Slide 1: AI Knowledge for Service
INVESTOR PRESENTATION AI Knowledge for Service NASDAQ: EGAN May 2025
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 fourth Harbor quarter of fiscal 2025 and fiscal 2025 full year ending
Slide 3: We are the #1 AI Knowledge Platform
Who we are We are the #1 AI Knowledge Platform Slide 3
Slide 4: Gen AI value stack for business is a three-layer cake
Gen AI value stack AI Knowledge (App) for business is a three- layer cake Model (LM) - Gartner, Oct 2024 Hardware (GPU) Slide 4
Slide 5: eGain helps companies reduce customer service costs by 75%
Using AI Knowledge, eGain helps companies reduce customer service costs by 75% while improving experience by 20 NPS points.
Slide 6: AI Knowledge will revolutionize the service function
AI Knowledge will revolutionize the service function, starting with customer service Slide 6
Slide 7: The problem
The problem Businesses worldwide spend $1.5 trillion annually on customer service* Businesses must reduce costs to expand 1 Financial challenge profitability Lack of trusted answers leads to ineffective 2 Operational challenge customer self-service and poor agent performance Knowledge systems cannot
Slide 8: The solution
The solution AI Knowledge will significantly lower service costs and improve experience AI Knowledge delivers trusted answers to customers and Technology Solution agents by automating the creation and curation of knowledge. Trusted answers lead to increased customer self-service Operational Impact a
Slide 9: The opportunity
The opportunity $20B+ SaaS 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 $5/contact saving $1k/employee/year saving with saving with a with a $0.10/contac
Slide 10: The time is now
The time "By 2025, 100% of generative AI virtual customer assistant and virtual agent is now assistant projects that lack integration to modern knowledge management systems will fail to meet their customer experience and operational cost- reduction goals.“ Gartner, June 2024 Slide 10
Slide 11: Without a Knowledge Hub, AI cannot be trusted
Without a Knowledge Hub, AI cannot be trusted CONTENT KNOWLEDGE CONFLICTING SOURCES SILOS ANSWERS Website#2 AI Website Website #1 AI VIRTUAL ASSISTANT PDF Store #2 #2 SEARCH Mobile PDF store #1 TOOL AI SharePoint #2 Phone SharePoint Agents #1 HOME GROWN KMS Digital Confluence#2 AI Agents Confluence
Slide 12: Trusted answers come from a knowledge hub
Trusted answers come from a knowledge hub, a single source of truth powered by experts and AI Experts Customer AI SharePoint Knowledge Author Knowledge Manager CREATE ORGANIZE Agent PDF Trusted SOURCE Answers PUBLISH Knowledge Hub CRM Field Rep Video . Audio . Text SINGLE SOURCE OF TRUTH SYSTEM OF R
Slide 13: Leader in Gartner Emerging MQ for GenAI Apps
Leader in Gartner Emerging MQ for #1 Knowledge Management for Customer Service GenAI Apps Market Guide - KMCS Market Guide 2024 #1 Knowledge Management + Digital Engagement + Automation + Composable Architecture - Critical Capabilities Report on Customer Engagement, 2024 Readers’ Choice Award, 2024
Slide 14: Our Ideal Client
Our Ideal Enterprise with 1000+ employees 1. High agent turnover or rapid employee onboarding Client 2. Complex content and compliance needs 3. Conversationally deliver answers across all touch points Failed KM or GenAI project for Service 1. Home-grown KM or Legacy vendor KM not working 2. CRM KM o
Slide 15: The biggest brands trust us
The biggest brands trust us FINANCIAL SERVICES HEALTHCARE & RETAIL & TELECOM & FEDERAL & STATE & INSURANCE INSURANCE MANUFACTURING MEDIA GOVERNMENT
Slide 16: Why AI Knowledge Now: Success@scale
Success@scale Why AI Knowledge Now 30K 105 users user groups Knowledge silos with poor adoption • Not trustable, inconsistent answers • Poor user adoption of knowledge tools 200 44 authors portals Legacy KM could not power AI features • Inadequate functionality • No AI innovation Knowledge Everywher
Slide 17: Success@scale: 97% search success rate, 10x speed to answer
Success@scale 97% AI capabilities makes use of search success rate the product a 'no brainer’ 10x Users love the product, easy to use and intuitive interface speed to answer Brings us closer to our #1 goal of operational in annual agent excellence satisfaction survey among We will be leveraging this
Slide 18: Why AI Knowledge now: International Consumer Banking
Success@scale International Consumer Banking Why AI Knowledge now Struggling with service cost • High growth business 3500 7 • Rapid agent turnover users portals SFDC Knowledge failed • Weak creation/curation/feedback capabilities 14% 2X AHT reduction speed to value • Poor findability and content pe
Slide 19: Progress report
Progress report Slide 19
Slide 20: AI Knowledge gaining traction
AI Knowledge gaining traction 1 AI Knowledge ARR grew 11% year-over-year in Q3FY25 AI Knowledge ARR represents 54% of SaaS ARR, up from 2 46% a year ago 103% LTM dollar-based SaaS net expansion rate for AI 3 Knowledge customers Slide 20
Slide 21: Product innovation
Product innovation eGain AI Agent for eGain AI Knowledge Hub now Contact Center KCS-Verified 1. Launched March 18 1. KCS integrates knowledge creation into the workflow of service teams 2. Empowers the human agent with Agentic AI assistance 2. eGain AI Knowledge Hub automates KCS workflows with AI 3
Slide 22: Q3FY25 financial results
Q3FY25 Metric Performance Total Revenue $21.0 million, down 6% year-over-year financial Non-GAAP SaaS Gross Margin 77%, down 1% from Q3FY24 results Non-GAAP Gross Margin 69% compared to 71% in Q3FY24 R&D Expense $7.2 million, up 15% year-over-year Non-GAAP Net Income $0.8 million, or 4% margin Opera
Slide 23: $68.7 million in net cash
$68.7 million AI Knowledge investment focus • R&D expense up 15% year-over- in net cash year • Brand Marketing Share repurchase program • Purchased $12.0 million YTD in FY25 Slide 23
Slide 24: © 2025 eGain Corporation. All rights reserved. Slide 24
© 2025 eGain Corporation. All rights reserved. Slide 24
Slide 25: Revenue and gross margin
Revenue REVENUE (YOY%) GROSS MARGIN 1 and gross -3% -6% -6% -9% margin -10% 71% 71% 71% 70% 69% $22.5 $22.4 $21.0 $22.4 $21.8 $15.9 $15.4 $15.9 $14.5 $15.8 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 $ IN MILLIONS $ IN MILLIONS 1. Excludes stock-based compensation. Slide 25
Slide 26: Net income and EBITDA margin
Net income and EBITDA NON-GAAP NET INCOME (DILUTED EPS) ADJUSTED EBITDA MARGIN1 margin $0.08 $0.08 $0.04 $0.04 10% 11% $0.03 7% 6% 6% $2.6 $2.5 $1.3 $1.3 $2.3 $2.4 $0.8 $1.4 $1.6 $1.2 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 $ IN MILLIONS $ IN MILLIONS 1. Excludes deprec
Slide 27: Q4FY25 and FY25 guidance
Q4FY25 and FY25 Q4FY25 FY2025 guidance Total Revenue $22.8M - $23.3M $88.0M - $88.5M GAAP Net Income (Loss) $1.1M - $1.6M $2.5M - $3.0M GAAP Net Income (Loss) EPS $0.04 - $0.06 $0.09 - $0.10 Non-GAAP Net Income (Loss) $1.7M - $2.2M $5.1M - $5.6M Non-GAAP Net Income (Loss) EPS $0.06 - $0.08 $0.18 - $
Slide 28: GAAP P&L last 5 quarters
GAAP P&L last 5 quarters $ in thousands For the Period Ending Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 SaaS 20,324 20,439 19,820 20,847 19,563 Professional services 2,026 2,023 1,979 1,542 1,446 Total Revenue 22,350 22,462 21,799 22,389 21,009 Cost of revenue 6,858 6,906 6,666 6,680 6,723 Gross Profit 15,
Slide 29: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation $ in thousands Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Gross profit $15,492 $15,556 $15,133 $15,709 $14,286 Gross profit % 69% 69% 69% 70% 68% Stock-based compensation expense 343 313 230 232 232 Non-GAAP gross profit 15,835 15,869 15,363 15,941 14,503 Non-GAAP gross profi
Slide 30: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation $ in thousands Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 GAAP Cost of SaaS $4,487 $4,871 $4,522 $4,626 $4,594 Stock-based compensation expense - - - - - Non-GAAP cost of SaaS $4,487 $4,871 $4,522 $4,626 $4,594 GAAP Cost of professional services $2,371 $2,035 $2,144 $2,054 $2
Slide 31: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation $ in thousands Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Net (loss) income $1,493 $1,506 $652 $671 $66 Depreciation and amortization expense 92 91 93 82 88 Stock-based compensation expense 1,110 1,016 632 622 699 Interest income (1,002) (865) (771) (661) (597) Income tax pro
Slide 32: Balance sheet
Balance sheet $ in thousands as of: Mar-31-2025 Jun-30-2024 $ in thousands as of: Mar-31-2025 Jun-30-2024 Current Assets Current Liabilities Cash and Cash Equivalents 68,737 70,003 Accounts Payable 1,971 2,725 Accounts Receivables 12,425 31,731 Accrued Expenses 11,210 12,720 Prepaid & Other C/A 4,58