• eGain Reports 21% SaaS Revenue Growth for Fiscal 2022 Driven by Increased Demand for Knowledge Powered Digital Customer Engagement Solutions

    ソース: Nasdaq GlobeNewswire / 08 9 2022 15:05:01   America/Chicago

    SUNNYVALE, Calif., Sept. 08, 2022 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), the leading AI knowledge platform for customer engagement automation, today announced financial results for its fiscal 2022 fourth quarter and full year ended June 30, 2022.

    “We finished the year strong, delivering top and bottom-line results ahead of our guidance and street consensus,” said Ashu Roy, eGain’s CEO. “Demand for our knowledge powered customer engagement offering is robust and we are well positioned to continue our positive momentum and grow our market share in our new fiscal year. During the year, we generated over $8 million in cash from operations, strengthening our balance sheet while also investing in product, sales and marketing to drive continued revenue growth.”

    Fiscal 2022 Fourth Quarter Financial Highlights

    • Total revenue was $23.5 million, up 16% year over year (20% in constant currency).
    • SaaS revenue was $20.6 million, up 15% year over year (18% in constant currency).
    • GAAP net loss was $1.6 million, or $0.05 per share on a basic and diluted basis, compared to GAAP net income of $2.0 million, or $0.07 per share on a basic basis and $0.06 per share on a diluted basis, in Q4 2021.
    • Non-GAAP net income was $893,000, or $0.03 per share on a basic and diluted basis, compared to non-GAAP net income of $2.5 million, or $0.08 per share on a basic and diluted basis, in Q4 2021.
    • Cash provided by operations was $2.3 million, or 10% operating cash flow margin.

    Fiscal 2022 Full Year Financial Highlights

    • Total revenue was $92.0 million, up 17% year over year (18% in constant currency).
    • SaaS revenue was $80.9 million, up 21% year over year (21% in constant currency).
    • GAAP net loss was $2.4 million, or $0.08 per share on a basic and diluted basis, compared to GAAP net income of $7.0 million, or $0.22 per share on a basic basis and $0.21 per share on a diluted basis, in fiscal year 2021.
    • Non-GAAP net income was $8.9 million, or $0.28 per share on a basic basis and $0.27 per share on a diluted basis, compared to non-GAAP net income of $8.7 million, or $0.28 per share on a basic basis and $0.27 per share on a diluted basis, in fiscal 2021.
    • Cash provided by operations for fiscal 2022 was $8.1 million, or 9% operating cash flow margin.
    • Total cash and cash equivalents, as of June 30, 2022, was $72.2 million, up 14% compared to $63.2 million as of June 30, 2021.

    Fiscal 2023 First Quarter Financial Guidance

    For the first quarter of fiscal 2023 ending September 30, 2022, eGain expects:

    • Total revenue of between $24.0 million to $24.5 million, representing growth of 12% to 14% year over year.
    • Non-GAAP total revenue, adjusted for constant currency, of between $25.1 million to $25.6 million, representing growth of 17% to 19%.
    • GAAP net loss of $2.1 million to $2.3 million, or $0.07 per share.
      • Includes stock-based compensation expense of approximately $2.5 million.
      • Includes depreciation and amortization of approximately $120,000.
    • Non-GAAP net income of $200,000 to $400,000, or $0.01 per share.

    Fiscal 2023 Financial Guidance

    For the fiscal 2023 full year ending June 30, 2023, eGain expects:

    • Total revenue of between $101.0 million to $103.0 million, representing growth of 10% to 12% year over year.
    • Non-GAAP total revenue, adjusted for constant currency, of between $103.2 million to $105.3 million, representing growth of 12% to 15%.
    • GAAP net loss of $3.7 million to $4.7 million, or $0.12 to $0.15 per share.
      • Includes stock-based compensation expense of approximately $8.5 million.
      • Includes depreciation and amortization of approximately $500,000.
    • Non-GAAP net income of $3.8 million to $4.8 million, or $0.12 to $0.15 per share.

    Guidance Assumption:

    • Weighted average shares outstanding are expected to be approximately 31.9 million for the first quarter of fiscal 2023 and 32.0 million for fiscal year 2023.

    Non-GAAP Financial Measures

    This press release includes certain non-GAAP financial measures as supplemental information relating to our operating results, including non-GAAP total revenue that is only adjusted for constant currency to provide better visibility into the underlying business trends and non-GAAP net income. The non-GAAP net income measures are adjusted for stock-based compensation expense and amortization of acquired intangible assets. 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.

    Conference Call Information

    eGain will discuss its fiscal 2022 fourth quarter and full year results today via teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 877-270-2148 (U.S. toll free) or +1 412-902-6510 (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 our website at www.egain.com. In addition, a phone replay of the conference call will be available starting two hours after the call and remain in effect for one week. To access the phone replay, dial 877-344-7529 (U.S. toll free) or 412-317-0088 (International). The replay access code is 2970911.

    Analyst/Investor Day

    eGain will host an analyst/investor day event on October 11th at its annual user group meeting, eGain Solve 22, in Las Vegas. To learn more about this event and to register visit: https://www.egain.com/solve/#agenda

    About eGain

    Infused with AI, our knowledge-powered software automates digital-first experiences for enterprises and government agencies. Pre-connected with leading CRM and contact center systems, the eGain platform delivers quick value and easy innovation with virtual assistance, customer self-service, and modern agent desktop tools. Visit www.egain.com for more information.

    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 first quarter of fiscal 2023 ending September 30, 2022 and fiscal 2023 full year ending June 30, 2023; our market opportunity; and expectations regarding our growth prospects for fiscal 2023 year ending June 30, 2023. 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 first quarter of fiscal 2023 and fiscal 2023 year ending June 30, 2023. The risks and uncertainties referred to above include, but are not limited to: risks to our business, operating results, financial condition, and prospects from the COVID-19 pandemic and related economic downturns, including but not limited to, its effect on customer demand for our products and services and the impact of potential delays in customer payments; 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 filed on September 10, 2021 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’s web site at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. We assume no obligation and do not intend to update these forward-looking statements, except as required by law.

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

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

    eGain Corporation
    Condensed Consolidated Balance Sheets
    (in thousands)
    (unaudited)

      June 30, June 30,
      2022  2021 
    ASSETS      
    Current assets:      
    Cash and cash equivalents $72,173  $63,231 
    Restricted cash  7   7 
    Accounts receivable, less allowance for doubtful accounts of $123 and $434 as of June 30, 2022 and 2021, respectively  26,961   26,311 
    Costs capitalized to obtain revenue contracts, net  1,487   1,323 
    Prepaid expenses  2,612   3,028 
    Other current assets  895   778 
    Total current assets  104,135   94,678 
    Property and equipment, net  831   705 
    Operating lease right-of-use assets  3,850   2,191 
    Costs capitalized to obtain revenue contracts, net of current portion  3,136   2,612 
    Goodwill  13,186   13,186 
    Other assets, net  871   1,191 
    Total assets $126,009  $114,563 
           
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $1,706  $3,068 
    Accrued compensation  8,708   8,444 
    Accrued liabilities  4,926   4,352 
    Operating lease liabilities  1,044   1,466 
    Deferred revenue  45,638   46,211 
    Total current liabilities  62,022   63,541 
    Deferred revenue, net of current portion  3,785   3,332 
    Operating lease liabilities, net of current portion  2,537   797 
    Other long-term liabilities  808   832 
    Total liabilities  69,152   68,502 
    Stockholders’ equity:      
    Common stock, $0.001 par value – authorized: 60,000 and 50,000 shares; outstanding: 31,930 and 31,231 shares as of June 30, 2022 and 2021, respectively  32   31 
    Additional paid-in capital  393,157   378,451 
    Notes receivable from stockholders  (95)  (92)
    Accumulated other comprehensive loss  (2,687)  (1,220)
    Accumulated deficit  (333,550)  (331,109)
    Total stockholders’ equity  56,857   46,061 
    Total liabilities and stockholders’ equity $126,009  $114,563 
           

    eGain Corporation
    Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
    (unaudited)

      Three Months Ended Year Ended
      June 30, June 30,
      2022  2021 2022  2021 
    Revenue:            
    Subscription $21,378  $18,846 $84,557  $72,371 
    Professional services  2,126   1,402  7,394   5,916 
    Total revenue  23,504   20,248  91,951   78,287 
    Cost of revenue:            
    Cost of subscription  3,969   3,696  14,780   13,507 
    Cost of professional services  2,632   1,383  9,757   5,760 
    Total cost of revenue  6,601   5,079  24,537   19,267 
    Gross profit  16,903   15,169  67,414   59,020 
    Operating expenses:            
    Research and development  6,399   4,549  24,387   17,933 
    Sales and marketing  9,494   7,176  33,746   25,999 
    General and administrative  2,732   1,930  11,419   7,749 
    Total operating expenses  18,625   13,655  69,552   51,681 
    (Loss) Income from operations  (1,722)  1,514  (2,138)  7,339 
    Interest income  87   2  94   13 
    Other income (expense), net  656   144  838   (559)
    (Loss) Income before income tax provision  (979)  1,660  (1,206)  6,793 
    Income tax (provision) benefit  (572)  388  (1,235)  166 
    Net (loss) income $(1,551) $2,048 $(2,441) $6,959 
                 
    Per share information:            
    (Loss) Earnings per share:            
    Basic $(0.05) $0.07 $(0.08) $0.22 
    Diluted $(0.05) $0.06 $(0.08) $0.21 
    Weighted-average shares used in computation:            
    Basic  31,861   31,144  31,553   31,007 
    Diluted  31,861   32,561  31,553   32,597 
                 
    Summary of stock-based compensation included in the costs and expenses above:            
    Cost of revenue $707  $83 $3,056  $326 
    Research and development  625   115  2,935   509 
    Sales and marketing  527   182  2,367   657 
    General and administrative  585   56  3,022   208 
    Total stock-based compensation $2,444  $436 $11,380  $1,700 
                 
    Summary of amortization of purchased intangibles from business combinations in the costs and expenses above:            
    Cost of revenue $—  $— $—  $26 
    Total amortization of intangible assets $—  $— $—  $26 
                    

    eGain Corporation
    GAAP to Non-GAAP Reconciliation Table
    (in thousands, except per share data)
    (unaudited)

      Three Months Ended Year Ended
      June 30, June 30,
      2022  2021 2022  2021
    (Loss) Income from operations $(1,722) $1,514 $(2,138) $7,339
    Add:            
    Stock-based compensation  2,444   436  11,380   1,700
    Amortization of intangible assets  —   —  —   26
    Non-GAAP income from operations $722  $1,950 $9,242  $9,065
                 
      Three Months Ended Year Ended
      June 30, June 30,
      2022  2021 2022  2021
    Net (loss) income $(1,551) $2,048 $(2,441) $6,959
    Add:            
    Stock-based compensation  2,444   436  11,380   1,700
    Amortization of intangible assets  —   —  —   26
    Non-GAAP net income $893  $2,484 $8,939  $8,685
    Per share information:            
    Non-GAAP earnings per share:            
    Basic $0.03  $0.08 $0.28  $0.28
    Diluted $0.03  $0.08 $0.27  $0.27
    Weighted-average shares used in computation:            
    Basic  31,861   31,144  31,553   31,007
    Diluted  32,906   32,561  32,803   32,597
                   

    eGain Corporation
    Other GAAP to Non-GAAP Supplemental Financial Information
    (in thousands)
    (unaudited)

      Three Months Ended
    June 30,    		 Growth Rates Constant Currency
    Growth Rates [1]
      2022  2021     
    Revenue:             
    SaaS revenue $20,573  $17,906  15% 18%
    Legacy revenue  805   940  (14%) (10%)
    GAAP subscription  21,378   18,846  13% 17%
    GAAP professional services  2,126   1,402  52% 56%
    Total GAAP revenue $23,504  $20,248  16% 20%
               
    SaaS and professional services revenue:          
    SaaS revenue $20,573  $17,906  15% 18%
    Professional Services  2,126   1,402  52% 56%
    Total SaaS and professional services revenue $22,699  $19,308  18% 21%
               
    Cost of Revenue:             
    GAAP subscription $3,969  $3,696     
    Add back:          
    Non-GAAP subscription $3,969  $3,696     
               
    GAAP professional services $2,632  $1,383     
    Add back:          
    Stock-based compensation  (707)  (83)    
    Non-GAAP professional services $1,925  $1,300     
               
    GAAP total cost of revenue $6,601  $5,079     
    Add back:          
    Stock-based compensation  (707)  (83)    
    Non-GAAP total cost of revenue $5,894  $4,996  18% 20%
               
    Gross Profit:          
    Non-GAAP subscription $17,409  $15,150     
    Non-GAAP professional services  201   102     
    Non-GAAP gross profit $17,610  $15,252  15% 19%
               
    Operating expenses:          
    GAAP research and development $6,399  $4,549     
    Add back:          
    Stock-based compensation expense  (625)  (115)    
    Non-GAAP research and development $5,774  $4,434  30% 33%
               
    GAAP sales and marketing $9,494  $7,176     
    Add back:          
    Stock-based compensation expense  (527)  (182)    
    Non-GAAP sales and marketing $8,967  $6,994  28% 32%
               
    GAAP general and administrative $2,732  $1,930     
    Add back:          
    Stock-based compensation expense  (585)  (56)    
    Non-GAAP general and administrative $2,147  $1,874  15% 17%
               
    GAAP operating expenses $18,625  $13,655     
    Add back:          
    Stock-based compensation expense  (1,737)  (353)    
    Non-GAAP operating expenses $16,888  $13,302  27% 30%
                 

    [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)

      Year Ended
    June 30,    		 Growth Rates Constant Currency
    Growth Rates [1]
      2022  2021     
    Revenue:             
    SaaS revenue $80,904  $66,929  21% 21%
    Legacy revenue  3,653   5,442  (33%) (33%)
    GAAP subscription  84,557   72,371  17% 17%
    GAAP professional services  7,394   5,916  25% 26%
    Total GAAP revenue $91,951  $78,287  17% 18%
               
    SaaS and professional services revenue:          
    SaaS revenue $80,904  $66,929  21% 21%
    Professional Services  7,394   5,916  25% 26%
    Total SaaS and professional services revenue $88,298  $72,845  21% 22%
               
    Cost of Revenue:             
    GAAP subscription $14,780  $13,507     
    Add back:          
    Amortization of intangible assets  —   (26)    
    Non-GAAP subscription $14,780  $13,481     
               
    GAAP professional services $9,757  $5,760     
    Add back:          
    Stock-based compensation  (3,056)  (326)    
    Non-GAAP professional services $6,701  $5,434     
               
    GAAP total cost of revenue $24,537  $19,267     
    Add back:          
    Stock-based compensation  (3,056)  (326)    
    Amortization of intangible assets  —   (26)    
    Non-GAAP total cost of revenue $21,481  $18,915  14% 14%
               
    Gross Profit:          
    Non-GAAP subscription $69,777  $58,890     
    Non-GAAP professional services  693   482     
    Non-GAAP gross profit $70,470  $59,372  19% 19%
               
    Operating expenses:          
    GAAP research and development $24,387  $17,933     
    Add back:          
    Stock-based compensation expense  (2,935)  (509)    
    Non-GAAP research and development $21,452  $17,424  23% 24%
               
    GAAP sales and marketing $33,746  $25,999     
    Add back:          
    Stock-based compensation expense  (2,367)  (657)    
    Non-GAAP sales and marketing $31,379  $25,342  24% 24%
               
    GAAP general and administrative $11,419  $7,749     
    Add back:          
    Stock-based compensation expense  (3,022)  (208)    
    Non-GAAP general and administrative $8,397  $7,541  11% 12%
               
    GAAP operating expenses $69,552  $51,681     
    Add back:          
    Stock-based compensation expense  (8,324)  (1,374)    
    Non-GAAP operating expenses $61,228  $50,307  22% 22%
                 

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

     


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