eGain Corporation

Good day and welcome to the eGain fiscal 2023 third quarter financial results conference call. All participants will be in lesson-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 telephone keypad. To withdraw your question, 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 third quarter financial results conference call. On the call today are EGAIN's chief executive officer, Ashu Roy, and chief financial officer, Eric Schmidt. Before we begin, I would like to remind everyone that during this conference call, management will make 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. And these 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, May 11th, 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 also discuss certain non-GAAP financial measures, such as non-GAAP operating income. The tables included with the earnings press release include a reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures. In addition, our earnings press release can be found by clicking on the press release link on the investor relations page of eGain's website at eGain.com. And along with the earnings press release, we will post an updated investor presentation to the investor relations page of the website. And lastly, a phone replay of this conference will be available for one week. And now with that said, I'd like to turn the call over to eGains CEO, Ashu Roy.

Thank you. Thank you, Jim. And hello, everyone. We are pleased with our overall performance this quarter. Revenue came within our guidance range, and bottom line was ahead of guidance and consensus. We also initiated our stock buyback program, and we still reported an increase in our cash balance due to positive cash flow in the quarter. Looking at our financial results, total revenue for the quarter was $23 million within our guidance range. We implemented expense controls to align with current market conditions to deliver non-GAAP EPS of 30 cents that exceeded our guidance and consensus. And we were cash flow positive, ending the quarter with more than $81 million in cash. Turning to business highlights, interest in our knowledge-powered customer engagement platform continues to be strong. Decision-making on new logo deals is still a challenge. However, we did sign several new deals toward the end of the quarter. And in the last month or so, we have seen several enterprises now re-engaging on paused opportunities in our pipeline after what seems like the dust settling after the internal reorganization and business adjustments. This leads us to believe that market conditions may be stabilizing. Our U.S. customer base continues to show resilience in the quarter with healthy renewal and expansion rates. Our European customer base stabilized with no additional significant churn and some nice expansion business. As I noted, we signed several new customers near the end of the quarter. Let me share some notable ones. The first one is a major health insurance provider in the Midwest. The next one I want to bring out is a top 10 credit union in the U.S. And then another one is a U.S.-based commercial insurance business. In terms of mentioned expansion wins, let me highlight a few. A multibillion-dollar BPO in the human capital management space. A Fortune 500 energy company. large multinational provider of general insurance services, a top 10 global airline, and a global 500 telecom holding company. Looking at the market and our overall business, we remain very excited about the opportunity. Recent findings from a KM World survey revealed that content silos and legacy technologies continue to be major obstacles to improve customer and employee experiences using effective knowledge. As a result, Gartner has continued to highlight that knowledge management is the number one technology that can simultaneously improve CX employee experience and operating performance in customer service organizations. With our solution, we believe we have the best offering, and we are confident that the need for knowledge management will become increasingly mission-critical for enterprises as they look to employ more AI-powered automation. Speaking of which, as we shared in the last quarterly call, if you recall, we announced the eGain Instant Answers capability powered by generative AI. This was in February. Since then, we rolled out a successful marketing campaign around generative AI applied to knowledge, highlighting compelling use cases for agent and author performance and automation improvements. Interest has been quite strong, and we are now engaging in instant answers pilots with customers and prospects. Stepping back, we see that the excitement around generative AI in enterprises has highlighted the need for a modern knowledge hub, one that serves as a reliable and compliant source of consistent, correct content for the generative AI tools to learn from. As a result, we are seeing renewed interest among enterprises to refresh their knowledge management tech stacks. to effectively deliver operational value in customer engagement automation, generative AI needs a modern knowledge platform to experiment within and to scale on. As we look ahead, Our strong North American subscription renewal and expansion rates are evidence of the fact that our existing customers continue to find increasing value in our industry-leading customer engagement solutions. We continue to build our new business pipeline in parallel as new bound interest remains steady, and we are pleased to have closed multiple new logos in the quarter. We will continue to assess our sales capacity to optimize our sales performance, even as we diligently nurture our new business pipeline. And lastly, with our strong balance sheet and positive cash flow, we intend to execute a balanced growth and profitability plan in fiscal 24. With that, I'll ask Eric Smith, our Chief Financial Officer, to add more color around our financial operations. Eric?