SUNNYVALE, CA — (Marketwired) — 09/06/17 — eGain (NASDAQ: EGAN), a leading provider of cloud customer engagement solutions, today announced financial results for its fiscal 2017 fourth quarter and full year ended June 30, 2017.
SaaS revenue was $6.8 million, up 33% sequentially from Q3 2017.
Total revenue was $14.6 million, up 6% sequentially from Q3 2017.
Recurring revenue was $11.6 million, up 14% sequentially from Q3 2017 and 79% of total revenue.
Recurring revenue gross margin improved to 73%, up from 69% in Q3 2017.
GAAP net loss improved to $45,000, or $(0.00) per share on a basic and diluted basis, compared to a GAAP net loss of $2.5 million, or $(0.09) per share on a basic and diluted basis, for Q3 2017.
GAAP operating loss improved to $331,000, compared to $1.8 million in Q3 2017, and non-GAAP operating income improved to $251,000, compared to non-GAAP operating loss of $1.2 million in Q3 2017.
Cash generated from operations was $3.9 million, up 39% sequentially from $2.8 million in Q3 2017.
Non-GAAP total deferred revenue was $60.2 million as of June 30, 2017, up 13% from $53.5 million as of March 31, 2017.
Ashu Roy, eGain CEO, commented, “We are pleased to report solid sequential growth in SaaS and recurring revenue in our first quarter since completing our transition to a recurring revenue business model. We continue to gain market share with our industry leading customer engagement solutions and look forward to continued SaaS and recurring revenue growth, as well as generating operating cash in fiscal 2018.”
SaaS revenue was $23.9 million, up 12% on a constant currency basis from $22.5 million in fiscal 2016.
Total revenue was $58.2 million, down 16% from $69.4 million in fiscal 2016, with the decrease primarily due to the expected decline in perpetual license revenue from $14.5 million in fiscal 2016 to $4.6 million in fiscal 2017, reflecting the company–s successful completion of its transition to a recurring revenue business model.
Recurring revenue was $43.6 million, up 10% on a constant currency basis from $42.8 million in fiscal 2016.
Recurring revenue gross margin was 73%, up from 71% in the same period last year.
GAAP net loss was $6.0 million, or $(0.22) per share on a basic and diluted basis, compared to a GAAP net loss of $6.2 million, or $(0.23) per share on a basic and diluted basis, for fiscal 2016.
GAAP operating loss improved to $3.7 million, compared to a GAAP operating loss of $5.9 million for fiscal 2016 and non-GAAP operating loss improved to $968,000, compared to a non-GAAP operating loss of $1.9 million for fiscal 2016.
Cash flow from operations improved to $5.4 million, a 184% increase compared to $1.9 million in fiscal 2016.
Total cash, cash equivalents and restricted cash as of June 30, 2017, was $10.6 million, compared to $11.8 million as of June 30, 2016. The company paid down approximately $5.6 million in debt during fiscal 2017.
These reported results include Constant Currency where noted and non-GAAP operating income/ (loss) as supplemental information relating to our operating results. Non-GAAP operating income/ (loss) is defined as operating income/ (loss) adjusted for stock-based compensation expense and amortization of acquired intangible assets. Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period. Recurring revenue is made up of SaaS revenue and legacy support revenue. SaaS revenue includes ratable revenue from cloud subscription, term and ratable licenses and associated support contracts. Legacy support is revenue associated with perpetual license arrangements the Company is no longer selling. Total deferred revenue includes both GAAP deferred revenue and non-GAAP unbilled deferred revenue that remains off balance sheet, collectively representing contractual commitments that have not been recognized as revenue. 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 analyses, 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.
eGain will discuss its quarterly results today via teleconference at 2:00 p.m. Pacific Daylight Time. To access the live call, please dial (U.S. toll free) or (international), and give the participant pass code . A live webcast of the call and slide presentation can be accessed from the investors section at . A replay of the conference call will also be available via telephone beginning approximately two hours after conclusion of the call and remain in effect for one week. To access the replay dial-in information, please click . An archive of the webcast will also be available on the investors section at .
eGain customer engagement solutions power . Our for social, mobile, web, and contact centers help clients deliver connected . To learn more about eGain, visit .
This press release 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 include our belief that we have successfully completed our transition to a SaaS based business, that we are seeing and will continue to see benefits to the Company from this transition, including growth in market share, SaaS and recurring revenue growth, and generating operating cash, among other matters. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company–s results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include, but are not limited to: risks that our SaaS based revenue model and lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; the success of organization changes; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third party distribution channels; risks associated with new product releases; risks related to our international operations; our ability to invest resources to improve our products and continue to innovate; and other risks detailed from time to time in eGain–s filings with the Securities and Exchange Commission, including eGain–s annual report on Form 10-K filed on September 13, 2016 and quarterly reports on Form 10-Q for the quarters ended September 30, 2016 and December 31, 2016, and March 31, 2017 which are available on the Securities and Exchange Commission–s Web site at . These forward-looking statements are based on current expectations and speak only as of the date hereof. The Company assumes no obligation to update these forward-looking statements.
eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corp. in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies.
[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.
Todd Kehrli or Jim Byers
Phone: 323-468-2300
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