eGain (NASDAQ:EGAN) Announces Earnings Results

eGain (NASDAQ:EGAN) issued its earnings results on Thursday. The technology company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.06 by $0.03, FiscalAI reports. eGain had a net margin of 9.74% and a return on equity of 11.75%. The company had revenue of $21.87 million during the quarter, compared to analysts’ expectations of $21.11 million.

Here are the key takeaways from eGain’s conference call:

• First-quarter revenue was $21.9 million, above guidance but down 7% year over year as legacy revenue declined. AI customer revenue rose 7% to $14.4 million, while AI customer ARR grew 11% to $54.5 million and reached 74% of SaaS ARR.
• Management highlighted eGain’s recognition as a leader in Gartner’s first Magic Quadrant for customer service knowledge management, and cited customer examples of improved accuracy, fewer escalations, and reduced misrouted contacts.
• The company reported new customer wins and expansions, while Gartner-related marketing and event-sourced leads increased. Management plans to invest more in marketing and sales development to convert that awareness into pipeline.
• Legacy business revenue fell about 28%, and management expects the legacy business to decline approximately 30% for the full year, with the runoff becoming more pronounced in Q2.
• eGain reiterated full-year guidance, including 8% to 10% growth in AI customer revenue and a target of approximately 20% AI customer ARR growth by year-end, but expects higher sales and marketing spending to reduce near-term profitability. Q2 adjusted EBITDA is forecast at break-even to $500,000.

eGain Stock Up 0.8%

Shares of NASDAQ:EGAN traded up $0.05 during midday trading on Friday, reaching $5.95. 120,211 shares of the company were exchanged, compared to its average volume of 194,522. The firm has a market cap of $150.59 million, a PE ratio of 21.25 and a beta of 0.82. eGain has a fifty-two week low of $5.02 and a fifty-two week high of $15.95. The stock has a fifty day simple moving average of $5.79 and a two-hundred day simple moving average of $7.36.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on EGAN shares. Weiss Ratings reissued a “hold (c)” rating on shares of eGain in a research note on Wednesday. Roth Capital cut eGain from a “buy” rating to a “neutral” rating and cut their price objective for the company from $21.00 to $7.00 in a report on Tuesday, September 8th. Finally, B. Riley Financial reiterated a “neutral” rating on shares of eGain in a report on Tuesday, September 8th. Three research analysts have rated the stock with a Hold rating. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $6.50.

eGain Company Profile

eGain Corporation develops cloud-based software for enterprise knowledge management and customer service operations. Its platform combines artificial intelligence (AI), knowledge management, workflow automation, and analytics to help organizations manage information and support customer interactions.

The company’s products and services include knowledge management systems, conversational AI, digital engagement tools, agent-assistance software, and customer service analytics.