eGain Corporation · NASDAQ:EGAN
eGain — Investor Presentation (February 2021)
32 slides from eGain's investor presentation, February 2021
Slide 1: Connect More Dots
NASDAQ : EGAN Connect More Dots #1 Digital Customer Engagement Solution Gartner & Forrester 2020 Investor Presentation Q2 FY2021
Slide 2: Safe Harbor
SAFE HARBOR 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. These forward-looking statements are based on current expectations and include our expectations with respect to revenue and
Slide 3: Who We Are
WHO WE ARE We’re a global SaaS company providing an industry leading digital customer engagement platform NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESENTATION 3
Slide 4: At a Glance
WH O W E A R E AT A GLANCE COMPANY OVERVIEW FINANCIAL SNAPSHOT (FY 2020) 1997 Founded ~150 SaaS Customers ~500 Employees $63M 33% 114% SAAS BUSINESS SAAS REVENUE SAAS CUSTOMER REVENUE CAGR PAST 3 YEARS RETENTION Enterprise Clients 14% $14M $47M Financial services, telco, retail, health, government A
Slide 5: Positive SaaS Metrics
WH O W E A R E POSITIVE SAAS METRICS H I GH- E ND G R O WING A RR P E R GR OWING CU S T O ME R CUSTOMER BASE S A A S C U S T O ME R SUCCESS ~90% ~$350k 114% ARR1 is with large ARR1 per SaaS Net retention rate $1B+ annual Customer in FY20, up in FY20, up from revenue enterprise from $250k in FY19 106
Slide 6: SaaS Growth + Margin Expansion
WH O W E A R E SAAS GROWTH + MARGIN EXPANSION S A A S R E V E N UE G R O S S MA R GIN A D J US T E D E B I T D A 72% 14% 68% 12% 27% 64% 65% 37% 6% 37% $56.8 1% $10.2 $44.8 $52.1 $8.1 $32.7 $46.0 $23.9 $3.7 $39.6 $37.4 $0.5 FY2017 FY2018 FY2019 FY2020 FY2017 FY2018 FY2019 FY2020 FY2017 FY2018 FY2019
Slide 7: The Time Is Now
THE TIME IS NOW The market opportunity is massive and we are in position to dominate NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESENTATION 7
Slide 8: Massive Market Disrupted by Megatrends
MASSIVE MARKET DISRUPTED BY 3 MEGATRENDS… THE TIME IS NOW Voice to Digital Shift Automation Consumer with AI and Messaging Knowledge $19.4 B Customer Service Gartner Market Share: Customer Market Experience and Relationship Management, Worldwide, 2019 NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESENTAT
Slide 9: Accelerated by COVID-19
…ACCELERATED BY COVID-19 THE TIME IS NOW Automation Voice to Digital with AI and Shift Knowledge Guidance and Consumer Compliance Messaging $19.4 B for WFH Agents Customer Service Market Gartner Market Share: Customer Experience and Relationship Management, Worldwide, 2019 NASDAQ: EGAN FI SCAL 2021
Slide 10: What We Do
WHAT WE DO Our platform is a true one-stop-shop for digital customer engagement NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESENTATION 10
Slide 11: How We Make It Happen
WH A T W E D O HOW WE MAKE IT HAPPEN 150 enterprises use our platform to engage customers every day. Social SMS Chat App Google Email Business Virtual Messaging Assistant Twitter DM Apple Voice Business CUSTOMER ENGAGEMENT PLATFORM Chat Facebook WSS Portal Messaging Hub Knowledge Hub Messenger Websi
Slide 12: Industry Leading Customers
WH A T W E D O INDUSTRY LEADING CUSTOMERS F I NANCIAL S E R V I CE S T E LE C O M R E T A IL & F E D E R AL & S T A T E H E A LTHCARE & I N S URANCE & MEDIA MA N UFACT URING GOV E RNE M E NT NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESENTATION 12
Slide 13: Case Study: Paylocity
WH A T W E D O CASE STUDY: PAYLOCITY “Easy Self-service, Effective Agents” CLIENT SUCCESS CHALLENGE 35% • Hyper growth Better first-time • Proliferating products right answer 67% • Increasing need to escalate to experts SOLUTION • Web self-service to deflect assisted service requests Better time • K
Slide 14: Case Study: BT
CASE STUDY: BT WH A T W E D O “Knowledge Everywhere” CLIENT SUCCESS CHALLENGE 37% • Inconsistent performance across 10,000 advisors and 550 stores Better first contact • Repeat contacts driving high cost of service resolution 20 POINT • Multiple knowledge silos SOLUTION • Distilled 20,000 articles i
Slide 15: Why We Do It Better
WHY WE DO IT BETTER Our holistic approach to digital customer engagement is uniquely powered by AI and knowledge NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESENTATION 15
Slide 16: Industry Leading Solution
WHY WE DO I T BETTER INDUSTRY LEADING SOLUTION #1 #1 Digital Engagement + Current Product Knowledge Management Offering — — Gartner Critical Capabilities Report Forrester New Wave Report on on Customer Engagement, 2020 Digital-first Customer Service, 2020 NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESE
Slide 17: What Sets Us Apart in the Enterprise
WHY WE DO I T BETTER WHAT SETS US APART IN THE ENTERPRISE Knowledge Digital-first, Open, Secure Innovation Management + AI Omnichannel Architecture at Scale + Speed Parallel reasoning Messaging Hub with Deep integration Innovation in 30 — BYOB architecture with Cisco, Avaya, Days offer Personalized
Slide 18: What Else Is Out There
WHY WE DO I T BETTER WHAT ELSE IS OUT THERE Many competitors claim to do what we do, but when it comes down to it, they all have major gaps compared to our full solution suite. CATEGORY eGain Liveperson Genesys Zendesk SFDC CEC Suite Mobile Apps. For Customer Service KM for Customer Service Customer
Slide 19: Q2 FY21 Highlights
Q2 FY21 HIGHLIGHTS Sales and Marketing Investment Showing Early Results NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESENTATION 19
Slide 20: Q2 FY21 Business Highlights
Q2FY21 HIGHLIGHTS Q2 FY21 BUSINESS HIGHLIGHTS M A R K E T ING S U C C E S S S A LE S P R O D UCT IVIT Y C H ANNE L E X P ANS ION CU S T O ME R WI N S BRAND AWARENESS QUOTA CARRYING HEADS CISCO NEW SAAS LOGOS +92% y-o-y +50% y-o-y Multiple New Logos +100% y-o-y LEAD VOLUME SALES PIPELINE AVAYA KEY G1
Slide 21: Q2FY21 Financial Highlights
Q2FY21 HIGHLIGHTS Q2FY21 FINANCIAL HIGHLIGHTS METRIC PERFORMANCE (year-over-year) SaaS revenue $16.2 million, up 15% SaaS business revenue 1 $17.7 million, up 12% Total revenue $19.2 million, up 6% GAAP net income $1.6 million, compared to $2.0 million Non-GAAP net income $2.0 million, compared to $
Slide 22: Where We're Going
WHERE WE’RE GOING We intend to be the #1 Customer Engagement Automation Company NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESENTATION 22
Slide 23: Invest to Grow Faster
WHERE WE’ RE GO I NG INVEST TO GROW FASTER Expand market New customer opportunity Only 25% penetrated acquisition within SaaS customers Ramp investment in sales & marketing • Drive knowledge hub • Focus new sales hires standardization across exclusively on logo the client enterprise acquisition • In
Slide 24: Target Operating Model (3-5 Years)
WHERE WE’ RE GO I NG TARGET OPERATING MODEL (3-5 YEARS) DRIVING TO RULE OF 40 FY 1H T arge t 2 020 F Y 2021 Mo de l SaaS Revenue Growth 27% 21% 25-30% Non-GAAP Gross Margin1 72% 76% 80-82% S&M1 26% 30% 33-39% R&D1 22% 23% 17-20% G&A1 10% 10% 8-10% Adjusted EBITDA1 14% 13% 13-22% 1. As of % revenue a
Slide 25: Key Takeaways
KEY TAKEAWAYS Multi-billion market Messaging, AI and Cloud #1 Digital Customer undergoing digital Driving Demand for our Engagement Solution transformation Platform — Gartner & Forrester, 2020 Proven, scalable SaaS Acceleration in New solution that delivers SaaS Logos quick value NASDAQ: EGAN FI SCA
Slide 26: © 2021 eGain Corporation. All rights reserved.
© 2021 eGain Corporation. All rights reserved. NASDAQ: EGAN FI SCAL 2021 Q2 I NVESTOR PRESENTATION 26
Slide 27: Appendix
APPENDIX NASDAQ: EGAN FI SCAL 2021 Q1 I NVESTOR PRESENTATION 27
Slide 28: GAAP P&L Last 5 Quarters
APPENDIX GAAP P&L LAST 5 QUARTERS $ in thousands For the Period Ending Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Subscription 16,343 16,919 17,296 $17,747 $17,699 Professional services 1,812 1,435 1,734 1,316 1,534 Total Revenue 18,155 18,354 19,030 19,063 19,233 Cost of revenue 5,244 5,500 5,023 4,631 4,7
Slide 29: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION $ in thousands Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Gross profit $12,911 $12,854 $14,007 $14,432 $14,522 Gross profit % 71% 70% 74% 76% 76% Stock-based compensation expense 52 62 57 74 80 Amortization of acquired intangible assets 67 67 67 26 0 Non-GAAP gross profit
Slide 30: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION in thousands Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 GAAP Cost of subscription $ 3,557 $3,739 $ 3,352 $ 3,222 $ 3,248 Stock-based compensation expense - - Amortization of acquired intangible assets (67) (67) (67) (26) - Non-GAAP cost of subscription $ 3,490 $3,672
Slide 31: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION $ in thousands Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Net income $1,973 $1,867 $2,151 $2,044 $1,606 Purchase accounting adjustments to deferred revenue related to acquisitions 0 0 0 0 0 Depreciation and amortization expense 73 73 84 93 106 Stock-based compensatio
Slide 32: Balance Sheet & Cap Table
APPENDIX BALANCE SHEET & CAP TABLE $ in thousands as of: Dec-31-2020 Jun-30-2020 $ in thousands as of: Dec-31-2020 Jun-30-2020 Current Assets Current Liabilities Cash and Cash Equivalents 54,203 46,609 Accounts Payable 1,850 2,429 Accounts Receivables 16,649 22,708 Accrued Expenses 9,587 11,339 Prep