EGAIN Corp SEC 10-Q Report

EGAIN Corp, a leading provider of cloud-based customer engagement solutions, has released its Form 10-Q report for the first quarter of fiscal year 2025. The report highlights the company's financial performance and operational activities for the three months ended March 31, 2025. Despite facing challenges in revenue and net income, the company continues to invest in research and development while managing operational efficiencies.

Financial Highlights

• Total Revenue: $21.0 million, a decrease of 6% compared to the same period in fiscal year 2024, primarily due to a decrease in SaaS and professional services revenue.
• Gross Profit: $14.3 million, representing a gross margin of 68%, slightly down from 69% in the same period last year.
• Income from Operations: $27 thousand, a significant decrease from $938 thousand in the same period last year, reflecting increased research and development expenses.
• Net Income: $66 thousand, down from $1.5 million in the same period last year, impacted by lower revenue and increased operating expenses.
• Earnings per share (Basic and Diluted): $0.00, compared to $0.05 in the same period last year, reflecting the decrease in net income.

Business Highlights

• Revenue Segments: SaaS revenue, which includes cloud delivery arrangements, term licenses, and embedded OEM royalties, accounted for 93% of total revenue for the three months ended March 31, 2025, compared to 91% in the same period of 2024. Professional services revenue, including consulting, implementation, training, and managed services, represented 7% of total revenue for the same period.
• Geographical Performance: Revenue from North America decreased by 6% for the three months ended March 31, 2025, primarily due to decreases in both SaaS and professional services revenue. Revenue from Europe, Middle East, and Africa (EMEA) decreased by 8% for the same period, driven by declines in both SaaS and professional services revenue.
• Operational Efficiency: The company reported a decrease in the cost of SaaS revenue by 6% for the nine months ended March 31, 2025, primarily due to reductions in personnel-related costs and outside consulting costs, despite an increase in cloud-computing costs.
• Research and Development: Research and development expenses increased by 13% for the three months ended March 31, 2025, driven by higher personnel-related costs and outside consulting expenses, reflecting the company's continued investment in product development.
• Sales and Marketing: Sales and marketing expenses decreased by 14% for the three months ended March 31, 2025, due to reductions in personnel-related costs and lead generation expenses, indicating a focus on cost management.
• Future Outlook: The company expects its remaining performance obligations, which were $66.5 million as of March 31, 2025, to be recognized as revenue over the next year and beyond, with $44.3 million expected within one year and $22.2 million beyond one year.

SEC Filing: EGAIN Corp [ EGAN ] - 10-Q - May. 14, 2025