eGain Corporation

Good day and welcome to the eGain Fiscal 2022 Second Quarter Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Jim Byers, NKR Investors Relations. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone. Welcome to eGain's Second 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. 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, February 3rd, 2022, 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. 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. and Ashutosh Roy.

Thank you, Jim, and good afternoon, everyone. We have had a good quarter. We are accelerating our top-line growth and plans. Our total revenue in the second quarter was $23.1 million, up 20% year-over-year and up 8% sequentially. Our quarterly SaaS revenue grew 26% year-over-year. and 7% sequentially. So it's an execution cycle which we are deep into and we are increasing our clock speed on it. Let me share some notable new logos in the quarter. A top US insurance company, they selected our Knowledge Hub for customer service and member engagement. They plan to deploy it across tens of thousands of contact center reps and field agents. Interestingly, this company had chosen to go with another provider three years ago. At that time, we were the unfortunate recipients of the Dear John letter as the losing finalist. So this win is doubly sweet for us. The second one I want to mention is a major US airline. They have selected our platform as part of their contact center modernization program. And interestingly, we won this client in partnership with Avaya. Also, some interesting expansions in the quarter, a couple of them. A large U.S. financial services client, they're expanding their use of our conversation hub to deliver billions of proactive, personalized member notifications across all touchpoints. Our unique composable architecture of the Conversation Hub is very attractive to clients like this one because they are looking to compose new experiences for customers by bringing together best-in-class capabilities within an API ecosystem. And this is something we are seeing more and more of, which is quite interesting. The second expansion one that I want to mention is a large US-based utility company. They are significantly expanding the use of eGain, again, as part of a large contact center modernization program. And noteworthy here is that we are expanding this customer footprint in partnership with Cisco. So, On the ecosystem front, which is something we've been working on for a while, we are making good progress. Our goal is to integrate with most of the leading contact center and CRM platforms using our open APIs. So I want to mention three new ones that are noteworthy here. The first one is Five9. We have certified our knowledge capability, which is now connected and published on the Five9CX marketplace. The next one I want to talk about is Genesys. With Genesys, our knowledge hub connector is now certified and available on their Genesys app foundry. And the third one I want to bring out is ServiceNow. Just earlier today, we announced our certified connector with ServiceNow. are built on now, which is their new platform. What we see is knowledge management being a horizontal need across customer engagement. And our goal is to make it super easy for partners and customers to use our knowledge, our platform, alongside all their current CRM and contact center investments. In the enterprise market, which is where we are playing, at any given time, most companies have more than one CRM and more than one contact center platform operational. So our approach is simple. We are building these certified connectors with all the leading contact center and CRM platforms. This way, we make it really convenient for our customers to deploy our solution across all those CRM and contact center platforms, even as they execute their migration and transformation plans for the underlying CRM and contact center investments. On the customer success front, we are very pleased that our client, BT Consumer, won the 2021 KM Reality Awards Anand Subramaniam, Gunjan Sinha, Rao Chandrasekhar, Stanley Pierson, Vishal Nehru, that they generate with the eGain Knowledge Hub at scale across, as they say, nearly 10,000, little over 10,000 contact center agents, right? Handling half a million inquiries every week, which is over 25 million inquiries every year. It's really quite amazing the value they're getting. In fact, the business value they have achieved that they shared and the operational streamlining that they have now been able to accomplish, it's exactly what our prospects are asking for. What everyone's looking for now is a modern knowledge hub that is conversational, that is automated, that's intelligent and composable. To us, that's a great story. and on the product front, some exciting news for us, which I know you may have seen through press releases. We received our FedRAMP authorization, just the best holiday gift we could have imagined came through in late December. And congratulations to our product team. It's been a long road, 18 months since the start of this process to achieve this authorization for our product suite. In fact, I want to particularly call out and thank the IRS leadership team, the Internal Revenue Service leadership team, for sponsoring us in this process. We continue to partner with them, as you know, to help modernize the taxpayer experience with our solution. Currently, we are one of the few knowledge-powered platforms in the FedRAMP authorization order. approved marketplace. As best as we know, none of our knowledge competitors that we track closely are in that FedRAMP mix. And we are now seeing in the last month, we're seeing growing inbound interest from partners who are focused on the federal and state markets, particularly federal, inviting us into opportunities where they need FedRAMP authorized capability for knowledge management, as well as digital engagement. And while the sales cycles are understandably long in the government sector, these opportunities are quite attractive and our solution is a good fit. So this is exciting. In conclusion, with our continued product leadership, our expanding ecosystem capability, the connectors that we're building, our FedRAMP authorization, and our scaled-up sales and marketing capability, we are looking forward to continuing this momentum in the second half of the year. With that, I'll ask Eric Smit, our Chief Financial Officer, to add more color around our financial operations.