eGain Corporation · NASDAQ:EGAN
eGain — Q4 FY22 Earnings Presentation
35 slides from eGain's earnings presentation, 2022
Slide 1: Connect More Dots
NASDAQ : EGAN Connect More Dots #1 Digital Customer Engagement Solution Gartner & Forrester Investor Presentation Q4 FY22
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 2023 ending September 30, 202
Slide 3: Who We Are
WHO WE ARE Top-rated, knowledge-powered customer engagement platform for enterprise and gov N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 3
Slide 4: At a Glance
W H O W E AR E AT A GLANCE COMPANY OVERVIEW FINANCIAL SNAPSHOT (FY22) 1997 ~170 ~690 17% 77% 12% Founded SaaS Enterprise Employees TOTAL REVENUE GROSS MARGIN2 ADJUSTED Customers1 GROWTH YoY EBITDA MARGIN2 Enterprise Clients Financial services, government, health, telco, retail 105% 20% 9% TTM SAAS C
Slide 5: The Time Is Now
THE TIME IS NOW The market opportunity is massive and we are in position to dominate N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 5
Slide 6: Massive Market Disrupted by Megatrends
MASSIVE MARKET DISRUPTED BY 3 MEGATRENDS… TH E TI M E I S N O W Voice to Digital Shift Automation On-Prem to with AI and Cloud Shift Knowledge $22.9 B Customer Service Gartner Market Share: Customer Market Experience and Relationship Management, Worldwide, 2021 N AS D AQ : E G AN Q 4 F Y 2 2 I N VE
Slide 7: Accelerated by COVID-19
…ACCELERATED BY COVID-19 TH E TI M E I S N O W Automation Voice to with AI and Digital Shift Knowledge Guidance and On-Prem to Compliance Cloud Shift $22.9 B for Hybrid Workforce Customer Service Market Gartner Market Share: Customer Experience and Relationship Management, Worldwide, 2021 N AS D AQ
Slide 8: Highly Favorable Tailwinds
TH E TI M E I S N O W 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 Du
Slide 9: Growing Knowledge Gap in the Enterprise
TH E TI M E I S N O W GROWING KNOWLEDGE GAP IN THE ENTERPRISE Knowledge silos increasing in the enterprise, not decreasing “Knowledge Management (KM) is the #1 Businesses (and partners) technology for enhancing the three main customer service perspectives of operational struggle with complexity
Slide 10: What We Do Matters
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 N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 10
Slide 11: eGain Product Is Top-Rated
W H AT W E D O M ATTE R S 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 N AS D AQ : E
Slide 12: How We Make It Happen
W H AT W E D O M ATTE R S 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
Slide 13: Open Platform & Growing Ecosystem
W H AT W E D O M ATTE R S OPEN PLATFORM & GROWING ECOSYSTEM COMPOSABLE EXPERIENCE PLATFORM SOLUTION MARKETPLACE CRM CC Other N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 13
Slide 14: What Sets Us Apart
W H AT W E D O M ATTE R S 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 Vi
Slide 15: Large B2C Customers with Complex Processes & Compliance Requirements
LARGE B2C CUSTOMERS WITH COMPLEX W H AT W E D O M ATTE R S PROCESSES & COMPLIANCE REQUIREMENTS FINANCIAL SERVICES FEDERAL & STATE RETAIL & HEALTHCARE TELECOM & MEDIA & INSURANCE GOVERNEMENT MANUFACTURING N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 15
Slide 16: We Deliver Wow
WE DELIVER WOW We deliver quick value and easy innovation to transform customer experience N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 16
Slide 17: Case Study: IRS - Modernizing Taxpayer Engagement
W E D E L I VE R W O 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
Slide 18: Case Study: Paylocity - Easy Self-Service, Empowered Agents
W E D E L I VE R W O 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 s
Slide 19: Who Else Is Out There
WHO ELSE IS OUT THERE eGain is the industry leader according to Gartner and Forrester N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 19
Slide 20: Why We Win & Why We Miss
W H O E L S E I S O U T TH E R E WHY WE WIN & WHY WE MISS BEST-IN-CLASS TECHNOLOGY KNOWLEDGE CONVERSATION ANALYTICS Rich, comprehensive Rich, comprehensive Consolidates data and insight capabilities for customer, agent omnichannel capabilities across channel and platforms & business Modern a
Slide 21: FY22 Highlights
FY22 HIGHLIGHTS 21% SaaS growth in FY22 driven by increased demand from new and existing customers N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 21
Slide 22: FY22 Financial Highlights
F I N AN C I AL H I G H L I G H TS FY22 FINANCIAL HIGHLIGHTS METRIC PERFORMANCE (year-over-year) SaaS revenue $80.9 million, up 21% Total revenue $92.0 million, up 17% Non-GAAP Gross Margin 77%, up 100 basis points Non-GAAP Subscription Growth Margin 83%, up 200 basis points Non-GAAP net income $8.9
Slide 23: Positive Enterprise SaaS Metrics
F I N AN C I AL H I G H L I G H TS POSITIVE ENTERPRISE SAAS METRICS HIGH-END GROWING ARR PER GROWIN G SAAS ARR CUSTOMER BASE SAAS CUSTOMER ~90% ~$447k 20% ARR1 is with large ARR1 SaaS $1B+ annual per ARR1 revenue enterprise SaaS Grow th clients and customer Y oY government orgs 1 SaaS ARR is the ann
Slide 24: Revenue Growth Inflection + Margin Expansion
F I N AN C I AL H I G H L I G H TS REVENUE GROWTH INFLECTION + MARGIN EXPANSION TOTAL REVENUE GROSS MARGIN 1 EBITDA MARGIN 1 YoY GROWTH 77% 14% 76% 17% 72% 12% 12% 10% 68% 8% 65% 5% 11% 8% 5% $70.5 $92.0 $10.2 $10.7 $78.3 $59.4 $9.0 $52.1 $8.1 $67.2 $72.7 $46.0 $61.3 $39.6 $3.3 FY18 FY19 FY20 FY21 F
Slide 25: Where We're Going
WHERE WE’RE GOING We intend to be the #1 Customer Engagement Automation Company N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 25
Slide 26: Growth Drivers
WHERE WE’RE GOI 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 27: Target Operating Model
WHERE WE’RE GOI NG TARGET OPERATING MODEL Investments expected to accelerate revenue growth trajectory Interim Long Term Target Target FY2021 FY2022 Model Model (1– 2 years) (3 – 5 years) Total Revenue Growth 8% 17% 18% 25% Non-GAAP Gross Margin1 76% 77% 78% 82% S&M1 32% 34% 36% 34% R&D1 22% 23% 23%
Slide 28: 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 Scaled
Slide 29: © 2022 eGain Corporation. All rights reserved.
© 2022 eGain Corporation. All rights reserved. N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 29
Slide 30: Appendix
APPENDIX N AS D AQ : E G AN Q 4 F Y 2 2 I N VE S TO R P R E S E N TATI O N 30
Slide 31: GAAP P&L Last 5 Quarters
AP P E N D I X GAAP P&L LAST 5 QUARTERS $ in thousands For the Period Ending Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Subscription 18,846 20,145 21,306 21,728 21,378 Professional services 1,402 1,306 1,787 2,176 2,126 Total Revenue 20,248 21,451 23,093 23,904 23,504 Cost of revenue 5,079 5,298 6,101 6,537
Slide 32: GAAP to Non-GAAP Reconciliation
AP P E N D I X GAAP TO NON-GAAP RECONCILIATION $ in thousands Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Gross profit $15,169 $16,153 $16,992 $17,367 $16,903 Gross profit % 75% 75% 74% 73% 72% Stock-based compensation expense 83 518 1,006 825 707 Non-GAAP gross profit 15,252 16,671 17,998 18,192 17,610
Slide 33: GAAP to Non-GAAP Reconciliation
AP P E N D I X GAAP TO NON-GAAP RECONCILIATION in thousands Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 GAAP Cost of subscription $3,696 $3,487 $3,521 $3,803 $3,969 Stock-based compensation expense - - - - - Non-GAAP cost of subscription $3,696 $3,487 $3,521 $3,803 $3,968 GAAP Cost of professional services $
Slide 34: GAAP to Non-GAAP Reconciliation
AP P E N D I X GAAP TO NON-GAAP RECONCILIATION $ in thousands Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Net (loss) income $2,048 $551 ($826) ($615) ($1,551) Depreciation and amortization expense 115 111 117 119 131 Stock-based compensation expense 436 2,107 3,821 3,008 2,444 Interest expense (income), net
Slide 35: Balance Sheet
AP P E N D I X BALANCE SHEET $ in thousands as of: Jun-30-2022 Jun-30-2021 $ in thousands as of: Jun-30-2022 Jun-30-2021 Current Assets Current Liabilities Cash and Cash Equivalents 72,173 63,231 Accounts Payable 1,706 3,068 Accounts Receivables 26,961 26,311 Accrued Expenses 13,634 12,795 Prepaid &