eGain reports SaaS revenue growth of 30% year over year in Q1 2020
Sunnyvale, CA (November 6, 2019) – eGain (NASDAQ: EGAN), a leading provider of omnichannel customer engagement solutions, today announced financial results for its fiscal 2020 first quarter ended September 30, 2019.
“We are off to a solid start in the first quarter, with healthy SaaS growth and strong cash flow,” said Ashu Roy, eGain CEO. “As planned, we are ramping our sales investment to drive growth. And with recently launched capabilities for conversational automation, augmented agents, and full-spectrum analytics, we are raising the bar on digital-first, omnichannel customer engagement.”
Fiscal 2020 First Quarter Financial Highlights
- SaaS revenue was $12.4 million, up 30% year over year (33% in constant currency).
- Subscription revenue, which includes SaaS and legacy revenue, was $15.6 million, up 13% year over year (16% in constant currency) and comprised 91% of total revenue.
- Total revenue was $17.2 million, up 9% year over year (12% in constant currency).
- GAAP net income was $1.2 million, or $0.04 per share on a basic and diluted basis, compared to GAAP net income of $604,000, or $0.02 per share on a basic and diluted basis, for Q1 2019.
- Non-GAAP net income was $1.7 million, or $0.06 per share on a basic and $0.05 per share on a diluted basis, compared to non-GAAP net income of $1.2 million, or $0.04 per share on a basic and diluted basis, for Q1 2019.
- Cash provided by operations was $2.7 million, compared to cash provided by operations of $3.3 million in Q1 2019.
Fiscal 2020 Financial Guidance
For the fiscal year ending June 30, 2020, eGain is reiterating its previously provided guidance for full year SaaS revenue of between $53.8 million to $55.4 million (on a constant currency basis), which would represent growth between 20% and 24% year over year, total revenue of $72.0 million to $73.6 million (on a constant currency basis), which would represent growth between 7% and 10% year over year and to generate non-GAAP net income of breakeven to $2.0 million, or $0.00 to $0.06 per diluted share.
For the second quarter of fiscal 2020, eGain expects SaaS revenue of $13.3 million to $13.7 million, total revenue of $17.2 million to $17.7 million and to generate non-GAAP net income of $0.2 million to $0.7 million, or $0.01 to $0.02 per diluted share.
Non-GAAP Financial Measures
This press release includes non-GAAP operating income and non-GAAP net income as supplemental information relating to our operating results. Non-GAAP net income is defined as net income 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. Defined in the supplemental information is SaaS and legacy revenue, where legacy revenue is defined as license, maintenance and support contracts on perpetual license arrangements that we no longer sell. 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 2020 first quarter results today via teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 888-254-3590 (US and Canada) or +1 323-794-2551 (international) and give the participant passcode 159809. A live and archived webcast of the call will be accessible on the “Investors” 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. To access the call replay dial-in information, please click here.
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 https://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 belief that we see positive business and customer momentum; our belief that our pipeline and the demand for our AI-powered customer engagement platform offering is strong; expected increase in growth investment, including the partner ecosystem; and our beliefs with respect to SaaS revenue growth and net income growth for the fiscal year ending June 30, 2020 and the first quarter of fiscal year 2020. 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 fiscal year ending June 30, 2020 and first quarter of fiscal year 2020. The risks and uncertainties referred to above include, but are not limited to: 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; risks that our SaaS based revenue model and lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; the success of organization changes; 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 invest resources to improve our products and continue to innovate; our strategy of making investments in sales to drive growth; general economic and market conditions 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 12, 2019 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 ByersPhone: 323-468-2300