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eGain Reports Continued Momentum in New Logo Wins Driven by AI Knowledge Offering
المصدر: Nasdaq GlobeNewswire / 09 مايو 2024 15:05:01 America/Chicago
SUNNYVALE, Calif., May 09, 2024 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), a knowledge platform for customer engagement, today announced financial results for its fiscal 2024 third quarter ended March 31, 2024.
“Our new knowledge customer win momentum continued this quarter, including a U.S. megabank,” said Ashu Roy, eGain’s CEO. “Through the first nine months of the year, our new logo acquisition has grown 50% - year over year - thanks to AssistGPT™, our novel AI solution to efficiently automate knowledge for customer service. Although our total revenue fell short of expectations due to the timing of revenue recognition from our Cisco OEM agreement, we achieved another quarter of enhanced profitability and solid operating cash flow.”
Fiscal 2024 Third Quarter Financial Highlights
- Total revenue was $22.4 million, down 3% year over year.
- GAAP net income was $1.5 million, or $0.05 per share on a basic and diluted basis, compared to a GAAP net loss of $372,000, or $0.01 per share on a basic and diluted basis, in Q3 2023.
- Non-GAAP net income was $2.6 million, or $0.08 per share on a basic and diluted basis, compared to a non-GAAP net income of $1.1 million, or $0.03 per share on a basic and diluted basis, in Q3 2023.
- Cash provided by operations was $1.7 million, or an operating cash flow margin of 8%.
- Total cash and cash equivalents were $83.0 million, compared to $86.8 million in Q2 2024.
- Adjusted EBITDA was $2.3 million compared to $1.1 million in Q3 2023.
- Total shares purchased through the repurchase program were approximately 881,000 at an average cost per share of $6.26 totaling $5.5 million.
Fiscal 2024 First Nine Months Financial Highlights
- Total revenue was $70.3 million, down 4% year over year.
- GAAP net income was $6.3 million, or $0.20 per share on a basic and diluted basis, compared to a GAAP net loss of $492,000, or $0.02 per share on a basic and diluted basis, in the same period last year.
- Non-GAAP net income was $9.8 million, or $0.31 per share on a basic and diluted basis, compared to a non-GAAP net income of $4.8 million, or $0.15 per share on a basic and diluted basis, in the same period last year.
- Adjusted EBITDA was $8.8 million compared to $4.9 million in the same period last year.
- Cash provided from operations was $17.6 million, or an operating cash flow margin of 25%.
Fiscal 2024 Fourth Quarter Financial Guidance
For the fourth quarter of fiscal 2024 ending June 30, 2024, eGain expects:
- Total revenue of between $21.1 million to $21.4 million.
- GAAP net loss of $300,000 to $900,000, or $0.01 to $0.03 per share.
- Includes stock-based compensation expense of approximately $1.1 million.
- Includes depreciation and amortization of approximately $100,000.
- Non-GAAP net income of $200,000 to $800,000, or $0.01 to $0.03 per share.
Fiscal 2024 Financial Guidance
For the fiscal 2024 full year ending June 30, 2024, eGain expects:
- Total revenue of between $91.5 million to $91.8 million.
- GAAP net income of $5.4 million to $6.0 million, or $0.17 to $0.19 per share.
- Includes stock-based compensation expense of approximately $4.6 million.
- Includes depreciation and amortization of approximately $400,000.
- Non-GAAP net income of $10.0 million to $10.6 million, or $0.32 to $0.34 per share.
Guidance Assumption:
- Weighted average shares outstanding are expected to be approximately 30.5 million for the fourth quarter of fiscal 2024 and 31.6 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 income (expense), net 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 third 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 5401723.
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 fourth quarter of fiscal 2024 and fiscal 2024 full year ending June 30, 2024; and continued momentum in new logo wins. 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 fourth 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.comeGain Corporation
Condensed Consolidated Balance Sheets
(in thousands, except par value data)
(unaudited)March 31, June 30, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 82,982 $ 73,201 Restricted cash 7 7 Accounts receivable, less provision for credit losses of $209 and $237 as of March 31, 2024 and June 30, 2023, respectively 10,950 31,569 Costs capitalized to obtain revenue contracts, net 1,247 1,317 Prepaid expenses 2,387 2,466 Other current assets 1,317 1,268 Total current assets 98,890 109,828 Property and equipment, net 483 633 Operating lease right-of-use assets 4,077 2,797 Costs capitalized to obtain revenue contracts, net of current portion 1,734 2,318 Goodwill 13,186 13,186 Other assets, net 1,954 1,355 Total assets $ 120,324 $ 130,117 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,534 $ 2,044 Accrued compensation 6,933 7,697 Accrued liabilities 5,615 5,387 Operating lease liabilities 1,192 832 Deferred revenue 34,342 47,762 Total current liabilities 49,616 63,722 Deferred revenue, net of current portion 3,157 2,101 Operating lease liabilities, net of current portion 2,803 1,762 Other long-term liabilities 887 836 Total liabilities 56,463 68,421 Stockholders' equity: Common stock, par value $0.001 - authorized: 60,000 shares; issued: 32,523 and 32,268; outstanding: 30,382 and 31,482 shares as of March 31, 2024 and June 30, 2023, respectively 33 32 Additional paid-in capital 405,590 401,087 Treasury stock, at cost: 2,141 and 786 shares of common stock as of March 31, 2024 and June 30, 2023, respectively (14,292 ) (5,763 ) Notes receivable from stockholders (21 ) (97 ) Accumulated other comprehensive loss (2,282 ) (2,122 ) Accumulated deficit (325,167 ) (331,441 ) Total stockholders' equity 63,861 61,696 Total liabilities and stockholders' equity $ 120,324 $ 130,117 eGain Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Revenue: Subscription $ 20,324 $ 20,980 $ 64,643 $ 67,517 Professional services 2,026 2,033 5,698 5,859 Total revenue 22,350 23,013 70,341 73,376 Cost of revenue: Cost of subscription 4,487 5,393 14,643 13,795 Cost of professional services 2,371 2,202 6,043 6,834 Total cost of revenue 6,858 7,595 20,686 20,629 Gross profit 15,492 15,418 49,655 52,747 Operating expenses: Research and development 6,655 6,687 19,947 20,749 Sales and marketing 5,448 6,837 16,901 25,191 General and administrative 2,451 2,406 8,028 7,776 Total operating expenses 14,554 15,930 44,876 53,716 Income (loss) from operations 938 (512 ) 4,779 (969 ) Interest income 1,002 818 2,933 1,633 Other income (expense), net 74 (245 ) (13 ) 20 Income before income tax provision 2,014 61 7,699 684 Income tax provision (521 ) (433 ) (1,425 ) (1,176 ) Net income (loss) $ 1,493 $ (372 ) $ 6,274 $ (492 ) Per share information: Earnings (loss) per share: Basic $ 0.05 $ (0.01 ) $ 0.20 $ (0.02 ) Diluted $ 0.05 $ (0.01 ) $ 0.20 $ (0.02 ) Weighted-average shares used in computation: Basic 30,976 32,122 31,212 32,024 Diluted 31,599 32,122 31,858 32,024 Summary of stock-based compensation included in costs and expenses above: Cost of revenue $ 343 $ 371 $ 924 $ 1,213 Research and development 331 509 1,095 1,633 Sales and marketing 120 174 476 997 General and administrative 316 393 1,018 1,440 Total stock-based compensation $ 1,110 $ 1,447 $ 3,513 $ 5,283 eGain Corporation
GAAP to Non-GAAP Reconciliation Table
(in thousands, except per share data)
(unaudited)Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Income (loss) from operations $ 938 $ (512 ) $ 4,779 $ (969 ) Add: Stock-based compensation 1,110 1,447 3,513 5,283 Non-GAAP income from operations $ 2,048 $ 935 $ 8,292 $ 4,314 Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Net income (loss) $ 1,493 $ (372 ) $ 6,274 $ (492 ) Add: Stock-based compensation 1,110 1,447 3,513 5,283 Non-GAAP net income $ 2,603 $ 1,075 $ 9,787 $ 4,791 Per share information: Non-GAAP earnings per share: Basic $ 0.08 $ 0.03 $ 0.31 $ 0.15 Diluted $ 0.08 $ 0.03 $ 0.31 $ 0.15 Weighted-average shares used in computation: Basic 30,976 32,122 31,212 32,024 Diluted 31,599 32,968 31,858 32,909 Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Net income (loss) $ 1,493 $ (372 ) $ 6,274 $ (492 ) Add: Depreciation and amortization 92 124 296 375 Stock-based compensation expense 1,110 1,447 3,513 5,283 Interest income (1,002 ) (818 ) (2,933 ) (1,633 ) Provision for income taxes 521 433 1,425 1,176 Other income (expense), net (74 ) 245 13 (20 ) Severance and related charges 112 88 247 238 Adjusted EBITDA $ 2,252 $ 1,147 $ 8,835 $ 4,927 eGain Corporation
Other GAAP to Non-GAAP Supplemental Financial Information
(in thousands)
(unaudited)Three Months Ended
March 31,Growth Rates Constant Currency
Growth Rates [1]2024 2023 Revenue: SaaS revenue $ 20,277 $ 20,854 (3 %) (4 %) Legacy revenue 47 126 (63 %) (65 %) GAAP subscription 20,324 20,980 (3 %) (4 %) GAAP professional services 2,026 2,033 (0 %) (1 %) Total GAAP revenue $ 22,350 $ 23,013 (3 %) (4 %) SaaS and professional services revenue: SaaS revenue $ 20,277 $ 20,854 (3 %) (4 %) Professional Services 2,026 2,033 (0 %) (1 %) Total SaaS and professional services revenue $ 22,303 $ 22,887 (3 %) (4 %) Cost of Revenue: GAAP subscription $ 4,487 $ 5,393 Non-GAAP subscription $ 4,487 $ 5,393 GAAP professional services $ 2,371 $ 2,202 Add back: Stock-based compensation (343 ) (371 ) Non-GAAP professional services $ 2,028 $ 1,831 GAAP total cost of revenue $ 6,858 $ 7,595 Add back: Stock-based compensation (343 ) (371 ) Non-GAAP total cost of revenue $ 6,515 $ 7,224 (10 %) (10 %) Gross Profit: Non-GAAP subscription $ 15,837 $ 15,587 Non-GAAP professional services (2 ) 202 Non-GAAP gross profit $ 15,835 $ 15,789 0 % (1 %) Operating expenses: GAAP research and development $ 6,655 $ 6,687 Add back: Stock-based compensation expense (331 ) (509 ) Non-GAAP research and development $ 6,324 $ 6,178 2 % 2 % GAAP sales and marketing $ 5,448 $ 6,837 Add back: Stock-based compensation expense (120 ) (174 ) Non-GAAP sales and marketing $ 5,328 $ 6,663 (20 %) (21 %) GAAP general and administrative $ 2,451 $ 2,406 Add back: Stock-based compensation expense (316 ) (393 ) Non-GAAP general and administrative $ 2,135 $ 2,013 6 % 5 % GAAP operating expenses $ 14,554 $ 15,930 Add back: Stock-based compensation expense (767 ) (1,076 ) Non-GAAP operating expenses $ 13,787 $ 14,854 (7 %) (8 %) [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)Nine Months Ended
March 31,Growth Rates Constant Currency
Growth Rates [1]2024 2023 Revenue: SaaS revenue $ 64,480 $ 66,911 (4 %) (5 %) Legacy revenue 163 606 (73 %) (75 %) GAAP subscription 64,643 67,517 (4 %) (6 %) GAAP professional services 5,698 5,859 (3 %) (4 %) Total GAAP revenue $ 70,341 $ 73,376 (4 %) (5 %) SaaS and professional services revenue: SaaS revenue $ 64,480 $ 66,911 (4 %) (5 %) Professional Services 5,698 5,859 (3 %) (4 %) Total SaaS and professional services revenue $ 70,178 $ 72,770 (4 %) (5 %) Cost of Revenue: GAAP subscription $ 14,643 $ 13,795 Non-GAAP subscription $ 14,643 $ 13,795 GAAP professional services $ 6,043 $ 6,834 Add back: Stock-based compensation (924 ) (1,213 ) Non-GAAP professional services $ 5,119 $ 5,621 GAAP total cost of revenue $ 20,686 $ 20,629 Add back: Stock-based compensation (924 ) (1,213 ) Non-GAAP total cost of revenue $ 19,762 $ 19,416 2 % 1 % Gross Profit: Non-GAAP subscription $ 50,000 $ 53,722 Non-GAAP professional services 579 238 Non-GAAP gross profit $ 50,579 $ 53,960 (6 %) (8 %) Operating expenses: GAAP research and development $ 19,947 $ 20,749 Add back: Stock-based compensation expense (1,095 ) (1,633 ) Non-GAAP research and development $ 18,852 $ 19,116 (1 %) (2 %) GAAP sales and marketing $ 16,901 $ 25,191 Add back: Stock-based compensation expense (476 ) (997 ) Non-GAAP sales and marketing $ 16,425 $ 24,194 (32 %) (34 %) GAAP general and administrative $ 8,028 $ 7,776 Add back: Stock-based compensation expense (1,018 ) (1,440 ) Non-GAAP general and administrative $ 7,010 $ 6,336 11 % 10 % GAAP operating expenses $ 44,876 $ 53,716 Add back: Stock-based compensation expense (2,589 ) (4,070 ) Non-GAAP operating expenses $ 42,287 $ 49,646 (15 %) (16 %) [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.