eGain Corporation · NASDAQ:EGAN
eGain — Q4 FY23 Earnings Presentation
34 slides from eGain's earnings presentation, September 2023
Slide 1: Connect More Dots – Investor Presentation Q4 FY23
NASDAQ : EGAN Connect More Dots #1 Digital Customer Engagement Solution Gartner & Forrester Investor Presentation Q4 FY23
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation: our financial guidance for the first quarter of fiscal 2024 and fiscal 2024 full ye
Slide 3: Who We Are
WHO WE ARE Top-rated, knowledge-powered customer engagement platform for enterprise and gov NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTATION 3
Slide 4: At a Glance
WH O W E A R E AT A GLANCE COMPANY OVERVIEW FINANCIAL SNAPSHOT (FY23) 1997 170+ 580+ 9% 74% 9% Founded SaaS Enterprise Employees TOTAL REVENUE2 GROSS MARGIN3 ADJUSTED Customers1 GROWTH YoY EBITDA MARGIN4 Enterprise Clients Financial services, government, health, telco, retail 106% 17% 5% TTM US SAAS
Slide 5: The Time Is Now
THE TIME IS NOW The market opportunity is massive and we are in position to dominate NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTATION 5
Slide 6: Highly Favorable Tailwinds
THE TIME IS NOW HIGHLY FAVORABLE TAILWINDS Over 2/3 of contact center agents 1 Poor Agent Experience and Attrition Risk lack knowledge guidance >20% of the $250B Contact Center 2 Engagement Automation with AI+KM labor market automated by 2030 80% of customers say they would 3 Customer Churn Due to B
Slide 7: Gartner cites Knowledge Management as #1 technology
WHAT WE DO MATTERS Gartner analysts cite Knowledge Management (KM) as the #1 technology for enhancing the three main customer service perspectives of operational performance, customer experience (CX) and employee experience NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTATION 7
Slide 8: Growing Knowledge Gap in the Enterprise
THE TIME IS NOW GROWING KNOWLEDGE GAP IN THE ENTERPRISE Knowledge silos increasing in the enterprise, not decreasing “Knowledge Management (KM) is the #1 technology for enhancing the three main customer service perspectives of operational Businesses (and partners) struggle with performance, cust
Slide 9: eGain Product Is Top-Rated
WHA T WE DO MA TTERS EGAIN PRODUCT IS TOP-RATED #1 #1 Digital Engagement + Current Product Knowledge Management + Offering Engagement Automation — — Forrester New Wave Report on Digital-first Customer Service, 2020 Gartner Critical Capabilities Report on Customer Engagement, 2021 NASDAQ: EGAN Q4 FY2
Slide 10: How We Make It Happen
WHA T WE DO MA TTERS HOW WE MAKE IT HAPPEN 170+ of the largest, most coveted, and hardest-to-reach enterprises use our platform to engage customers every day Social SMS Chat App Google Email Business Virtual Messaging Assistant Twitter DM Apple Voice Business CUSTOMER ENGAGEMENT PLATFORM Chat Facebo
Slide 11: Open Platform & Growing Ecosystem
WHA T WE DO MA TTERS OPEN PLATFORM & GROWING ECOSYSTEM COMPOSABLE EXPERIENCE PLATFORM SOLUTION MARKETPLACE CRM CC Other * * * * Note: * represents connectors still in negotiation phase. NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTATION 11
Slide 12: What Sets Us Apart
WHA T WE DO MA TTERS WHAT SETS US APART Knowledge Digital-first, Composable, Innovation Management + AI Omnichannel Secure Platform at Scale + Speed Parallel reasoning Conversation Hub, Rich connector Unique “innovation — BYOB architecture library in 30 Days” offer Personalized — — — content Virtual
Slide 13: Large B2C Customers with Complex Processes & Compliance Requirements
LARGE B2C CUSTOMERS WITH COMPLEX WHA T WE DO MA TTERS PROCESSES & COMPLIANCE REQUIREMENTS F I NANCIAL S E R V I CE S F E D E R AL & S T A T E H E A LTHCARE & R E T A IL & & I N S URANCE G O V E RNE M E NT T E LE C O M & M E D I A I N S URANCE M A N UFACT URING NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTAT
Slide 14: We Deliver Wow
WE DELIVER WOW We deliver quick value and easy innovation to transform customer experience NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTATION 14
Slide 15: Case Study: IRS – Modernizing Taxpayer Engagement
WE DELI VER WO W CASE STUDY: IRS Internal Revenue Services Our Knowledge-Powered Digital Journey “Modernizing Taxpayer Engagement” WATCH IRS SUCCESS VIDEO CHALLENGE CLIENT SUCCESS • 20 million unanswered phone calls per year • Long phone hold times and office wait times • Inconsistent answers given
Slide 16: Case Study: Liberty Mutual
WE DELI VER WO W CASE STUDY: LIBERTY MUTUAL “Great implementation team with solid support. Users love the product, easy to use and intuitive interface, AI capabilities makes use of the product a 'no brainer’.” “Personalized Knowledge and AI for Agents” CHALLENGE CLIENT SUCCESS • Multiple business un
Slide 17: Case Study: Paylocity
WE DELI VER WO W CASE STUDY: PAYLOCITY Paylocity and eGain Propelling HR From Backroom to Boardroom “Easy Self-Service, Empowered Agents” WATCH VIDEO CHALLENGE CLIENT SUCCESS • Hyper growth 35% • Proliferating products • Increasing need to escalate to experts SOLUTION Better first-time • Web self-se
Slide 18: Who Else Is Out There
WHO ELSE IS OUT THERE eGain is the industry leader according to Gartner and Forrester NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTATION 18
Slide 19: Why We Win & Why We Miss
WHO ELSE I S O UT THERE WHY WE WIN & WHY WE MISS KNOWLEDGE CONVERSATION ANALYTICS Rich, comprehensive capabilities Rich, comprehensive Consolidates data and insight for customer, agent & business omnichannel capabilities across channel and platforms Differentiated, proven AI process Modern
Slide 20: Strategic Focus on U.S. Driving Robust SaaS Growth and Retention
STRATEGIC FOCUS ON U.S. IS DRIVING ROBUST SAAS GROWTH AND RETENTION 1 17% 3-Year CAGR in U.S. SaaS ARR driven by increased demand from new and existing customers 1. Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies ot
Slide 21: Q4 FY23 Financial Highlights
FINANCIAL HIGHLIGHTS Q4 FY23 FINANCIAL HIGHLIGHTS METRIC PERFORMANCE Total revenue $24.6 million, up 5% year-over-year Ending SaaS ARR $74.5 million, up 1% year-over-year Non-GAAP Gross Margin 74% compared to 75% in Q4 FY22 Non-GAAP Subscription Growth Margin 79% compared to 81% in Q4 FY22 Non-GAAP
Slide 22: Overview of SaaS ARR by Type
Overview Of SaaS ARR By Type • SaaS comprises 99% of total ARR, reflecting successful uptake of eGain’s Knowledge-led product platform • Strategically focused on direct sales to $2B+ enterprises and government agencies in the high-growth U.S. market • U.S. sales comprise ~73% of total ARR • Vertical
Slide 23: Quarterly Revenue Growth & Margins
FINANCIAL HIGHLIGHTS QTR REVENUE GROWTH & MARGINS T O T A L R E V E N UE Y o Y G R O W TH G R O S S M A R GIN 1 A D J US T E D E B I T D A MA R GIN 2 16% 15% 11% 5% 75% 76% 16% 75% 74% -4% 69% 9% 4% 6% 5% $24.8 $24.6 $23.5 $25.6 $23.0 $19.3 $18.2 $18.9 $17.6 $15.8 $4.0 $1.6 $2.2 $0.9 $1.1 Q4FY22 Q1F
Slide 24: Where We're Going
WHERE WE’RE GOING We intend to be the #1 Customer Engagement Automation Company NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTATION 24
Slide 25: Growth Drivers
WHERE WE’ RE GO I NG GROWTH DRIVERS Enter adjacent Acquire new markets Retain and expand enterprise SaaS logos enterprise SaaS clients Scaled investment in sales & marketing • Drive knowledge hub • Expand connectors to adoption across the CRM and CC platforms enterprise, beyond to tap new market poo
Slide 26: Q1 FY24 and FY24 Guidance
Q1FY24 AND FY24 GUIDANCE Q1FY24 FY2024 Total Revenue $23.5M – $24.0M $96.0M – $98.0M GAAP Net Income $0.5M – $1.0M $6.6M – $7.1M GAAP Net Income EPS $0.02 – $0.03 $0.20 –$0.22 Non-GAAP Net Income $1.7M – $2.2M $10.8M – $11.3M Non-GAAP Net Income EPS $0.05 – $0.07 $0.33 – $0.35 NASDAQ: EGAN Q4 FY23 I
Slide 27: Key Takeaways
KEY TAKEAWAYS Top-rated Knowledge-powered customer engagement platform Composable, secure cloud platform with differentiated FedRAMP certification Coveted, hard-to-reach, sticky large enterprise & government customers Massive market with secular tailwinds driving adoption for eGain’s platform Balanc
Slide 28: © 2023 eGain Corporation. All rights reserved.
© 2023 eGain Corporation. All rights reserved. NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTATION 28
Slide 29: Appendix
APPENDIX NASDAQ: EGAN Q4 FY23 INVESTOR PRESENTATION 29
Slide 30: GAAP P&L Last 5 Quarters
APPENDIX GAAP P&L LAST 5 QUARTERS $ in thousands For the Period Ending Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Subscription 21,378 22,923 23,614 20,980 22,807 Professional services 2,126 1,840 1,986 2,033 1,828 Total Revenue 23,504 24,763 25,600 23,013 24,635 Cost of revenue 6,601 6,282 6,752 7,595 6,686
Slide 31: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION $ in thousands Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Gross profit $16,903 $18,481 $18,848 $15,418 $17,949 Gross profit % 72% 75% 74% 67% 73% Stock-based compensation expense 707 430 412 371 256 Non-GAAP gross profit 17,610 18,911 19,260 15,789 18,205 Non-GA
Slide 32: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION in thousands Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 GAAP Cost of subscription $3,969 $3,978 $4,424 $5,393 $4,882 Stock-based compensation expense - - - - - Non-GAAP cost of subscription $3,968 $3,978 $4,424 $5,393 $4,882 GAAP Cost of professional services $2,632
Slide 33: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION $ in thousands Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Net (loss) income ($1,551) ($16) ($104) ($372) $2,601 Depreciation and amortization expense 131 126 125 123 115 Stock-based compensation expense 2,444 2,065 1,771 1,447 963 Interest income (87) (286) (529) (81
Slide 34: Balance Sheet
APPENDIX BALANCE SHEET $ in thousands as of: Jun-30-2023 Jun-30-2022 $ in thousands as of: Jun-30-2023 Jun-30-2022 Current Assets Current Liabilities Cash and Cash Equivalents 73,201 72,173 Accounts Payable 2,044 1,706 Accounts Receivables 31,569 26,961 Accrued Expenses 13,084 13,634 Prepaid & Other