• eGain Reports Growing Profitability in its Fiscal Second Quarter; New Logos Increase with AssistGPT AI Offering

    Источник: Nasdaq GlobeNewswire / 08 фев 2024 15:05:01   America/Chicago

    SUNNYVALE, Calif., Feb. 08, 2024 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), a knowledge platform for customer engagement, today announced financial results for its fiscal 2024 second quarter ended December 31, 2023.

    “Our AssistGPT offering helped us win new logos in the quarter," said Ashu Roy, eGain’s CEO. "We see growing interest in knowledge management as a foundation for effective Generative AI use in customer service.”

    Fiscal 2024 Second Quarter Financial Highlights

    • Total revenue was $23.8 million, down 7% year over year.
    • GAAP net income was $2.2 million, or $0.07 per share on a basic and diluted basis, up from a GAAP net loss of $104,000, or $0.00 per share on a basic and diluted basis, in Q2 2023.
    • Non-GAAP net income was $3.4 million, or $0.11 per share on a basic and diluted basis, up from a non-GAAP net income of $1.7 million, or $0.05 per share on a basic and diluted basis, in Q2 2023.
    • Cash provided by operations was $7.7 million, or an operating cash flow margin of 32%.
    • Total cash and cash equivalents were $86.8 million, up from $79.8 million in Q1 2024.
    • Adjusted EBITDA was $3.8 million compared to $2.2 million in Q2 2023.
    • Total shares purchased through the repurchase program were approximately 391,000 at an average cost per share of $6.39, totaling $2.5 million.

    Fiscal 2024 First Six Months Financial Highlights

    • Total revenue was $48.0 million, down 5% year over year.
    • GAAP net income was $4.8 million, or $0.15 per share on a basic and diluted basis, compared to GAAP net loss of $120,000, or $0.00 per share on a basic and diluted basis, in the same period last year.
    • Non-GAAP net income was $7.2 million, or $0.23 per share on a basic basis and $0.22 per share on a diluted basis, compared to non-GAAP net income of $3.7 million, or $0.12 per share on a basic basis and $0.11 per share on a diluted basis, in the same period last year.
    • Adjusted EBITDA was $6.6 million compared to $3.8 million in the same period last year.
    • Cash provided from operations was $15.8 million, or an operating cash flow margin of 33%.

    Fiscal 2024 Third Quarter Financial Guidance

    For the third quarter of fiscal 2024 ending March 31, 2024, eGain expects:

    • Total revenue of between $22.6 million to $23.0 million.
    • GAAP net income of $400,000 to $1.0 million, or $0.01 to $0.03 per share.
      • Includes stock-based compensation expense of approximately $1.2 million.
      • Includes depreciation and amortization of approximately $100,000.
    • Non-GAAP net income of $1.6 million to $2.2 million, or $0.05 to $0.07 per share.

    Fiscal 2024 Financial Guidance

    For the fiscal 2024 full year ending June 30, 2024, eGain expects:

    • Total revenue of between $92.0 million to $93.0 million.
    • GAAP net income of $4.5 million to $5.0 million, or $0.14 to $0.16 per share.
      • Includes stock-based compensation expense of approximately $4.8 million.
      • Includes depreciation and amortization of approximately $500,000.
    • Non-GAAP net income of $9.3 million to $9.8 million, or $0.29 to $0.31 per share.

    Guidance Assumption:

    • Weighted average shares outstanding are expected to be approximately 31.9 million for the third quarter of fiscal 2024 and 32.0 million for the full fiscal year 2024.

    Non-GAAP Financial Measures

    This press release includes certain non-GAAP financial measures as supplemental information relating to our operating results, including adjusted EBITDA and non-GAAP net income. Adjusted EBITDA is defined as net income (loss), adjusted for the impact of depreciation and amortization, stock-based compensation expense, interest income, income tax provision, other (expense) income, and severance and related charges. Non-GAAP net income measure is adjusted for stock-based compensation expense. eGain’s management has analyzed the effect of these non-GAAP adjustments on our income tax provision and believes the change in our income tax provision would be minimal due to these non-GAAP adjustments being attributed to the U.S. jurisdiction where it has recorded full valuation allowance against the deferred taxes. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, or GAAP, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare our performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in our financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business. In addition, this presentation includes eGain’s projected non-GAAP net income for future periods, a non-GAAP measure used to describe eGain’s expected performance. We have not presented a reconciliation to eGain’s projected net income, the most comparable GAAP financial measure, because the reconciliation could not be prepared without unreasonable effort. The information necessary to prepare the reconciliation is not available on a forward-looking basis and cannot be accurately predicted. The unavailable information could have a significant impact on the calculation of the comparable GAAP financial measure.

    Conference Call Information

    eGain will discuss its fiscal 2024 second quarter results today via a teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 844-481-2704 (U.S. toll free) or +1 412-317-0660 (International) and ask to join the eGain earnings call. A live and archived webcast of the call will also be accessible on the “Investor relations” section of eGain’s website at www.egain.com. In addition, a phone replay of the conference call will be available starting two hours after the call and will remain in effect for one week. To access the phone replay, dial 877-344-7529 (U.S. toll free) or +1 412-317-0088 (International). The replay access code is 1867998.

    About eGain

    eGain Knowledge Hub automates and orchestrates customer engagement across touch points. Powered by AI and analytics, our secure cloud solution delivers personalized digital-first experiences, quick business value, and easy innovation. Visit www.egain.com for more info.

    Cautionary Note Regarding Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation: our financial guidance for the third quarter of fiscal 2024 and fiscal 2024 full year ending June 30, 2024; and our market opportunity. The achievement or success of the matters covered by such forward-looking statements, including future financial guidance, involves risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results could differ materially from the results expressed or implied by the forward-looking statements we make, including our ability to achieve our targets for the third quarter of fiscal 2024 and fiscal 2024 full year ending June 30, 2024. The risks and uncertainties referred to above include, but are not limited to: risks to our business, operating results, and financial condition; risks associated with new product releases and new services and products features; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments, particularly in the current economic environment; risks that our lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third party distribution channels; risks related to our international operations; our ability to continue to innovate; our strategy of making investments in sales to drive growth; general political or destabilizing events, including war, intensified international hostilities, conflict or acts of terrorism; the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including those addressing data privacy, cyber-security and cross-border data transfers; and other risks detailed from time to time in eGain’s public filings, including eGain’s annual report on Form 10-K for the fiscal year ended June 30, 2023 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’s website at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. We assume no obligation and do not intend to update these forward-looking statements, except as required by law.

    eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corporation in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies.

    MKR Investor Relations
    Todd Kehrli or Jim Byers
    Phone: 323-468-2300
    Email: egan@mkr-group.com

    eGain Corporation
    Condensed Consolidated Balance Sheets
    (in thousands, except par value data)
    (unaudited)
     
      December 31, June 30,
      2023  2023 
    ASSETS      
    Current assets:      
    Cash and cash equivalents $86,833  $73,201 
    Restricted cash  7   7 
    Accounts receivable, less provision for credit losses of $109 and $237 as of December 31, 2023 and June 30, 2023, respectively  14,271   31,569 
    Costs capitalized to obtain revenue contracts, net  1,282   1,317 
    Prepaid expenses  2,157   2,466 
    Other current assets  1,175   1,268 
    Total current assets  105,725   109,828 
    Property and equipment, net  561   633 
    Operating lease right-of-use assets  2,200   2,797 
    Costs capitalized to obtain revenue contracts, net of current portion  2,003   2,318 
    Goodwill  13,186   13,186 
    Other assets, net  1,768   1,355 
    Total assets $125,443  $130,117 
           
    LIABILITIES AND STOCKHOLDERS' EQUITY      
    Current liabilities:      
    Accounts payable $1,777  $2,044 
    Accrued compensation  5,842   7,697 
    Accrued liabilities  4,207   5,387 
    Operating lease liabilities  587   832 
    Deferred revenue  40,880   47,762 
    Total current liabilities  53,293   63,722 
    Deferred revenue, net of current portion  2,991   2,101 
    Operating lease liabilities, net of current portion  1,470   1,762 
    Other long-term liabilities  896   836 
    Total liabilities  58,650   68,421 
           
    Stockholders' equity:      
    Common stock, par value $0.001 - authorized: 60,000 shares; issued: 32,462 and 32,268; outstanding: 31,202 and 31,482 shares as of December 31, 2023 and June 30, 2023, respectively  32   32 
    Additional paid-in capital  404,320   401,087 
    Treasury stock, at cost: 1,260 and 786 shares of common stock as of December 31, 2023 and June 30, 2023, respectively  (8,778)  (5,763)
    Notes receivable from stockholders  (20)  (97)
    Accumulated other comprehensive loss  (2,101)  (2,122)
    Accumulated deficit  (326,660)  (331,441)
    Total stockholders' equity  66,793   61,696 
    Total liabilities and stockholders' equity $125,443  $130,117 


    eGain Corporation
    Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
    (unaudited)
     
      Three Months Ended  Six Months Ended
      December 31,  December 31,
      2023  2022   2023  2022 
    Revenue:             
    Subscription $21,996  $23,614   $44,319  $46,537 
    Professional services  1,819   1,986    3,672   3,826 
    Total revenue  23,815   25,600    47,991   50,363 
    Cost of revenue:             
    Cost of subscription  5,109   4,424    10,156   8,402 
    Cost of professional services  1,881   2,328    3,672   4,632 
    Total cost of revenue  6,990   6,752    13,828   13,034 
    Gross profit  16,825   18,848    34,163   37,329 
    Operating expenses:             
    Research and development  6,660   7,188    13,292   14,062 
    Sales and marketing  5,349   8,895    11,453   18,354 
    General and administrative  2,391   2,552    5,577   5,370 
    Total operating expenses  14,400   18,635    30,322   37,786 
    Income (loss) from operations  2,425   213    3,841   (457)
    Interest income  982   529    1,931   815 
    Other (expense) income, net  (697)  (545)   (87)  265 
    Income before income tax provision  2,710   197    5,685   623 
    Income tax provision  (525)  (301)   (904)  (743)
    Net income (loss) $2,185  $(104)  $4,781  $(120)
    Per share information:             
    Earnings (loss) per share:             
    Basic $0.07  $(0.00)  $0.15  $(0.00)
    Diluted $0.07  $(0.00)  $0.15  $(0.00)
    Weighted-average shares used in computation:             
    Basic  31,179   32,018    31,329   31,975 
    Diluted  31,843   32,018    31,991   31,975 
                  
    Summary of stock-based compensation included in costs and expenses above:             
    Cost of revenue $284  $412   $581  $842 
    Research and development  367   553    764   1,124 
    Sales and marketing  197   292    356   823 
    General and administrative  347   514    702   1,047 
    Total stock-based compensation $1,195  $1,771   $2,403  $3,836 


    eGain Corporation
    GAAP to Non-GAAP Reconciliation Table
    (in thousands, except per share data)
    (unaudited)
     
      Three Months Ended  Six Months Ended
      December 31,  December 31, 
         2023 2022 2023 2022 
    Income (loss) from operations $2,425 $213  $3,841 $(457)
    Add:             
    Stock-based compensation  1,195  1,771   2,403  3,836 
    Non-GAAP income from operations $3,620 $1,984  $6,244 $3,379 


                 
      Three Months Ended  Six Months Ended
      December 31,  December 31, 
         2023 2022  2023 2022 
    Net income (loss) $2,185 $(104) $4,781 $(120)
    Add:            
    Stock-based compensation  1,195  1,771   2,403  3,836 
    Non-GAAP net income $3,380 $1,667  $7,184 $3,716 
    Per share information:            
    Non-GAAP earnings per share:            
    Basic $0.11 $0.05  $0.23 $0.12 
    Diluted $0.11 $0.05  $0.22 $0.11 
    Weighted-average shares used in computation:            
    Basic  31,179  32,018   31,329  31,975 
    Diluted  31,843  32,870   31,991  32,881 


                 
      Three Months Ended  Six Months Ended
      December 31,  December 31, 
         2023     2022     2023     2022 
    Net income (loss) $2,185  $(104) $4,781  $(120)
    Add:            
    Depreciation and amortization  97   125   204   251 
    Stock-based compensation expense  1,195   1,771   2,403   3,836 
    Interest income  (982)  (529)  (1,931)  (815)
    Provision for income taxes  525   301   904   743 
    Other (expense) income, net  697   545   87   (265)
    Severance and related charges  54   85   135   150 
    Adjusted EBITDA $3,771  $2,194  $6,583  $3,780 


    eGain Corporation
    Other GAAP to Non-GAAP Supplemental Financial Information
    (in thousands)
    (unaudited)
     
      Three Months Ended
    December 31,
     Growth Rates Constant Currency
    Growth Rates [1]
      2023  2022       
    Revenue:            
    SaaS revenue $21,947  $23,429   (6%)   (8%) 
    Legacy revenue  49   185   (74%)   (77%) 
    GAAP subscription  21,996   23,614   (7%)   (8%) 
    GAAP professional services  1,819   1,986   (8%)   (9%) 
    Total GAAP revenue $23,815  $25,600   (7%)   (8%) 
                 
    SaaS and professional services revenue:            
    SaaS revenue $21,947  $23,429   (6%)   (8%) 
    Professional Services  1,819   1,986   (8%)   (9%) 
    Total SaaS and professional services revenue $23,766  $25,415   (6%)   (8%) 
                 
    Cost of Revenue:            
    GAAP subscription $5,109  $4,424       
    Non-GAAP subscription $5,109  $4,424       
                 
    GAAP professional services $1,881  $2,328       
    Add back:            
    Stock-based compensation  (284)  (412)      
    Non-GAAP professional services $1,597  $1,916       
                 
    GAAP total cost of revenue $6,990  $6,752       
    Add back:            
    Stock-based compensation  (284)  (412)      
    Non-GAAP total cost of revenue $6,706  $6,340   6%   5% 
                 
    Gross Profit:            
    Non-GAAP subscription $16,887  $19,190       
    Non-GAAP professional services  222   70       
    Non-GAAP gross profit $17,109  $19,260   (11%)   (13%) 
                 
    Operating expenses:            
    GAAP research and development $6,660  $7,188       
    Add back:            
    Stock-based compensation expense  (367)  (553)      
    Non-GAAP research and development $6,293  $6,635   (5%)   (6%) 
                 
    GAAP sales and marketing $5,349  $8,895       
    Add back:            
    Stock-based compensation expense  (197)  (292)      
    Non-GAAP sales and marketing $5,152  $8,603   (40%)   (42%) 
                 
    GAAP general and administrative $2,391  $2,552       
    Add back:            
    Stock-based compensation expense  (347)  (514)      
    Non-GAAP general and administrative $2,044  $2,038   0%   0% 
                 
    GAAP operating expenses $14,400  $18,635       
    Add back:            
    Stock-based compensation expense  (911)  (1,359)      
    Non-GAAP operating expenses $13,489  $17,276   (22%)   (23%) 

    [1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.


    eGain Corporation
    Other GAAP to Non-GAAP Supplemental Financial Information
    (in thousands)
    (unaudited)
     
      Six Months Ended
    December 31,
     Growth Rates Constant Currency
    Growth Rates [1]
      2023  2022       
    Revenue:            
    SaaS revenue $44,203  $46,057   (4%)   (6%) 
    Legacy revenue  116   480   (76%)   (78%) 
    GAAP subscription  44,319   46,537   (5%)   (6%) 
    GAAP professional services  3,672   3,826   (4%)   (5%) 
    Total GAAP revenue $47,991  $50,363   (5%)   (6%) 
                 
    SaaS and professional services revenue:            
    SaaS revenue $44,203  $46,057   (4%)   (6%) 
    Professional Services  3,672   3,826   (4%)   (5%) 
    Total SaaS and professional services revenue $47,875  $49,883   (4%)   (6%) 
                 
    Cost of Revenue:            
    GAAP subscription $10,156  $8,402       
    Non-GAAP subscription $10,156  $8,402       
                 
    GAAP professional services $3,672  $4,632       
    Add back:            
    Stock-based compensation  (581)  (842)      
    Non-GAAP professional services $3,091  $3,790       
                 
    GAAP total cost of revenue $13,828  $13,034       
    Add back:            
    Stock-based compensation  (581)  (842)      
    Non-GAAP total cost of revenue $13,247  $12,192   9%   8% 
                 
    Gross Profit:            
    Non-GAAP subscription $34,163  $38,135       
    Non-GAAP professional services  581   36       
    Non-GAAP gross profit $34,744  $38,171   (9%)   (11%) 
                 
    Operating expenses:            
    GAAP research and development $13,292  $14,062       
    Add back:            
    Stock-based compensation expense  (764)  (1,124)      
    Non-GAAP research and development $12,528  $12,938   (3%)   (4%) 
                 
    GAAP sales and marketing $11,453  $18,354       
    Add back:            
    Stock-based compensation expense  (356)  (823)      
    Non-GAAP sales and marketing $11,097  $17,531   (37%)   (38%) 
                 
    GAAP general and administrative $5,577  $5,370       
    Add back:            
    Stock-based compensation expense  (702)  (1,047)      
    Non-GAAP general and administrative $4,875  $4,323   13%   12% 
                 
    GAAP operating expenses $30,322  $37,786       
    Add back:            
    Stock-based compensation expense  (1,822)  (2,994)      
    Non-GAAP operating expenses $28,500  $34,792   (18%)   (19%) 

    [1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.


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