eGain(US:EGAN)2023-11-04 03:30Financial Data and Key Metrics Changes - Total revenue for Q1 was $24.2 million, down 2% year-over-year, but above expectations [32] - Non-GAAP net income for the quarter was $3.8 million or $0.12 per share, up approximately 90% from $2 million or $0.06 per share in the year-ago quarter [35] - Adjusted EBITDA margin for the quarter was 12%, up 600 basis points from 6% in the year-ago quarter [35] - Total cash and cash equivalents at the end of the quarter were $79.8 million, up from $71.5 million a year ago [36] Business Line Data and Key Metrics Changes - North America accounted for 79% of total revenue this quarter, up from 77% in the year-ago quarter [33] - SaaS ARR for North America customers increased 4% year-over-year, while total SaaS ARR decreased 1% [38] - Knowledge management now makes up 25% of total SaaS ARR [38] Market Data and Key Metrics Changes - Total revenue from Europe was $5.2 million, down 8% year-over-year [33] - LTM dollar-based SaaS retention for North America customers was 103%, while EMEA customer retention was 84% [37] Company Strategy and Development Direction - The launch of AssistGPT is a key focus, leveraging generative AI to automate knowledge management and reduce human effort by up to 80% [11] - The company aims to capitalize on the global opportunity to automate knowledge management for customer service [29] - The macro environment remains challenging, but there is an increase in RFP activity and reengagement from previously on-hold deals [43] Management's Comments on Operating Environment and Future Outlook - The macro environment is characterized by geopolitical uncertainty and cautious budgeting, but there is a slight loosening expected for calendar '24 [17] - Management sees a significant growth opportunity with the new AssistGPT offering and believes the market for knowledge management is large and exciting [44] Other Important Information - eGain was named a visionary in Gartner's 2023 Magic Quadrant for CRM Customer Engagement, highlighting its operationalized AI capabilities [26] - The company has a strong balance sheet and cash flow generation, which positions it well for future opportunities [44] Q&A Session Summary Question: What are the early indications of interest in AssistGPT? - Management noted that there is significant interest in improving productivity in knowledge creation and management cycles [49] Question: How is pricing structured for AssistGPT? - The pricing is based on actual usage of the generative capability on the platform, with a focus on driving adoption [50] Question: Is the focus on existing customers or new opportunities? - The market interest is in a platform that includes generative capability, with a core need for knowledge management still being essential [53]