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Sep 30, 2023

eGain Q1 2024 Earnings Report

eGain's Q1 2024 results showed improved profitability and operating cash flow.

Key Takeaways

eGain reported Q1 2024 financial results with revenue of $24.2 million, a GAAP net income of $2.6 million, and a non-GAAP net income of $3.8 million. The company's operating cash flow was $8.1 million, representing a 34% margin. eGain also extended its stock repurchase program.

Total revenue was $24.2 million, a decrease of 2% year-over-year.

GAAP net income increased to $2.6 million, or $0.08 per share, compared to a net loss of $16,000, or $0.00 per share in Q1 2023.

Non-GAAP net income rose to $3.8 million, or $0.12 per share, up from $2.0 million, or $0.06 per share in Q1 2023.

Cash provided by operations was $8.1 million, resulting in an operating cash flow margin of 34%.

Total Revenue
$24.2M
Previous year: $24.8M
-2.4%
EPS
$0.12
Previous year: $0.06
+100.0%
Gross Profit
$17.3M
Cash and Equivalents
$79.8M
Previous year: $71.5M
+11.6%
Free Cash Flow
$8.1M
Total Assets
$123M

eGain

eGain

eGain Revenue by Segment

Forward Guidance

For the second quarter of fiscal 2024, eGain anticipates total revenue between $23.0 million and $23.6 million, GAAP net income of $800,000 to $1.4 million, and non-GAAP net income of $2.3 million to $2.9 million. For the full fiscal year 2024, eGain expects total revenue between $96.0 million and $98.0 million, GAAP net income of $6.6 million to $7.1 million, and non-GAAP net income of $12.1 million to $12.6 million.

Positive Outlook

  • Total revenue is expected to be between $23.0 million to $23.6 million.
  • GAAP net income is projected to be between $800,000 to $1.4 million, or $0.03 to $0.04 per share.
  • Non-GAAP net income is anticipated to be between $2.3 million to $2.9 million, or $0.07 to $0.09 per share.
  • Full year total revenue is projected to be between $96.0 million to $98.0 million.
  • Full year GAAP net income is expected to be between $6.6 million to $7.1 million, or $0.20 to $0.22 per share.

Challenges Ahead

  • Second quarter guidance includes stock-based compensation expense of approximately $1.5 million.
  • Second quarter guidance includes depreciation and amortization of approximately $125,000.
  • Full year guidance includes stock-based compensation expense of approximately $5.5 million.
  • Full year guidance includes depreciation and amortization of approximately $500,000.
  • Weighted average shares outstanding are expected to be approximately 31.6 million for the second quarter of fiscal 2024.