eGain, a leading provider of omnichannel customer engagement solutions, announced financial results for its fiscal 2020 fourth quarter and full year ended June 30, 2020.
“We are pleased to report strong financial performance across the board for our fiscal 2020 fourth quarter and full year,” said Ashu Roy, eGain’s CEO. “While the short-term economic outlook is uncertain, given the COVID-19 pandemic, we are bullish thanks to accelerating demand for digital customer engagement and our product leadership.”
Fiscal 2020 Fourth Quarter Financial Highlights
- SaaS revenue was $15.5 million, up 34% year over year.
- SaaS and professional services revenue was $17.2 million, up 30% year over year and comprised 91% of total revenue.
- Total revenue was $19.0 million, up 13% year over year.
GAAP net income was $2.2 million, or $0.07 per share on a diluted basis, compared to GAAP net income of $166,000, or $0.01 per share on a diluted basis, for Q4 2019.
- Non-GAAP net income was $2.7 million, or $0.08 per share on a diluted basis, compared to non-GAAP net income of $659,000, or $0.02 per share on a diluted basis, for Q4 2019.
- Cash provided by operations was $5.6 million, compared to cash used in operations of $1.0 million in Q4 2019.
Fiscal 2020 Full Year Financial Highlights
- SaaS revenue was $56.8 million, up 27% year over year.
SaaS and professional services revenue was $63.4 million, up 22% year over year, and comprised 87% of total revenue.
- Total revenue was $72.7 million, up 8% year over year.
GAAP net income was $7.2 million, or $0.23 per share on a diluted basis, compared to GAAP net income of $4.2 million, or $0.14 per share on a diluted basis, for fiscal 2019.
- Non-GAAP net income was $9.3 million, or $0.29 per share on a diluted basis, compared to non-GAAP net income of $6.2 million, or $0.21 per share on a diluted basis, for fiscal 2019.
- Cash provided by operations for the year was $14.1 million, up 100% from cash provided by operations of $7.0 million in fiscal 2019.
- Total cash and cash equivalents, as of June 30, 2020, was $46.6 million, up 46% compared to $31.9 million as of June 30, 2019.
Fiscal 2021 First Quarter Financial Guidance
For the first quarter of fiscal 2021 ending September 30, 2020, eGain expects:
- SaaS revenue of between $15.5 million to $16.0 million, which would represent growth between 25% and 29% year over year;
- SaaS and professional services revenue of between $17.0 million and $17.6 million, which would represent growth of between 21% and 25% year over year;
- Total revenue of $18.6 million to $19.3 million, which would represent growth between 8% and 12% year over year;
- GAAP net income of $1.1 million to $2.1 million, or $0.03 to $0.06 per share on a diluted basis; and
- Non-GAAP net income of $1.6 million to $2.6 million, or $0.05 to $0.08 per share on a diluted basis.
Non-GAAP Financial Measures
This press release includes non-GAAP operating income and non-GAAP net income as supplemental information relating to our operating results. Non-GAAP net income is defined as net income adjusted for stock-based compensation expense and amortization of acquired intangible assets. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate the Company’s business.
Conference Call Information
eGain will discuss its fiscal 2020 fourth quarter and full year results today via teleconference at 2:00 p.m., Pacific Time. To access the live call, dial 800-367-2403 (US and Canada) or +1 334-777-6978 (international) and give the participant passcode 7989267. A live and archived webcast of the call will also be accessible on the “Investor relations” section of the Company’s website at www.egain.com. In addition, a phone replay will be available approximately two hours following the end of the call and will remain available for one week.
eGain customer engagement solutions deliver digital transformation for leading brands – powered by virtual assistance, AI, knowledge, and analytics. Our comprehensive suite of applications helps clients deliver memorable, digital-first customer experiences in an omnichannel world.
To find out more about eGain, visit http://www.egain.com.