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Dec 31, 2020

eGain Q2 2021 Earnings Report

eGain delivered solid results with healthy SaaS revenue growth and expanding gross margins.

Key Takeaways

eGain reported a 15% increase in SaaS revenue, reaching $16.2 million, and a 6% increase in total revenue, amounting to $19.2 million for the fiscal 2021 second quarter. The company's SaaS logo wins doubled year-over-year for the second consecutive quarter, and subscription gross margin improved to 82%.

SaaS revenue increased by 15% year-over-year, reaching $16.2 million.

Total revenue grew by 6% year-over-year to $19.2 million.

Subscription gross margin improved to 82%, up 400 basis points year-over-year.

GAAP net income was $1.6 million, or $0.05 per diluted share.

Total Revenue
$19.2M
Previous year: $18.2M
+5.9%
EPS
$0.06
Previous year: $0.08
-25.0%
SaaS revenue decline
15%
Previous year: 19%
-21.1%
Gross Profit
$14.5M
Previous year: $12.9M
+12.5%
Cash and Equivalents
$54.2M
Previous year: $40.3M
+34.5%
Free Cash Flow
-$25K
Previous year: $5.26M
-100.5%
Total Assets
$94M
Previous year: $78.8M
+19.3%

eGain

eGain

eGain Revenue by Segment

Forward Guidance

For the third quarter of fiscal 2021 ending March 31, 2021, eGain expects SaaS revenue of between $15.8 million to $16.3 million and total revenue of between $18.3 million to $18.8 million.

Positive Outlook

  • SaaS revenue of between $15.8 million to $16.3 million
  • Total revenue of between $18.3 million to $18.8 million

Challenges Ahead

  • GAAP net loss of $500,000 to $1.5 million, or $(0.02) to $(0.05) per share.
  • Non-GAAP net loss of breakeven to $1.0 million, or $0.00 per basic share to $(0.03) per share.
  • Includes an expected $300,000 sequential decline in SaaS revenue due to fewer days in the fiscal third quarter than in the second quarter.
  • Includes an expected $400,000 sequential decline in SaaS revenue due to seasonal volume increases in the second quarter that are not expected to repeat in the fiscal third quarter.
  • Includes stock-based compensation expense of approximately $500,000.