“Our AssistGPT offering helped us win new logos in the quarter," said
Fiscal 2024 Second Quarter Financial Highlights
- Total revenue was
$23.8 million , down 7% year over year. - GAAP net income was
$2.2 million , or$0.07 per share on a basic and diluted basis, up from a GAAP net loss of$104,000 , or$0.00 per share on a basic and diluted basis, in Q2 2023. - Non-GAAP net income was
$3.4 million , or$0.11 per share on a basic and diluted basis, up from a non-GAAP net income of$1.7 million , or$0.05 per share on a basic and diluted basis, in Q2 2023. - Cash provided by operations was
$7.7 million , or an operating cash flow margin of 32%. - Total cash and cash equivalents were
$86.8 million , up from$79.8 million in Q1 2024. - Adjusted EBITDA was
$3.8 million compared to$2.2 million in Q2 2023. - Total shares purchased through the repurchase program were approximately 391,000 at an average cost per share of
$6.39 , totaling$2.5 million .
Fiscal 2024 First Six Months Financial Highlights
- Total revenue was
$48.0 million , down 5% year over year. - GAAP net income was
$4.8 million , or$0.15 per share on a basic and diluted basis, compared to GAAP net loss of$120,000 , or$0.00 per share on a basic and diluted basis, in the same period last year. - Non-GAAP net income was
$7.2 million , or$0.23 per share on a basic basis and$0.22 per share on a diluted basis, compared to non-GAAP net income of$3.7 million , or$0.12 per share on a basic basis and$0.11 per share on a diluted basis, in the same period last year. - Adjusted EBITDA was
$6.6 million compared to$3.8 million in the same period last year. - Cash provided from operations was
$15.8 million , or an operating cash flow margin of 33%.
Fiscal 2024 Third Quarter Financial Guidance
For the third quarter of fiscal 2024 ending
- Total revenue of between
$22.6 million to$23.0 million . - GAAP net income of
$400,000 to$1.0 million , or$0.01 to$0.03 per share.- Includes stock-based compensation expense of approximately
$1.2 million . - Includes depreciation and amortization of approximately
$100,000 .
- Includes stock-based compensation expense of approximately
- Non-GAAP net income of
$1.6 million to$2.2 million , or$0.05 to$0.07 per share.
Fiscal 2024 Financial Guidance
For the fiscal 2024 full year ending
- Total revenue of between
$92.0 million to$93.0 million . - GAAP net income of
$4.5 million to$5.0 million , or$0.14 to$0.16 per share.- Includes stock-based compensation expense of approximately
$4.8 million . - Includes depreciation and amortization of approximately
$500,000 .
- Includes stock-based compensation expense of approximately
- Non-GAAP net income of
$9.3 million to$9.8 million , or$0.29 to$0.31 per share.
Guidance Assumption:
- Weighted average shares outstanding are expected to be approximately 31.9 million for the third quarter of fiscal 2024 and 32.0 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, and severance and related charges. 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
Conference Call Information
eGain will discuss its fiscal 2024 second quarter results today via a teleconference at
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
eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of
MKR Investor Relations
Phone: 323-468-2300
Email: egan@mkr-group.com
Condensed Consolidated Balance Sheets (in thousands, except par value data) (unaudited) | ||||||||
2023 | 2023 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 86,833 | $ | 73,201 | ||||
Restricted cash | 7 | 7 | ||||||
Accounts receivable, less provision for credit losses of | 14,271 | 31,569 | ||||||
Costs capitalized to obtain revenue contracts, net | 1,282 | 1,317 | ||||||
Prepaid expenses | 2,157 | 2,466 | ||||||
Other current assets | 1,175 | 1,268 | ||||||
Total current assets | 105,725 | 109,828 | ||||||
Property and equipment, net | 561 | 633 | ||||||
Operating lease right-of-use assets | 2,200 | 2,797 | ||||||
Costs capitalized to obtain revenue contracts, net of current portion | 2,003 | 2,318 | ||||||
13,186 | 13,186 | |||||||
Other assets, net | 1,768 | 1,355 | ||||||
Total assets | $ | 125,443 | $ | 130,117 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,777 | $ | 2,044 | ||||
Accrued compensation | 5,842 | 7,697 | ||||||
Accrued liabilities | 4,207 | 5,387 | ||||||
Operating lease liabilities | 587 | 832 | ||||||
Deferred revenue | 40,880 | 47,762 | ||||||
Total current liabilities | 53,293 | 63,722 | ||||||
Deferred revenue, net of current portion | 2,991 | 2,101 | ||||||
Operating lease liabilities, net of current portion | 1,470 | 1,762 | ||||||
Other long-term liabilities | 896 | 836 | ||||||
Total liabilities | 58,650 | 68,421 | ||||||
Stockholders' equity: | ||||||||
Common stock, par value | 32 | 32 | ||||||
Additional paid-in capital | 404,320 | 401,087 | ||||||
(8,778 | ) | (5,763 | ) | |||||
Notes receivable from stockholders | (20 | ) | (97 | ) | ||||
Accumulated other comprehensive loss | (2,101 | ) | (2,122 | ) | ||||
Accumulated deficit | (326,660 | ) | (331,441 | ) | ||||
Total stockholders' equity | 66,793 | 61,696 | ||||||
Total liabilities and stockholders' equity | $ | 125,443 | $ | 130,117 |
Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Revenue: | |||||||||||||||||
Subscription | $ | 21,996 | $ | 23,614 | $ | 44,319 | $ | 46,537 | |||||||||
Professional services | 1,819 | 1,986 | 3,672 | 3,826 | |||||||||||||
Total revenue | 23,815 | 25,600 | 47,991 | 50,363 | |||||||||||||
Cost of revenue: | |||||||||||||||||
Cost of subscription | 5,109 | 4,424 | 10,156 | 8,402 | |||||||||||||
Cost of professional services | 1,881 | 2,328 | 3,672 | 4,632 | |||||||||||||
Total cost of revenue | 6,990 | 6,752 | 13,828 | 13,034 | |||||||||||||
Gross profit | 16,825 | 18,848 | 34,163 | 37,329 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 6,660 | 7,188 | 13,292 | 14,062 | |||||||||||||
Sales and marketing | 5,349 | 8,895 | 11,453 | 18,354 | |||||||||||||
General and administrative | 2,391 | 2,552 | 5,577 | 5,370 | |||||||||||||
Total operating expenses | 14,400 | 18,635 | 30,322 | 37,786 | |||||||||||||
Income (loss) from operations | 2,425 | 213 | 3,841 | (457 | ) | ||||||||||||
Interest income | 982 | 529 | 1,931 | 815 | |||||||||||||
Other (expense) income, net | (697 | ) | (545 | ) | (87 | ) | 265 | ||||||||||
Income before income tax provision | 2,710 | 197 | 5,685 | 623 | |||||||||||||
Income tax provision | (525 | ) | (301 | ) | (904 | ) | (743 | ) | |||||||||
Net income (loss) | $ | 2,185 | $ | (104 | ) | $ | 4,781 | $ | (120 | ) | |||||||
Per share information: | |||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | 0.07 | $ | (0.00 | ) | $ | 0.15 | $ | (0.00 | ) | |||||||
Diluted | $ | 0.07 | $ | (0.00 | ) | $ | 0.15 | $ | (0.00 | ) | |||||||
Weighted-average shares used in computation: | |||||||||||||||||
Basic | 31,179 | 32,018 | 31,329 | 31,975 | |||||||||||||
Diluted | 31,843 | 32,018 | 31,991 | 31,975 | |||||||||||||
Summary of stock-based compensation included in costs and expenses above: | |||||||||||||||||
Cost of revenue | $ | 284 | $ | 412 | $ | 581 | $ | 842 | |||||||||
Research and development | 367 | 553 | 764 | 1,124 | |||||||||||||
Sales and marketing | 197 | 292 | 356 | 823 | |||||||||||||
General and administrative | 347 | 514 | 702 | 1,047 | |||||||||||||
Total stock-based compensation | $ | 1,195 | $ | 1,771 | $ | 2,403 | $ | 3,836 |
GAAP to Non-GAAP Reconciliation Table (in thousands, except per share data) (unaudited) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Income (loss) from operations | $ | 2,425 | $ | 213 | $ | 3,841 | $ | (457 | ) | |||||
Add: | ||||||||||||||
Stock-based compensation | 1,195 | 1,771 | 2,403 | 3,836 | ||||||||||
Non-GAAP income from operations | $ | 3,620 | $ | 1,984 | $ | 6,244 | $ | 3,379 |
Three Months Ended | Six Months Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Net income (loss) | $ | 2,185 | $ | (104 | ) | $ | 4,781 | $ | (120 | ) | ||||
Add: | ||||||||||||||
Stock-based compensation | 1,195 | 1,771 | 2,403 | 3,836 | ||||||||||
Non-GAAP net income | $ | 3,380 | $ | 1,667 | $ | 7,184 | $ | 3,716 | ||||||
Per share information: | ||||||||||||||
Non-GAAP earnings per share: | ||||||||||||||
Basic | $ | 0.11 | $ | 0.05 | $ | 0.23 | $ | 0.12 | ||||||
Diluted | $ | 0.11 | $ | 0.05 | $ | 0.22 | $ | 0.11 | ||||||
Weighted-average shares used in computation: | ||||||||||||||
Basic | 31,179 | 32,018 | 31,329 | 31,975 | ||||||||||
Diluted | 31,843 | 32,870 | 31,991 | 32,881 |
Three Months Ended | Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) | $ | 2,185 | $ | (104 | ) | $ | 4,781 | $ | (120 | ) | ||||||
Add: | ||||||||||||||||
Depreciation and amortization | 97 | 125 | 204 | 251 | ||||||||||||
Stock-based compensation expense | 1,195 | 1,771 | 2,403 | 3,836 | ||||||||||||
Interest income | (982 | ) | (529 | ) | (1,931 | ) | (815 | ) | ||||||||
Provision for income taxes | 525 | 301 | 904 | 743 | ||||||||||||
Other (expense) income, net | 697 | 545 | 87 | (265 | ) | |||||||||||
Severance and related charges | 54 | 85 | 135 | 150 | ||||||||||||
Adjusted EBITDA | $ | 3,771 | $ | 2,194 | $ | 6,583 | $ | 3,780 |
Other GAAP to Non-GAAP Supplemental Financial Information (in thousands) (unaudited) | ||||||||||||||||
Three Months Ended | Growth Rates | Constant Currency Growth Rates [1] | ||||||||||||||
2023 | 2022 | |||||||||||||||
Revenue: | ||||||||||||||||
SaaS revenue | $ | 21,947 | $ | 23,429 | (6%) | (8%) | ||||||||||
Legacy revenue | 49 | 185 | (74%) | (77%) | ||||||||||||
GAAP subscription | 21,996 | 23,614 | (7%) | (8%) | ||||||||||||
GAAP professional services | 1,819 | 1,986 | (8%) | (9%) | ||||||||||||
Total GAAP revenue | $ | 23,815 | $ | 25,600 | (7%) | (8%) | ||||||||||
SaaS and professional services revenue: | ||||||||||||||||
SaaS revenue | $ | 21,947 | $ | 23,429 | (6%) | (8%) | ||||||||||
Professional Services | 1,819 | 1,986 | (8%) | (9%) | ||||||||||||
Total SaaS and professional services revenue | $ | 23,766 | $ | 25,415 | (6%) | (8%) | ||||||||||
Cost of Revenue: | ||||||||||||||||
GAAP subscription | $ | 5,109 | $ | 4,424 | ||||||||||||
Non-GAAP subscription | $ | 5,109 | $ | 4,424 | ||||||||||||
GAAP professional services | $ | 1,881 | $ | 2,328 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation | (284 | ) | (412 | ) | ||||||||||||
Non-GAAP professional services | $ | 1,597 | $ | 1,916 | ||||||||||||
GAAP total cost of revenue | $ | 6,990 | $ | 6,752 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation | (284 | ) | (412 | ) | ||||||||||||
Non-GAAP total cost of revenue | $ | 6,706 | $ | 6,340 | 6% | 5% | ||||||||||
Gross Profit: | ||||||||||||||||
Non-GAAP subscription | $ | 16,887 | $ | 19,190 | ||||||||||||
Non-GAAP professional services | 222 | 70 | ||||||||||||||
Non-GAAP gross profit | $ | 17,109 | $ | 19,260 | (11%) | (13%) | ||||||||||
Operating expenses: | ||||||||||||||||
GAAP research and development | $ | 6,660 | $ | 7,188 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation expense | (367 | ) | (553 | ) | ||||||||||||
Non-GAAP research and development | $ | 6,293 | $ | 6,635 | (5%) | (6%) | ||||||||||
GAAP sales and marketing | $ | 5,349 | $ | 8,895 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation expense | (197 | ) | (292 | ) | ||||||||||||
Non-GAAP sales and marketing | $ | 5,152 | $ | 8,603 | (40%) | (42%) | ||||||||||
GAAP general and administrative | $ | 2,391 | $ | 2,552 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation expense | (347 | ) | (514 | ) | ||||||||||||
Non-GAAP general and administrative | $ | 2,044 | $ | 2,038 | 0% | 0% | ||||||||||
GAAP operating expenses | $ | 14,400 | $ | 18,635 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation expense | (911 | ) | (1,359 | ) | ||||||||||||
Non-GAAP operating expenses | $ | 13,489 | $ | 17,276 | (22%) | (23%) |
[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than
Other GAAP to Non-GAAP Supplemental Financial Information (in thousands) (unaudited) | ||||||||||||||||
Six Months Ended | Growth Rates | Constant Currency Growth Rates [1] | ||||||||||||||
2023 | 2022 | |||||||||||||||
Revenue: | ||||||||||||||||
SaaS revenue | $ | 44,203 | $ | 46,057 | (4%) | (6%) | ||||||||||
Legacy revenue | 116 | 480 | (76%) | (78%) | ||||||||||||
GAAP subscription | 44,319 | 46,537 | (5%) | (6%) | ||||||||||||
GAAP professional services | 3,672 | 3,826 | (4%) | (5%) | ||||||||||||
Total GAAP revenue | $ | 47,991 | $ | 50,363 | (5%) | (6%) | ||||||||||
SaaS and professional services revenue: | ||||||||||||||||
SaaS revenue | $ | 44,203 | $ | 46,057 | (4%) | (6%) | ||||||||||
Professional Services | 3,672 | 3,826 | (4%) | (5%) | ||||||||||||
Total SaaS and professional services revenue | $ | 47,875 | $ | 49,883 | (4%) | (6%) | ||||||||||
Cost of Revenue: | ||||||||||||||||
GAAP subscription | $ | 10,156 | $ | 8,402 | ||||||||||||
Non-GAAP subscription | $ | 10,156 | $ | 8,402 | ||||||||||||
GAAP professional services | $ | 3,672 | $ | 4,632 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation | (581 | ) | (842 | ) | ||||||||||||
Non-GAAP professional services | $ | 3,091 | $ | 3,790 | ||||||||||||
GAAP total cost of revenue | $ | 13,828 | $ | 13,034 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation | (581 | ) | (842 | ) | ||||||||||||
Non-GAAP total cost of revenue | $ | 13,247 | $ | 12,192 | 9% | 8% | ||||||||||
Gross Profit: | ||||||||||||||||
Non-GAAP subscription | $ | 34,163 | $ | 38,135 | ||||||||||||
Non-GAAP professional services | 581 | 36 | ||||||||||||||
Non-GAAP gross profit | $ | 34,744 | $ | 38,171 | (9%) | (11%) | ||||||||||
Operating expenses: | ||||||||||||||||
GAAP research and development | $ | 13,292 | $ | 14,062 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation expense | (764 | ) | (1,124 | ) | ||||||||||||
Non-GAAP research and development | $ | 12,528 | $ | 12,938 | (3%) | (4%) | ||||||||||
GAAP sales and marketing | $ | 11,453 | $ | 18,354 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation expense | (356 | ) | (823 | ) | ||||||||||||
Non-GAAP sales and marketing | $ | 11,097 | $ | 17,531 | (37%) | (38%) | ||||||||||
GAAP general and administrative | $ | 5,577 | $ | 5,370 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation expense | (702 | ) | (1,047 | ) | ||||||||||||
Non-GAAP general and administrative | $ | 4,875 | $ | 4,323 | 13% | 12% | ||||||||||
GAAP operating expenses | $ | 30,322 | $ | 37,786 | ||||||||||||
Add back: | ||||||||||||||||
Stock-based compensation expense | (1,822 | ) | (2,994 | ) | ||||||||||||
Non-GAAP operating expenses | $ | 28,500 | $ | 34,792 | (18%) | (19%) |
[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than
Source:
2024 GlobeNewswire, Inc., source