eGain Reports 18% Increase in SaaS Revenue for Fiscal 2021; Topline Growth Driven by New Customers and Enterprise Expansions

eGain, a leading provider of digital customer engagement solutions, today announced its financial results for the fourth quarter of the fiscal year 2021 and the full year through June 30, 2021.

“We delivered a solid financial performance to close our fiscal year 2021, with results at the highest and lowest levels above our leadership and public consensus,” said AsG Roy, CEO of eGain. “As we increased our investments in fiscal 2021, our improved gross margins led to better-than-expected financial results for the fiscal year. We are taking steps to transform our product leadership into market dominance in knowledge management and engagement digital customer support, including continuing to invest in the next year to further develop our API platform offering, develop our partner ecosystem, and expand our short-term market coverage. 2022 and beyond”.

Key financial data for the fourth quarter of fiscal 2021

  • SaaS revenue was $17.9 million, an increase of 15% year-over-year.
  • Total sales were $20.2 million, an increase of 6% year-over-year.
  • Gross margin for non-GAAP subscriptions was 80%.
  • Total non-GAAP gross margin was 75%, an increase of 100 basis points year over year.

GAAP net income was $2.0 million, or $0.06 per diluted share, compared to GAAP net income of $2.2 million, or $0.07 per diluted share, in the fourth quarter of the year.

  • Non-GAAP net income was $2.5 million, or $0.08 per diluted share, compared to non-GAAP net income of $2.7 million, or $0.08 per diluted share, in the fourth quarter of 2020.
  • Transaction liquidity was $8.9 million, 59% higher than transaction liquidity of $5.6 million in the fourth quarter of 2020.

Key Financial Data for Full Fiscal Year 2021

  • SaaS revenue was $66.9 million, an increase of 18% year-over-year.
  • Total revenue was $78.3 million, an increase of 8% year-over-year.
  • Gross margin for non-GAAP subscriptions was 81%, an increase of 200 fps year-over-year.
  • Total non-GAAP gross margin was 76%, an increase of 400 bps 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 the fiscal year 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 the 2020 financial year.
  • Operating cash flow for the year was $13.9 million, or an 18% operating cash flow margin.
  • Total cash and cash equivalents as of June 30, 2021, were $63.2 million, a 36% increase from $46.6 million as of June 30, 2020.

Financial guidance in the first quarter of 2022

For the first quarter of the fiscal year 2022, which ends September 30, 2021, eGain expects:

  • Total revenue of $20.9 million to $21.3 million, representing 10% to 12% year-over-year growth.
  • GAAP balanced net income of $1.0 million, or $0.00 to $0.03 per share.
  • Non-GAAP net income between $500,000 and $1.5 million or $0.02 to $0.05 per share.

Tax Financial Guide 2022

For the full 2022 fiscal year ending June 30, 2022, eGain expects:

  • Total revenue from $88.2 million to $89.8 million, with year-over-year growth of 13% to 15%.
  • GAAP net loss of $3.5 million to $4.5 million or loss of $0.11 to $0.14 per share.
  • Non-GAAP net loss of $1.0 million at break-even, or a loss of $0.03 to $0.00 per share.

Main assumptions:

  • Includes inventory-based compensation fees of approximately $500,000 in the first quarter of the fiscal year 2022 and $3.5 million in the fiscal year 2022.
  • Includes depreciation and amortization of approximately $120,000 for the first quarter of the fiscal year 2022 and $500,000 for the fiscal year 2022.
  • The weighted average number of shares outstanding of approximately 32.8 million shares in the first quarter of the fiscal year 2022 and 33.1 million in the fiscal year 2022.