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eGain(EGAN) - 2025 Q2 - Quarterly Results
EGANeGain(EGAN)2025-02-13 21:10

Revenue Performance - Total revenue for Q2 2025 was 22.4million,down622.4 million, down 6% year over year[4] - Total revenue for Q2 2024 was 22,389 million, a decrease of 6% compared to 23,815millioninQ22023[15]−SaaSrevenuewas23,815 million in Q2 2023[15] - SaaS revenue was 20,847 million, down 5% from 21,996millionyear−over−year[19]−GAAPtotalrevenuedecreasedby821,996 million year-over-year[19] - GAAP total revenue decreased by 8% to 44,188 million compared to 47,991millioninthepreviousyear[21]−GAAPSaaSrevenuedeclinedby847,991 million in the previous year[21] - GAAP SaaS revenue declined by 8% to 40,667 million from 44,319millionyear−over−year[21]−AnnualrecurringrevenuefromAIKnowledgeHubcustomersgrewby1744,319 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 0.02pershare,comparedto0.02 per share, compared to 2.2 million, or 0.07pershareinQ22024[4]−Non−GAAPnetincomeforQ22025was0.07 per share in Q2 2024[4] - Non-GAAP net income for Q2 2025 was 1.3 million, or 0.05pershare,comparedto0.05 per share, compared to 3.4 million, or 0.11pershareinQ22024[4]−NetincomeforQ22024was0.11 per share in Q2 2024[4] - Net income for Q2 2024 was 671 million, a significant drop from 2,185millioninQ22023,markingadecreaseof692,185 million in Q2 2023, marking a decrease of 69%[15] - Non-GAAP net income for Q2 2024 was 1,293 million, compared to 3,380millioninQ22023,reflectingadeclineof623,380 million in Q2 2023, reflecting a decline of 62%[17] - eGain is raising its GAAP net income guidance range to 1.1 million to 1.7million,or1.7 million, or 0.04 to 0.06pershare[9]−eGainisloweringitsnon−GAAPnetincomerangeto0.06 per share[9] - eGain is lowering its non-GAAP net income range to 4.1 million to 4.7million,or4.7 million, or 0.14 to 0.16pershare[9]CashFlowandAssets−Cashprovidedbyoperatingactivitieswas0.16 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 70.5million,downfrom70.5 million, down from 86.8 million in Q2 2024[4] - Total assets decreased from 127.9millioninJune2024to127.9 million in June 2024 to 111.3 million in December 2024[13] Expenses - Operating expenses increased to 15,059millioninQ22024,upfrom15,059 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 7,708millioninQ22024,upfrom7,708 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 14,878millionfrom14,878 million from 12,528 million[21] - GAAP operating expenses slightly increased by 1% to 29,683millionfrom29,683 million from 30,322 million[21] - Non-GAAP sales and marketing expenses decreased by 11% to 9,832millioncomparedto9,832 million compared to 11,097 million last year[21] - Non-GAAP general and administrative expenses decreased by 14% to 4,181millionfrom4,181 million from 4,875 million[21] Profitability - Gross profit for Q2 2024 was 15,709million,comparedto15,709 million, compared to 16,825 million in Q2 2023, reflecting a decline of 6.6%[15] - Adjusted EBITDA for Q2 2024 was 1,632million,downfrom1,632 million, down from 3,771 million in Q2 2023, a decrease of 57%[17] - Non-GAAP gross profit fell by 10% to 31,304millioncomparedto31,304 million compared to 34,744 million in the prior year[21] Guidance and Future Strategy - eGain is lowering its total revenue guidance range to 88.5millionto88.5 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]