eGain Corporation · NASDAQ:EGAN

eGain — Investor Presentation (January 2013)

28 slides from eGain's investor presentation, Jan 15, 2013

  1. Slide 1: Customer Engagement Hubs for a Multichannel World

    eGain Customer Engagement Hubs for a Multichannel World January 15, 2013 © eGain Corporation. All Rights Reserved.

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements All statements in this presentation that involve eGain's beliefs and expectations including but not limited to our future growth of our business, our growth strategy, market trends, product attributes and benefits to customers, plans to invest in our business and expectati

  3. Slide 3: Who is eGain?

    Who is eGain? Slide 3

  4. Slide 4: eGain Overview

    EGAIN OVERVIEW • Founded in 1997 Background • Public in September 1999 (NASDAQ: EGAN) • Headquarters: Sunnyvale, CA Markets • CRM: Customer Service and Support • CRM: Sales • eGain Customer Engagement Hub Solutions • eGain Interactive Sales Suite • eGain Service Suite Customers • Global, diversified

  5. Slide 5: Why should you care?

    Why should you care? Slide 5

  6. Slide 6: World is going multichannel

    WORLD is going MULTICHANNEL 51% 1. Research online 2. Then buy in store 32% 40% 46% 1. Research online 2. Then visit store 3. Finally buy online Source: Google research study (2012) Slide 6

  7. Slide 7: We help design and deliver smart, connected journeys

    WE HELP DESIGN AND DELIVER SMART, CONNECTED JOURNEYS eGain Look up SelfFAQ Service Like the Look up eGain company’s Laura Andrews blog posts by other Social for Facebook Facebook Page Age: 35 moms Busy Mom eGain Buy online Cobrowse Video Chat eGain about SuperChat claims “ Angie’s BigDeal is great f

  8. Slide 8: Addressing this shift drives a growing, multi-billion dollar opportunity

    ADRESSING THIS FUNDAMENTAL SHIFT DRIVES A GROWING, MULTI-BILLION DOLLAR OPPORTUNITY E‐Commerce Ecosystem CRM Market Forecast ‘12‐16 SALES CAGR $20 $18.4 9.3% $16.9 $15.4 $4.7 $14.1 11.0% 15 $4.2 $12.9 $3.8 $3.4 $3.1 10 $7.9 $7.2 9.4% $6.6 $6.0 $5.5 5 $5.0 $5.4 $5.8 8.0% $4.3 $4.6 0 2012 2013 2014 20

  9. Slide 9: eGain's customer engagement hub is the most complete offering

    AND EGAIN’S CUSTOMER ENGAGEMENT HUB IS THE MOST COMPLETE OFFERING BUILT FROM THE GROUND UP Gartner Pace Layer Architecture Innovation Innovation Layer Layer Differentiation Differentiation Layer Layer System of System of Record Content eCommerce Record CRM/ERP CTI Layer Management System Layer Slide

  10. Slide 10: Gartner Web Customer Service MQ leader four years in a row

    GARTNER WEB CUSTOMER SERVICE MQ LEADER FOUR YEARS IN A ROW 2010 2011 Most visionary in 2010 and 2011 Slide 10

  11. Slide 11: Why we win: large scale

    WHY WE WIN eGain is the only pure‐play Web Customer Service vendor with material scale and market leading technology Competitors eGain Advantages Large‐Cap CRM Vendors • Individual applications offered by large‐cap CRM vendors lack depth of LARGE functionality • Sales and service solutions are poorl

  12. Slide 12: Telco success

    TELCO SUCCESS multichannel, multilingual service platform Business objectives Solutions deployed • Provide customers choice of  Web, Mobile, Social interaction channels  Chatbot • Reduce cost of serve and share  Guided Help best practices through a shared  Self Service platform across operating

  13. Slide 13: Insurance success

    INSURANCE SUCCESS co-innovation with industry customer service leader Business objectives Solution deployed • Effectively handle member • Chat inquiries originating from the • Click to call USAA website (constitutes more • Cobrowse than 50% of all inquiries into USAA) Groups enabled • Improve online

  14. Slide 14: Retail success

    RETAIL SUCCESS replaced multiple point tools with eGain platform Business objectives Solutions deployed • Provide consistent answers across • Web all channels – web, phone, email, – Self Service chat • Contact Center • Suggest products and services in – KnowledgeAgent pre‐sales phase – Mail • Increa

  15. Slide 15: Growth strategy

    GROWTH STRATEGY  Expand direct sales  Expand in existing accounts  Establish new distribution partners  Push into mid‐market  Product innovation Slide 15

  16. Slide 16: Are we a good investment?

    Are we a good investment? Slide 16

  17. Slide 17: Fiscal second quarter selected preliminary financial results

    FISCAL SECOND QUARTER SELECTED PRELIMINARY FINANCIAL RESULTS  Total revenue expected to exceed $14.5 million, up 33% sequentially and 35% year-over-year.  Cloud revenue expected to exceed $4.3 million, up 15% sequentially and 65% year-over-year.  Total deferred revenue of approx. $40.0 million, u

  18. Slide 18: Increasing investment in sales & marketing

    STARTING IN FY2011 INCREASING INVESTMENT IN SALES & MARKETING… ($ in millions) Historical Quarterly Sales & Marketing Expense $6.2 $6.0 $5.0 $4.3 $4.0 $3.2 $2.9 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2011 2011 2012 2012 2012 2012 Slide 18

  19. Slide 19: Contributing to strong bookings growth

    CONTRIBUTING TO STRONG BOOKINGS GROWTH… ($ in millions) Historical Quarterly Gross Bookings 77% 63% 27% 36% 24% $22.9 (34%) $19.6 $14.9 $14.1 $12.6 $8.4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2012 2013 2013E Gross Bookings YoY Growth Slide 19

  20. Slide 20: With migration to cloud

    WITH MIGRATION TO CLOUD… New Cloud & License Bookings Mix 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY2011A FY2012A 1st HALF 2013 Cloud License Slide 20

  21. Slide 21: Resulting in a growing backlog

    RESULTING IN A GROWING BACKLOG… ($ in millions) Historical Deferred and Unbilled Deferred Revenue 108% 109% 62% $40.0 44% 51% $33.0 $28.8 $20.3 $19.2 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013 2013E Deferred and Unbilled Deferred Revenue YoY Growth Slide 21

  22. Slide 22: Accelerating revenue growth in FY13

    ACCELERATING REVENUE GROWTH IN FY13… ($ in millions) Quarterly Total Revenue and Growth Quarterly Cloud Revenue and(a)Growth 29% 34% 14% 68% 3% (16%) $14.5 42% 35% $4.3 12% $3.7 $11.5 4% $10.8 $10.6 $10.7 $3.3 $2.8 $2.6 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013 2013E Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013 2013

  23. Slide 23: With healthy renewal rates

    WITH HEALTHY RENEWAL RATES key to our success eGain Renewal Rates ($) SaaS Industry Renewal Rates Median: 83% 100%+ 90% 91% 92% 92% 87% 83% 83% 83% 80% 74% FY2009A FY2010A FY2011A FY2012A MKTG LPSN VOCS N CRM LOGM CTCT Source: Company filings and Wall Street research Slide 23

  24. Slide 24: Proven and scalable global operating model

    PROVEN AND SCALABLE GLOBAL OPERATING MODEL sustained comparative advantage eGain has developed and refined a function‐specific global operating model over a decade COGS / HEAD R&D / HEAD S&M / HEAD G&A / HEAD $170k $261k $259k $207k $156k $86k $125k $56k eGain Comparables eGain Comparables eGain Com

  25. Slide 25: Margin potential firmly established

    MARGIN POTENTIAL FIRMLY ESTABLISHED ($ in millions) Recurring Revenue Gross Profit and Margin 77% 77% 77% 81% 82% $6.2 $5.8 $4.8 $4.4 $4.4 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013 2013E Gross Profit Gross Margin © eGain Communications Corp. All rights reserved. Slide 25

  26. Slide 26: Fiscal second quarter selected preliminary financial results

    FISCAL SECOND QUARTER SELECTED PRELIMINARY FINANCIAL RESULTS  Total revenue expected to exceed $14.5 million, up 33% sequentially and 35% year-over-year.  Cloud revenue expected to exceed $4.3 million, up 15% sequentially and 65% year-over-year.  Total deferred revenue of approx. $40.0 million, u

  27. Slide 27: Questions?

    Questions? Eric Smit – C.F.O. [email protected] 408.636.4455 Charles Messman – MKR Group [email protected] 323.468.2300 Slide 27

  28. Slide 28: © eGain 2013. All Rights Reserved.

    © eGain 2013. All Rights Reserved.

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