eGain(US:EGAN)2025-05-14 20:00Financial Performance - Total revenue for Q3 2025 was $21.0 million, down 6% year over year[5] - GAAP net income for Q3 2025 was $66,000, or $0.00 per share, compared to $1.5 million, or $0.05 per share in Q3 2024[5] - Non-GAAP net income for Q3 2025 was $765,000, or $0.03 per share, compared to $2.6 million, or $0.08 per share in Q3 2024[5] - Total revenue for the three months ended March 31, 2025, was $21,009 million, a decrease of 6% compared to $22,350 million for the same period in 2024[16] - GAAP total revenue for the nine months ended March 31, 2025, was $65,197 million, a decrease of 7% compared to $70,341 million in 2024[22] - GAAP SaaS revenue was $60,230 million, down 7% from $64,643 million in the prior year[22] - GAAP professional services revenue decreased by 13% to $4,967 million from $5,698 million year-over-year[22] - Constant currency growth rates indicate a consistent decline across major revenue segments, with total GAAP revenue down 8%[22] Cash Flow and Guidance - Cash provided by operating activities was $2.2 million, with an operating cash flow margin of 11%[5] - Total cash and cash equivalents decreased to $68.7 million from $83.0 million in Q3 2024[5] - eGain expects total revenue for Q4 2025 to be between $22.8 million and $23.3 million[5] - GAAP net income guidance for Q4 2025 is projected to be between $1.1 million and $1.6 million, or $0.04 to $0.06 per share[5] - Non-GAAP net income guidance for Q4 2025 is projected to be between $1.7 million and $2.2 million, or $0.06 to $0.08 per share[5] - eGain is lowering its total revenue guidance for the full fiscal year 2025 to $88.0 million to $88.5 million[10] - eGain is raising its GAAP net income guidance for the full fiscal year 2025 to $2.5 million to $3.0 million, or $0.09 to $0.10 per share[10] Expenses and Profitability - Research and development expenses increased to $7,514 million for the three months ended March 31, 2025, up from $6,655 million in the prior year, representing a 13% increase[20] - Total operating expenses for the three months ended March 31, 2025, were $14,259 million, slightly down from $14,554 million in the same quarter of 2024[16] - Adjusted EBITDA for the three months ended March 31, 2025, was $1,172 million, down from $2,252 million in the same quarter of 2024[18] - The company incurred stock-based compensation of $699 million for the three months ended March 31, 2025, compared to $1,110 million in the same period of 2024[18] - The total cost of revenue for the three months ended March 31, 2025, was $6,723 million, a slight decrease from $6,858 million in the same quarter of 2024[16] - Non-GAAP total cost of revenue decreased by 2% to $19,390 million from $19,762 million year-over-year[22] - Non-GAAP gross profit was $45,807 million, reflecting a 9% decline from $50,579 million in the previous year[22] - Non-GAAP research and development expenses increased by 17% to $22,120 million compared to $18,852 million in the prior year[22] - GAAP operating expenses totaled $43,942 million, slightly down from $44,876 million year-over-year[22] - Non-GAAP operating expenses increased by 1% to $42,668 million from $42,287 million in the previous year[22] Strategic Focus - The company is focusing on new product development and market expansion strategies to drive future growth[22]