Mar 31, 2024

eGain Q3 2024 Earnings Report

eGain's Q3 2024 earnings were released, revealing a mix of positive and negative results. The company experienced continued momentum in new logo wins driven by its AI knowledge offering, but total revenue fell short of expectations due to timing of revenue recognition.

Key Takeaways

eGain reported a decrease in total revenue but an increase in GAAP and non-GAAP net income. The company saw growth in new logo acquisition, particularly driven by its AI solution, AssistGPT™. While total revenue fell short of expectations, the company achieved enhanced profitability and solid operating cash flow.

New knowledge customer win momentum continued, including a U.S. megabank.

New logo acquisition has grown 50% year-over-year through the first nine months.

Total revenue was $22.4 million, down 3% year-over-year.

GAAP net income was $1.5 million, or $0.05 per share, compared to a net loss of $372,000, or $0.01 per share in Q3 2023.

Total Revenue
$22.4M
Previous year: $23M
-2.9%
EPS
$0.08
Previous year: $0.03
+166.7%
Gross Profit
$15.2M
Previous year: $15.4M
-1.6%
Cash and Equivalents
$83M
Previous year: $81.3M
+2.1%
Free Cash Flow
$1.73M
Previous year: $980K
+76.9%
Total Assets
$120M
Previous year: $117M
+2.6%

eGain

eGain

eGain Revenue by Segment

Forward Guidance

For the fourth quarter of fiscal 2024, eGain expects total revenue between $21.1 million and $21.4 million, a GAAP net loss between $300,000 and $900,000, and a non-GAAP net income between $200,000 and $800,000.

Positive Outlook

  • Total revenue of between $21.1 million to $21.4 million.
  • Non-GAAP net income of $200,000 to $800,000, or $0.01 to $0.03 per share.
  • Weighted average shares outstanding are expected to be approximately 30.5 million for the fourth quarter of fiscal 2024.
  • For the fiscal year 2024, the company expects a total revenue of between $91.5 million to $91.8 million.
  • For the fiscal year 2024, the company expects a Non-GAAP net income of $10.0 million to $10.6 million, or $0.32 to $0.34 per share.

Challenges Ahead

  • GAAP net loss of $300,000 to $900,000, or $0.01 to $0.03 per share.
  • Includes stock-based compensation expense of approximately $1.1 million.
  • Includes depreciation and amortization of approximately $100,000.
  • For the fiscal year 2024, the company expects a GAAP net income of $5.4 million to $6.0 million, or $0.17 to $0.19 per share.
  • Includes stock-based compensation expense of approximately $4.6 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income