EGAN - Earnings call transcript Q4 2019

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Operator

Good day, everyone. And welcome to the eGain Fiscal 2019 Fourth Quarter and Full Year Financial Results Conference. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jim Byers of MKR Investor Relations. Please go ahead sir.

Jim Byers

good and operator, you, afternoon everyone. Thank eGain's financial results to fiscal XXXX year full and quarter conference fourth Welcome call.

Smit. On the and Eric Roy Executive Officer, call today are Chief eGain's Financial Chief Ashu Officer,

remind Before performance. everyone management we make which and beliefs, statements, management's forward-looking would financial objectives, begin, like regarding will that this future conference I during call, expectations, plans convey to and operational

anticipate, by are such as expect, generally intend, preceded words or statements expressions. Forward-looking plan, similar believe,

Private wide the Litigation Safe statements that Harbor risks to provisions of material results statements And Reform and differ actual Forward-looking protected XXXX. respects. in Act are by are contained subject range uncertainties Securities these forward-looking in cause to could a of

reports filed the Exchange various in making statements update, eGain this conference no and factors these the with is could any Commission. publicly to information on assumes of or XXXX, results and that revise XX, Company's of today, is obligation September as eGain's Securities Information the affect detailed call. in forward-looking

addition to operating results, non-GAAP certain income. as discuss measures, will such financial non-GAAP In we GAAP

Relations to of the this include lastly, with the earnings Investor release a Web at on Relations available the financial conference be included historical be replay eGain's site. call The found non-GAAP comparable section measures page directly link the the in of of reconciliation site release earnings financial press tables the Our Web most at on release can eGain's press news measures. egain.com. Investor And will the also

to And Ashu call over now, the to turn CEO, like Roy. with said, eGain's I'd that

Ashu Roy

well executed the At top in Jim, we you, Thank everyone. afternoon fiscal XXXX. good quite and level

guidance came consensus. revenue street in Our and full of ahead our year

and finally, a we and are generated in debt, year. the capital With we growth. investing our paid we strong cash raise. profit for We funds, those also now completed down successful flow And

$XX the share SaaS the over We to full year almost highlights grew me year. million. Let prior our financial from some XX% revenue

million million, $XX increased for our prior per million share XX% were or net $X.X from Our per share with revenue. a year-over-year We profitable subscription or and to income to GAAP year. non-GAAP total $X.X $X.XX of million loss comprised revenue $X.X diluted diluted net to grew compared of a XX% year our income ago. And $X.XX the net

also operations $X cash strong We had of for flow million year. from the

Looking highlights. at the business

We continue in AI-powered particularly engagement our to strong see demand for partner ecosystem. capabilities, customer

ramping well integrations to those engagements able product are we and channels through enablement. reach our So the as investments as in that we both channel partner are

XXXX. We have fiscal several in new wins customer

walk eGain. and let their notable you with through ones, So me experience some

tax DIY for I'll a we offering and we start eGain based sales platform with U.S. helped develop packs services their for a three out in solution new and rolled service assistance, months Using rich site their for capabilities solution co-browse, in XXXX. provider properties. for Web virtual in mobile who chat automated a and

other deflection over service on resolution one and for improved automated Each out their virtual rolled human Since delivered then, XXXX. client their more rates. the two has Solution latest NPS enterprise-facing for tax improving XX% in in assistance time platform, season eGain this resources. rates, contact IP and

So now on platform that is eGain across entire its client much standardizing so the business. the

scale delivered was this in than months. at less All nine

difference vendors, approached Just in one for to according us already experience this one working assistance, chat, that. year, for This to in sets and apart. what when them, co-browse, very have to they show perspective, it they one for spent had a client is for put multiple over us last client all virtual little year, with

engagement boards that gathering point journeys providers, We dust capabilities. of are able the scale drawing are to on hammering who to kind deliver other digital with easily keep typically connected

of one chat, won with knowledge. we talk again I been the want for Cisco. one in point have the e-mail, multiple retailer top home about in grappling apparels is a customer next new for partnership for tools to U.S. They're The in with They

they be connected kind of what scalable. competitive the And wanted out we and live chat cloud. by with LivePerson, Working their the be weeks, and omni-channel contact center Cisco, its went will in to that of with that Cisco develop our to capability with which six production clients' an sweep replacement happened capability way all integrating capability

been eGain using. Now away the email with tool they handling their point customer migrating another platform, the client is from have

sort that and integrated, this So needed of our is terms help rich comprehensive easy, us contact what with center, when capabilities in experience. like valuable differentiated in the you see solution of folks deliver here Cisco

is client I acquired they in third client, the was us, center them The their be last for with the were rolling solution knowledge provider approached adoption our going knowledge but September, they processing out Salesforce. and we our poor the This a want won are quarter. desktop, We and business integrated Salesforce in about connector opportunity, payment to got management we when global value. of with using contact user talk struggling month Once Salesforce using certified and eGain now to U.S. for going we

brand won virtual the that Another delivering platform. just be that's a U.S. in in matter a common in couple from leading and Web client their knowledge out of contact product building and be manufacturer dozens to first across next a they will site, a the of central few months. experience of center, for and the and personalized coming we is many deliver all wanted months, Again each assistance brands, this of base we'll brands recently

tech solution a XXXX. are for Salesforce was had late Salesforce examples, for automation. They of in needed talk is global couple for automation this marketing and Eloqua Other names a engagement. They customer I to won, want high company we omni-channel about one

on matter email social out in a We months. have rolled connected now common virtual assistance, platform chat, a handling, of all and

'XX partnership I have a of assistance want fiscal marketed point working solution from providers their as to their tool won is three manufacturer is plus client, globally driving for Cisco. and a with eGain improving activated bring client last This their this in transformation we The out implement For consumer products. capability. them already experience. one on to customer and agenda digital new now displayed European the virtual Cisco platform, We we're

fiscal in legacy delivering quarter, their solution. system 'XX, go-forward California been an they are exciting is an solution for plus eGain a client Accenture to as we in have in contact have been Early from the which are Amazon. selected win large the a cloud, with we wins. this with We now, in in as seat integrator. we've Together state omni-channel we start. had and agency Even logo moving accelerating and with center new to Amazon, good off to new Amazon that's This X,XXX a partnership

is In be QX, is Deloitte, potentially foundation in and into transformation that Deloitte days win around won And is the win client the want them, ago this the partnership this I client in the us partnership opportunity very in The a us already going for one with we this service knowledge driving a digital early engagement large is with in July. nice this mention but quarter another in for to management for And potential they've automation. program brought U.S. with case now another client the current feeding at opportunity finale U.S. health us again to which insurance is this

to we're as looking a which engagement the what is see where to new that getting see wins customers market, drive. we you meet the gap providers yawning transformation are all serving are need, point in are client So the digital omni-channel a solution requirements unable here in a

On year, the partner front, with in we invest with. the Cisco. strengthened Last we our partnership continue platforms technology three integrated to have we

knowledge, Our of and of provides enterprise bundled in and clients. a OEM install capability base foundation and AI use solutions messaging. clients Cisco value-added are is to Enterprise activated looking Platform This solution that be by used great their for their to more who more continues now for

market with OEM value-added using partnering are through of plus catalog technology. the Cisco solutions We the now Solutions have been that these on top to we successfully Cisco

number is in year. the be know, believe will all continues coming that you partnership strengthen As partner, to and and we this Cisco our one

Avaya. Turning to

We good the we six with and last them have progress accelerating. are made in months

go-to-market eGain are deliver Elite them, executing Avaya with and Europe, integrated AI, in now the the and platform. joint U.S. digital plan a in to with in capabilities We both

pipeline fiscal enterprise XXXX, of joint keep that I will the nicely. pipeline with just And half clients. believe we building through these sales second Our given and associated is bookings in the the channel this cycles

So we have execution, to active funnel grow and now that joint have started with exciting. very we sales develop

Connect. Amazon finally then And

through mentioned, we what joint And capability first cloud, first the the and for machine marketing, and signed them, working the really center them we're in I innovative doing customer some combined new of clients. marketing word our the success through them and digital contact and AI with spread is quarter experiences our and digital their to quarter. this mining As then and learning, voice in cloud experiences building Amazon's with

in that through in hired us With in and recently and these will is position support now acquisition that new bases help partnership, we're you center three channel Combined more base reaching these drive can strengthen with additional And now contact of logo to X I our enterprise Amazon along combine these Avaya cloud to over that are million install worldwide XXXX investments installed Cisco with growth a good beyond. targeting and Connect opportunities, believe have see is. business feeds staff. that we we an pure fiscal and sales the partners, place channels, drive that really which the

that know, legacy and that existing what at migrate the SaaS for been customers has as our more us, and over Looking helped to in healthy continue customers and more years, drive and a do customer to platform the focus last few and expansion. of has retention is you support to success

staff and building box, So we connected with our a driver and for out they year. is not solution, trend have growth scratch To the something not is to primary continue of that the is customer point develop demand now for on eGain exceed us, something from on that an toolkit XXX% net a need market that for platform. see we solution leadership. that retention solution, the and reach omni-channel The the rate

difference to statement On in Interestingly, out solution for our market, its the we money", our the we based for the Gartner our the delivering, called solution. in and on from only in product "value better explicitly solution. engagement enthusiasm Quadrant that enhance centers, side, ones underscores This serve clients were our to Magic interviews and even client continue Gartner for commentary. customer and XXXX

few to enhancement and our contact growth as well intend as about, AI messaging. engagement talked and enable deepen we over of we to our our as to integrations, This forward, will product platform, center Moving and partner investment increase broaden in particularly our that partnerships clients. these through years, accelerate deeper as and the next stickier building both us well new using with

Our point intent customer where enterprise is engagement, no first our start to omni-channel we've wide the journey matter of addressed. we in platform terms for pain be in the

balance XXXX, from strong we our fiscal flow to growth sheet cash with ahead Looking and are our fiscal increasing strengthened investment. XXXX,

install to logo new see key the on Avaya as growth, acquisition, front, expect Cisco, support specifically we We from well Connect. base partnerships, to expansion. our And new and investing both logo Amazon as are

we've basis and As I And increase over Connect. Amazon our years. growth several demand able next to we significant investments, seen like as early some that a on these line people rate mentioned, top we'll we be believe the success accelerate with

finance mention a performance, XXth which summary, to more I It's on before over and In are the off this for Chicago, we to start. color October and Eric to time. to customer be XXX, turn And event, we XXth. in calling it Experience upcoming the on going I our want good operational held are

joining us will in who we a may We will analysts be able separate at interested this It'll investors hope and be us. come have join be event. you track to for an And a then We'll and new large of as will from and views Forrester products and analyst be speakers, have speakers, event. from customer from well. exciting capabilities announcing Comcast, course, we bank exciting consumer

let for commentary. So more with Eric? me hand Eric to over that,

Eric Smit

Ashu. thanks Great,

XXXX ASC fiscal XXX, otherwise I'd ASC discuss on adopted is with our our compliance Web today results the revenue results, XXXX. the accounting everyone remind is July issued included standard, recognition available that through XX, in standard. the known today, Before Unless XXX I the of start are release of at effective XXX results presented we XXX like financial as recognition we ASC our press noted, review revenue our site. It's in I'll to the that reconciliation a

financials. our to turning Now

As Ashu noted, we are performance pleased fiscal in our with XXXX.

and our results the consensus. revenue Our operating top improving XXXX, these line guidance top for year. profits and of cash line for flow we're We fiscal exceeded our Street results, achieved while positive ahead

fiscal the for results financial our review year. quickly let's So

XX% Revenue in Total XX% constant XX% $XX.X XX% up subscription SaaS up to of in includes of for And million, was and $XX or XX% or or services XX.X And professional fiscal XXXX, which currency. from revenue or now currency. Subscription XX% a accounted legacy year-over-year, revenue and was revenue, total $X.X currency. total was SaaS million, million year-over-year XXXX. constant up for XX% ago. XX% compared in of revenue year revenue total revenue, in fiscal constant year-over-year, million, million, revenue XX% was XX% $XX revenue

professional transition offering our they Before I to These them our the coming and to our some additional performance topics on-premise in goal move two on for the our fiscal revenue cloud the revenue, forward. I'd for impacted on, our of year, out services going include our how and call like key expectations provide legacy customers and color topics for year.

transition. revenue SaaS the with Starting

As that We that back is exceeded believe is of three I the to the growth. we measure XX%. our to years, QX to of excess business, to we XX% if transitioning been pleased over a while At compounded a key targeted SaaS the to report revenue we XX% we before, beginning growth able to last business we've annual forward-looking XX% XXX% to in raised achieve now SaaS stated that useful XX%, that XX%. metric it be growth rate year, in growth. so look the our And

an our fiscal on important transition mentioned our XXXX. us. for Now, premise rates calls, has And boost we've us been offering, transition growth looking helped in of previous and for SaaS as has SaaS forward, successful driving again focus to customers on our the the XXXX

target, fiscal business to, Ashu end that calendar that drive going of R&D XXXX. forward down of the on previous XX% marketing rates growth we've XXXX approximately that Now, see the looking alluded by legacy for planning as are forward means, XXXX, to the legacy as and account as decline and and our is now we calls stated investments like in sales to What increase that business we'd we in fiscal and revenue in to to see beyond.

services fiscal point professional to achieved a that to provide to low-teens set is range fiscal around year. of The additional high-single-digits during our I revenue. or color, of And of this for the PS we revenue be some second wanted as total percentage the XXXX, At we the our this raise, something goal beginning in revenue. is

'XX, and improve As services. product make we forward, fiscal look ease the in the percentage less believe for we of improvement forward. a total increased we range for investments revenue, further revenue and this product now the see And we plan to in products less in implementation development engagements, as single-digit deployments the reflecting need the therefore, will our require further the PS high going PS of

to on our moving Now, non-GAAP profits. gross

gross the margin prior fiscal or a a or of $XX profit fiscal million For a XX% margin gross of profit XX% year. million, was gross gross of to $XX.X compared XXXX, for

for to prior professional year-ago. XX% fiscal XX% and revenue X% margin subscription compared to to Our to the was margin XX% services improved year, gross compared gross

fiscal million, year. Turning X% at to came operating from $X.X million operations. or non-GAAP to of improved prior to X% prior in or a costs XXXX compared Non-GAAP income margin in the an XX% up year. operating margin fiscal of for million And significantly the operating $XX.X $X.X

to share fiscal when at from of Looking and was million, for XX%, was a XXXX. represented net XXXX. on EBITDA year for net diluted up year-over-year our non-GAAP Adjusted the non-GAAP the basis $X.XX compared improvement $X.XX bottom the basis. $X.X X% income or from $X.X on or income margin per million line, XXX% This a fiscal basic

looking QX revenue our results year-over-year. revenue Now XX% revenue for was accounted million, for Total $XX.X from of QX, QX. subscription And $XX.X revenue up in ago. a total was X% and financial year-over-year million, up X% at in XX% of year up

or million, in revenue which year or down Looking and $XX revenue, revenue SaaS services of was was XX% quarter. XX% at legacy million, is ago total of a ago down $X.X quarter. $X.X revenue XX% from revenue year components, the was total up year-over-year million XX% the Professional XX% from revenue

corresponding the would I expenses compensation QX. the QX. getting beginning our and costs annual affected increase additional that with the companywide drivers the primary point expenses at adjustments Before for for our out margins This, starts and along in cost sequential into investments, and of of to quarter, were in like were the

or year Now was gross a overall gross higher for quarter XX%, are margin our profit PS the the $X.X $XX.X gross The gross million, margin the of the scale and SaaS ago. operations million a looking gross a profits Gross up of our profit revenue, combination at declines. revenue we a SaaS in reflects fourth margins. of margin from or XX% non-GAAP in gross growth from and of increase efficiencies lower while margin seeing the in year-over-year the benefits margin and the

at If XX%. our XX% the revenue gross of breakdown revenue QX, professional costs. type the margin margin in the in revenue increased We in gross margin you subscription to increased our and infrastructure due decline our cloud to sequential subscription services personnel look our compared was a by of saw investments margin

margin with margins see in our expectation in we to our fiscal to achieved in is line subscription to future quarters, improvement However, an be this and XXXX.

quarter in the in the resulted fourth Overall, a or an the $XX,XXX operations. zero came to $X.X ago $X.X year or Non-GAAP year in in margin turning operating to of margin million to quarter. Now, quarter for million compared operating operating this of quarter. costs ago compared at in non-GAAP fourth the $X.X income X% million

$X.XX and income basis. of or $X.XX $XXX,XXX, the share fourth compares ago to for quarter. or per income, basic at in net share $XXX,XXX This year was a net Looking per diluted non-GAAP income net non-GAAP the quarter on

charge loss $XXX,XXX against one credited was foreign Approximately share balance in share $XXX,XXX compared for asset net subsidiaries. deferred existing for QX ago an EBITDA up margin quarter. GAAP from tax year per the fourth X% was X%, or quarter in equivalent results income of per of was sheet. $XXX,XXX adjusted in the an tax share Included adjustment quarter. $XXX,XXX $X.XX annual to per $X.XX net year quarter GAAP non-cash of the this the $X.XX was for or a our of ago our the on its the And

cash and equivalents at in by and net XX, position the million $XX.X flows. balance cash X% no We XXXX debt $XX.X flow cash our was ended to XX, June with compared from increase turning sheets $X from million, Total of cash to the million improved million and fiscal XXXX. our we cash during $X.X June Now, XXXX. as year, million. $XX.X a And operations generated of year

RPO Looking remaining was RPO $XX.X of million, -- short which or obligation as the XXXX. balance balance RPO, performance at The was million. June term XX, RPO $XX.X balance, our total of

this metric metric insights adoption I'd As that year it is in the fiscal XXX, new of this was like with the first we to learnt 'XX. ASC a of had about introduced for some tracking provide

we on basis, do believe adopted XXX prior are not not modified adjust year therefore, First, we a did balances ASC we since retrospective and comparisons prior our meaningful.

of 'XX balance the we the fiscal at balance the the deferred this for XXXX. this revenue of this is with beginning throughout treatment then addition the of $X.X ASC as was the with ASC change recognize our during recognized opening no used most And fiscal upfront, ratably RPO resulted business adoption is there to OEM business upfront. the business XXX from adoption of million in XXXX. OEM the for portion recognized This Second, to reduction in that of XXX,

concerted new to contracts. term renewals. we we RPO one in year Approximately increase contracted was timing a other the The years year pushed to be three impacted balance both used fiscal the effort and contracts from renewals, factor for contracts 'XX made our upcoming three ago, of that what to

partly For our we've we the through balance internally, up saw but for backlog, in now three contracts 'XX, RPO or this made cycle. less now due the the sequential coming year since first gone over two we renewal change as years, then fiscal to declining increases

of renewal. some the year three that Now, we've contracts come seen up

expect subject RPO grow the look if we the of to to renewals. balance larger I And at evidence of for short of to we'd balance our -- sequential timing term XXXX. as X% RPO forward, to for begin of and quarter, Looking that, increase the fiscal now when again, March to year saw fourth XX, compared deals a larger

move as be So we updates this that hopefully as on would we'll forward, helpful. that provide to insight continue additional

our Now, for turning XXXX. guidance to fiscal

year a and basis, million, revenue revenue and ending expects XXXX, million million constant then represent a the on XX% of or $XX.X between growth which XX% basis, XX% SaaS growth to would XX, on which For million of fiscal total June currency $XX.X year-over-year. $XX eGain year-over-year and between for represents X% $XX.X constant

As we XXXX percentage stated for high revenue services fiscal we deployments. And earlier, to expect less a with improvements, required result, revenue. as of revenue as total expect the for professional single-digit our our range product PS a be in

share We million, -- $X.XX assume to and share, diluted expect we $XX.X expect breakeven for per the to per to count million diluted or a share year. net we a of generate fiscal $X.XX non-GAAP of income $X

growth year-over-year a quarter, 'XX and and $XX.X total on year-over-year. which revenue $XX.X currency For the of XX% which and XX% constant million growth for million represent $X.X on basis, would million represent to to quarter, between currency the XX% million of X% a constant expect between would fiscal SaaS review basis, $XX.X we

to $X.XX We diluted share, per expect to to million, generate non-GAAP $XXX,XXX $X.XX million $X the our and fiscal diluted quarter. $XX.X first count or income of of assume share for we net

our strengthened us ahead, development, in will capture share believe this which our Looking XXXX a fiscal We market. market beginning and And increase sales, in we are marketing sheet, beyond. market strong customer is see balance particular we to in base and ecosystem healthy. and to partner demand, investments our with large allow growing we a with and believe product

participating eGain week. in Lastly, two on the investor Relations be this Investor will front, conferences

Investor in to some following Xth the participating taking San We you We be the the Thursday, hope place presenting and taking in we Gateway & Company day, Investor Conference of Francisco Dougherty Annual Institutional will in will place see Conference, tomorrow be Minneapolis. at there.

open prepared our we'll remarks, operator, for concludes call This the questions. now and

Operator

Thank today you hear ROTH with Capital. We'll [Operator Instructions]. Baldry Richard first

Richard Baldry

I'm infrastructure line a investment. wondering the the into little COGS side. bit there go I you some on know can if deeper said, you was recurring

one than time of reverses we've the little So it in whereas Is more any past in throughout is seen the are that it through or was that Or XXXX oriented? part hit. that some Thanks. fiscal rest something if disproportionately there -- plays 'XX? more one time

Ashu Roy

is Ashu This here.

are we geography in what to is and investing are So investments continuing making compliance. we doing right now scale, also and on

of we close really instance, high getting haven't are For generations, we the close got to certified which one but to on the certification certification, securities next for cloud. -- trust, is yet the the

are increase on side. COGS line the the for that So us do investments those cloud

build that's that on XXXX. that start I the for again. to line probably COGS think would as believe be something will percentage a I fiscal true But that, that after

Richard Baldry

SaaS revenues $XX we the look when a XXXX, over they at about in million. little And grew

argues do typically and sales that with dollar up because to one wrap getting that spending they partners grow your $X in marketing, expand, in minds, argue year-over-year our on you we growth Thanks. to would not $XX.X to the should of terms and range. just there anything remembering momentum we things with contract? guide or arguably more sort are more conservatism, million Your that in between XXXX back of that, somewhere time be skewing million should Was less than

Ashu Roy

little that bit a of the of conservatism number. I in think a points, So is that couple

think over of taper and even as legacy also the to that something starting year that transparency something have year which or SaaS the to SaaS, However, the last is so existing I off. is customers before, our mentioned that we revenue migration benefits growth we

we And potentially in an want marketing revenue that the are So drive where new we absolute investments are little so investments SaaS going but we in feel area are these that's the speaks of 'XX. fiscal our making investments we make perhaps terms to timely, up and growth. to to our might SaaS making in sales as revenue and take growth decrease of showing revenue, are time a for

Richard Baldry

back you've would year about increasing? verses sales we There's been in around 'XX? plan sort about one should of the make be Could issues unfolds, minds, the Last Thanks. any any 'XX or you ahead capacity sales force number turnover your making of been that of as sort the been thinking be. headcount net has direct other talk the our seats there addition of fiscal to of or

Ashu Roy

on channel So, in by as carrying overlay we overlay an side the the supported sales people the quota where mentioned for we model enterprise team are who have have sales sales have enterprise sales. we past, of

investments. is the at are growth sales so there overlay And is think investments channel we making opportunity an sales One the the we're two areas side. to this sales drive on time mostly that where in channel more pipeline through these

new the Cisco, three to and are are those that's for in. in people dedicated Amazon for those one U.S., one in we And for got roles They one one So investing we have Avaya area channels. Connect.

sales dozen U.S., the inside that will again, in we the increased in primarily. that's also in sales team, to have we at In up to enterprise we're through funnel. something spinning intend people a the group half pipeline opportunities early folks an addition, this in Most the point And driving have, of the U.S. be our that sales assist investment

and the We terms to given of Europe in be market environment. constant expect business fairly

Operator

next hear from Benchmark. will with We Mark Schappel

Mark Schappel

was just increasing your call seeing partner remarks, Or call function competitors' placements. Ashu, prepared this starting where you out more you called you're several placements? deciding wins them? it to with you out of a of also and competitors' Are in few several a

Ashu Roy

ecosystem with a enterprise replacement, we're would every quite point more but in And yes. clients' capability and lots of the to desire platform something in I point more that few. the for competitive more we meeting seeing back say We that more already, not is there are the a place where product are rationalize are products with vendor seeing of.

Mark Schappel

expect And sense us then next see some to we was the wondering are And expansion? you margins to investments, to if could come -- down are I of a expected of margins give return sort with year. a margin expected when

Ashu Roy

mentioned on is what which fiscal along side, the see gross lines question. margin on the earlier is the fiscal margin improvement should investment a gross of I time So to but 'XX that be going of XXXX line. to believe I we

as a where and that line, get our more continue The to On terms. beyond product XXXX reduce will start and we it's development channel more sales will making. to sales two think areas that probably I are planning I sales and the to in is the investment marginally of and believe marketing through operating increase percentage go function we traction development. our investment. not do are we product and marketing down I investments up think

So kind of two-year the outlook. that's

Operator

Rhee We'll go Hallam. next with to Jeff Van Craig

Jeff Van Rhee

just Just last Ashu, very to from circle back a want answer. me, your to couple I

said will XX percentage marginally in You reduce that. beyond will S&M go terms, up but R&D

in talking were or You percentage terms dollars?

Ashu Roy

Both…

Jeff Van Rhee

Both, it. got okay, good,

past at What versus look in I if ARR was the from in So percent year, fiscal of terms year. this signed the new existing?

Ashu Roy

less was So was and new. XX% -- roughly little little a XX% XX% XX%, a existing over than

Jeff Van Rhee

through the that year? And did how trend

Ashu Roy

small, are the them, we by grow year, the that which seen over logos and what to have that they seen increasingly want have we new even is is trend think they we is So though start that to this right what thing is acquire we now, doing a big. the intend last

of out the And so upfront, larger people's lot these not of they to want of but prove are programs. they with investments, a case of seeing money some spending phasing because leery a you're

and job, fine are on when get we do of we monetization the the we more end which that, more -- do, it. we we because get with we of time, do most a back good realization value And

with that of and the are of 'XX we expansion we fiscal also some the earlier more we see now acquired which we of half in fiscal we some new now these had logos bookings, that in are 'XX. from the of happened some the of XXXX, saw fiscal. trend of little have early a wins, that those are more new advantage And in but seeing wins second seeing that's So

Jeff Van Rhee

was gross 'XX, fiscal what for churn? And

Eric Smit

was churn was around -- gross the Well, customers, X%. basis, around SaaS the it for it

Jeff Van Rhee

migration? trying just get the decided base, of to with not make a about to what process respect sense of the what maintenance And percent the them to in

Eric Smit

SaaS that wasn't maybe was think that So is closer good XX%... that I to but it as number the as number, wasn't,

Ashu Roy

mean XX%... You

Eric Smit

it yes, was -- XX% it to was XX%, closer Sorry more retention. a

Jeff Van Rhee

one then for last And me.

if together, questions I two guess could. I Just

management. talk deals three And the I'm product just from also, to seeing kind the the then of of here, there, new a top here, might lot little or a of interested me across you're board that lot I messaging landscape, changing? a two hear in you're little knowledge management the be knowledge competitive a but about winning, that the how that On standpoint. drivers and chat a folks

the I of So guess question how is changing? is landscape mix with product and to drivers competitive the the respect

Ashu Roy

opportunities right would are scale capabilities, well. the omni-channel we a big one the side two I drivers. Those as the us One, drivers be is are larger top things. still are digital is opportunities happy converging, digital say two driver top larger so two and foot into dollar the then in door, Sure, to of. now driver the gives knowledge. still two so is as digital there are, because Knowledge are as second more well that but a tends the opportunities, jump develop to onto And the

competitive the LivePerson see chat. side, the landscape that the seem at Looking competitor two, we the primary digital on on on is to

they but the market, because would them top to on full in channels. And in two, Salesforce. little then are sounds no On the alternative. knowledge be honest, the solutions enterprise that are today the odd, competitor the a I the Those on other, they an strong at other the say. looking primary focus is customers don't And have the as and there competitor, really side, is really because

Operator

we'll & hear McDonald. And from Ryan Company, Needham from

Alex Narum

get on the This going just Ryan. and revenue growth little for mix forward? hoping guidance existing for a was And is how to Alex and I Narum new of thinking we for should be on customers, XXXX, color of

Ashu Roy

from I expansion. more to coming from the think our XX% is that that new and intent XX% number ratio with toward take logos XX/XX

Alex Narum

with you bit has there update, or impact being surrounding also give business? the being Avaya? M&A an rumors give been on And any could from then then And the you color a progress more the little made could

Ashu Roy

roll some from we month past I will that next teams. M&A team lot that We side, we've two do Like have for product it or and -- interest their of of as with the not perspective go-to-market we working enhancing the the rumors in And platform. and specifically that their field from doing had we out. surface which pre-packaged closely So, strong sort with see kind our of we seen mentioned, the impact of integration, in the Avaya. and kind jointly so we're are surrounding Elite the Avaya far a are for we orchestrated them with any are executing

Operator

for time, remarks. this at back like any management I'd to turn things to And closing

Jim Byers

some Great. in we at -- hosting at investor forward Well, you hopefully conferences. upcoming seeing be of thanks, the the Customer everybody. Chicago. to certainly, at our event Day of Analyst will some the And XXX Look

around our So otherwise you. or invitation, update please to QX an more forward that want we'll to get me reach you out if to want and giving on look Thank an details you results.

Operator

Again, for conclude will joining everyone conference. That us. today's you thank

eGain (EGAN) 3 Sep 192019 Q4 Earnings call transcript