EGAN - Earnings call 1 2024 | eGain Corporation

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Operator

Good day, and welcome to the eGain Fiscal 2024 First Quarter Financial Results Call. [Operator Instructions] Please note this event is being recorded.I would now like to turn the conference over to Jim Byers of MKR Investor Relations. Please go ahead.

Jim Byers

Thank you, operator, and good afternoon, everyone. Welcome to eGain's Fiscal 2024 First Quarter Financial Results Conference Call.

during are Officer, Executive I statements, Eric to performance. everyone today and Ashu would which call management future remind Financial call, financial beliefs, Chief Smit.Before that objectives convey the management's eGain's certain plans Officer, Chief Roy; like will expectations, On make conference and forward-looking regarding this we operational begin, and

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

measures. filed eGain's in of the range protected conference update with the by turn Relations Ashu of I'd Investor and could website are Forward-looking week.And results and of our as such and Roy. non-GAAP a of found differ X, CEO, by respects. on revise to reconciliation financial November detailed link for to available along also Reform eGain release of investor are directly we call provisions the Relations eGain's earnings company's contained in of uncertainties results over Exchange Securities of at will eGain's the operating will statements we safe financial financial most Act be eGain's now the results, publicly page this with the with Information XXXX, the Private press release's are on can clicking discuss these statements addition information various XXXX.These measures the The replay this be egain.com. subject non-GAAP to post presentation And release, tables Securities certain harbor lastly, Litigation to issued earnings will on to measures And income. phone Commission. or to GAAP website. of like that call statements updated as non-GAAP page obligation included that the And forward-looking factors Investor the X comparable historical conference press release actual earnings making affect is material a cause call.In in to today, today include GAAP forward-looking wide risks any press to the assumes no the reports an could

Ashutosh Roy

everyone. Thank good afternoon, and you, Jim,

start Both and are results street fiscal consensus off to our our the our top good guidance bottom exceeded year. a to for line quarter. We and

than Our North the the Canadian XX to in bank. adjusted highlights. XX% EBITDA some for ago at closed XXX the distributor a including quarter.Turning better points American was top quarter, a basis We year new quarter large nice and industrial business logos first

expansion during our continued We quarter. base also client the across saw

analytics knowledge AI and platform. knowledge composable and center September. allows contact our pickup use in included that global utilities, the to These that on served a challenging. reducing opportunities provider.Looking The product by up effort see at context rich one announced continued provider what time, include confidently customer leverages Some human newest in expansion the services same U.S. is the of to first-of-its-kind the and at about hold. plans our macro XX%. large insurance decision-making company, from financial U.K. answers environment the AI to a a At health controls opportunities well as new U.S. plan we we pipeline. is of the management, we that agency, a California knowledge the within and in were content, consumable in state really the agents, remains in compliance, effective generative eGain's AssistGPT, management result service.AssistGPT of evaluations to automate excited London reliable market, reducing correct a businesses are cost of as launch largest scalable It's event But solution reengagement

the customer presents experience.In for service. of improve XXXX technology improving agent improve the projects knowledge looking continued agent the and the cost in in Gartner business recommended for on buck reducing market that Given that #X we as AssistGPT business bank investment the fact, cost in and biggest to focus believe businesses experience, invest management

The an AssistGPT, that reality.Speaking and with can XXXX could offering this prouder.Turning our recommendation the CRM excited Last to Customer Quadrant published we time. Gartner, are market were recently highlights in a rich awareness. become to this architecture as and our product around, our Gartner team, like operationalized Gartner we functionality. a named Now time for composable Magic eGain not note were category. niche we its Engagement, be of report capabilities, AI visionary We, from a

September in of in had a record stories the ALD We leasing RSA, London including from shared global presentations insurance insurance success in customer a Europe. success. a we Tryg, Our stage, had customer and was Automotive, giant, exciting a number Nordic company, resounding company vehicle largest event and SMEs, on

prospects. our presented Cathay clients, knowledge with on project.Finally, lot recent addition, and In one management focus for our Pacific, want With and a well I AssistGPT Deloitte, our make. generated demos to positions analyst deep and eGain conditions innovation of customer recognition and partner announcement X their customers of among dive as particularly points on improved this us our macro journey product knowledge our SI service, buzz improve.To with along conclude,

has customer business innovation profitability our invest to and couple The our as first, success. last cost continued improve the even quarters adjustments helped over we product in in of

positioned from this it add more logo Smit, Eric activity acquisition on to service hold. the new for we in finally, new is ask improve.With operations. Eric? Financial conditions opportunity market reengagement still it's to global, large, and I'll that, increased Chief Officer, customer exciting And to on both our are color and knowledge relatively from financial is around slow seeing deals automate market, management our it's are as previously RFPs we and help capitalize pipeline While well

Eric Smit

everyone, us joining Ashu, for and today. thanks, Thanks,

continuing and current invest significantly As noted, line the success. in improved to while to a product profitably the in quarter, environment reflecting made innovation Ashu adjustments performance bottom more first delivered we in we operate the customer

from continues gross getting was our for we year-over-year. quarter for financial revenue from before in the per margin. quarter.Turning and a for reflecting the X% and QX from operations to contrast to our a the be XX% million revenue year a essentially $X.X region, was quarter.Now down year in to outlook where gross quarter $XX.X for operating XX% XX% This revenue. primary a opportunity. ago implemented.Looking quarter When the million North expense at North net or operations. and in and compared quarter, non-GAAP XX% guidance detail non-GAAP share. Non-GAAP in or million, ago Total quarter looking of is accounted XX% flow more profits million Gross the margins. the North QX quarter, $XX was into for points X% our Total generated market for prior but of XXXX.Starting $XX.X X% was income for margin results QX $X.XX Adjusted for share our fiscal above the revenue million XXX our revenue profit the balance from $XX.X $XX in up ago share year-over-year.Looking turning XX% from basis million, America at bottom with million total from controls the margin or our quarter. year $X.X flow me quarter. was million, EBITDA $X this sheet Let We was but XX% income XX%, up approximately focus quarter per million, quarter have and $X.XX line, for the $X.X year-ago by net improvement revenue the cash costs for non-GAAP down basis at about see for operating total up America gross for in XX% greatest last Europe the on and America unchanged very dollar at year-over-year, year cash cash of flows. to we strong expectations, of came

we XX,XXX at the remained under $X.XX million the the shares our purchased $XXX,XXX program, During share $XX.X under price end authorized, Of for per available program million of the $XX quarter. approximately at the repurchase average of share. an quarter,

to cash the customer equivalents of at Our balance very up the end Total turning quarter cash from million strong. $XX.X were ago.Now our sheet remains million, year $XX.X a metrics. and

American increased or some North we XX% on America XXX% million The remained ARR at makes EMEA LTM obligation customer churn And retention XX% the $XX.X X%. overall discussed calls, our North RPO year-over-year, performance year-over-year.Now year-over-year for increased number previous customers customers short-term was $XX.X decreased up resulting calls, additional million, year metrics our customers while million, for America now retention a our NRR hub, due to in XXX%, looking our year-over-year. was total mentioned on X% SaaS I'll XX% our remaining on basis. ARR And $X at dollar-based our to product compared on of North ARR turning knowledge total I've decreased X% previous guidance. relatively to our constant share As customer by was given while RPO, to ARR XX% regional a up SaaS ARR. ago.SaaS RPO to focus markets, total while dropping SaaS of looking

million. of of second the to we quarter For fiscal revenue between XXXX, $XX million total $XX.X expect

to the line. bottom Turning

of expense expect $X.X we to $XXX,XXX and of share, includes depreciation compensation and million which million $X.XX net $XXX,XXX. or amortization per QX, income to approximately GAAP For $X.X of $X.XX stock-based approximately

XXXX $X.XX full of to $X.X $X.XX income ending year to June provided of we guidance net reiterating XX, million. expect fiscal between million per million share.Looking are non-GAAP We $XX our to the revenue total $X.X previously $XX XXXX, at or million

million are $X.XX to per to we share. net income $X.XX with where $X.XX our of outstanding, year.So and increased expect we share, or we and weighted for projections estimate While of to And million top of approximately million profitability, at street $X.XX $X.X and $X.X the quarter average bottom to guidance $XXX,XXX.Looking million are from second and income our per million line increasing million ahead $X.X share, expense for both in $XX.X shares full GAAP to XX.X share-based guidance net summary, non-GAAP the to $X.XX our of million per up our reiterating and $XX.X or expectations. approximately approximately XX.X compensation amortization depreciation delivered expense results we we $X.XX

seeing positive in increased seeing made innovation previously close remains current deals deals. the more and are environment we we RFP and the on to business new activity we working to product cash challenging, invest generate flow hard results operate the environment these increased operations customer our from team put is adjustments business are profitably We our continue from reengagement in macro while hold. sales and And to success.While to

Investor our also first-of-its-kind positioned well remain significant for to the expanding calendar, solution and cash see this AssistGPT Relations on which market to new York on us eGain generation.Lastly, our The with knowledge and strong engagements. with offering, New X opportunity be capitalize I for automate growth we sheet ahead balance meeting before We opportunity later customer conferences. our month investors with of eGain is will at significant, opportunity flow investor a is close in

XXth the questions. the at our XX. November be following November Annual at ROTH prepared We day will Annual will we Conference concludes to you Conference New at Thursday, We now Select Craig-Hallum these Alpha hope Operator, and see open conferences.This the on York for on the XX, remarks. Wednesday, call

Operator

first with from question The Capital. ROTH Instructions] [Operator Baldry Richard comes

Richard Baldry

if Can interactions seem replace is address they at side things to the seeing or too around you're the verticals Is or automate for in of more early to expensive? faster? human things that the where curious I'm opportunities. to looking ROI-based -- a color previously little interest didn't be be they Just you to the human first sort sort want an there's you're where sale of about talk would because AssistGPT? the on of maybe thought getting indications it sort greatest certain

Ashutosh Roy

Sure.

So Rich, this Ashu is here.

automation. generative duration is creation, we AssistGPT, solution seeing Xx, the exciting of that management has we to is around are the capability people that team and optimization That in whole helping up one where we have automating in with knowledge But to because improvement the the seems that X improve management the been platform. kind example, of improvement, knowledge with for So assistance the be is real challenges.So to have, always interest what cycles, of in improvement applied new right? up productivity XX% GPT of across are by market we productivity there of in with part going knowledge sort most to with

the seeing that's are pool. we as So what biggest

many seeing point. We agent that, at area kind part there assist, of providers that excitement the the are too. be but it we is knowledge in are interest management where But this also seems is have who to -- real driven have

Richard Baldry

things? addressable pricing, around kind little this this existing extension of of mechanisms? an an a give pricing what can us a your thoughts premium you expand early would talk of your or you market? can to And maybe about idea How are be Just much much offering might sort how of

Ashutosh Roy

making question. It's it's GPT That's try so of based a for Right easy a upfront, but the sessions, in great barrier our a it now, and to capability the people not it little on platform. how generative pricing we many fee. platform. in terms on usage make the how like actual incremental many are create bit you super That's requests of

We that's the taken. are market on pricing have adoption. part more focusing kind incremental launch today the are for is, we that, and driving approach But is, revenue the And and the of we us. generation initial that's

Richard Baldry

world. obviously And generative hype lot of the the there's of a around side

new who opportunities going direction? you of is out people credibility with going of low-hanging ] Or comfortable be feel solutions is seeking from a attacking an the like of so to market get to in have after opening space are quickly offering you customers the know where capable how rapidly this you're for some kind vendors would idea [ that existing sort feel we you evaluating, the do fruit really adopting? So record track obviously

Ashutosh Roy

for with Yes. for people right? rest generative generative logo the there's all not in point, think the conversations, and want platform is At need need where still addition in analytics, of the enterprise of hub capability, knowledge but our controls, includes even see it. generative all excitement, great I core a that for this interest are knowledge of selling, content, and we new we what So the the core market just a people -- capability, a but correct differentiation is

where So that's are focusing now. we place the

Operator

The Hibshman Group. next question from comes with Daniel Craig-Hallum Capital

Daniel Hibshman

for Daniel Rhee. Jeff is Van This on

cycle reengagement previously were Just you're on that in were in pipeline and of clients of on sales some that hold. improvement the activity, seeing a

like? maybe customers Just what are any the conversations, back? those give could of those are conversations there? terms if on there's the those any if either themes engaged conversations be that coming common thoughts to us or additional you additional any verticals color driving Just What's in

Ashutosh Roy

is and of now. back businesses running We're dimension sort evaluating have seem and one So see happening we more process. to often into RFPs seeing gotten buying much these that structured

ago. So X is tire kicking much say, less than, months

the board. big we are a change seeing that's So across

RFPs. So resulting conversations the early-stage many more are of time-bound in

the verticals, also and a in insurance not changed. So financials I vertical basis, be fronting board.In to in. would of that's that. We're are others say, seeing more across seem terms that There's excitement getting on that but space

that So that the be insurance. it's in only others. financial services not and leading it's seems sector to But yes,

Daniel Hibshman

then maybe And me. for follow-up one just

Is general and just the their the give in Is us headwind. terms of pressure? combination of the particular AI in assess dial of additional step to as to if you just on do headwinds, a to general budget people map? tech can nature terms this that Is knowledge bit road thoughts centers? In little the pressure we contact it mostly as macro see it some the uniquely management? taking of particular a well back as macro it Maybe

Ashutosh Roy

sense.I uncertainty of be on the context the other in and knowledge it would people the overall assessment still would right? a say coming saying, seems actually big to in one that's from see companies we comment the bit, use But run I'm I'll in back we there environment. I would are comment doing a we AI So AI just their right, geopolitical economic have assessments need also quite the thing entirely. its Yes, AI, course say who are that we little a sure not need that few and so it, are platform can that. rely the all macro

for still I think that we budgets That's 'XX. are get. we do fairly But budgeted see cautious. the sense being items calendar

So environment. more bit stable sort there much of of one but little a not economic a of first thing, is would in the as expect as loosening

Operator

would over management back closing As there to like are conference questions, for turn remarks. any no further I to the

Ashutosh Roy

at thanks, conferences hopefully end you. investor call. providing quarter. Thank this forward of at to next and seeing the updates the month you of operator, later to We everybody, some our Thanks, for the the listening look and

Operator

The for presentation. attending conference today's has now you Thank concluded.

disconnect. now may You

eGain (EGAN) 2 Nov 232024 Q1 Earnings call transcript