eGain Corporation

Good day and welcome to the eGain fiscal 2023 second quarter financial results call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchstone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jim Byers of MKR Investor Relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Welcome to EGAIN's fiscal 2023 second quarter financial results conference call. On the call today are EGAIN's Chief Executive Officer, Ashley Roy, and Chief Financial Officer, Eric Smith. 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 and 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. He again is making these statements as of today, February 14th, 2023, 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 recently comparable GAAP financial measures. Our earnings press release can be found by clicking the press releases link on the investor relations page of eGain's website at eGain.com. Along with the earnings release, we have also posted an updated investor presentation to the investor relations page of eGain's site. And lastly, 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, Ashu Roy.

Thank you, Jim. And hello, everyone. We delivered another quarter of record revenue. Our total revenue was $25.6 million, up 15% year over year in constant currency, and exceeded our guidance and consensus estimates. Our SAS revenue grew 18% year over year in constant currency. and we generated strong cash flow from operations in the quarter of over $7 million. Turning to business highlights, let me share some notable customer expansions in the quarter. The first was a significant expansion with a leading healthcare services provider as they continue to digitally transform their business. The second was with a global provider of specialty insurance products as they're driving more cloud adoption. The third one was with a multinational retail bank in Europe. The last one I want to mention is with a fast-growing insurance company that's technology first and has adopted eGain solutions as their customer engagement hub. Our focus on stabilizing client retention, especially in Europe, and our continued expansion with clients is showing results. Moving to an exciting product update, this past week we announced the general availability of eGain Instant Answers. First of its kind capability, Instant Answers enables knowledge users to find relevant answers and attributable responses by tapping into enterprise content repositories using generative AI technology like ChatGPT. We've been trialing instant answers since late last year, and it's been a hit with our limited release plans because the solution addresses an outstanding pain point in knowledge management. how to deliver relevant answers with minimal knowledge curation effort in the business. We are the first in the knowledge management market with such a solution. We're especially excited because we believe this approach presents breakthrough automation opportunities when combined with critical attributes our platform offers, and this is key. attributes like compliance, analytics, design experiences, and more. So bringing this new technology around generative AI and combining it smartly with all the required critical attributes for enterprise knowledge management is what we think delivers a solution that is going to be consumable, safe, and responsible. Thanks to our composable architecture, we can quickly incorporate new technologies as they become available. Given the trajectory of this disruptive technology, we are bullish about marshaling it and using it to drive user-friendly automation. Looking at the market and our overall business, market demand remains high for our knowledge-powered customer engagement offering. New inbound interest continues to be steady with more opportunities in our sweet spot of the large B2C businesses. The focus of customer experience improvement and service cost reduction. As we know, Gartner's top technology recommendation for customer service and support leaders continues to be investment in knowledge management tools. And we also know the market penetration for knowledge management tools is still low, according to Gartner's assessment, between 5% and 20% of the market. So now with our comprehensive solution, we believe we have the best solution for this market need, and we are confident that this need around knowledge management will become increasingly mission critical in the enterprises. At the same time, in the current environment, we continue to see sales cycles lengthening. Buying decisions are slowing down due to cautious spending and careful reconsideration of priorities. Given these longer sales cycles and the fact that we are focusing on enterprises, we are refining in an ongoing way our direct sales model. So we are hiring more seasoned sales professionals versus having a larger number of junior team members in sales. In parallel, we are maintaining marketing around brand leadership, highlighting customer success, and ecosystem expansion. In fact, our next scheduled customer success webinar is with one of our marquee clients, Veterans Affairs, on February the 28th. With the strength of a balance sheet, we intend to maintain a healthy level of sales and marketing investment so that we are well positioned to capture market share as business conditions improve. In summary, we delivered another quarter of record revenue with strong cash flow. We continue to see a large market opportunity for our knowledge-led offering. We continue to innovate, improve our offering with innovation-like instant answers as we lead the market in delivering solutions powered by knowledge and AI for customer engagement. New inbound interest remains steady even in this environment. And so we are continuing to build our new business pipeline. We are refining our sales model and hiring more seasoned salespeople, focusing on enablement of the team and sales productivity. And finally, with our strong balance sheet, we intend to maintain a level of sales and marketing investment that allows us to be well positioned as business conditions improve. With that, I'll ask Eric Smith, our Chief Financial Officer, to add more color around our financial operations. Eric?