eGain Corporation

Good day and welcome to the eGain Fiscal 2022 First Quarter 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 NKR Investor Relations. Please go ahead, sir.

Thank you, Operator, and good afternoon, everyone. Welcome to eGain's First Quarter Fiscal 2022 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. And 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 is detailed in the company's reports filed with the Securities and Exchange Commission. Egan is making these statements as of today, November 9th, 2021, and assumes no obligation to publicly update or revise any of the forward-looking information on this conference call. In addition to GAAP results, we will discuss certain non-GAAP financial measures, such as non-GAAP operating income. The tables included with the earnings press release include reconciliation of the historical non-GAAP financial measures, to the most directly comparable GAAP financial measures. 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 and a phone replay of this conference call will be available for one week. Now, with that said, I'd like to turn the call over to eGain's CEO, Ashutosh Roy.

Thank you, Jim, and good afternoon, everyone. We are off to a very good start to fiscal 22. In the first quarter, we delivered record revenue of $21.5 million. That is 13% year-over-year growth. Our quarterly SaaS revenue grew 20% year-over-year, and we increased our sales and marketing investment in the quarter by 25% year-over-year. So our business momentum is building nicely around the eGain Knowledge Hub, our recently launched solution that raises the bar on knowledge powered automation of customer engagement. Our timing is good because in a recently published report, Gartner analysts cited, and I quote, knowledge management is the number one technology for enhancing the three main customer service perspectives of Operational Performance, CX, and Employee Experience, end quote. That is quite a statement about the value of knowledge for customer service. What you're seeing now is that deals that had paused during the early stage of the pandemic because of the heightened focus from businesses to virtualize their service operations and keep them running are all coming back to life. Investment in agent experience and automation is getting prioritized again. In parallel, our sales and marketing investments we began just over a year ago are now starting to yield results. Our first cohort of sales reps, who we hired late last year roughly, are now productive. And now we are substantially complete with the hiring of our second cohort. who are all in the process of being onboarded, trained, and ramped up. It's a good timing in terms of the market and our increased investment. Some of that's starting to show in our performance. Turning to some new logo wins in the quarter, we added exciting new logos. Let me share some examples. One was a hyper-gross crypto exchange business We did mention them in our Q4 call as well. They were committed to the Salesforce CRM platform. So we ended up competing with not just the other knowledge providers, but also the Salesforce knowledge option. We won this business with our leading functionality, our open architecture for integration and proven cloud security. The last item was critical for them. given the nature of their business. The next two new logos I want to highlight are both state departments. One a Department of Health and the other a Department of Retirement. The Department of Health wanted to modernize their citizen communication by implementing knowledge capabilities for their agents. But they did not want to walk away from their existing investment in IBM Watson Bot Technology. So with our unique bring your own bot architecture, which is part of our hub, we easily meet their requirements while leveraging their existing bot technology investments in IBM. The second one, the Department of Retirement, they wanted to shift more of their citizen interaction to online interaction away from face to face. Our secure co-browsing and digital engagement capability will enable this agency to support retirees through website navigation and form filling. Another new logo I want to talk about is a fast-growing insurance company in Europe. For them, technology is a basis to deliver differentiated customer experiences. They are implementing eGain to create an omnichannel customer service capability powered by knowledge and AI. What's extra sweet about this particular logo is that we lost this opportunity a couple of years ago when the client decided to implement multiple point solutions, which on the face seemed less expensive in total compared to our solution. And when the client decided to come back to us, now we are going to be replacing all those point solutions that they had selected two years ago. and the last one I'll mention is a leading telecom provider in EMEA. They are deploying an advanced omnichannel solution to support demand for an upcoming global sporting event. We'll be delivering an omnichannel capability with integrated digital and bundled analytics. Lots of good new enterprise SaaS logos. On the partner front, We are investing in building connectors to new contact center and CRM platforms. Prioritizing it by market opportunity and go-to-market alignment. Two new connectors worth mentioning are for SAP and for Genesis. In the case of SAP, we are also starting to build joint go-to-market campaigns to serve their client base, particularly in utilities and manufacturing. With Genesis, we just recently announced our connector certification and we are seeing good interest from some of our clients who are also Genesis Elefany clients. With existing partners, we continue to develop our joint proposition and actively sell. Our Cisco partnership continues to deliver across the board with new logos and business expansion. And our Avaya partnership is now also generating new logos. and good to see our Avaya partnership getting to a point where we are starting to deliver on new logos on a steady basis. Finally, on the partner front, we are seeing inbound interest, growing inbound interest from GlobalSI as we get closer to our FedRAMP certification. This is something we expect to receive before the end of this calendar year. In fact, some of the State Department logo wins I highlighted earlier are the tip of the demand iceberg. We expect that once we are certified, there are not too many providers in the FedRAMP certified category at this time. So to us, it is A significant opportunity that we are going after. In anticipation of that, we have bulked up ourselves in marketing investment in the government vertical and we are already actively sourcing opportunities. On the virtual financial coach front, something that we have been now selling for about nine months since the market launch, we are making very good progress. Our turnkey AI-powered coach is a compelling and unique proposition, especially for small to mid-sized credit unions and banks. As we are all aware of, financial institutions are increasingly focusing on financial wellness for their customers. To date, our team assigned up 33 new clients for our code solution in the US since market launch in March this year. Note that these clients are not part of our Enterprise Fast Client Count. These are small to mid-market clients. And we expect to accelerate our new logo sign-ups in this market over the coming quarters. To summarize, we are off to a strong start in fiscal 22 with record revenue and growing momentum. Our first cohort of sales hires is productive and the second cohort is in ramp. We are now actively building out our ecosystem with product connectors and go-to-market partnerships. We expect our FedRAMP certification to be done by the end of this calendar year. So with all this and our top-rated products, we look forward to accelerating growth in an exciting market. With that, let me ask Eric Smit, our Chief Financial Officer, to add more color around our financial operations. Eric?