eGain Corporation · NASDAQ:EGAN
eGain — Investor Presentation (November 2022)
34 slides from eGain's investor presentation, November 2022
Slide 1: Connect More Dots
NASDAQ : EGAN Connect More Dots #1 Digital Customer Engagement Solution Gartner & Forrester Investor Presentation Q1 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 second quarter of fiscal 2023 ending December 31, 202
Slide 3: Who We Are
WHO WE ARE Top-rated, knowledge-powered customer engagement platform for enterprise and gov NASDAQ: EGAN Q1 FY23 INVESTOR PRESENTATION 3
Slide 4: At a Glance
WH O W E A R E AT A GLANCE COMPANY OVERVIEW FINANCIAL SNAPSHOT (FY2023 Q1) 1997 ~170 ~680 20% 76% 10% Founded SaaS Enterprise Employees TOTAL REVENUE GROSS MARGIN2 ADJUSTED Customers1 CONSTANT GROWTH YoY EBITDA MARGIN3 Enterprise Clients Financial services, government, health, telco, retail 103% 15%
Slide 5: The market opportunity is massive and we are in position to dominate
THE TIME IS NOW The market opportunity is massive and we are in position to dominate NASDAQ: EGAN Q1 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 the #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 Q1 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 Q1 FY2
Slide 10: How We Make It Happen
WHA T WE DO MA TTERS HOW WE MAKE IT HAPPEN ~170 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 Facebook WSS Portal CONVERSATION HUB | KNOWLEDGE HUB | AN
Slide 11: Open Platform & Growing Ecosystem
WHA T WE DO MA TTERS OPEN PLATFORM & GROWING ECOSYSTEM COMPOSABLE EXPERIENCE PLATFORM SOLUTION MARKETPLACE CRM CC Other NASDAQ: EGAN Q1 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 R E T A IL & H E A LTHCARE T E LE C O M & M E D I A & I N S URANCE G O V E RNE M E NT M A N UFACT URING NASDAQ: EGAN Q1 FY23 INVESTOR PRESENTATION 13
Slide 14: We deliver quick value and easy innovation
WE DELIVER WOW We deliver quick value and easy innovation to transform customer experience NASDAQ: EGAN Q1 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: Paylocity - Easy Self-Service, Empowered Agents
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 17: eGain is the industry leader according to Gartner and Forrester
WHO ELSE IS OUT THERE eGain is the industry leader according to Gartner and Forrester NASDAQ: EGAN Q1 FY23 INVESTOR PRESENTATION 17
Slide 18: Why We Win & Why We Miss
WHO ELSE I S O UT THERE WHY WE WIN & WHY WE MISS KNOWLEDGE CONVERSATION ANALYTICS Rich, comprehensive Rich, comprehensive Consolidates data and insight capabilities for customer, agent omnichannel capabilities across channel and platforms & business Modern advisor desktop with Enterprise-c
Slide 19: FY23Q1 Highlights
FY23Q1 HIGHLIGHTS 23%1 SaaS growth in FY23Q1 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 other than U.S. Dollars into U.S. Dollars at the exchange ra
Slide 20: Q1 FY23 Financial Highlights
FINANCIAL HIGHLIGHTS Q1 FY23 FINANCIAL HIGHLIGHTS METRIC PERFORMANCE (year-over-year) SaaS revenue $22.6 million, up 18% Total revenue $24.8 million, up 15% 76%, down 200 basis points y-o-y, up 100 basis points Non-GAAP Gross Margin sequentially Non-GAAP Subscription Growth Margin 83%, no change Non
Slide 21: Positive Enterprise SaaS Metrics
FINANCIAL HIGHLIGHTS POSITIVE ENTERPRISE SAAS METRICS H I GH- E ND G R O WING A RR P E R G R O WING S A A S A RR CUSTOMER BASE S A A S C U S T O ME R ~90% ~$453k 15% ARR1 is with large ARR1 SaaS $1B+ annual per ARR1 revenue enterprise SaaS Growth clients and customer YoY government orgs 1 SaaS ARR i
Slide 22: LTM Revenue Growth Inflection + Margin Expansion
FINANCIAL HIGHLIGHTS LTM REVENUE GROWTH INFLECTION + MARGIN EXPANSION T O T A L R E V E N UE G R O S S M A R GIN 1 E B I T D A MA R GIN 2 Y o Y G R O W TH 15% 18% 12% 13% 17% 76% 77% 77% 77% 76% 11% 12% 12% 11% 8% $92.0 $95.3 $84.5 $88.7 $72.7 $80.7 $68.1 $70.5 $65.0 $61.5 $10.2 $11.4 $10.7 $10.2 $9
Slide 23: We intend to be the #1 Customer Engagement Automation Company
WHERE WE’RE GOING We intend to be the #1 Customer Engagement Automation Company NASDAQ: EGAN Q1 FY23 INVESTOR PRESENTATION 23
Slide 24: 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 • Focus sales hires on new adoption across the logo acquisition enterprise, beyond customer service into
Slide 25: Q2FY23 and FY23 Guidance
Q2FY23 AND FY23 GUIDANCE Q2FY23 FY2023 Total Revenue $25.0M – $25.4M $100.0M - $102.0M YoY Revenue Growth 8% - 10% 9% - 11% Total Revenue in Constant Currency $25.8M – $26.2M $102.1M – $104.2M YoY Revenue Growth in Constant Currency 12% - 13% 11% - 13% GAAP Net Loss ($0.7)M – ($1.0)M ($2.2)M – ($3.2
Slide 26: Target Operating Model
WHERE WE’ RE GO I NG TARGET OPERATING MODEL Lo n g T e rm Q1 T a rg e t FY2023 Model (3 – 5 y e a rs) Total Revenue Growth 15% 25% Non-GAAP Gross Margin1 76% 82% S&M1 36% 34% R&D1 25% 22% G&A1 9% 8% Adjusted EBITDA1 10% 18% Revenue Growth + Adjusted EBITDA 25% 43% 1. As of % revenue and excludes dep
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: © 2022 eGain Corporation. All rights reserved.
© 2022 eGain Corporation. All rights reserved. NASDAQ: EGAN Q1 FY23 INVESTOR PRESENTATION 28
Slide 29: Appendix
APPENDIX NASDAQ: EGAN Q1 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 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Subscription 20,145 21,306 21,728 21,378 22,923 Professional services 1,306 1,787 2,176 2,126 1,840 Total Revenue 21,451 23,093 23,904 23,504 24,763 Cost of revenue 5,298 6,101 6,537 6,601 6,282
Slide 31: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION $ in thousands Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Gross profit $16,153 $16,992 $17,367 $16,903 $18,481 Gross profit % 75% 74% 73% 72% 75% Stock-based compensation expense 518 1,006 825 707 430 Non-GAAP gross profit 16,671 17,998 18,192 17,610 18,911 Non-
Slide 32: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION in thousands Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 GAAP Cost of subscription $3,487 $3,521 $3,803 $3,969 $3,978 Stock-based compensation expense - - - - - Non-GAAP cost of subscription $3,487 $3,521 $3,803 $3,968 $3,978 GAAP Cost of professional services $1,811
Slide 33: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION $ in thousands Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Net (loss) income $551 ($826) ($615) ($1,551) ($16) Depreciation and amortization expense 111 117 119 131 126 Stock-based compensation expense 2,107 3,821 3,008 2,444 2,065 Interest expense (income), net (2) (
Slide 34: Balance Sheet
APPENDIX BALANCE SHEET $ in thousands as of: Sep-30-2022 Jun-30-2022 $ in thousands as of: Sep-30-2022 Jun-30-2022 Current Assets Current Liabilities Cash and Cash Equivalents 71,524 72,173 Accounts Payable 1,937 1,706 Accounts Receivables 24,531 26,961 Accrued Expenses 10,546 13,634 Prepaid & Other