eGain(US:EGAN)2025-11-12 21:16Revenue Performance - SaaS revenue for the three months ended September 30, 2025, was $21.9 million, representing a 10% increase from $19.82 million in the same period of 2024[124]. - Total revenue for the same period was $23.51 million, an 8% increase from $21.8 million year-over-year[124]. - Total revenue for the three months ended September 30, 2025, was $23.5 million, an increase of $1.7 million or 8% compared to $21.8 million in the same period of 2024[147]. - SaaS revenue accounted for 93% of total revenue, increasing by $2.1 million or 10% to $21.9 million, while professional services revenue decreased by $371,000 or 19% to $1.6 million[149][151]. Profitability and Expenses - Non-GAAP income from operations for the three months ended September 30, 2025, was $4.71 million, compared to $1.14 million in 2024[128]. - Gross profit margin improved to 75% for the three months ended September 30, 2025, compared to 69% in the same period of 2024, driven by a reduction in total cost of revenue[146][156]. - Operating income increased significantly to $2.8 million with an operating margin of 12%, up from $509,000 and 2% in the prior year[171]. - Research and development expenses decreased by $106,000 to $7.3 million, representing 31% of total revenue, down from 34% in the previous year[162]. - Sales and marketing expenses decreased by $731,000 to $4.0 million, accounting for 17% of total revenue, down from 22% in the prior year[165]. - General and administrative expenses increased by $1.1 million to $3.5 million, representing 15% of total revenue, up from 11% in the previous year[168]. Cash Flow and Investments - Net cash provided by operating activities rose by $9.5 million to $10,432,000 for the three months ended September 30, 2025, compared to $954,000 in 2024[179][180]. - Net cash used in investing activities increased by $115,000 to $224,000 for the three months ended September 30, 2025, primarily for equipment purchases[182]. - Net cash used in financing activities decreased by $3.2 million to $1.5 million for the three months ended September 30, 2025, compared to $4.6 million in 2024[183]. - Cash and cash equivalents, along with restricted cash, totaled $70.9 million as of September 30, 2025, down from $62.9 million as of June 30, 2025[177]. Market and Operational Insights - The company believes that contact centers offer significant opportunities for automation using AI technology[115]. - The company operates in the U.S., U.K., and India, indicating a diverse geographical presence[121]. - The company expects SaaS revenue to continue increasing, reflecting positive market opportunities[115]. Risks and Liabilities - The company faces risks related to cybersecurity, including potential breaches that could impact customer trust and financial exposure[125]. - The company relies on a relatively small number of customers for a substantial portion of its revenue, which poses a risk if significant customers are lost[119]. - Future non-cancelable minimum payments under lease commitments were approximately $4.3 million as of September 30, 2025[184]. - Identifiable assets denominated in foreign currency totaled approximately $27.5 million as of September 30, 2025, with a potential $2.7 million decrease in value from a 10% increase in the dollar[188]. - The company does not currently hedge against foreign exchange risk, exposing it to market fluctuations[188]. Other Financial Metrics - Interest income decreased to $462,000 from $771,000 due to lower interest rates and reduced funding in money market accounts[174]. - Other income increased to $455,000 compared to an expense of $140,000 in the prior year, primarily due to foreign exchange rate fluctuations[175]. - Income tax provision increased to $930,000 for the three months ended September 30, 2025, compared to $488,000 for the same period in 2024[176]. - The company has not experienced a loss of principal on investments, which are primarily in short-term, low-risk, investment-grade debt instruments[190]. - The company expects that changes in market interest rates would not materially impact the fair value of its securities or cash flows[190].