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eGain Reports Fiscal 2023 Fourth Quarter and Full Year Financial Results
ソース: Nasdaq GlobeNewswire / 14 9 2023 16:05:01 America/New_York
SUNNYVALE, Calif., Sept. 14, 2023 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), a leading knowledge platform for customer engagement, today announced financial results for its fiscal 2023 fourth quarter and full year ended June 30, 2023.
“We finished the year strong, delivering top and bottom-line results ahead of our guidance and street consensus,” said Ashu Roy, eGain’s CEO. “After a tough fiscal 2023 when deals stalled in our pipeline due to the difficult macro environment, we are now seeing many of those deals re-engaging and new RFPs launching with urgency and intent. Generative AI is rejuvenating interest in knowledge management platforms, and this will drive demand for our products in fiscal 2024.”
Fiscal 2023 Fourth Quarter Financial Highlights
- Total revenue was $24.6 million, up 5% year over year.
- SaaS revenue was $22.7 million, up 10% year over year.
- GAAP net income was $2.6 million, or $0.08 per share on a basic and diluted basis, compared to a GAAP net loss of $1.6 million, or $0.05 per share on a basic and diluted basis, in Q4 2022.
- Non-GAAP net income was $3.6 million, or $0.11 per share on a basic and diluted basis, compared to non-GAAP net income of $893,000, or $0.03 per share on a basic basis and diluted basis, in Q4 2022.
- Adjusted EBITDA was $4.0 million compared to $857,000 in Q4 2022.
- Total shares purchased through repurchase program was approximately 640,000 at an average cost per share of $7.28, totaling $4.7 million.
Fiscal 2023 Full Year Financial Highlights
- Total revenue was $98.0 million, up 7% year over year (up 9% in constant currency).
- SaaS revenue was $89.6 million, up 11% year over year (up 13% in constant currency).
- GAAP net income was $2.1 million, or $0.07 per share on a basic basis and $0.06 on a diluted basis, compared to GAAP net loss of $2.4 million, or $0.08 per share on a basic and diluted basis, in fiscal 2022.
- Non-GAAP net income was $8.4 million, or $0.26 per share on a basic basis and $0.25 per share on a diluted basis, compared to non-GAAP net income of $8.9 million, or $0.28 per share on a basic basis and $0.27 per share on a diluted basis, in fiscal 2022.
- Adjusted EBITDA was $8.9 million compared to $9.9 million in fiscal 2022.
- Cash provided by operations for fiscal 2023 was $4.6 million, or an operating cash flow margin of 5%.
- Total cash and cash equivalents as of June 30, 2023 were $73.2 million, up from $72.2 million as of June 30, 2022.
- Total shares purchased through repurchase program was approximately 786,000 at an average cost per share of $7.33, totaling $5.8 million.
Fiscal 2024 First Quarter Financial Guidance
For the first quarter of fiscal 2024 ending September 30, 2023, eGain expects:
- Total revenue of between $23.5 million to $24.0 million.
- GAAP net income of $500,000 to $1.0 million, or $0.02 to $0.03 per share.
- Includes stock-based compensation expense of approximately $1.2 million.
- Includes depreciation and amortization of approximately $120,000.
- Non-GAAP net income of $1.7 million to $2.2 million, or $0.05 to $0.07 per share.
Fiscal 2024 Financial Guidance
For the fiscal 2024 full year ending June 30, 2024, eGain expects:
- Total revenue of between $96.0 million to $98.0 million.
- GAAP net income of $6.6 million to $7.1 million, or $0.20 to $0.22 per share.
- Includes stock-based compensation expense of approximately $4.2 million.
- Includes depreciation and amortization of approximately $500,000.
- Non-GAAP net income of $10.8 million to $11.3 million, or $0.33 to $0.35 per share.
Guidance Assumption:
- Weighted average shares outstanding are expected to be approximately 32.2 million for the first quarter of fiscal 2024 and 32.3 million for the full fiscal year 2024.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as supplemental information relating to our operating results, including adjusted EBITDA and non-GAAP net income. Adjusted EBITDA is defined as net income (loss), adjusted for the impact of depreciation and amortization, stock-based compensation expense, interest income, income tax provision, other (expense) income, net, and severance and related charges. The non-GAAP net income measure is adjusted for stock-based compensation expense. eGain’s management has analyzed the effect of these non-GAAP adjustments on our income tax provision and believes the change in our income tax provision would be minimal due to these non-GAAP adjustments being attributed to the U.S. jurisdiction where it has recorded full valuation allowance against the deferred taxes. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, or GAAP, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare our performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in our financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business. In addition, this press release includes eGain’s non-GAAP net income, a non-GAAP measure used to describe eGain’s expected performance. We have not presented a reconciliation of this non-GAAP measure to the most comparable GAAP financial measure, because the reconciliation could not be prepared without unreasonable effort. The information necessary to prepare the reconciliation is not available on a forward-looking basis and cannot be accurately predicted. The unavailable information could have a significant impact on the calculation of the comparable GAAP financial measure.
Conference Call Information
eGain will discuss its fiscal 2023 fourth quarter and full year results today via a teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 844-481-2704 (U.S. toll free) or +1 412-317-0660 (International) and ask to join the eGain earnings call. A live and archived webcast of the call will also be accessible on the “Investor relations” section of eGain’s website at www.egain.com. In addition, a phone replay of the conference call will be available starting two hours after the call and will remain in effect for one week. To access the phone replay, dial 877-344-7529 (U.S. toll free) or +1 412-317-0088 (International). The replay access code is 3097139.
About eGain
eGain Knowledge Hub automates and orchestrates customer engagement across touch points. Powered by AI and analytics, our secure cloud solution delivers personalized digital-first experiences, quick business value, and easy innovation. Visit www.egain.com for more info.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation: our financial guidance for the first quarter of fiscal 2024 and fiscal 2024 full year ending June 30, 2024; expectations with respect to demand and drivers behind demand in fiscal 2024; and our market opportunity. 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 2024 and fiscal 2024 full year ending June 30, 2024. The risks and uncertainties referred to above include, but are not limited to: risks to our business, operating results, 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 for the fiscal year ended June 30, 2023 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’s website at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. We assume no obligation and do not intend to update these forward-looking statements, except as required by law.
eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corporation in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies.
MKR Investor Relations
Todd Kehrli or Jim Byers
Phone: 323-468-2300
Email: egan@mkr-group.comeGain Corporation
Condensed Consolidated Balance Sheets
(in thousands, except par value data)
(unaudited)June 30, June 30, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 73,201 $ 72,173 Restricted cash 7 7 Accounts receivable, less allowance for doubtful accounts of $237 and $123 as of June 30, 2023 and 2022, respectively 31,569 26,961 Costs capitalized to obtain revenue contracts, net 1,317 1,487 Prepaid expenses 2,466 2,612 Other current assets 1,268 895 Total current assets 109,828 104,135 Property and equipment, net 633 831 Operating lease right-of-use assets 2,797 3,850 Costs capitalized to obtain revenue contracts, net of current portion 2,318 3,136 Goodwill 13,186 13,186 Other assets, net 1,355 871 Total assets $ 130,117 $ 126,009 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 2,044 $ 1,706 Accrued compensation 7,697 8,708 Accrued liabilities 5,387 4,926 Operating lease liabilities 832 1,044 Deferred revenue 47,762 45,638 Total current liabilities 63,722 62,022 Deferred revenue, net of current portion 2,101 3,785 Operating lease liabilities, net of current portion 1,762 2,537 Other long-term liabilities 836 808 Total liabilities 68,421 69,152 Stockholders’ equity: Common stock, $0.001 par value – authorized: 60,000 shares; issued: 32,268 and 31,930 shares; outstanding: 31,482 and 31,930 shares as of June 30, 2023 and 2022, respectively 32 32 Additional paid-in capital 401,087 393,157 Treasury stock, at cost: 786 and 0 common shares as of June 30, 2023 and 2022, respectively. (5,763 ) — Notes receivable from stockholders (97 ) (95 ) Accumulated other comprehensive loss (2,122 ) (2,687 ) Accumulated deficit (331,441 ) (333,550 ) Total stockholders’ equity 61,696 56,857 Total liabilities and stockholders’ equity $ 130,117 $ 126,009 eGain Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)Three Months Ended Year Ended June 30, June 30, 2023 2022 2023 2022 Revenue: Subscription $ 22,807 $ 21,378 $ 90,324 $ 84,557 Professional services 1,828 2,126 7,687 7,394 Total revenue 24,635 23,504 98,011 91,951 Cost of revenue: Cost of subscription 4,882 3,969 18,677 14,780 Cost of professional services 1,804 2,632 8,638 9,757 Total cost of revenue 6,686 6,601 27,315 24,537 Gross profit 17,949 16,903 70,696 67,414 Operating expenses: Research and development 6,551 6,399 27,300 24,387 Sales and marketing 6,516 9,494 31,707 33,746 General and administrative 2,524 2,732 10,300 11,419 Total operating expenses 15,591 18,625 69,307 69,552 Income (loss) from operations 2,358 (1,722 ) 1,389 (2,138 ) Interest income 768 87 2,401 94 Other (expense) income, net (454 ) 656 (434 ) 838 Income (loss) before income tax provision 2,672 (979 ) 3,356 (1,206 ) Provision for income taxes (71 ) (572 ) (1,247 ) (1,235 ) Net income (loss) $ 2,601 $ (1,551 ) $ 2,109 $ (2,441 ) Per share information: Earnings (loss) per share: Basic $ 0.08 $ (0.05 ) $ 0.07 $ (0.08 ) Diluted $ 0.08 $ (0.05 ) $ 0.06 $ (0.08 ) Weighted-average shares used in computation: Basic 31,765 31,861 31,959 31,553 Diluted 32,478 31,861 32,799 31,553 Summary of stock-based compensation included in the costs and expenses above: Cost of revenue $ 256 $ 707 $ 1,469 $ 3,056 Research and development 336 625 1,970 2,935 Sales and marketing 1 527 997 2,367 General and administrative 370 585 1,810 3,022 Total stock-based compensation $ 963 $ 2,444 $ 6,246 $ 11,380 eGain Corporation
GAAP to Non-GAAP Reconciliation Table
(in thousands, except per share data)
(unaudited)Three Months Ended Year Ended June 30, June 30, 2023 2022 2023 2022 Income (loss) from operations $ 2,358 $ (1,722 ) $ 1,389 $ (2,138 ) Add: Stock-based compensation 963 2,444 6,246 11,380 Non-GAAP income from operations $ 3,321 $ 722 $ 7,635 $ 9,242 Three Months Ended Year Ended June 30, June 30, 2023 2022 2023 2022 Net income (loss) $ 2,601 $ (1,551 ) $ 2,109 $ (2,441 ) Add: Depreciation and amortization 115 131 490 478 Stock-based compensation expense 963 2,444 6,246 11,380 Interest income (768 ) (87 ) (2,401 ) (94 ) Provision for income taxes 71 572 1,247 1,235 Other (expense) income, net 454 (656 ) 434 (838 ) Severance and related charges 574 4 812 135 Adjusted EBITDA $ 4,010 $ 857 $ 8,937 $ 9,855 Three Months Ended Year Ended June 30, June 30, 2023 2022 2023 2022 Net income (loss) $ 2,601 $ (1,551 ) $ 2,109 $ (2,441 ) Add: Stock-based compensation 963 2,444 6,246 11,380 Non-GAAP net income $ 3,564 $ 893 $ 8,355 $ 8,939 Per share information: Non-GAAP earnings per share: Basic $ 0.11 $ 0.03 $ 0.26 $ 0.28 Diluted $ 0.11 $ 0.03 $ 0.25 $ 0.27 Weighted-average shares used in computation: Basic 31,765 31,861 31,959 31,553 Diluted 32,478 32,906 32,799 32,803 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]2023 2022 Revenue: SaaS revenue $ 22,708 $ 20,573 10% 10% Legacy revenue 99 805 (88%) (88%) GAAP subscription 22,807 21,378 7% 7% GAAP professional services 1,828 2,126 (14%) (14%) Total GAAP revenue $ 24,635 $ 23,504 5% 5% SaaS and professional services revenue: SaaS revenue $ 22,708 $ 20,573 10% 10% Professional Services 1,828 2,126 (14%) (14%) Total SaaS and professional services revenue $ 24,536 $ 22,699 8% 8% Cost of Revenue: GAAP subscription $ 4,882 $ 3,969 Non-GAAP subscription $ 4,882 $ 3,969 GAAP professional services $ 1,804 $ 2,632 Add back: Stock-based compensation (256 ) (707 ) Non-GAAP professional services $ 1,548 $ 1,925 GAAP total cost of revenue $ 6,686 $ 6,601 Add back: Stock-based compensation (256 ) (707 ) Non-GAAP total cost of revenue $ 6,430 $ 5,894 9% 10% Gross Profit: Non-GAAP subscription $ 17,925 $ 17,409 Non-GAAP professional services 280 201 Non-GAAP gross profit $ 18,205 $ 17,610 3% 3% Operating expenses: GAAP research and development $ 6,551 $ 6,399 Add back: Stock-based compensation expense (336 ) (625 ) Non-GAAP research and development $ 6,215 $ 5,774 8% 9% GAAP sales and marketing $ 6,516 $ 9,494 Add back: Stock-based compensation expense (1 ) (527 ) Non-GAAP sales and marketing $ 6,515 $ 8,967 (27%) (27%) GAAP general and administrative $ 2,524 $ 2,732 Add back: Stock-based compensation expense (370 ) (585 ) Non-GAAP general and administrative $ 2,154 $ 2,147 0% 1% GAAP operating expenses $ 15,591 $ 18,625 Add back: Stock-based compensation expense (707 ) (1,737 ) Non-GAAP operating expenses $ 14,884 $ 16,888 (12%) (11%) [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] 2023 2022 Revenue: SaaS revenue $ 89,619 $ 80,904 11% 13% Legacy revenue 705 3,653 (81%) (77%) GAAP subscription 90,324 84,557 7% 9% GAAP professional services 7,687 7,394 4% 7% Total GAAP revenue $ 98,011 $ 91,951 7% 9% SaaS and professional services revenue: SaaS revenue $ 89,619 $ 80,904 11% 13% Professional Services 7,687 7,394 4% 7% Total SaaS and professional services revenue $ 97,306 $ 88,298 10% 13% Cost of Revenue: GAAP subscription $ 18,677 $ 14,780 Non-GAAP subscription $ 18,677 $ 14,780 GAAP professional services $ 8,638 $ 9,757 Add back: Stock-based compensation (1,469 ) (3,056 ) Non-GAAP professional services $ 7,169 $ 6,701 GAAP total cost of revenue $ 27,315 $ 24,537 Add back: Stock-based compensation (1,469 ) (3,056 ) Non-GAAP total cost of revenue $ 25,846 $ 21,481 20% 23% Gross Profit: Non-GAAP subscription $ 71,647 $ 69,777 Non-GAAP professional services 518 693 Non-GAAP gross profit $ 72,165 $ 70,470 2% 5% Operating expenses: GAAP research and development $ 27,300 $ 24,387 Add back: Stock-based compensation expense (1,970 ) (2,935 ) Non-GAAP research and development $ 25,330 $ 21,452 18% 21% GAAP sales and marketing $ 31,707 $ 33,746 Add back: Stock-based compensation expense (997 ) (2,367 ) Non-GAAP sales and marketing $ 30,710 $ 31,379 (2%) 0% GAAP general and administrative $ 10,300 $ 11,419 Add back: Stock-based compensation expense (1,810 ) (3,022 ) Non-GAAP general and administrative $ 8,490 $ 8,397 1% 3% GAAP operating expenses $ 69,307 $ 69,552 Add back: Stock-based compensation expense (4,777 ) (8,324 ) Non-GAAP operating expenses $ 64,530 $ 61,228 5% 8% [1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.