Financial Data and Key Metrics Changes - Total revenue for Q1 was RMB23.5 million, an increase of 8% year over year, reaching the high end of guidance [24] - SaaS revenue increased by 10% year over year, accounting for 93% of total revenue compared to 91% in the previous year [24] - Non-GAAP gross margin for the quarter was 76%, up 600 basis points from 70% a year ago, driven by SaaS gross margin expansion [25] - Non-GAAP net income was RMB4.7 million or $0.17 per share, significantly up from RMB1.3 million or $0.04 per share in the year-ago quarter [27] - Adjusted EBITDA margin for the quarter was 21%, exceeding guidance and up from 6% in the previous year [28] - Cash flow from operations was RMB10.4 million, representing a 44% operating cash flow margin compared to 4% in the year-ago quarter [28] Business Line Data and Key Metrics Changes - ARR for AI knowledge products increased by 23% year over year, while SaaS ARR for all customers increased by 8% [29] - SaaS net retention for knowledge customers was 104%, up from 103% a year ago, while net retention for all customers was 102%, up from 90% [30] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) increased by 23% year over year, with short-term RPO up 7% [30] Company Strategy and Development Direction - The company is focusing on product-led growth and has made significant product announcements, including the eGain AI knowledge method and eGain AI agent [12][13][15] - The introduction of the Composer product aims to target developers and partners, allowing for a composable platform to operationalize AI solutions [17][21] - The company is investing in building out its leadership team to support growth and product innovation [19][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to the fiscal year, with solid results that beat consensus across the board [33] - The company anticipates a sequential decline in revenue due to the sunsetting of the messaging platform business and delays from government shutdowns affecting professional services [31] - For Q2, the company expects GAAP net income of $1.2 million to $1.7 million and non-GAAP net income of $1.9 million to $2.4 million [31] Other Important Information - The company bought back $1.5 million in stock at an average price of $6.38 per share during the quarter [28] - The balance sheet remains strong, with total cash and cash equivalents at RMB70.9 million, up from RMB62.9 million [29] Q&A Session Summary Question: Sales trends and marketing spend - Management noted a summer slowdown in marketing spend but expects to increase sales hiring investment in the second half of the fiscal year [36][37] Question: Proliferation of AI agents - Management believes that while many companies are experimenting with AI agents, they will ultimately seek to integrate with trusted knowledge systems for serious applications [38][39][40] Question: Composer product integration - The Composer product is designed to allow developers to integrate various AI engines easily, with a focus on providing a trusted knowledge backend [41][42][43] Question: Cash balance strategy - Management indicated that while buybacks will continue, they are also open to tuck-in acquisitions but primarily focus on investing in the business [45][46][47] Question: Update on large knowledge hub opportunities - Management reported steady progress in large opportunities and increased partner engagement in the knowledge hub category [51][52] Question: JPMorgan deployment update - Management confirmed that the first phase of the JPMorgan deployment has gone live, with plans for the next phase underway [54][55]