Core Insights - eGain announced findings from a survey on the state of AI in 2025, highlighting significant concerns regarding AI adoption among executives and knowledge managers [1][2] AI Adoption Challenges - 61% of respondents identified erroneous or inconsistent answers as the primary barrier to successful AI adoption [2] - Gartner warns that all generative AI projects lacking integration with modern knowledge management systems are likely to fail in achieving customer experience and operational cost-reduction goals [2] Importance of Trusted Content - eGain's CEO emphasized the necessity of trusted content for successful AI applications, stating that both AI and knowledge are essential for organizations to thrive [3] - The survey results underscore the critical role of trusted content in driving successful AI initiatives [3] Performance Improvements - Companies utilizing the eGain AI Knowledge Hub reported significant operational improvements, including a 24% reduction in Average Handle Time (AHT) and a 57% decrease in Average Wait Time (AWT) for member calls [4] - Additionally, agent satisfaction scores increased by 22% as a result of implementing trusted knowledge solutions [4]

AI Knowledge Platform & Market Opportunity - eGain is positioned as the 1 AI Knowledge Platform[5] - AI Knowledge helps companies reduce customer service costs by 75% and improve experience by 20 NPS points[9] - The AI Knowledge SaaS market for service is estimated to be over $20 billion[16] - Gartner predicts that by 2025, 100% of generative AI virtual customer assistant and virtual agent assistant projects lacking integration with modern knowledge management systems will fail[17] Financial Performance & Guidance - Q3FY25 total revenue was $21.0 million, a 6% decrease year-over-year[48] - Q3FY25 Non-GAAP net income was $0.8 million, representing a 4% margin[48] - Q3FY25 operating cash flow was $2.2 million, an 11% margin[48] - The company holds $68.7 million in cash and equivalents[48] - AI Knowledge ARR grew 11% year-over-year in Q3FY25[43] - AI Knowledge ARR represents 54% of SaaS ARR, up from 46% a year ago[44] - The company projects total revenue between $22.8 million and $23.3 million for Q4FY25 and between $88.0 million and $88.5 million for the full fiscal year 2025[59] Product & Customer Success - eGain AI Agent for Contact Center was launched in March 2025[47] - eGain AI Knowledge Hub is now KCS-Verified[46] - One customer achieved a 97% search success rate and a 10x speed to answer improvement using AI Knowledge[37]

Core Viewpoint - eGain reported its fiscal 2025 third quarter results, highlighting a decline in revenue but an increase in profitability and cash flow, alongside significant business developments including a major expansion deal and product launch [2][5]. Financial Highlights Fiscal 2025 Third Quarter - Total revenue was $21.0 million, a decrease of 6% year over year [5]. - GAAP net income 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 was $765,000, or $0.03 per share, down from $2.6 million, or $0.08 per share in Q3 2024 [5]. - Cash provided by operating activities was $2.2 million, with an operating cash flow margin of 11% [5]. - Adjusted EBITDA was $1.2 million, compared to $2.3 million in Q3 2024 [5]. Fiscal 2025 First Nine Months - Total revenue for the first nine months was $65.2 million, down 7% year over year [5]. - GAAP net income was $1.4 million, or $0.05 per share, compared to $6.3 million, or $0.20 per share in the same period last year [5]. - Non-GAAP net income was $3.3 million, or $0.12 per share, down from $9.8 million, or $0.31 per share in the same period last year [5]. - Adjusted EBITDA was $4.2 million, compared to $8.8 million in the same period last year [5]. Fourth Quarter Financial Guidance - eGain expects total revenue for Q4 to be between $22.8 million to $23.3 million [5]. - GAAP net income is projected to be between $1.1 million to $1.6 million, or $0.04 to $0.06 per share [5]. - Non-GAAP net income is expected to be between $1.7 million to $2.2 million, or $0.06 to $0.08 per share [5]. - Full year revenue guidance has been lowered to $88.0 million to $88.5 million, while GAAP net income guidance has been raised to $2.5 million to $3.0 million [5]. Business Developments - eGain secured one of its largest expansion deals with a U.S. megabank shortly after the quarter closed [2]. - The company launched its AI Agent for Contact Center, which assists agents in real-time using trusted knowledge and reasoning [2]. - eGain was recognized by Gartner as an emerging leader in the Generative AI Technologies market [2].