eGain Corporation

Good day, and welcome to the E-Gain Fiscal 2024 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. Please note this event is being recorded. I would now like to turn the conference over to Jim Byers with MKR Investor Relations. Please go ahead.

Thank you, operator, and good afternoon, everyone. Welcome to EGAIN's fiscal 2024 second quarter financial results conference call. On the call today are EGAIN's Chief Executive Officer, Ashu 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 that could cause actual results to differ in material respects, information on various factors that could affect eGains results, are detailed in the company's reports filed with the Securities and Exchange Commission. EGAIN is making these statements as of today, February 8, 2024, 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, 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 our earnings press release can be found by clicking the press release link on the investor relations page of eGain's website at eGain.com. And along with the earnings release, we will also post an updated investor presentation to the investor relations page on eGain's website. And lastly, a phone replay of this conference call will be available for one week. And now with that said, I'd like to turn the call over to eGain's CEO, Ashu Roy.

Thank you, Jim, and good afternoon, everyone. Our top and bottom line results for the quarter have exceeded our guidance, and our assist GPT AI offering is being well received by the market and helping us win new logos. Turning to business, we signed several new logos in the paper. Some notable wins here. A global investment management company chose Regain to modernize their knowledge management capability. Their services staff was struggling to find answers in what are long, complex documents in their business spread across many silos. They selected eGain based on our ability to unify that knowledge and deliver consumable answers using generative AI in a safe, auditable way. Another new logo is a membership-based primary care practice, which is in hyper-growth mode. They selected eGain to enable their associates with a unified knowledge platform. Again, they will integrate all their content and knowledge sources on the EVN platform and use our assist GPT capability to deliver easy answers and ramp up the new hires. Lastly, I mentioned a pioneering U.S.-based mutual auto insurance company. They selected us to streamline their agent experience and therefore improve their customer experience. They've gone live with eGain already for their service group and are now looking to roll out the knowledge capability across the enterprise. We also saw good expansion from existing customers during the quarter. A couple of notable ones, a large PNC insurance company and a global electronic component distributor. Turning to renewals, In the current macro environment, we are working hard to serve and retain customers as they look to reduce their operating costs. We've had good renewals in the quarter, including large healthcare insurance clients, an industry-leading HCM SaaS solution provider, and a large multinational bank. At the same time, We have received notice from two large clients about their intent to not renew with us. The first is a conversation hub client. They're choosing to consolidate vendors for all their digital customer communications. The second is an analytics hub client. They are choosing to build out their homegrown capability to measure and manage their contact centers. The combined ARR of these two accounts is approximately $8 million. These churn events are challenging as they are not factored in our fiscal 2024 plan. At the same time, we are very encouraged by our new logo pipeline is growing nicely with knowledge and AI opportunities. We're also feeling good about our new logo sales performance in the quarter. And as macro conditions improve, we believe we can grow our new logo acquisitions without adding sales capacity. Our new Assist GPT and Instant Answers capabilities are generating lots of good market interest. With Assist GPT, customers can speed up knowledge creation by 4X. For an early client in the energy vertical who we piloted with, what historically would have taken eight weeks of human effort was done in less than two weeks. With instant answers, another AI product, agents get much better and faster answers from our knowledge base. At one of our insurance clients, insurance, this is P&C insurance, Agents have seen more than a double improvement in speed to answer, even as answer quality has improved. Our product investments and leadership continues to be recognized by the market and clients. We were honored to be the sole recipient of the 2023 KM Promise Award from KM World Magazine. This award recognizes the provider who best delivers on the promise to customers with innovative solutions integrated into their business process. Also in November, EGAIN was named a visionary in the Gartner Magic Quadrant for CRM customer engagement. We had mentioned this in our prior call, but that was followed by our receiving the top rating for knowledge management in the 2023 Gartner Critical Capabilities Report, and that was something new that we had not mentioned before. We continue to invest at this intersection of AI knowledge and digital technologies to extend our product leadership. To conclude, we see good momentum in new logo wins and pipeline activity. We continue to invest in innovative AI capabilities like assist GPT and instant answers to enhance our knowledge hub. And as market conditions improve, we are well positioned to capitalize on this big opportunity to help automate knowledge for customer service. With that, I'll ask Eric Schmidt, our Chief Financial Officer, to add more color around our financial operations. Eric?