eGain (EGAN) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue declined 5% year-over-year to $92.8 million, but non-GAAP net income rose 47% to $12.3 million or $0.39–$0.40 per diluted share, with strong AI Knowledge momentum and major global brand wins.

• AI Knowledge offerings now represent half of total revenue, with Knowledge Hub ARR up 8% year-over-year and a 50% increase in new logo wins and RFPs.

• Cash and equivalents stood at $70 million at year end, with $17.3 million in stock buybacks during fiscal 2024.

• Company is investing in R&D and brand marketing to capitalize on the expanding AI Knowledge market opportunity.

• eGain is positioned as a leading AI Knowledge Platform, serving major brands across industries.

Financial highlights

• Q4 revenue was $22.5 million, down 9% year-over-year due to two large client losses; full-year revenue was $92.8 million, down 5% year-over-year.

• Q4 non-GAAP gross profit was $15.9 million (71% margin); full-year non-GAAP gross profit was $66.4 million (72% margin).

• Q4 non-GAAP net income was $2.5 million ($0.08/share); full-year non-GAAP net income was $12.3 million ($0.39–$0.40/share), up from $8.4 million ($0.25–$0.26/share) last year.

• Adjusted EBITDA margin for the year was 11–13%, up from 8–9% in the prior year.

• Cash flow from operations was $12.4–$12.5 million (13% margin); cash and equivalents at year-end were $70 million.

• Repurchased 2.75–2.8 million shares in fiscal 2024 for $17.3 million; $17 million remains under the buyback program.

Outlook and guidance

• Q1 fiscal 2025 revenue expected between $21.4 million and $21.8 million.

• Q1 net loss expected between $0.4 million and $1.3 million, or $0.01–$0.05 per share; non-GAAP net loss of $0.4 million to net income of $0.5 million.

• Fiscal 2025 full-year revenue guidance of $92–$93 million; non-GAAP net income of $5–$6 million ($0.17–$0.20 per share); GAAP net income expected to be breakeven to $1 million.

• $1.3 million of Cisco OEM revenue to be recognized more ratably, impacting Q1 2025.

• Guidance includes $5 million in stock-based compensation and $400,000 in depreciation/amortization for fiscal 2025.