eGain Corporation

Good day and welcome to the eGain fiscal 2020 fourth quarter and full year financial results conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jim Byers of MKR Investor Relations. Please go ahead, sir.

Thank you, operator. Good afternoon, everyone. Welcome to eGain's fiscal 2020 fourth quarter and full year financial results conference call. On the call today are eGain's Chief Executive Officer, Ashutosh Roy, and Chief Financial Officer, Eric Smit. Before we begin, I would like to remind everyone that during this conference call, management will make certain forward-looking statements which convey management's expectations, beliefs, plans, and objectives regarding future financial and operational performance. Forward-looking statements are generally preceded by words such as believe, plan, intend, expect, anticipate, or similar expressions. Forward-looking statements are protected by safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a wide range of risks and uncertainties that could cause actual results to differ in material respects. Information on various factors that could affect eGain's results are detailed in the company's reports filed with the Securities and Exchange Commission. eGain is making these statements as of today, September 2, 2020, and assumes no obligation to publicly update or revise any of the forward-looking information in this conference call. In addition to GAAP results, we will discuss certain non-GAAP financial measures. such as non-GAAP operating income, our earnings press release can be found on the news release link on the investor relations page at eGain's website at www.egain.com. Tables included with the earnings press release include reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures. and lastly a replay of this conference call will also be available at the investor relations section of eGain's website. And now with that said, I'd like to turn the call over to eGain's CEO, Ashutosh Roy.

Thank you and hello everyone. We are pleased to report strong financial performance across the board for our fiscal 2020 fourth quarter and full year. In summary, our fiscal 2020 full year Thank you very much. which is the sum of SAS revenue plus professional services. That SAS business revenue is now at a little over 90% of our total revenue for the fourth quarter. As you all know, we had targeted to get to this 90% plus level of SAS business revenue in the December 2020 quarter, which is two quarters from now. And we have reached that milestone and Anand Subramaniam. As I mentioned during the last call, many of our clients successfully handled customer contact surge with our solutions, driving more digital self-service and enabling their contact center workforce with our knowledge and AI solutions. Several customers have also activated our virtual assistant for conversational automation to reduce pressure on their contact centers. These customers have seen up to 80% deflection in specific contact types, even as customer satisfaction remains high. This is contrary to what we hear from the broader marketplace. As you all may have seen, we recently issued a press release where we had sponsored a comprehensive consumer survey in which chatbots ranked dead last in customer satisfaction across all digital service options. The reason, we believe, is that our virtual assistant solution is smart and connected to the rest of the channels and to core knowledge in AI for automatically solving customer issues. Interest in our recently announced eGain messaging hub with our novel bring your own bot architecture has been strong. We announced that a couple of months ago. Specifically, are attracted to our unified approach that harmonizes and connects all the multiple messaging channels, diverse bot technologies, multitude of backend systems, in effect automating the engagement with a common and proven AI knowledge and analytic capability. Our solution is unique and proven in this regard. Having said that, Given the macro uncertainty brought about by the COVID situation, we do anticipate some negative impact in the short term as investment decisions get delayed and greater scrutiny is placed on renewals. Looking at our business performance in the fourth quarter, we saw healthy new bookings with a mixture of new logos and expansion. Notable deals included a large government organization in the U.S., a leading healthcare insurance in the U.S., a multinational telecom. In addition, we had several large renewals in the quarter, including a U.S. federal agency, large PNC insurance in the U.S., and a large full-service bank. All in all, a balanced, good booking environment. Turning to our field and our partners, at the beginning of this calendar year, we announced our OEM agreement with Avaya. This was followed by the announcement of general availability of the product in March. And now we are on the go-to-market runway, jointly executing our plan to train the Avaya sales and partner network. We also closed our first deal with Avaya right after the end of the fourth quarter, so at the beginning of the current quarter, which is the first quarter of fiscal 21. Early pipeline growth is encouraging. and so we expect our Avaya partnership to favorably impact our top line in fiscal 21. Speaking of partnerships, we recently welcomed back Mike Taylor, an Eagan alum, as our new head of business development reporting to me, focused on new channel partnerships and building out our developer ecosystem. Mike brings a wealth of relevant experience, most recently at ServiceNow, where he built partnerships with Global Service Providers, and SIS. I'm excited to have Mike back on board, and so is he. The time is now for us to rapidly increase our market reach through complementary partnerships, and that's what he's focused on building out. Looking ahead to fiscal 21, we're quite bullish about our business, despite the short-term COVID uncertainty. Our digital platform is increasingly preferred by enterprises looking for smart automation. and automation is not just about digital connection with customers, even though that is a critical first step. It's about smartly solving the problems once connected in as automated a way as possible. And finally, it's about rapidly optimizing the experience for all stakeholders, associates, business and customers. So we see that connecting Solving and optimizing, all working together, lead to customer engagement automation. Forrester Research, in the recent digital first customer service wave, rates eGain number one in current product offerings. Gartner, in the recent critical capabilities report, rates eGain as the number one digital plus knowledge management provider. Much of what analysts consider a vision for tomorrow, we deliver today. So now, with strong business performance in fiscal 20 and a healthy balance sheet, we are increasing our investment in sales and marketing. Our installed base of 150 SaaS customers presents a significant opportunity for growth. So we're investing in that. On the new logo front, we're investing more in digital marketing and expanded partner support. And finally, we are aggressively continuing to court our legacy customers to migrate them to the cloud as quickly as possible. The market for our solutions is huge and horizontal. This year, we will strategically focus on three things, customer acquisition, build out of our partner and developer ecosystem, and continued product innovation. We believe that we can be the leading customer engagement automation company over the next three to five years. the leading customer engagement automation company. This is the goal we are committing to. With that, I'll ask Eric Smit, our Chief Financial Officer, to add more color around financial operations. Eric?