ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $21.8 million, down 10% year-over-year, primarily due to the loss of two large clients in the Conversation and Analytics business [16][17] - Non-GAAP gross profit was $15.4 million, with a gross margin of 70%, compared to 73% a year ago [17] - Non-GAAP net income was $1.3 million or $0.04 per share, down from $3.8 million or $0.12 per share in the prior year [19] - Cash flow from operations was $954,000, significantly lower than $8.1 million in the year-ago quarter [20] Business Line Data and Key Metrics Changes - SaaS ARR for Knowledge customers increased 16% year-over-year, while total SaaS ARR for all customers decreased 4% year-over-year but was up 2% sequentially [21] - LTM dollar-based SaaS net retention for Knowledge customers was 103%, up from 98% at the end of the last quarter [22] - Total RPO decreased 15% year-over-year, with short-term RPO of $54.5 million down 9% year-over-year [23] Market Data and Key Metrics Changes - North America accounted for 75% of total revenue, down from 79% in the year-ago quarter [17] - The company noted a strong performance in EMEA, while North America experienced a decline due to customer losses [38][40] Company Strategy and Development Direction - The company is focusing on product innovation, particularly in AI and knowledge management, to capitalize on market opportunities [15][28] - A new solution, eGain AI Agent, was announced, aimed at improving customer self-service capabilities [14] - The company is emphasizing the centralization of knowledge as a key trend in the market, which enhances compliance, experience, and productivity [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in the AI Knowledge business and the potential for growth in SaaS revenue [28] - The company expects total revenue for Q2 2025 to be between $22.2 million to $22.6 million, with a GAAP net loss projected between $400,000 to $900,000 [25] - For the fiscal year ending June 30, 2025, total revenue is expected to be between $92 million to $93 million, with SaaS revenue projected to grow in the high single digits [26][27] Other Important Information - The company repurchased approximately 671,000 shares at an average price of $6.84 per share during the quarter [20] - The company will participate in the 13th Annual ROTH Technology Conference in New York City on November 20 [28] Q&A Session Summary Question: Update on sales cycle improvements and new bookings - Management noted a steady RFP pace and significant year-over-year improvement in new bookings, although the current quarter is seasonally slow [31][32] Question: Investment in marketing and R&D - Marketing expenses were impacted by seasonal events, while R&D spending is expected to increase as new product announcements approach [33][34] Question: Geographical performance and market demand - The decline in North America was attributed to customer losses rather than a change in market demand, with the US still being the growth engine [39][40] Question: Confusion in the AI market and competition - Management acknowledged ongoing confusion in the market but noted a trend towards recognizing the need for comprehensive solutions rather than narrow offerings [42][43] Question: Large trials and sales cycle timing - There are more large trials underway, indicating serious interest from big companies, with sales cycles remaining around 9 to 12 months [44]