eGain Corporation · NASDAQ:EGAN
eGain — SRA Spring Growth Conference (May 2011)
26 slides from eGain's conference presentation, May 24, 2011
Slide 1: eGain – SRA Spring Growth Conference
eGain (OTCBB: EGAN) Leading Provider of “Cloud” and “On-premise” Customer Interaction Software SRA Spring Growth Conference Ashu Roy Cofounder & CEO May 24, 2011 © eGain Communications Corporation. All Rights Reserved.
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements All statements in this presentation that involve eGain’s forecasts, beliefs, projections, expectations, including but not limited to our financial performance and guidance, plans to invest in our business and expectations regarding our ability to
Slide 3: About eGain
About eGain Who we are Ticker (OTC BB) EGAN F Founded d d in i 1997 Share price (5/20/11) $2.80 HQ in Mountain View, CA Shares outstanding 24.3 million ~300 WW employees • ~95 in US (diluted) (3/31/11) • ~60 in EMEA Market capitalization $68.0 million • ~145 in India 52‐week range $0.50 ‐ $2
Slide 4: Investment highlights
Investment highlights Innovative market‐leading technology and products Large addressable markets Diversified blue chip client base Robust R b t growth th outlook tl k Growing base of recurring revenues Global operating model is proven and scalable Well‐developed global distribution ne
Slide 5: Large addressable market ($3B+)
Large addressable market ($3B+) CRM segment revenue estimates, estimates 2007-2014 (Gartner (Gartner, Aug 2010) ($ millions) $14 000 $14,000 $12,000 $10 000 $10,000 Sales $8,000 Marketing Automation $6 000 $6,000 Customer Service & $4,000 Support $2 000 $2,000 $0 2007 2008 2009 2010 2011 2012 2013 2
Slide 6: Blue chip clients
Blue chip clients © eGain Communications Corp. All rights reserved. Slide 6
Slide 7: History of innovation
History of innovation • 15+ years of innovation 2010 • Industry’s first CIH- Social Experience Suite CIH-integrated – Patented reasoning and knowledge 2009 • First mobile service widgets, management technology adaptive KB, and CBR templates – First Customer Interaction Hub Platform 2007 • First mail
Slide 8: Leading product suite
Leading g product p suite Leader in 2010 Gartner Magic Quadrant eService Suite eGain continues to be the Web Customer Service vendor with the most complete offering on the market. - Johan Jacobs, Gartner eGain Multisearch is a breakthrough for web self-service. - Hugh McKellar, KMWorld
Slide 9: eGain 10 Platform and Applications
eGain 10 eGa 0 - Platform at o and a d Applications pp cat o s eGain Social eGain Web eGain Unified Experience Customer Contact Suite Experience Center Suite Suite Multichannel External Systems Reputation Proactive Interaction Management Engagement - Communication Management - Content - CRM Proactiv
Slide 10: Global Telecommunications Provider business benefits
Global Telecommunications Provider eGain platform deployed Business benefits across multiple operating companies: Web Self Service Deflection of 22% Virtual Assistant C t tC Contact Center t ‐ Email E il Web Self Service Deflection of 28% Handle Time Down 28% Mobile Device Help Con
Slide 11: Phone and device support
1.. Phone o e aand d 2 H 2. Help l ttopics i device support 3. Troubleshooting
Slide 12: Login Register
Login Register Mobile phones and plans Broadband Apps and extras Mobile services Business My account Help topics Troubleshooting Software upgrade eForum Contact us Phone and device support Apple iPhone 3G 8G B Find answers fast Apple Manufacturers > Apple > iPhone 3G 8GB = Getting started on your iP
Slide 13: Wall Info
Wall Info ok —s « 3 “ Vodafone UK i, Become a fan Sure Signal Promotions Looking for some help? You've come to the right place Phone and device support Want to know more about the features on your phone or device? eaibibiinie e Fe vodafone Sony Ericsson SoS. «<” View all manufacturers eForum Ask que
Slide 14: New bookings by vertical
New bookings by vertical Fiscal 2011, 2011 YTD Fiscal 2010 Other 12% Other 16% Retail 8% Retail 11% Telecom 56% Financial & Telecom Health Care 59% Financial & Services Health Care 21% Services 17% © eGain Communications Corp. All rights reserved. Slide 14
Slide 15: Diversified, leveraged distribution
Diversified, leveraged distribution Revenue by Region – Fiscal 2011, YTD North America 41% Rest of World 59% Direct versus Partner Revenue – Fiscal 2011, YTD Direct 79% Partner 21% © eGain Communications Corp. All rights reserved. Slide 15
Slide 16: Global operating model
Global operating model Slough, England EMEA HQ Dublin Field Office Noida, India Corporate Office Amsterdam Mountain View, Field Office CA ‐ Corporate HQ Pune, India Milan APAC HQ Field Office © eGain Communications Corp. All rights reserved. Slide 16
Slide 17: Management team
Management team eGain Total Executive Position Previous Experience Years Exp. Ashu Roy CEO and co‐founder WhoWhere?, Parsec 13 20+ Technologies, Digital Equipment Eric Smit CFO WhoWhere?, Velocity, 12 20+ Reference Software Promod Narang SVP, Products and E‐Trade, Silvar‐Lisco, IBM 12 20+ Technologi
Slide 18: Historical financial performance
Historical financial performance Revenue ($ millions) EBITDA ($ millions) $50 $10 50% $8 40% $40 $6 30% 6.9 38.1 38 $4 20% $30 33.2 4.4 30.1 29.9 $2 10% 2.0 $20 22.5 $0 0% (1.2) ($2) (10%) $10 ($4) (5.5) (20%) $0 ($6) (30%) FYʹ07 FYʹ08 FYʹ09 FYʹ10 LTM FYʹ07 FYʹ08 FYʹ09 FYʹ10 LTM EBITDA % Margin Re
Slide 19: Income statement – quarter ended Mar 31, 2011
Income statement Quarter ended Mar 31, 31 2011 QTR ended Mar 31, Total new license & hosted bookings ($ millions) 2011 2010 % Change up 96% from the comparable year‐ New License & Hosted $3.7 $1.9 96% ago quarter Bookings Total revenue up 28% from the Revenue comparable year‐ago quarter License
Slide 20: Income statement – last twelve months
Income statement Last Twelve Months ended Mar 31 LTM ended Mar 31, Total new license & hosted bookings ($ millions) 2011 2010 % Change up 35% from the comparable year‐ New License & Hosted $20.0 $14.8 35% ago period Bookings Total revenue up 19% from the Revenue comparable year‐ago period Licens
Slide 21: Balance sheet
Balance sheet Adjusted Current Ratio: 4:1** ($ millions) Mar 31, 2011 Days Sales Outstanding: 42 Cash and Cash Equivalents 13.3 days AR & Other Current Assets 5.3 Target 55 days Property and Equipment 1.0 Goodwill, Intangibles and Other 5.4 Related party notes held by Ashu Roy and Oak Hill e
Slide 22: Comparable companies
Comparable companies Valuation revenue & margin analysis Valuation, eGain RNOW LPSN Valuation ‐ TTM ‐ Share Price (as of 5/20/11) $2.80 $32.91 $11.00 ‐ Enterprise Value / Revenue 1.7X 6.2X 4.7X ‐ Enterprise Value / EBITDA 9 4X 9.4X 37 9X 37.9X 18 2X 18.2X ‐ Price / Earnings 14.0X 40.0X 58.2X Revenue
Slide 23: Growth strategy
Growth strategy Expand p gglobal distribution Accelerate new product pipeline Penetrate enterprise client base Push into mid‐market mid market Develop new distribution partnerships © eGain Communications Corp. All rights reserved. Slide 23
Slide 24: eGain investment summary
eGain investment summary Customer Interaction Hub (CIH) is a growing, horizontal market need Poorly served by large existing providers ‐ across CRM CRM, Contact Center Center, and ECM Product leadership in Customer Interaction Hub (CIH) software Rated “Leader” by Gartner (2010, 2009, 2008) a
Slide 25: OTCBB: EGAN
OTCBB: EGAN © eGain Communications Corporation. All Rights Reserved. Slide 25
Slide 26: Evaluating listing options
Evaluating listing options AMEX NASDAQ Market Criteria eGain* Li ti Standards Listing St d d 3 V l St Value Standard d d Market Capitalization ~ $68 Million $50 Million $50 Million Market Value of Public 23 Million ~23 $15 Million $15 Million Float Minimum Price $2.8 $2 $4 Shareholders Equity ~$3 $3