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.
