eGain, a leading provider of digital customer engagement solutions, today announced financial results for its fiscal 2021 fourth quarter and full year ended June 30, 2021.
“We delivered solid financial performance to end our fiscal 2021, with top and bottom-line results ahead of our guidance and street consensus,” said Ashu Roy, eGain’s CEO. “Even as we stepped up our investments in fiscal 2021, our improved gross margins resulted in better-than-expected bottom-line results for the fiscal year. We are taking actions to translate our product leadership into market dominance in knowledge management and digital customer engagement, including continuing to invest in the coming year to further build out our platform API offerings, develop our partner ecosystem and expand our market coverage. We expect these investments to accelerate our growth trajectory in fiscal 2022 and beyond.”
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Fiscal 2021 Fourth Quarter Financial Highlights
- SaaS revenue was $17.9 million, up 15% year over year.
- Total revenue was $20.2 million, up 6% year over year.
- Subscription non-GAAP gross margin was 80%.
- Total non-GAAP gross margin was 75%, up 100 basis points year over year.
- GAAP net income was $2.0 million, or $0.06 per share on a diluted basis, compared to GAAP net income of $2.2 million, or $0.07 per share on a diluted basis, for Q4 2020.
- Non-GAAP net income was $2.5 million, or $0.08 per share on a diluted basis, compared to non-GAAP net income of $2.7 million, or $0.08 per share on a diluted basis, for Q4 2020.
- Cash provided by operations was $8.9 million, up 59% from cash provided by operations of $5.6 million in Q4 2020.
Fiscal 2021 Full Year Financial Highlights
- SaaS revenue was $66.9 million, up 18% year over year.
- Total revenue was $78.3 million, up 8% year over year.
- Subscription non-GAAP gross margin was 81%, up 200 basis points year over year.
- Total non-GAAP gross margin was 76%, up 400 basis points year over year.
- GAAP net income was $7.0 million, or $0.21 per diluted share, compared to GAAP net income of $7.2 million, or $0.23 per diluted share, for fiscal 2020.
- Non-GAAP net income was $8.7 million, or $0.27 per diluted share, compared to non-GAAP net income of $9.3 million, or $0.29 per diluted share, for fiscal 2020.
- Cash provided by operations for the year was $13.9 million, or 18% operating cash flow margin.
- Total cash and cash equivalents, as of June 30, 2021, was $63.2 million, up 36% compared to $46.6 million as of June 30, 2020.
Fiscal 2022 First Quarter Financial Guidance
For the first quarter of fiscal 2022 ending September 30, 2021, eGain expects:
- Total revenue of between $20.9 million to $21.3 million, which would represent growth of 10% to 12% year over year.
- GAAP net income of breakeven to $1.0 million, or $0.00 to $0.03 per share.
- Non-GAAP net income of $500,000 to $1.5 million, or $0.02 to $0.05 per share.
Fiscal 2022 Financial Guidance
For the fiscal 2022 full year ending June 30, 2022, eGain expects:
- Total revenue of between $88.2 million to $89.8 million, which would represent growth of 13% to 15% year over year.
- GAAP net loss of $3.5 million to $4.5 million, or a loss of $0.11 to $0.14 per share.
- Non-GAAP net loss of $1.0 million to breakeven, or a loss of $0.03 to $0.00 per share.
Guidance Assumptions:
- Includes stock-based compensation expense of approximately $500,000 for the first quarter of fiscal 2022 and $3.5 million for fiscal year 2022.
- Includes depreciation and amortization of approximately $120,000 for the first quarter of fiscal 2022 and $500,000 for fiscal year 2022.
- Weighted average shares outstanding of approximately 32.8 million for the first quarter of fiscal 2022 and 33.1 million for fiscal year 2022.
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Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as supplemental information relating to our operating results, including non-GAAP net income and non-GAAP gross margin. Such non-GAAP financial measures are adjusted for stock-based compensation expense and amortization of acquired intangible assets. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate the Company’s business.
Conference Call Information
eGain will discuss its fiscal 2021 fourth quarter and full year results today via teleconference at 2:00 p.m., Pacific Time. To access the live call, dial 800-437-2398 (US and Canada) or +1 856-344-9206 (international) and give the participant passcode 8932708. A live and archived webcast of the call will also be accessible on the “Investor relations” section of the Company’s website at www.egain.com. In addition, a phone replay will be available approximately two hours following the end of the call and will remain available for one week.
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