Egain Corporation · NASDAQ:EGAN
Egain — Q3 FY2022 Earnings Presentation
33 slides from Egain's earnings presentation, May 2022
Slide 1: Connect More Dots
NASDAQ : EGAN Connect More Dots #1 Digital Customer Engagement Solution Gartner & Forrester Investor Presentation Q3 FY22
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 full year of fiscal 2022 ending June 30, 2022; our ma
Slide 3: Who We Are
WHO WE ARE Top-rated, knowledge-powered customer engagement platform for enterprise and gov NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 3
Slide 4: At a Glance
WH O W E A R E AT A GLANCE COMPANY OVERVIEW FINANCIAL SNAPSHOT (Q3 FY22) 1997 ~170 ~670 21% 76% 12% Founded SaaS Enterprise Employees TOTAL REVENUE GROSS MARGIN2 ADJUSTED Customers1 GROWTH YoY EBITDA MARGIN2 Enterprise Clients Financial services, telco, retail, health, government 109% 24% 32% TTM SA
Slide 5: The Time Is Now
THE TIME IS NOW The market opportunity is massive and we are in position to dominate NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 5
Slide 6: Massive Market Disrupted by Megatrends
MASSIVE MARKET DISRUPTED BY 3 MEGATRENDS… THE TIME IS NOW Voice to Digital Shift Automation On-Prem to with AI and Cloud Shift Knowledge $22.9 B Customer Service Gartner Market Share: Customer Market Experience and Relationship Management, Worldwide, 2021 NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 6
Slide 7: Accelerated by COVID-19
…ACCELERATED BY COVID-19 THE TIME IS NOW Automation Voice to Digital with AI and Shift Knowledge Guidance and On-Prem to Compliance Cloud Shift for Hybrid $22.9 B Workforce Customer Service Market Gartner Market Share: Customer Experience and Relationship Management, Worldwide, 2021 NASDAQ: EGAN Q3
Slide 8: Growing Knowledge Gap in the Enterprise
THE TIME IS NOW Growing Knowledge Gap in the Enterprise Knowledge silos increasing in the enterprise, not decreasing Businesses (and partners) struggle with complexity and fragmentation Functional platforms create new knowledge silos – CRM, CC, UC, ITSM, HR… Knowledge unification (with personalizati
Slide 9: Gartner cites Knowledge Management as #1 technology
WHAT WE DO MATTERS Gartner analysts cite Knowledge Management (KM) as the #1 technology for enhancing the three main customer service perspectives of operational performance, customer experience (CX) and employee experience NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 9
Slide 10: eGain Product Is Top-Rated
WHA T WE DO MA TTERS EGAIN PRODUCT IS TOP-RATED #1 #1 Digital Engagement + Current Product Knowledge Management + Offering Engagement Automation — — Forrester New Wave Report on Digital-first Customer Service, 2020 Gartner Critical Capabilities Report on Customer Engagement, 2021 NASDAQ: EGAN Q3 FY2
Slide 11: How We Make It Happen
WHA T WE DO MA TTERS HOW WE MAKE IT HAPPEN ~170 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 CONVERSATION HUB | KNOWLEDGE HUB | AN
Slide 12: What Sets Us Apart
WHA T WE DO MA TTERS WHAT SETS US APART Knowledge Digital-first, Composable, Innovation Management + AI Omnichannel Secure Platform at Scale + Speed Parallel reasoning Conversation Hub, Rich connector Unique “innovation — BYOB architecture library in 30 Days” offer Personalized — — — content Virtual
Slide 13: Industry Leading Customers
INDUSTRY LEADING CUSTOMERS WHA T WE DO MA TTERS 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 Q3 FY22 INVESTOR PRESENTATION 13
Slide 14: We Deliver Wow
WE DELIVER WOW We deliver quick value and easy innovation to transform customer experience NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 14
Slide 15: Case Study: Paylocity
WE DELI VER WO W CASE STUDY: PAYLOCITY Paylocity and eGain Propelling HR From Backroom to Boardroom “Easy Self-Service, Empowered Agents” WATCH VIDEO CHALLENGE CLIENT SUCCESS • Hyper growth 35% • Proliferating products • Increasing need to escalate to experts SOLUTION Better first-time • Web self-se
Slide 16: Case Study: IRS
WE DELI VER WO W CASE STUDY: IRS Internal Revenue Services Our Knowledge-Powered Digital Journey “Modernizing Taxpayer Engagement” WATCH IRS SUCCESS VIDEO CHALLENGE CLIENT SUCCESS • 20 million unanswered phone calls per year • Long phone hold times and in person office wait times • Answers given to
Slide 17: eGain is the industry leader according to Gartner and Forrester
WHO ELSE IS OUT THERE eGain is the industry leader according to Gartner and Forrester NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 17
Slide 18: What Else Is Out There
WHO ELSE I S O UT THERE 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 Custo
Slide 19: Q3 FY22 Highlights
Q3 FY22 HIGHLIGHTS 23% SaaS growth in Q3 FY22 driven by increased demand from new and existing customers NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 19
Slide 20: Q3 FY22 Financial Highlights
FINANCIAL HIGHLIGHTS Q3 FY22 FINANCIAL HIGHLIGHTS METRIC PERFORMANCE (year-over-year) SaaS revenue $20.7 million, up 23% Total revenue $23.9 million, up 21% Non-GAAP Gross Margin 76%, no change Non-GAAP Subscription Growth Margin 82%, no change Non-GAAP net income $2.4 million, or $0.07 per share Ad
Slide 21: Positive Enterprise SaaS Metrics
FINANCIAL HIGHLIGHTS POSITIVE ENTERPRISE SAAS METRICS H I GH- E ND G R O WING A RR P E R G R O WING S A A S CUSTOMER BASE S A A S C U S T O ME R ARR ~90% $430k 24% ARR1 is with large ARR1 SaaS $1B+ annual per ARR1 revenue enterprise SaaS Growth clients and customer YoY government orgs 1 SaaS ARR is
Slide 22: Revenue Growth Inflection
FINANCIAL HIGHLIGHTS REVENUE GROWTH INFLECTION T O T A L R E V E N UE G R O S S M A R GIN 1 E B I T D A MA R GIN 1 Y o Y G R O W TH 20% 21% 78% 78% 13% 76% 76% 75% 8% 15% 6% 14% 11% 12% 9% $23.9 $23.1 $18.2 $18.0 $21.5 $16.7 $20.2 $15.3 $3.4 $19.7 $15.0 $2.9 $2.9 $2.2 $1.7 Q3'21 Q4'21 Q1'22 Q2'22 Q3
Slide 23: Where We're Going
WHERE WE’RE GOING We intend to be the #1 Customer Engagement Automation Company NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 23
Slide 24: Investing to Grow Faster
WHERE WE’ RE GO I NG INVESTING TO GROW FASTER Enter adjacent Acquire new markets Retain and expand enterprise SaaS logos enterprise SaaS clients Ramp investment in sales & marketing • Drive knowledge hub • Focus sales hires on new standardization across logo acquisition the enterprise, beyond custom
Slide 25: Target Operating Model
WHERE WE’ RE GO I NG TARGET OPERATING MODEL Investments expected to accelerate revenue growth trajectory I n t e ri m Lo n g T e rm YTD T a rg e t T arge t FY2021 FY2022 Model Mo d e l (1 – 2 y e a rs) (3 – 5 y e a rs) Total Revenue Growth 8% 18% 20% 30% Non-GAAP Gross Margin1 76% 77% 78% 82% S&M1 3
Slide 26: Key Takeaways
KEY TAKEAWAYS Multi-billion market Knowledge, AI & Digital #1 in Product undergoing digital driving demand for our Capabilities transformation Platform — Gartner & Forrester Proven, scalable solution Accelerating top-line delivers quick value growth in FY22 NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION
Slide 27: © 2022 eGain Corporation. All rights reserved.
© 2022 eGain Corporation. All rights reserved. NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 27
Slide 28: Appendix
APPENDIX NASDAQ: EGAN Q3 FY22 INVESTOR PRESENTATION 28
Slide 29: GAAP P&L Last 5 Quarters
APPENDIX GAAP P&L LAST 5 QUARTERS $ in thousands For the Period Ending Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Subscription 18,078 18,846 20,145 21,306 21,728 Professional services 1,665 1,402 1,306 1,787 2,176 Total Revenue 19,743 20,248 21,451 23,093 23,904 Cost of revenue 4,846 5,079 5,298 6,101 6,537
Slide 30: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION $ in thousands Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Gross profit $14,897 $15,169 $16,153 $16,992 $17,367 Gross profit % 75% 75% 75% 74% 73% Stock-based compensation expense 88 83 518 1,006 825 Non-GAAP gross profit 14,985 15,252 16,671 17,998 18,192 Non-GA
Slide 31: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION in thousands Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 GAAP Cost of subscription $3,341 $3,696 $3,487 $3,521 $3,803 Stock-based compensation expense - - - - - Non-GAAP cost of subscription $3,341 $3,696 $3,487 $3,521 $3,803 GAAP Cost of professional services $1,505
Slide 32: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP TO NON-GAAP RECONCILIATION $ in thousands Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Net (loss) income $1,261 $2,048 $551 ($826) ($615) Depreciation and amortization expense 114 115 111 117 119 Stock-based compensation expense 368 436 2,107 3,822 3,008 Interest expense (income), net (5) (2) (2
Slide 33: Balance Sheet
APPENDIX BALANCE SHEET $ in thousands as of: Mar-31-2022 June-30-2021 $ in thousands as of: Mar-31-2022 Jun-30-2021 Current Assets Current Liabilities Cash and Cash Equivalents 70,495 63,231 Accounts Payable 2,100 3,068 Accounts Receivables 18,181 26,311 Accrued Expenses 12,266 12,795 Prepaid & Othe