• eGain Reports SaaS Revenue Growth of 19% for First Nine Months of Fiscal 2021

    Source: Nasdaq GlobeNewswire / 11 May 2021 15:05:01   America/Chicago

    SUNNYVALE, Calif., May 11, 2021 (GLOBE NEWSWIRE) -- eGain (NASDAQ: EGAN), a leading provider of digital customer engagement solutions, today announced financial results for its fiscal 2021 third quarter ended March 31, 2021.

    “We delivered strong financial results in the third quarter, ahead of guidance and street consensus” said Ashu Roy, eGain’s CEO. “Our SaaS logo wins were up more than 100% year over year for both the third quarter and year to date. We grew the number of our million-dollar SaaS customers by 63% year over year. In March, we launched our Virtual Financial Coach, an AI-powered proactive engagement solution. It is now being piloted by over 25 credit unions across the country.”

    Fiscal 2021 Third Quarter Financial Highlights

    • SaaS revenue was $16.9 million, up 14% year over year.
    • Total revenue was $19.7 million, up 8% year over year.
    • Subscription non-GAAP gross margin was 82%, up 400 basis points year over year.
    • Total non-GAAP gross margin was 76%, up 500 basis points year over year.
    • GAAP net income was $1.3 million, or $0.04 per diluted share, compared to GAAP net income of $1.9 million, or $0.06 per diluted share, in the year ago quarter.
    • Non-GAAP net income was $1.6 million, or $0.05 per diluted share, compared to non-GAAP net income of $2.4 million, or $0.07 per diluted share, in the year ago quarter.
    • Total cash and cash equivalents were $53.4 million, compared to $40.7 million, in the year ago quarter.

    Fiscal 2021 First Nine Months Financial Highlights

    • SaaS revenue was $49.0 million, up 19% year over year.
    • Total revenue was $58.0 million, up 8% year over year, with 92% being subscription based.
    • Subscription non-GAAP gross margin was 82%, up 400 basis points year over year.
    • Total non-GAAP gross margin was 76%, up 500 basis points year over year.
    • GAAP net income was $4.9 million, or $0.15 per diluted share, compared to GAAP net income of $5.1 million, or $0.16 per diluted share, in the year ago quarter.
    • Non-GAAP net income was $6.2 million, or $0.19 per diluted share, compared to non-GAAP net income of $6.7 million, or $0.21 per diluted share, in the year ago quarter.
    • Cash provided by operations was $5.0 million, or 9% operating cash flow margin.

    Fiscal 2021 Financial Guidance

    For the fiscal 2021 full year ending June 30, 2021, eGain expects:

    • SaaS revenue of between $66.0 million to $66.4 million, which would represent growth of 16% to 17% year over year.
    • Total revenue of between $77.3 million to $77.9 million, which would represent growth of 6% to 7% year over year.
    • GAAP net income of $4.4 million to $5.3 million, or $0.13 to $0.16 per share.
    • Non-GAAP net income of $6.2 million to $7.1 million, or $0.19 to $0.22 per share.

    Guidance Assumptions:

    • Includes stock-based compensation expense of approximately $500,000.
    • Includes depreciation and amortization of approximately $100,000.
    • Weighted average shares outstanding of approximately $32.7 million.

    Non-GAAP Financial Measures

    This press release includes certain non-GAAP financial measures as supplemental information relating to our operating results, including non-GAAP net income and non-GAAP gross margin. Such non-GAAP financial measures are adjusted for stock-based compensation expense and amortization of acquired intangible assets. 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, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare the Company’s 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 the Company’s 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 its 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 the Company’s business.

    Conference Call Information

    eGain will discuss its fiscal 2021 third quarter results today via teleconference at 2:00 p.m., Pacific Time. To access the live call, dial 800-367-2403 (US and Canada) or +1 334-777-6978 (international) and give the participant passcode 6020236. A live and archived webcast of the call will also be accessible on the “Investor relations” section of the Company’s website at www.egain.com. In addition, a phone replay will be available approximately two hours following the end of the call and will remain available for one week. To access the replay dial-in information, please click here.

    About eGain

    eGain customer engagement solutions deliver digital transformation for leading brands – powered by virtual assistance, AI, knowledge, and analytics. Our comprehensive suite of applications helps clients deliver memorable, digital-first customer experiences in an omnichannel world. To find out more about eGain, visit http://www.egain.com.

    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. These forward-looking statements are based on current expectations and include our expectations with respect to revenue and GAAP and non-GAAP net income for the fiscal year ending June 30, 2021. 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, the Company’s 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 fiscal year ending June 30, 2021. The risks and uncertainties referred to above include, but are not limited to: risks associated with current economic uncertainties tied to the COVID-19 pandemic, including but not limited to its effect on customer demand for the Company’s 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, conflict or acts of terrorism; the effect of evolving domestic and foreign government regulations, including those addressing data privacy 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 11, 2020 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. The Company assumes no obligation and does 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 Corp. 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: 213-277-5550
    Email: egan@mkr-group.com

     

           
    eGain Corporation
    Condensed Consolidated Balance Sheets
    (in thousands)
    (unaudited)
           
           
      March 31,  June 30, 
      2021
        2020
    ASSETS      
    Current assets:      
    Cash and cash equivalents $53,413  $46,609 
    Restricted cash  7   6 
    Accounts receivable, net  16,016   22,708 
    Costs capitalized to obtain revenue contracts, net  1,270   1,066 
    Prepaid expenses  1,945   2,514 
    Other current assets  647   617 
    Total current assets  73,298   73,520 
    Property and equipment, net  774   713 
    Operating lease right-of-use assets  2,604   2,962 
    Costs capitalized to obtain revenue contracts, net of current portion  2,511   2,380 
    Intangible assets, net     26 
    Goodwill  13,186   13,186 
    Other assets  807   918 
    Total assets $93,180  $93,705 
           
    LIABILITIES AND STOCKHOLDERS' EQUITY       
    Current liabilities:      
    Accounts payable $1,112  $2,429 
    Accrued compensation  7,413   7,916 
    Accrued liabilities  3,030   3,423 
    Operating lease liabilities  1,768   1,753 
    Deferred revenue  31,704   36,644 
    Total current liabilities  45,027   52,165 
    Deferred revenue, net of current portion  3,814   4,826 
    Operating lease liabilities, net of current portion  933   1,385 
    Other long-term liabilities  817   688 
    Total liabilities  50,591   59,064 
    Commitments and contingencies      
    Stockholders' equity:      
    Common stock  31   31 
    Additional paid-in capital  377,115   374,399 
    Notes receivable from stockholders  (92)  (90)
    Accumulated other comprehensive loss  (1,308)  (1,631)
    Accumulated deficit  (333,157)  (338,068)
    Total stockholders' equity  42,589   34,641 
    Total liabilities and stockholders' equity $93,180  $93,705 
           


                 
    eGain Corporation
    Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
    (unaudited)
                 
                 
      Three Months Ended  Nine Months Ended
      March 31,  March 31, 
      2021
        2020
     2021
        2020
    Revenue:            
    Subscription $18,078  $16,919  $53,525  $48,834 
    Professional services  1,665   1,435   4,514   4,865 
    Total revenue  19,743   18,354   58,039   53,699 
    Cost of revenue:            
    Cost of subscription  3,341   3,739   9,811   11,046 
    Cost of professional services  1,505   1,761   4,378   5,012 
    Total cost of revenue  4,846   5,500   14,189   16,058 
    Gross profit  14,897   12,854   43,850   37,641 
    Operating expenses:            
    Research and development  4,371   4,205   13,384   12,255 
    Sales and marketing  6,927   5,064   18,824   14,622 
    General and administrative  2,022   1,828   5,818   5,911 
    Total operating expenses  13,320   11,097   38,026   32,788 
    Income from operations  1,577   1,757   5,824   4,853 
    Interest income, net  5   113   10   384 
    Other income (expense), net  (378)  65   (700)  44 
    Income before income tax (provision) benefit  1,204   1,935   5,134   5,281 
    Income tax (provision) benefit  57   (68)  (223)  (224)
    Net income $1,261  $1,867  $4,911  $5,057 
    Per share information:            
    Earnings per share:            
    Basic $0.04  $0.06  $0.16  $0.17 
    Diluted $0.04  $0.06  $0.15  $0.16 
    Weighted-average shares used in computation:            
    Basic  31,068   30,662   30,962   30,580 
    Diluted  32,618   31,987   32,646   31,935 
                 
    Stock-based compensation included in above costs and expenses:            
    Cost of revenue $88  $62  $243  $148 
    Research and development  92   171   394   549 
    Sales and marketing  169   144   475   422 
    General and administrative  19   83   152   274 
      $368  $460  $1,264  $1,393 
                 
    Amortization of intangible assets included in above costs and expenses:            
    Cost of revenue $  $67  $26  $201 
                 


                     
    eGain Corporation
    GAAP to Non-GAAP Reconciliation Table
    (in thousands)
    (unaudited)
                     
                     
      Three Months Ended March 31, Nine Months Ended March 31,
      2021 2020 2021 2020
    Income from operations $1,577  $1,757  $5,824  $4,853 
    Add:                
    Stock-based compensation  368   460   1,264   1,393 
    Amortization of intangibles assets     67   26   201 
    Non-GAAP income from operations $1,945  $2,284  $7,114  $6,447 
                     
    Net income $1,261  $1,867  $4,911  $5,057 
    Add:                
    Stock-based compensation  368   460   1,264   1,393 
    Amortization of intangibles assets     67   26   201 
    Non-GAAP net income $1,629  $2,394  $6,201  $6,651 
    Per share information:                
    Non-GAAP earnings per share:                
    Basic $0.05  $0.08  $0.20  $0.22 
    Diluted $0.05  $0.07  $0.19  $0.21 
    Weighted-average shares used in computation:                
    Basic  31,068   30,662   30,962   30,580 
    Diluted  32,618   31,987   32,646   31,935 
                     


     
    eGain Corporation
    Other GAAP to Non-GAAP Supplemental Financial Information
    (in thousands)
    (unaudited)
               
      Three Months Ended
    March 31,
     Growth Rates Constant Currency
    Growth Rates [1]
      2021
     2020
        
    Revenue:          
    SaaS revenue $16,875  $14,817  14% 11%
    Legacy revenue  1,203   2,102  (43%) (45%)
    GAAP subscription  18,078   16,919  7% 4%
    GAAP professional services  1,665   1,435  16% 13%
    Total GAAP revenue $19,743  $18,354  8% 5%
               
    SaaS and professional services revenue:          
    SaaS revenue $16,875  $14,817  14% 11%
    Professional Services  1,665   1,435  16% 13%
    Total SaaS and professional services revenue $18,540  $16,252  14% 11%
               
    Cost of Revenue:          
    GAAP subscription $3,341  $3,739     
    Add back:          
    Amortization of intangible assets     (67)    
    Non-GAAP subscription $3,341  $3,672     
               
    GAAP professional services $1,505  $1,761     
    Add back:          
    Stock-based compensation  (88)  (62)    
    Non-GAAP professional services $1,417  $1,699     
               
    GAAP total cost of revenue $4,846  $5,500     
    Add back:          
    Stock-based compensation  (88)  (62)    
    Amortization of intangible assets     (67)    
    Non-GAAP total cost of revenue $4,758  $5,371  (11%) (13%)
               
    Gross Profit:          
    Non-GAAP subscription $14,737  $13,247     
    Non-GAAP professional services  248   (264)    
    Non-GAAP gross profit $14,985  $12,983  15% 12%
               
    Operating expenses:          
    GAAP research and development $4,371  $4,205     
    Add back:          
    Stock-based compensation expense  (92)  (171)    
    Amortization of acquired intangible assets          
    Non-GAAP research and development $4,279  $4,034  6% 5%
               
    GAAP sales and marketing $6,927  $5,064     
    Add back:          
    Stock-based compensation expense  (169)  (144)    
    Amortization of acquired intangible assets          
    Non-GAAP sales and marketing $6,758  $4,920  37% 35%
               
    GAAP general and administrative $2,022  $1,828     
    Add back:          
    Stock-based compensation expense  (19)  (83)    
    Amortization of acquired intangible assets          
    Non-GAAP general and administrative $2,003  $1,745  15% 13%
               
    GAAP operating expenses $13,320  $11,097     
    Add back:          
    Stock-based compensation expense  (280)  (398)    
    Amortization of acquired intangible assets          
    Non-GAAP operating expenses $13,040  $10,699  22% 20%
               
    [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)
               
      Nine Months Ended
    March 31,
     Growth Rates Constant Currency
    Growth Rates [1]
      2021
     2020
        
    Revenue:          
    SaaS $49,023  $41,279  19% 17%
    Legacy revenue  4,502   7,555  (40%) (41%)
    GAAP subscription  53,525   48,834  10% 8%
    GAAP professional services  4,514   4,865  (7%) (9%)
    Total GAAP revenue $58,039  $53,699  8% 6%
               
    SaaS and professional services revenue:          
    SaaS $49,023  $41,279  19% 17%
    Professional Services  4,514   4,865  (7%) (9%)
    Total SaaS and professional services revenue $53,537  $46,144  16% 14%
               
    Cost of Revenue:          
    GAAP subscription $9,811  $11,046     
    Add back:          
    Amortization of intangible assets  (26)  (201)    
    Non-GAAP subscription $9,785  $10,845     
               
    GAAP professional services $4,378  $5,012     
    Add back:          
    Stock-based compensation  (243)  (148)    
    Non-GAAP professional services $4,135  $4,864     
               
    GAAP total cost of revenue $14,189  $16,058     
    Add back:          
    Stock-based compensation  (243)  (148)    
    Amortization of intangible assets  (26)  (201)    
    Non-GAAP total cost of revenue $13,920  $15,709  (11%) (12%)
               
    Gross Profit:          
    Non-GAAP subscription $43,740  $37,989     
    Non-GAAP professional services  379   1     
    Non-GAAP gross profit $44,119  $37,990  16% 14%
               
    Operating expenses:          
    GAAP research and development $13,384  $12,255     
    Add back:          
    Stock-based compensation expense  (394)  (549)    
    Amortization of acquired intangible assets          
    Non-GAAP research and development $12,990  $11,706  11% 11%
               
    GAAP sales and marketing $18,824  $14,622     
    Add back:          
    Stock-based compensation expense  (475)  (422)    
    Amortization of acquired intangible assets          
    Non-GAAP sales and marketing $18,349  $14,200  29% 27%
               
    GAAP general and administrative $5,818  $5,911     
    Add back:          
    Stock-based compensation expense  (152)  (274)    
    Amortization of acquired intangible assets          
    Non-GAAP general and administrative $5,666  $5,637  1% 0%
               
    GAAP operating expenses $38,026  $32,788     
    Add back:          
    Stock-based compensation expense  (1,021)  (1,245)    
    Amortization of acquired intangible assets          
    Non-GAAP operating expenses $37,005  $31,543  17% 16%
               
    [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.
               

    Primary Logo

Share on,