• eGain Reports Fiscal 2023 Fourth Quarter and Full Year Financial Results

    ソース: Nasdaq GlobeNewswire / 14 9 2023 15:05:01   America/Chicago

    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.com


    eGain 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.


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