EGAN - Earnings call 2 2024 | eGain Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the eGain Fiscal 2024 Second 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 with MKR Investor Relations. Please go ahead.

Jim Byers

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

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

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

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

of by protected risks Securities safe harbor forward-looking in to contained subject Private Act could and cause of are provisions Litigation actual differ the a Reform on Information results that Exchange Commission. is statements statements respects. results February various XXXX. These XXXX, forward-looking of revise that range these could are statements to Forward-looking are X, call. wide eGain material factors in today, in this as the of eGain's or assumes information publicly reports update detailed in to and conference no filed any obligation and company's making affect Securities the with the uncertainties

addition to X updated call with with most non-GAAP Relations to And of be egain.com. as measures. Tables said, measures presentation historical And the financial at over Ashu week. And for financial will income. also the GAAP non-GAAP on an comparable eGain's press replay release a operating website. GAAP by earnings post measures Investor the included with discuss like certain on that the CEO, phone call website this Roy. along non-GAAP results, to the eGain's of page And found now will In I'd press Investor earnings reconciliation investor of lastly, Relations our clicking eGain's available such press turn to we include also conference the can we the page release, financial earnings release directly the will to be release link

Ashutosh Roy

good Thank afternoon, you, everyone. and Jim,

well received bottom win assisted AI helping and by our exceeded being us and offering guidance the the new for line GBT top and our is market Our results logos. quarter have

quarter. We business. to the logos in Turning signed several new

wins find many selected investment capability. are notable in based across that answers knowledge to was business auditable a a their and global way. generative spread They modernize struggling on in using company our to knowledge management management here documents eGain cycles. AI chose Some in what ability to Their safe, complex long eGain consumable services staff deliver their answers unify

their mentioned company. and new insurance the looking They integrate and Another platform already enable logo mode. experience. [indiscernible] improve They unified membership-based U.S.-based primary lastly, and to the practice, gain agent pioneering knowledge easy in content hires. new customer a answers our And selected new their with care knowledge therefore, AssistGPT to a ramp up all their on streamline group done roll selected their experience across They've which sources the to deliver enterprise. the will the capability they for auto is Again, now service to is associates are us use knowledge a capability I tool eGain and eGain hyper-growth platform. and out

P&C existing from and a A component customers expansion good during saw of quarter. ones, notable insurance distributor. also We large the global electronic couple the company

At to the quarter, hard the they received in working large solution their renewals renew have intent time, SaaS provider operating the HCM multinational environment, notice we as clients a renewals. us. industry-leading are an good clients bank. macro reduce and to with same had X retain to to about large from serve and large We've customers current Turning we costs. not insurance look including care In health their

their to customer vendors communications. consolidate hub digital all The a conversation first choosing is client. They're for

$X AssistGPT of events churn are build are challenging these They The and growing XXXX measure manage is to centers. client. hub out analytics an very are their ARR in their approximately contact capability These encouraged is second by plan. time, choosing [indiscernible] The our to X homegrown factored same the they are interest we our in At not proposition. as the fiscal million. accounts

nicely feeling sales is performance AI good capacity. improve, pipeline new opportunities. knowledge logo new with adding macro quarter. without logo also we we our We're can growing about and in as positions And believe logo grow new our Our conditions the sales

lots energy we by Our With knowledge new AssistGPT, Xx answers piloted client are can of for customers the instant capabilities and an speed creation vertical AssistGPT interest. well this up generating early market in better from real historically much less taken would was base. X weeks X agents faster instant human have what done product, knowledge another answers our of effort with With answers, and get than weeks.

insurance -- seen as improvement this even [ double our more answer in than of insurance, answer clients P&C have a improved. to has speed quality ] is insurance, One agents

award on in investments delivers named recipient were had by before. Capabilities World and our and the that the to mentioned But was call. that product leadership prior the Also Magic customers into to not be to this We the customer market sole process. with of integrated that Quadrant was followed Our the mentioned for knowledge recognizes something with KM provider management clients. new the the This report, be a innovative business in Gartner continues XXXX recognized the have Gartner CRM visionary honored solutions rating our we best promise in Award November, eGain KM was and top by Magazine. promise from for in Critical engagement. receiving their We XXXX

pipeline knowledge wins to extend invest activity. AI this new and good to conclude, of continue product digital We our technologies leadership. To intersection logo see in we at and momentum

in We Smit, more market innovative to positioned around our this opportunity as our we I'll improve, continue to add financial capitalize on answers knowledge And automate ask that, customer invest Officer, big conditions [indiscernible] instant for Eric? our are Chief Eric AI to and enhance color well GPT to help operations. service. With assist capabilities Financial like to

Eric Smit

improved of Thanks, line profitability Ashu, and expectations. and exceeded quarter strong Street us and results and thanks, Both our today. guidance bottom operations. significantly from another everyone, cash We for flow our top joining delivered

share in with for from XXXX. Starting $X the year, year-over-year. approximately last total whereas Europe of where million, me this down current revenue. million, $X QX outlook QX America but by from guidance accounted before was expectations, benefited detail revenue $XX.X financial year year. revenue for comparison environment. quarter, repeat our and our in North results X% up spending not revenue X% cautious reflecting Let and above million tough from North seasonal the XX% quarter. down contrast, we year, total increase and XX% getting year-over-year, Total about looking was million did Total America last at fiscal more for for the revenue our XX% In into QX was volume from ago down of from region, the this revenue $XX.X a

year Looking XX% XX% quarter. margins. margin prior at for profit the and compared second the and for million gross XX% gross profits of Gross quarter last to was non-GAAP a gross for quarter $XX.X

turning operating at Now costs ago improvement in $XX.X the quarter, quarter a $XX.X operations. to in we reflecting Non-GAAP million year second the million, for from have implemented. the controls came expense

XXX or year on share, in or X% year line, non-GAAP was Adjusted income quarter per from bottom EBITDA $X.X non-GAAP quarter. ago million $X.XX the was at share the income points basis $X.X for in the dollar net $X.XX the a ago basis from margin million XXX% of net up quarter. XX%, QX diluted up for per Looking

and operating very We for cash cash quarter million balance XX% or our flows. to Turning generated flow sheet flow margin. strong of the operations $X.X from a cash

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

of $XX.X from [ year Total million, balance $XX.X ago. remains cash and equivalents the were Our quarter million sheet ] up very cash the at strong. end a

Now I this our outlined knowledge our metrics customer focus continued share will going customer additional turning metrics. to for quarter our some customers. Ashu on forward, and as knowledge by With

looking total customers our was net net retention was our dollar-based net from First, to knowledge XXX%, XXX%. customers XX%. rate rate net total down for LTM LTM was SaaS The XXX%, expansion expansion dropped while dollar-based while our at retention knowledge

at Looking year-over-year. SESAR SaaS decreased customers The while the for X% total total our knowledge year-over-year, ARR. total ARR increased XX%

to remaining down [ X% ARPO ARPO million, was year-over-year performance and at $XX.X million year-over-year. our obligation, ] total short-term Looking decreased XX% our $XX.X

turning our guidance. Now to

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

bottom line. Turning to the

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

of million $X.XX income or per $X.X share. $X.X to We non-GAAP million net to expect $X.XX

For Ashu, outlined as fiscal provided churn follows. revising are year the as XXXX, increased our the we full previously given guidance by

$X.X income per of share-based of compensation revenue of million $X.X of estimate XXXX, to fiscal net net $X.XX or $X.XX $X.XX expense now million $X.X XXXX income year non-GAAP depreciation June or to total the For approximately XX, to $XX to million we full million and year. between $XX $X.X for We approximately million of to GAAP million. ending expense expect and per amortization $XXX,XXX share $X million share. and $X.XX

outstanding, we weighted $XX.X approximately full $XX million at and the quarter third year. expect the for XXXX, Looking average shares for million for fiscal

while summary, the macro remains challenging. environment in So

with and activity for continued knowledge AssistGPT the significant. we And and cash QX of pleased expect interest our customer going leadership We our well balance momentum AI, business capitalize is we the and sheet given positioned eGain for generation. increased new are in forward, the opportunity strong new see on remain of in new market wins The expanding focus on number with to very product to and positive level opportunity with knowledge our offering. our flow

open that providing California. calendar, more and for Danapoint This details place to of our Relations to there taking some annual at as presenting person. conference remarks. concludes Investor closer we'll the be Operator, ], we we with XX on the [ call get XX will and We'll the March see in Lastly, in Roth investors now again, to be March you questions. meeting hope prepared date

Operator

our And Roth MKM. question from Richard Instructions] first [Operator Baldry comes with

Richard Baldry

is And backed in hits commonality timing, terms it there Or out you or September terms talk into in the of the it residual unexpected right of there that well? most then terms quarter markets. in pressures attrition, that vertical is In if of geographies the of quarter. right? there any some the about as Is I looks -- can fourth end

Ashutosh Roy

Okay.

no, was and to there looking Analytics have are guess, cost see. was the of clients, not count usual their address businesses My in Richard, them conversation let direct cost, a but we about clients. client common. nothing of not lot them direct exclusion, of maybe, -- so sort One I are partner. customers to reduce So me may there's pressure client, a that of is neither in that's If the through hotline Hub to think part, tremendous that the then particularly to The I pattern public that. first a news we area. them that But there's say head both reduction. a under And knowledge

commonality have Eric, seem to engaged that, now. you be are very But So both right -- us -- that's the orders our happy where using a want are still been products seem That's of being teams is with to and so them well. I operational product. given We've the they is. still the be to. with guess, marching outcome

Eric Smit

you're I the these for impact in will of correct be think QX. that accounts felt both

Richard Baldry

solutions? to start some of AI do Are sizes, early becomes deal to type increase of you Okay. AI noticeable wins table. when think seeing that about the impacting the of the when if over are sort could tailwind, people cycles. in you side a sort it's emerge? deal And that And flipping the of you a talk pipeline that deal Could evaluating how the

Ashutosh Roy

Yes.

of we now IITD say would terms done have that we the in days, couple things. innovation are of that XX do in I a more pilots Firstly, we pilots One, So doing the than in AI let's those part which years, more the point, the and those, last is or AssistGPP all more So right? several pilots, like of instant AssistGPT. answers, of almost at around this -- say, are

as answers we're so punnets prospects now, accounts. seeing instant right well both existing in of as a And lot

thing. So that's one

can that prospects be is coming early early an thing with the seem budget is to AI. AI-oriented AI seeing, but do in knowledge, into in this and what the interest and People Second engagement early, sense with we or funnel. end saying, are I with my

would who months ] a of so not we it, chatting our are point we're started were AI. and different with And with FDR I There the starting level their just something of people out. are Those the trends team, that's are that [ much conversations, X one ground things had a what lot talk that's was say, There seen, not we more of seeing lot conversations now. about but from ago. X that and

Richard Baldry

find the ahead growth, up balance reflected arguably view be an or sheet? valuation traction willing seems results you sort Okay. the our to front, but do where you point of the trade-offs to think your in get Maybe sort picking AI more maybe you inflection is of not a aggressive buyback see be strength you'd and might given How last current me the for on of period do there? it's you for the

Eric Smit

Yes.

Rich, valid I think, that's a point.

I look at we generation mostly think something generated we'll continue to as the certainly, again, that at cash certainly for look we've sure. that

Operator

question Jeff Craig-Hallum. with next from Rhee And Van comes our

Jeff Van Rhee

Great.

high the splits level in maybe Just of of business. terms the

knowledge revenue analytics where gave of how versus splits percent a versus of in proportion? we perspective, revenue some with a management you respect I it the can to holistically sitting have -- So as from hub is but think revenue much SaaS, sits you conversation in? give sense

Eric Smit

roughly the business analytics under is range the the I And knowledge range. the that is I just then and hub's would speaking, just in XX% probably think XX% say in business XX%. compensation

Jeff Van Rhee

some that is maybe the consolidating of benefit motivations? platform cost by with there are is certainly, moving if to benefit. onto making, visibility impression Or some just the had there's got of into substantial X they've losses, where platforms it to. of are that Their pressure, mean, And the platforms I existing it your sounded respect in like they're going over Okay. a I to terms other under you providers. there's whatever provider, the think they're cost the cost move a then

shift Just the a was, if benefit you and little some the cost there was bit about know their for why more what if departures.

Ashutosh Roy

Yes.

were know that so So say, we was I Yes, aware far. the can we clients. tell what ongoing hub you conversation an let's battle that, inside,

aware who working guarantees have the and a we're from source. that hustle moving that goes first. we number were people it in been of the see continue they on was Ultimately, between think sort of and are this and a are operate And going with to open trusted if the what to we and agenda still told with is idea, talk as they'll that how reduce using Let's to try about we're happy We can migration that them, to no see to service that the quality a solution us direction, second but there very vendors. of company-wide I

one, So we the conversation know one. that's what hub first the on

partner, On don't have to the of but trade-off homegrown sort the the know I one, between analytics one, is because economic second to the honest, enough behind think be we that, don't we and the know their ours. enough visibility it's and what about

Jeff Van Rhee

then, compares. right. That's All mentioned the And you helpful. year-over-year Eric, Okay. on

year didn't something about you mentioned what million you think repeat. refresh me Can just volume a -- that was volume on that a I $X in ago?

Eric Smit

Yes.

the special volume that So was in an increase I program was be account that a seen it at usage. running quarter last we There will year think was drove more driving spike. that of end business in that messaging increase what had an this

Jeff Van Rhee

on you're folks pushback trying to Okay. All of And obviously, a feedback. realize that and decided of use then pivot, already? early, it. let you've the deemphasize it lot where any to them just in get the right. get will AssistGPT, accentuate I places in of it's but areas heads

Ashutosh Roy

the One got. are safety of is but controls, learnings very auditability. enterprise, not the that Yes. in we very have A mid-market, are the enterprise, focused couple people in and on People in

-- capabilities. So enhancing around are we generative significantly have we that

levels these results. happy is at pilots. are for They're to seem not people scale. learning results People second And And right? the that solution obviously us. They're production pilots the are So in seeing production trials, be trials. with limited that very is a the the that

thing So we seeing. we're consistently this, positive like we yes, seeing right? a strong second So saying, feedback the are that's that

Jeff Van Rhee

Okay. And if Eric, this then it's one and we last, then take maybe just can easier. offline

in some Do margins you the in quarters new revenue the of you sense volatility to to Just trying going obviously QX? reset be gross results couple of a to have next QX, kind of there's level. as

Eric Smit

given that the But think the pressure, some So we'll the of reduction. see these wasn't -- profile I actually X of definitely at sort had level. accounts obviously, high

maybe but I percentage the -- it, we think Yes, have we'll to but be -- on exact where pressure. to get you certainly, I'll some So see back there'll

Operator

And no Instructions] turn session. further seeing to the conference like closing [Operator for will question-and-answer back management questions, over any we remarks. conclude I would the to

Eric Smit

updating thank product, you forward I to we appreciate by Okay. look Well, continue to AssistGPT the time. as We proceed knowledge you. everybody. this thanks, the with exciting you driven taking

Operator

attending Thank the for today's Thank you. you presentation. This concludes conference.

disconnect. may now You

eGain (EGAN) 8 Feb 242024 Q2 Earnings call transcript