eGain Corporation · NASDAQ:EGAN
eGain — Investor Presentation (March 2024)
24 slides from eGain's investor presentation, March 2024
Slide 1: AI Knowledge for Service
INVESTOR PRESENTATION AI Knowledge for Service NASDAQ: EGAN March 2024
Slide 2: Safe Harbor statement
Safe 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 third quarter of fiscal 2024 and fiscal 2024 full year ending June 30
Slide 3: Who we are
Who we are Powered by Generative AI and our industry-leading Knowledge offering, eGain is a visionary in the 2023 Gartner® Magic Quadrant for customer engagement Slide 3
Slide 4: Favorable market trends accelerated by Generative AI
Favorable market trends accelerated by Generative AI Over 2/3 of contact center agents 1 Poor Agent Experience and Attrition Risk lack effective knowledge guidance AI Knowledge can automate large 2 Knowledge Silos and Fragmentation parts of knowledge build process $250B contact center labor market 3
Slide 5: Large and growing market opportunity
Large and growing market opportunity $20B Market for AI Knowledge for Service Customer Service Market Enterprise Service Market 17 Million Conversational 100 Million CC Agents Self Service Employees = $5B = $5B = $10B $10k/agent/year saving $5/contact saving $1k/employee/year saving with with a $300
Slide 6: Why eGain
Why eGain We are the #1 AI Knowledge Platform for the enterprise Slide 6
Slide 7: Top-rated by analysts and customers
Top-rated by #1 #1 Knowledge Management + Peer Insights analysts Digital Engagement + Composable Architecture Customer Review and —— Gartner Critical Capabilities Report on Customer Engagement, 2023 customers #1 Current Product Offering —— Forrester New Wave Report on Digital-first Customer Service
Slide 8: Gartner 2023 CEC Critical Capabilities: scores
Gartner 2023 CEC Critical Capabilities: scores Knowledge Digital Automation of Vendors Management Engagement Engagements Composability Total 4.8 4.7 4.4 4.2 18.1 4.0 4.4 4.5 3.1 16.0 4.5 4.1 4.4 3.7 16.7 4.2 4.0 3.9 2.7 14.8 4.0 4.5 4.5 4.0 17.0 4.0 4.7 4.1 2.9 15.7 NA NA NA NA NA NA NA NA NA NA NA
Slide 9: Deploying Gen AI in enterprise customer service than ChatGPT
There is a lot more to safely and effectively deploying Gen AI in enterprise customer service than ChatGPT Taxonomy What answer- Curated Content finding Search Engine Content management capabilities to workflows invoke? Semantic Search Self-Service CBR Guidance Documented Content Intent Inference Co
Slide 10: GTM uniquely aligned with our product-market fit
GTM uniquely aligned with our product-market fit Sell Direct to Enterprise Growing Ecosystem 1. Awareness • Market Analysts SIs CRM CC Other • Communities of Interest • Ecosystem buildout 2. Interest • Customer proof points at scale • Consultative engagement • Quick Value Model (business case) 3. Co
Slide 11: Client Success: AssistGPT slashes knowledge build effort & cost
AssistGPT slashes knowledge build effort & cost Challenge How we are solving it Leading European Energy Company Rigid tools and processes Gen AI powered SME & Knowledge Analytics for could not address evolving process to create Consultants Knowledge customer inquiries knowledge base collaborated to
Slide 12: Client Win: AssistGPT walks the Gen AI talk
AssistGPT walks the Gen AI talk C hallenge H ow w e are s olv ing it Membership-based primary care practice Multiple content silos Single source of Instant Answers to Analytics to monitor impacting agent truth, unifying support agents with agent and customer performance and knowledge silos timely, c
Slide 13: Our install base is our AssistGPT springboard
Our install base is our AssistGPT springboard Install Base Plan Knowledge Hub ~ 50% of annualized revenue Knowledge Hub • SaaS ARR per knowledge customer increased 6% yoy in the qtr. • Growing pipeline driven by Gen AI capabilities ended 12/31/23 • Innovation in 30 days trials – 75% conversion rate
Slide 14: Strong balance sheet to invest in growth
Strong Investing in AI Knowledge product and market • R&D balance • Marketing sheet to • Sales invest in Continuing to buy back stock growth Exploring opportunistic inorganic growth Slide 14
Slide 15: © 2024 eGain Corporation. All rights reserved. Slide 15
© 2024 eGain Corporation. All rights reserved. Slide 15
Slide 16: Q2FY24 financial highlights
Q2FY24 Metric Performance financial Total Revenue $23.8 million, down 7% year-over-year highlights Ending SaaS ARR $73.8 million, down 3% year-over-year Non-GAAP Gross Margin 72% compared to 75% in Q2FY23 Non-GAAP Net Income $3.4 million, up ~100% year-over-year Operating Cash Flow $7.7 million, or
Slide 17: Revenue and gross margin
Revenue REVENUE (YOY%) GROSS MARGIN 1 and gross 11% 5% 75% 74% 73% margin -2% 72% -4% 69% -7% $25.6 $24.2 $23.8 $23.0 $24.6 $18.2 $17.1 $19.3 $17.6 $15.8 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 $ IN MILLIONS $ IN MILLIONS 1. Excludes stock-based compensation. Slide 17
Slide 18: Net income and EBITDA margin
Net income and EBITDA NON-GAAP NET INCOME (DILUTED EPS) ADJUSTED EBITDA MARGIN1 margin $0.11 $0.12 $0.11 16% 16% 12% $0.05 $0.03 9% 5% $3.8 $3.4 $3.6 $4.0 $3.8 $1.7 $2.8 $1.1 $2.2 $1.1 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 $ IN MILLIONS $ IN MILLIONS 1. Excludes depre
Slide 19: Q3FY24 and FY24 guidance
Q3FY24 and FY24 Q3FY24 FY2024 guidance Total Revenue $22.6M – $23.0M $92.0M – $93.0M GAAP Net Income $0.4M – $1.0M $4.5M – $5.0M GAAP Net Income EPS $0.01 – $0.03 $0.14 – $0.16 Non-GAAP Net Income $1.6M – $2.2M $9.3M – $9.8M Non-GAAP Net Income EPS $0.05 – $0.07 $0.29 – $0.31 Slide 19
Slide 20: GAAP P&L last 5 quarters
GAAP P&L last 5 quarters $ in thousands For the Period Ending Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Subscription 23,614 20,980 22,807 22,323 21,996 Professional services 1,986 2,033 1,828 1,853 1,819 Total Revenue 25,600 23,013 24,635 24,176 23,815 Cost of revenue 6,752 7,595 6,686 6,838 6,990 Gross Pr
Slide 21: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation Q3 Q4 Q1 Q2 $ in thousands Q2 FY23 FY23 FY23 FY24 FY24 Gross profit $18,848 $15,418 $17,949 $17,338 $16,825 Gross profit % 74% 67% 73% 72% 71% Stock-based compensation expense 412 371 256 297 284 Non-GAAP gross profit 19,260 15,789 18,205 17,635 17,109 Non-GAAP gross
Slide 22: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation in thousands Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 GAAP Cost of subscription $4,424 $5,393 $4,882 $5,047 $5,109 Stock-based compensation expense - - - - - Non-GAAP cost of subscription $4,424 $5,393 $4,882 $5,047 $5,109 GAAP Cost of professional services $2,328 $2,202 $1
Slide 23: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation $ in thousands Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Net (loss) income ($104) ($372) $2,601 $2,596 $2,185 Depreciation and amortization expense 125 123 115 107 97 Stock-based compensation expense 1,771 1,447 963 1,208 1,195 Interest income (529) (818) (768) (949) (982) I
Slide 24: Balance sheet
Balance sheet $ in thousands as of: Dec-31-2023 Jun-30-2023 $ in thousands as of: Dec-31-2023 Jun-30-2023 Current Assets Current Liabilities Cash and Cash Equivalents 86,833 73,201 Accounts Payable 1,777 2,044 Accounts Receivables 14,271 31,569 Accrued Expenses 10,049 13,084 Prepaid & Other C/A 4,61