STOCK TITAN

eGain Reports SaaS Revenue Growth of 29% Year over Year and an Operating Cash Flow Margin of 30% in Q1 2021

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

eGain (NASDAQ: EGAN) reported its fiscal 2021 Q1 results for the period ending September 30, 2020, showing a 29% increase in SaaS revenue to $16 million year over year. Total revenue rose 11% to $19.1 million, while GAAP net income was $2 million, up from $1.2 million in the previous year. The company anticipates Q2 SaaS revenue of $15.2 to $15.6 million, indicating 8% to 11% growth. eGain continues to leverage its digital-first platform amid increasing demand for contactless engagement solutions.

Positive
  • SaaS revenue increased 29% year over year to $16 million.
  • Total revenue grew 11% to $19.1 million.
  • GAAP net income was $2 million, up from $1.2 million a year ago.
  • Cash provided by operations was $5.7 million, compared to $2.7 million in the previous year.
Negative
  • Q2 total revenue guidance indicates only 0% to 3% growth year over year.

SUNNYVALE, Calif., Nov. 10, 2020 (GLOBE NEWSWIRE) -- eGain (NASDAQ: EGAN), a leading provider of omnichannel customer engagement solutions, today announced financial results for its fiscal 2021 first quarter ended September 30, 2020.

“We are excited about our SaaS logo growth this quarter,” said Ashu Roy, eGain’s CEO. “In an uncertain economy, enterprises are automating engagement to support contactless commerce and remote work models. With our digital-first platform, unique offers and expanding sales coverage, we look forward to growing our market share.”

Fiscal 2021 First Quarter Financial Highlights

  • SaaS revenue was $16 million, up 29% year over year.
  • SaaS and professional services revenue was $17.3 million, up 23% year over year and comprised 91% of total revenue.
  • Total revenue was $19.1 million, up 11% year over year.
  • GAAP net income was $2.0 million, or $0.07 per basic share and $0.06 per diluted share, compared to GAAP net income of $1.2 million, or $0.04 per basic and diluted share, in the year ago quarter.
  • Non-GAAP net income was $2.5 million, or $0.08 per basic and diluted share, compared to non-GAAP net income of $1.7 million, or $0.06 per basic share and $0.05 per diluted share, in the year ago quarter.
  • Cash provided by operations was $5.7 million, compared to cash provided by operations of $2.7 million in the year ago quarter.

Fiscal 2021 Second Quarter Financial Guidance

For the second quarter of fiscal 2021 ending December 31, 2020, eGain expects:

  • SaaS revenue of between $15.2 million to $15.6 million, which would represent growth between 8% and 11% year over year;
  • SaaS and professional services revenue of between $16.6 million and $17.1 million, which would represent growth of between 5% and 8% year over year;
  • Total revenue of $18.1 million to $18.7 million, which would represent growth between 0% and 3% year over year;
  • GAAP net loss of $1.0 million to breakeven, or $(0.03) to $0.00 per basic share; and
  • Non-GAAP net loss of $0.5 million to net income of $0.5 million, or $(0.02) per basic share to $0.02 per diluted share.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures as supplemental information relating to our operating results. 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 first quarter results today via teleconference at 2:00 p.m., Pacific Time. To access the live call, dial 800-353-6461 (US and Canada) or +1 334-323-0501 (international) and give the participant passcode 8589013. 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.

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 beliefs regarding demand for our products and services, including, without limitation: our beliefs regarding solid business pipeline and our market opportunity; and our expectations with respect to revenue growth and GAAP and non-GAAP net income for the second quarter of fiscal year 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 second quarter of fiscal year 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 the transition to a work-from-home environment; 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; current general economic and market conditions associated with the COVID-19 pandemic and otherwise, which may adversely affect our industry; 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: 323-468-2300
Email: egan@mkr-group.com


eGain Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

       
  September 30,  June 30, 
  2020
    2020
ASSETS      
Current assets:      
Cash and cash equivalents $53,099  $46,609 
Restricted cash  7   6 
Accounts receivable, net  15,478   22,708 
Costs capitalized to obtain revenue contracts, net  1,070   1,066 
Prepaid expenses  2,018   2,514 
Other current assets  801   617 
Total current assets  72,473   73,520 
Property and equipment, net  710   713 
Operating lease right-of-use assets  2,592   2,962 
Costs capitalized to obtain revenue contracts, net of current portion  2,199   2,380 
Intangible assets, net     26 
Goodwill  13,186   13,186 
Other assets  1,057   918 
Total assets $92,217  $93,705 
       
LIABILITIES AND STOCKHOLDERS' EQUITY       
Current liabilities:      
Accounts payable $1,116  $2,429 
Accrued compensation  7,261   7,916 
Accrued liabilities  4,007   3,423 
Operating lease liabilities  1,698   1,753 
Deferred revenue  34,016   36,644 
Total current liabilities  48,098   52,165 
Deferred revenue, net of current portion  4,565   4,826 
Operating lease liabilities, net of current portion  1,045   1,385 
Other long-term liabilities  723   688 
Total liabilities  54,431   59,064 
Commitments and contingencies      
Stockholders' equity:      
Common stock  31   31 
Additional paid-in capital  375,357   374,399 
Notes receivable from stockholders  (91)  (90)
Accumulated other comprehensive loss  (1,487)  (1,631)
Accumulated deficit  (336,024)  (338,068)
Total stockholders' equity  37,786   34,641 
Total liabilities and stockholders' equity $92,217  $93,705 


eGain Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

       
  Three Months Ended
  September 30, 
     2020
    2019
Revenue:      
Subscription $ 17,747  $ 15,572 
Professional services   1,316    1,618 
Total revenue   19,063    17,190 
Cost of revenue:      
Cost of subscription   3,222    3,750 
Cost of professional services   1,409    1,565 
Total cost of revenue   4,631    5,315 
Gross profit   14,432    11,875 
Operating expenses:      
Research and development   4,505    3,998 
Sales and marketing   5,631    4,738 
General and administrative   1,944    2,044 
Total operating expenses   12,080    10,780 
Income from operations   2,352    1,095 
Interest income, net   3    147 
Other income (expense), net   (163)   164 
Income before income tax provision   2,192    1,406 
Income tax provision   (148)   (189)
Net income $ 2,044  $ 1,217 
Per share information:      
Earnings per share:      
Basic $ 0.07  $ 0.04 
Diluted $ 0.06  $ 0.04 
Weighted-average shares used in computation:      
Basic   30,853    30,507 
Diluted   32,508    31,883 
       
Stock-based compensation included in above costs and expenses:      
Cost of revenue $ 74  $ 33 
Research and development   158    176 
Sales and marketing   133    148 
General and administrative   105    94 
  $ 470  $ 451 
       
Amortization of intangible assets included in above costs and expenses:      
Cost of revenue $ 26  $ 67 
Research and development   —    — 
  $ 26  $ 67 


eGain Corporation
GAAP to Non-GAAP Reconciliation Table
(in thousands, except per share data)
(unaudited)

       
  Three Months Ended
September 30,
  2020 2019
Income from operations $2,352 $1,095
Add:      
Stock-based compensation  470  451
Amortization of intangibles assets  26  67
Non-GAAP income from operations $2,848 $1,613
       
Net income $2,044 $1,217
Add:      
Stock-based compensation  470  451
Amortization of intangibles assets  26  67
Non-GAAP net income $2,540 $1,735
Per share information:      
Non-GAAP earnings per share:      
Basic $0.08 $0.06
Diluted $0.08 $0.05
Weighted-average shares used in computation:      
Basic  30,853  30,507
Diluted  32,508  31,883


eGain Corporation

Other GAAP to Non-GAAP Supplemental Financial Information
(in thousands)
(unaudited)

             
  Three Months Ended
September 30,
 Growth Rates Constant Currency Growth Rates [1]
  2020
 2019
      
Revenue:            
SaaS revenue $15,970  $12,418   29%  27%
Legacy revenue  1,777   3,154   (44%)  (44%)
GAAP subscription  17,747   15,572   14%  12%
GAAP professional services  1,316   1,618   (19%)  (20%)
Total GAAP revenue $19,063  $17,190   11%  9%
             
SaaS and professional services revenue:            
SaaS revenue $15,970  $12,418   29%  27%
Professional Services  1,316   1,618   (19%)  (20%)
Total SaaS and professional services revenue $17,286  $14,036   23%  21%
             
Cost of Revenue:            
GAAP subscription $3,222  $3,750       
Add back:            
Amortization of intangible assets  (26)  (67)      
Non-GAAP subscription $3,196  $3,683       
             
GAAP professional services $1,409  $1,565       
Add back:            
Stock-based compensation  (74)  (33)      
Non-GAAP professional services $1,335  $1,532       
             
GAAP total cost of revenue $4,631  $5,315       
Add back:            
Stock-based compensation  (74)  (33)      
Amortization of intangible assets  (26)  (67)      
Non-GAAP total cost of revenue $4,531  $5,215   (13%)  (13%)
             
Gross Profit:            
Non-GAAP subscription $14,551  $11,889       
Non-GAAP professional services  (19)  86       
Non-GAAP gross profit $14,532  $11,975   21%  19%
             
Operating expenses:            
GAAP research and development $4,505  $3,998       
Add back:            
Stock-based compensation expense  (158)  (176)      
Amortization of acquired intangible assets  -   -       
Non-GAAP research and development $4,347  $3,822   14%  14%
             
GAAP sales and marketing $5,631  $4,738       
Add back:            
Stock-based compensation expense  (133)  (148)      
Amortization of acquired intangible assets     -       
Non-GAAP sales and marketing $5,498  $4,590   20%  19%
             
GAAP general and administrative $1,944  $2,044       
Add back:            
Stock-based compensation expense  (105)  (94)      
Amortization of acquired intangible assets            
Non-GAAP general and administrative $1,839  $1,950   (6%)  (6%)
             
GAAP operating expenses $12,080  $10,780       
Add back:            
Stock-based compensation expense  (396)  (418)      
Amortization of acquired intangible assets            
Non-GAAP operating expenses $11,684  $10,362   13%  12%

[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.

FAQ

What were eGain's Q1 fiscal 2021 revenue figures?

eGain reported total revenue of $19.1 million for Q1 fiscal 2021, an 11% year-over-year increase.

How much did eGain's SaaS revenue increase in Q1 fiscal 2021?

SaaS revenue increased by 29% year over year to $16 million.

What is eGain's GAAP net income for Q1 fiscal 2021?

eGain reported a GAAP net income of $2 million, which is a rise from $1.2 million in the same quarter last year.

What is eGain's financial outlook for Q2 fiscal 2021?

For Q2 fiscal 2021, eGain expects SaaS revenue between $15.2 million and $15.6 million, representing growth of 8% to 11% year over year.

How did cash provided by operations change for eGain in Q1 fiscal 2021?

Cash provided by operations increased to $5.7 million in Q1 fiscal 2021, up from $2.7 million in the previous year.

eGain Corporation

NASDAQ:EGAN

EGAN Rankings

EGAN Latest News

EGAN Stock Data

158.42M
28.52M
35.18%
56.95%
1.2%
Software - Application
Services-prepackaged Software
Link
United States of America
SUNNYVALE