SUNNYVALE, Calif., Feb. 07, 2019 (GLOBE NEWSWIRE) -- eGain (NASDAQ: EGAN), a leading provider of cloud customer
engagement solutions, today announced financial results for its fiscal 2019 second quarter ended December 31, 2018.
Ashu Roy, eGain CEO, commented, “We are pleased with the strong top and bottom-line performance we achieved in the second
quarter. We hosted a successful DX18 customer event in Chicago and we are encouraged to see growing demand for AI-powered digital
customer engagement.”
Fiscal 2019 Second Quarter Financial Highlights – ASC 606 (standard adopted effective July 1,
2018):
- Total revenue was $17.7 million, up 15% year over.
- SaaS revenue was $11.9 million, up 53% year over year.
- Subscription revenue, which includes SaaS and legacy support revenue, was $15.8 million, up 25% year over year and 89% of
total revenue.
- GAAP net income was $2.0 million, or $0.07 per share on a basic and diluted basis, compared to a GAAP net loss of $788,000,
or $(0.03) per share on a basic and diluted basis, for Q2 2018.
- Non-GAAP net income was $2.4 million, or $0.09 per share on a basic basis and $0.08 on a diluted basis, compared to non-GAAP
net income of $451,000, or $0.02 per share on a basic and diluted basis, for Q2 2018.
- Cash provided by operations in the second quarter was $863,000, compared to cash provided by operations of $2.6 million in Q2
2018.
- Total cash and cash equivalents as of December 31, 2018 was $11.2 million, compared to $11.5 million as of June 30,
2018.
Fiscal 2019 Financial Guidance
For the fiscal year ending June 30, 2019, the Company is raising its previously provided guidance for SaaS revenue growth for the
year from between 25% to 30% to between 30% and 35%. The Company is also raising its previously provided guidance for Subscription
revenue growth from between 10% and 15% to between 13% and 16%.
Non-GAAP Financial Measures
This press release includes non-GAAP operating income/(loss) and non-GAAP net income/(loss) as supplemental information relating to
our operating results. Non-GAAP net income/(loss) is defined as net income/(loss) 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 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.
Quarterly Conference Call Information
eGain will discuss its quarterly results today via teleconference at 2:00 p.m. Pacific Time. To access the live call, please dial
(877) 260-1479 (U.S. toll free) or (334) 323-0522 (international), and give the participant pass
code 6329790. A live webcast of the call and slide presentation can be accessed from the investors section at
www.egain.com. 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 here. An archive of the webcast will also be available on the investors section at
www.egain.com.
About eGain
eGain customer engagement solutions power digital transformation for leading brands.
Our top-rated cloud applications for social, mobile, web, and contact centers help clients
deliver connected customer journeys in an omnichannel world. To learn more about eGain,
visit www.egain.com.
Cautionary Note Regarding Forward-Looking Statements. 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 beliefs regarding demand for our products, including our belief that our pipeline and the
demand for our AI-powered customer engagement platform offering is strong and that we see positive business and customer momentum,
among other matters. These forward-looking statements also include our beliefs with respect to SaaS revenue growth and
Subscription revenue growth for the current fiscal year. 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 associated
with new product releases; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled
contractual commitments; 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 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 public filings, including eGain’s annual report on Form 10-K filed on September 13, 2018
and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange
Commission’s Web site at www.sec.gov. 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.
MKR Group Investor Relations
Todd Kehrli or Jim Byers
Phone: 323-468-2300
Email: egain@mkr-group.com
| |
|
|
|
|
|
|
| eGain Corporation |
| Condensed Consolidated Balance
Sheets |
| (in thousands) |
| (unaudited) |
| |
|
|
|
|
|
|
| |
|
December 31,
2018 (*) |
|
June 30,
2018 |
| ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
11,222 |
|
|
$ |
11,498 |
|
| Restricted cash |
|
|
6 |
|
|
|
6 |
|
| Accounts receivable, net |
|
|
16,178 |
|
|
|
7,389 |
|
| Costs capitalized to obtain revenue contracts, net |
|
|
682 |
|
|
|
986 |
|
| Prepaid expenses |
|
|
1,688 |
|
|
|
2,374 |
|
| Other current assets |
|
|
409 |
|
|
|
285 |
|
| Total current assets |
|
|
30,185 |
|
|
|
22,538 |
|
| Property and equipment, net |
|
|
468 |
|
|
|
559 |
|
| Costs capitalized to obtain revenue contracts, net of current portion |
|
|
1,904 |
|
|
|
891 |
|
| Intangible assets, net |
|
|
429 |
|
|
|
733 |
|
| Goodwill |
|
|
13,186 |
|
|
|
13,186 |
|
| Other assets |
|
|
2,039 |
|
|
|
1,715 |
|
| Total assets |
|
$ |
48,211 |
|
|
$ |
39,622 |
|
| |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
|
$ |
2,384 |
|
|
$ |
3,905 |
|
| Accrued compensation |
|
|
4,463 |
|
|
|
5,706 |
|
| Accrued liabilities |
|
|
1,746 |
|
|
|
2,285 |
|
| Deferred revenue |
|
|
28,836 |
|
|
|
18,364 |
|
| Capital lease obligations |
|
|
7 |
|
|
|
42 |
|
| Bank borrowings, net of deferred financing costs |
|
|
4,996 |
|
|
|
259 |
|
| Total current liabilities |
|
|
42,432 |
|
|
|
30,561 |
|
| Deferred revenue, net of current portion |
|
|
6,136 |
|
|
|
7,833 |
|
| Bank borrowings, net of current portion and deferred financing costs |
|
|
— |
|
|
|
8,941 |
|
| Other long-term liabilities |
|
|
980 |
|
|
|
1,000 |
|
| Total liabilities |
|
|
49,548 |
|
|
|
48,335 |
|
| Commitments and contingencies |
|
|
|
|
|
|
| Stockholders' deficit: |
|
|
|
|
|
|
| Common stock |
|
|
28 |
|
|
|
28 |
|
| Additional paid-in capital |
|
|
347,182 |
|
|
|
346,222 |
|
| Notes receivable from stockholders |
|
|
(87 |
) |
|
|
(85 |
) |
| Accumulated other comprehensive loss |
|
|
(1,620 |
) |
|
|
(1,618 |
) |
| Accumulated deficit |
|
|
(346,840 |
) |
|
|
(353,260 |
) |
| Total stockholders' deficit |
|
|
(1,337 |
) |
|
|
(8,713 |
) |
| Total liabilities and stockholders' deficit |
|
$ |
48,211 |
|
|
$ |
39,622 |
|
| (*) Includes the impact from the adoption of ASU 2014-09 (Topic 606) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| eGain Corporation |
| Condensed Consolidated Statements of Operations |
| (in thousands, except per share data) |
| (unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
| |
|
December 31, |
|
|
December 31, |
| |
|
2018 |
|
2017 |
|
|
2018 |
|
2017 |
| Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subscription |
|
$ |
15,823 |
|
|
$ |
12,629 |
|
|
|
$ |
29,550 |
|
|
$ |
24,459 |
|
| Professional services |
|
|
1,881 |
|
|
|
2,769 |
|
|
|
|
3,855 |
|
|
|
5,514 |
|
| Total revenue |
|
|
17,704 |
|
|
|
15,398 |
|
|
|
|
33,405 |
|
|
|
29,973 |
|
| Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of subscription |
|
|
3,692 |
|
|
|
3,188 |
|
|
|
|
7,087 |
|
|
|
6,226 |
|
| Cost of professional services |
|
|
1,850 |
|
|
|
2,401 |
|
|
|
|
3,690 |
|
|
|
4,789 |
|
| Total cost of revenue |
|
|
5,542 |
|
|
|
5,589 |
|
|
|
|
10,777 |
|
|
|
11,015 |
|
| Gross profit |
|
|
12,162 |
|
|
|
9,809 |
|
|
|
|
22,628 |
|
|
|
18,958 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
3,596 |
|
|
|
3,708 |
|
|
|
|
7,155 |
|
|
|
7,139 |
|
| Sales and marketing |
|
|
4,391 |
|
|
|
4,729 |
|
|
|
|
8,385 |
|
|
|
8,895 |
|
| General and administrative |
|
|
2,046 |
|
|
|
1,768 |
|
|
|
|
4,206 |
|
|
|
3,574 |
|
| Total operating expenses |
|
|
10,033 |
|
|
|
10,205 |
|
|
|
|
19,746 |
|
|
|
19,608 |
|
| Income (loss) from operations |
|
|
2,129 |
|
|
|
(396 |
) |
|
|
|
2,882 |
|
|
|
(650 |
) |
| Interest expense, net |
|
|
(139 |
) |
|
|
(239 |
) |
|
|
|
(329 |
) |
|
|
(583 |
) |
| Other income (expense), net |
|
|
(6 |
) |
|
|
(30 |
) |
|
|
|
11 |
|
|
|
(161 |
) |
| Income (loss) before income tax benefit (expense) |
|
|
1,984 |
|
|
|
(665 |
) |
|
|
|
2,564 |
|
|
|
(1,394 |
) |
| Income tax benefit (expense) |
|
|
16 |
|
|
|
(123 |
) |
|
|
|
40 |
|
|
|
38 |
|
| Net income (loss) |
|
$ |
2,000 |
|
|
$ |
(788 |
) |
|
|
$ |
2,604 |
|
|
$ |
(1,356 |
) |
| Per share information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.07 |
|
|
$ |
(0.03 |
) |
|
|
$ |
0.09 |
|
|
$ |
(0.05 |
) |
| Diluted |
|
$ |
0.07 |
|
|
$ |
(0.03 |
) |
|
|
$ |
0.09 |
|
|
$ |
(0.05 |
) |
| Weighted-average shares used in computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
27,875 |
|
|
|
27,241 |
|
|
|
|
27,781 |
|
|
|
27,213 |
|
| Diluted |
|
|
29,420 |
|
|
|
27,241 |
|
|
|
|
29,687 |
|
|
|
27,213 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation included in above costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
|
$ |
70 |
|
|
$ |
146 |
|
|
|
$ |
144 |
|
|
$ |
209 |
|
| Research and development |
|
|
108 |
|
|
|
275 |
|
|
|
|
224 |
|
|
|
385 |
|
| Sales and marketing |
|
|
54 |
|
|
|
129 |
|
|
|
|
100 |
|
|
|
192 |
|
| General and administrative |
|
|
104 |
|
|
|
186 |
|
|
|
|
230 |
|
|
|
269 |
|
| |
|
$ |
336 |
|
|
$ |
736 |
|
|
|
$ |
698 |
|
|
$ |
1,055 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets included in above costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
|
$ |
67 |
|
|
$ |
67 |
|
|
|
$ |
134 |
|
|
$ |
134 |
|
| Research and development |
|
|
— |
|
|
|
436 |
|
|
|
|
170 |
|
|
|
873 |
|
| |
|
$ |
67 |
|
|
$ |
503 |
|
|
|
$ |
304 |
|
|
$ |
1,007 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| eGain Corporation |
| GAAP to Non-GAAP Reconciliation Table |
| (in thousands) |
| (unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
December 31, |
|
Six Months Ended
December 31, |
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Income (loss) from operations |
|
$ |
2,129 |
|
$ |
(396 |
) |
|
$ |
2,882 |
|
$ |
(650 |
) |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
336 |
|
|
736 |
|
|
|
698 |
|
|
1,055 |
|
| Amortization of acquired intangibles |
|
|
67 |
|
|
503 |
|
|
|
304 |
|
|
1,007 |
|
| Non-GAAP income from operations |
|
$ |
2,532 |
|
$ |
843 |
|
|
$ |
3,884 |
|
$ |
1,412 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
2,000 |
|
$ |
(788 |
) |
|
$ |
2,604 |
|
$ |
(1,356 |
) |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
336 |
|
|
736 |
|
|
|
698 |
|
|
1,055 |
|
| Amortization of acquired intangibles |
|
|
67 |
|
|
503 |
|
|
|
304 |
|
|
1,007 |
|
| Non-GAAP net income |
|
$ |
2,403 |
|
$ |
451 |
|
|
$ |
3,606 |
|
$ |
706 |
|
| Per share information: |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.09 |
|
$ |
0.02 |
|
|
$ |
0.13 |
|
$ |
0.03 |
|
| Diluted |
|
$ |
0.08 |
|
$ |
0.02 |
|
|
$ |
0.12 |
|
$ |
0.03 |
|
| Weighted-average shares used in computation: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
27,875 |
|
|
27,241 |
|
|
|
27,781 |
|
|
27,213 |
|
| Diluted |
|
|
29,420 |
|
|
28,000 |
|
|
|
29,687 |
|
|
27,757 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| eGain Corporation |
| Other GAAP to Non-GAAP Supplemental Financial Information |
| (in thousands) |
| (unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
December 31, |
|
Growth Rates |
| |
|
2018 |
|
2017 |
|
|
|
|
|
|
| |
|
Reported under
Topic 606 |
|
Topic 606
Impact |
|
Excluding
Topic 606 Impact |
|
Reported under
Topic 605 |
|
Reported under
Topic 606 |
|
Excluding Topic
606 Impact |
| Total deferred revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP deferred revenue |
|
$ |
34,972 |
|
|
$ |
(4,690 |
) |
|
$ |
30,282 |
|
$ |
29,113 |
|
|
|
|
|
|
|
| Unbilled and uncollected contractual commitments (off-balance sheet) |
|
|
31,408 |
|
|
|
7,719 |
|
|
|
39,127 |
|
|
39,273 |
|
|
|
|
|
|
|
| Total deferred revenue: |
|
$ |
66,380 |
|
|
$ |
3,029 |
|
|
$ |
69,409 |
|
$ |
68,386 |
|
|
|
(3 |
%) |
|
|
1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SaaS |
|
$ |
11,875 |
|
|
$ |
(380 |
) |
|
$ |
11,495 |
|
$ |
7,747 |
|
|
|
53 |
% |
|
|
48 |
% |
| Legacy support |
|
|
3,948 |
|
|
|
(42 |
) |
|
|
3,906 |
|
|
4,882 |
|
|
|
(19 |
%) |
|
|
(20 |
%) |
| GAAP subscription |
|
|
15,823 |
|
|
|
(422 |
) |
|
|
15,401 |
|
|
12,629 |
|
|
|
25 |
% |
|
|
22 |
% |
| GAAP professional services |
|
|
1,881 |
|
|
|
(603 |
) |
|
|
1,278 |
|
|
2,769 |
|
|
|
(32 |
%) |
|
|
(54 |
%) |
| Total non-GAAP revenue |
|
$ |
17,704 |
|
|
$ |
(1,025 |
) |
|
$ |
16,679 |
|
$ |
15,398 |
|
|
|
15 |
% |
|
|
8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP subscription |
|
$ |
3,692 |
|
|
|
|
|
|
|
|
$ |
3,188 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets |
|
|
(67 |
) |
|
|
|
|
|
|
|
|
(67 |
) |
|
|
|
|
|
|
| Non-GAAP subscription |
|
$ |
3,625 |
|
|
|
|
|
|
|
|
$ |
3,121 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP professional services |
|
$ |
1,850 |
|
|
|
|
|
|
|
|
$ |
2,401 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
(70 |
) |
|
|
|
|
|
|
|
|
(146 |
) |
|
|
|
|
|
|
| Non-GAAP professional services |
|
$ |
1,780 |
|
|
|
|
|
|
|
|
$ |
2,255 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP total cost of revenue |
|
$ |
5,542 |
|
|
|
|
|
|
|
|
$ |
5,589 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
(70 |
) |
|
|
|
|
|
|
|
|
(146 |
) |
|
|
|
|
|
|
| Amortization of intangible assets |
|
|
(67 |
) |
|
|
|
|
|
|
|
|
(67 |
) |
|
|
|
|
|
|
| Non-GAAP total cost of revenue |
|
$ |
5,405 |
|
|
|
|
|
|
|
|
$ |
5,376 |
|
|
|
1 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP subscription |
|
$ |
12,198 |
|
|
|
|
|
|
|
|
$ |
9,508 |
|
|
|
|
|
|
|
| Non-GAAP professional services |
|
|
101 |
|
|
|
|
|
|
|
|
|
514 |
|
|
|
|
|
|
|
| Non-GAAP gross profit |
|
$ |
12,299 |
|
|
|
|
|
|
|
|
$ |
10,022 |
|
|
|
23 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP research and development |
|
$ |
3,596 |
|
|
|
|
|
|
|
|
$ |
3,708 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
(108 |
) |
|
|
|
|
|
|
|
|
(275 |
) |
|
|
|
|
|
|
| Amortization of acquired intangible assets |
|
|
- |
|
|
|
|
|
|
|
|
|
(436 |
) |
|
|
|
|
|
|
| Non-GAAP research and development |
|
$ |
3,488 |
|
|
|
|
|
|
|
|
$ |
2,997 |
|
|
|
16 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP sales and marketing |
|
$ |
4,391 |
|
|
$ |
171 |
|
|
$ |
4,562 |
|
$ |
4,729 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
(54 |
) |
|
|
|
|
|
|
|
|
(129 |
) |
|
|
|
|
|
|
| Amortization of acquired intangible assets |
|
|
— |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
| Non-GAAP sales and marketing |
|
$ |
4,337 |
|
|
|
|
|
|
|
|
$ |
4,600 |
|
|
|
(6 |
%) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP general and administrative |
|
$ |
2,046 |
|
|
|
|
|
|
|
|
$ |
1,768 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
(104 |
) |
|
|
|
|
|
|
|
|
(186 |
) |
|
|
|
|
|
|
| Amortization of acquired intangible assets |
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
| Non-GAAP general and administrative |
|
$ |
1,942 |
|
|
|
|
|
|
|
|
$ |
1,582 |
|
|
|
23 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP operating expenses |
|
$ |
10,033 |
|
|
|
|
|
|
|
|
$ |
10,205 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
(266 |
) |
|
|
|
|
|
|
|
|
(590 |
) |
|
|
|
|
|
|
| Amortization of acquired intangible assets |
|
|
— |
|
|
|
|
|
|
|
|
|
(436 |
) |
|
|
|
|
|
|
| Non-GAAP operating expenses |
|
$ |
9,767 |
|
|
|
|
|
|
|
|
$ |
9,179 |
|
|
|
6 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| eGain Corporation |
| Other GAAP to Non-GAAP Supplemental Financial Information |
| (in thousands) |
| (unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended
December 31, |
|
Growth Rates |
| |
|
2018 |
|
2017 |
|
|
|
|
|
|
| |
|
Reported under
Topic 606 |
|
Topic 606
Impact |
|
Excluding
Topic 606 Impact |
|
Reported under
Topic 605 |
|
Reported under
Topic 606 |
|
Excluding Topic
606 Impact |
| Total deferred revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP deferred revenue |
|
$ |
34,972 |
|
|
$ |
(4,690 |
) |
|
$ |
30,282 |
|
$ |
29,113 |
|
|
|
|
|
|
|
| Unbilled and uncollected contractual commitments (off-balance sheet) |
|
|
31,408 |
|
|
|
7,719 |
|
|
|
39,127 |
|
|
39,273 |
|
|
|
|
|
|
|
| Total deferred revenue: |
|
$ |
66,380 |
|
|
$ |
3,029 |
|
|
$ |
69,409 |
|
$ |
68,386 |
|
|
|
(3 |
%) |
|
|
1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SaaS |
|
$ |
21,599 |
|
|
$ |
40 |
|
|
$ |
21,639 |
|
$ |
14,691 |
|
|
|
47 |
% |
|
|
47 |
% |
| Legacy support |
|
|
7,951 |
|
|
|
(69 |
) |
|
|
7,882 |
|
|
9,768 |
|
|
|
(19 |
%) |
|
|
(19 |
%) |
| GAAP subscription |
|
|
29,550 |
|
|
|
(29 |
) |
|
|
29,521 |
|
|
24,459 |
|
|
|
21 |
% |
|
|
21 |
% |
| GAAP professional services |
|
|
3,855 |
|
|
|
(806 |
) |
|
|
3,049 |
|
|
5,514 |
|
|
|
(30 |
%) |
|
|
(45 |
%) |
| Total non-GAAP revenue |
|
$ |
33,405 |
|
|
$ |
(835 |
) |
|
$ |
32,570 |
|
$ |
29,973 |
|
|
|
11 |
% |
|
|
9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP subscription |
|
$ |
7,087 |
|
|
|
|
|
|
|
|
$ |
6,226 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets |
|
|
(134 |
) |
|
|
|
|
|
|
|
|
(134 |
) |
|
|
|
|
|
|
| Non-GAAP subscription |
|
$ |
6,953 |
|
|
|
|
|
|
|
|
$ |
6,092 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP professional services |
|
$ |
3,690 |
|
|
|
|
|
|
|
|
$ |
4,789 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
(144 |
) |
|
|
|
|
|
|
|
|
(209 |
) |
|
|
|
|
|
|
| Non-GAAP professional services |
|
$ |
3,546 |
|
|
|
|
|
|
|
|
$ |
4,580 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP total cost of revenue |
|
$ |
10,777 |
|
|
|
|
|
|
|
|
$ |
11,015 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets |
|
|
(134 |
) |
|
|
|
|
|
|
|
|
(134 |
) |
|
|
|
|
|
|
| Stock-based compensation |
|
|
(144 |
) |
|
|
|
|
|
|
|
|
(209 |
) |
|
|
|
|
|
|
| Non-GAAP total cost of revenue |
|
$ |
10,499 |
|
|
|
|
|
|
|
|
$ |
10,672 |
|
|
|
(2 |
%) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP subscription |
|
$ |
22,597 |
|
|
|
|
|
|
|
|
$ |
18,367 |
|
|
|
|
|
|
|
| Non-GAAP professional services |
|
|
309 |
|
|
|
|
|
|
|
|
|
934 |
|
|
|
|
|
|
|
| Non-GAAP gross profit |
|
$ |
22,906 |
|
|
|
|
|
|
|
|
$ |
19,301 |
|
|
|
19 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP research and development |
|
$ |
7,155 |
|
|
|
|
|
|
|
|
$ |
7,139 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
(224 |
) |
|
|
|
|
|
|
|
|
(385 |
) |
|
|
|
|
|
|
| Amortization of acquired intangible assets |
|
|
(170 |
) |
|
|
|
|
|
|
|
|
(873 |
) |
|
|
|
|
|
|
| Non-GAAP research and development |
|
$ |
6,761 |
|
|
|
|
|
|
|
|
$ |
5,881 |
|
|
|
15 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP sales and marketing |
|
$ |
8,385 |
|
|
$ |
293 |
|
|
$ |
8,678 |
|
$ |
8,895 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
(100 |
) |
|
|
|
|
|
|
|
|
(192 |
) |
|
|
|
|
|
|
| Amortization of acquired intangible assets |
|
|
— |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
| Non-GAAP sales and marketing |
|
$ |
8,285 |
|
|
|
|
|
|
|
|
$ |
8,703 |
|
|
|
(5 |
%) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP general and administrative |
|
$ |
4,206 |
|
|
|
|
|
|
|
|
$ |
3,574 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
(230 |
) |
|
|
|
|
|
|
|
|
(269 |
) |
|
|
|
|
|
|
| Amortization of acquired intangible assets |
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
| Non-GAAP general and administrative |
|
$ |
3,976 |
|
|
|
|
|
|
|
|
$ |
3,305 |
|
|
|
20 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP operating expenses |
|
$ |
19,746 |
|
|
|
|
|
|
|
|
$ |
19,608 |
|
|
|
|
|
|
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
(554 |
) |
|
|
|
|
|
|
|
|
(846 |
) |
|
|
|
|
|
|
| Amortization of acquired intangible assets |
|
|
(170 |
) |
|
|
|
|
|
|
|
|
(873 |
) |
|
|
|
|
|
|
| Non-GAAP operating expenses |
|
$ |
19,022 |
|
|
|
|
|
|
|
|
$ |
17,889 |
|
|
|
6 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
