On September 5, 2024, eGain Corp (EGAN, Financial) released its 8-K filing detailing the financial results for its fiscal 2024 fourth quarter and full fiscal year ended June 30, 2024. eGain Corp, a provider of AI-powered customer engagement solutions, operates primarily in North America, with additional operations in the United Kingdom and India. The company serves various industries, including financial services, telecommunications, retail, government, healthcare, and utilities.
Performance Overview
eGain Corp reported a challenging quarter, with revenue and earnings falling short of analyst estimates. The company posted a quarterly revenue of $22.46 million, above the estimated $21.36 million, and a quarterly earnings per share (EPS) of $0.05, beating the estimated -$0.01. For the full fiscal year, eGain reported revenue of $92.80 million, slightly above the estimated $91.70 million, and an annual EPS of $0.25, surpassing the estimated $0.19.
Financial Achievements and Challenges
Despite the revenue shortfall, eGain Corp achieved significant milestones. The company's AI Knowledge Hub saw a 50% increase in new logo wins and RFPs, reflecting growing market demand for AI-driven customer service solutions. CEO Ashu Roy highlighted the importance of these developments, stating, "As businesses invest in Gen AI at scale, our AI Knowledge Hub helps deliver trusted answers for customer service, reducing cost and improving experience."
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Total Revenue | $22.46M | $24.64M | $92.80M | $98.01M |
| Net Income | $1.51M | $2.60M | $7.78M | $2.11M |
| EPS (Diluted) | $0.05 | $0.08 | $0.25 | $0.06 |
Balance Sheet and Cash Flow
eGain Corp's balance sheet remains robust, with total assets of $127.85 million as of June 30, 2024, compared to $130.12 million the previous year. The company reported cash and cash equivalents of $70.00 million, down from $73.20 million. Total liabilities stood at $69.36 million, slightly up from $68.42 million in the prior year.
Key Metrics and Analysis
Key metrics from the earnings report include a gross profit of $65.21 million for the fiscal year, down from $70.70 million in the previous year. Operating expenses decreased to $59.24 million from $69.31 million, reflecting cost management efforts. The company's adjusted EBITDA for the fiscal year was $11.24 million, up from $8.94 million, indicating improved operational efficiency.
Commentary and Future Outlook
As businesses invest in Gen AI at scale, our AI Knowledge Hub helps deliver trusted answers for customer service, reducing cost and improving experience," said Ashu Roy, eGain’s CEO.
Looking ahead, eGain Corp has provided guidance for the first quarter of fiscal 2025, expecting continued growth in AI Knowledge Hub adoption. The company remains focused on leveraging its AI capabilities to drive customer engagement and operational efficiency.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from eGain Corp for further details.
