eGain reports record revenue in third quarter of fiscal 2022, up 21% year over year
Sunnyvale, CA (May 5, 2022) – eGain (Nasdaq: EGAN), the leading AI knowledge platform for customer engagement automation, today announced financial results for its fiscal 2022 third quarter ended March 31, 2022.
“We delivered another quarter of record revenue, ahead of our guidance and consensus estimates, demonstrating accelerating revenue growth over the last three quarters,” said Ashu Roy, eGain’s CEO. “We are seeing increased demand for our AI Knowledge solution, and we continue to build out our platform to expand our market coverage.”
Fiscal 2022 Third Quarter Financial Highlights
- Total revenue was $23.9 million, up 21% year over year.
- SaaS revenue was $20.7 million, up 23% year over year.
- GAAP net loss was $615,000, or $0.02 per share on a basic and diluted basis, compared to GAAP net income of $1.3 million, or $0.04 per share on a basic and diluted basis, in Q3 2021.
- Non-GAAP net income was $2.4 million, or $0.08 per share on a basic basis and $0.07 per share on a diluted basis, compared to non-GAAP net income of $1.6 million, or $0.05 per share on a basic and diluted basis, in Q3 2021.
- Total cash and cash equivalents were $70.5 million, compared to $53.4 million in Q3 2021.
Fiscal 2022 First Nine Months Financial Highlights
- Total revenue was $68.4 million, up 18% year over year.
- SaaS revenue was $60.3 million, up 23% year over year.
- GAAP net loss was $890,000, or $0.03 per share on a basic and diluted basis, compared to GAAP net income of $4.9 million, or $0.16 per share on a basic basis and $0.15 per share on a diluted basis, in the first nine months of fiscal 2021.
- Non-GAAP net income was $8.0 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 $6.2 million, or $0.20 per share on a basic basis and $0.19 per share on a diluted basis, in the first nine months of fiscal 2021.
- Cash provided from operations was $5.8 million, or an operating cash flow margin of 9%.
Fiscal 2022 Fourth Quarter Financial Guidance
For the fourth quarter of fiscal 2022 ending June 30, 2022, eGain expects:
- Total revenue of between $23.1 million to $23.5 million, representing growth of 14% to 16% year over year.
- Non-GAAP total revenue, adjusted for constant currency, of between $23.6 million to $24.0 million, representing growth of 17% to 19%.
- GAAP net loss of $3.1 million to $3.7 million, or $0.10 to $0.12 per share.
- Includes stock-based compensation expense of approximately $3.0 million.
- Includes depreciation and amortization of approximately $120,000.
- Non-GAAP net loss of $0.0 million to $700,000, or $0.00 to $0.02 per share.
Guidance Assumption:
- Weighted average shares outstanding are expected to be approximately 31.7 million for the fourth quarter of fiscal 2022.
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 third quarter results today via teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 888-256-1007 (US and Canada) or +1 773-305-6853 (international) and give the participant passcode 1668312. 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 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
Infused with AI, our knowledge-powered software automates digital-first experiences for enterprises and government agencies. Pre-connected with leading CRM & 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 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 full year of fiscal 2022 ending June 30, 2022; our market opportunity; and expectations regarding our growth prospects. 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 fourth quarter and full year of fiscal 2022 ending June 30, 2022. 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.
March 2022 quarter financial data
MKR Investor Relations
Todd Kehrli or Jim Byers
Phone: 323-468-2300
Email: [email protected]