eGain Corporation

Good day and welcome to the eGain Fiscal 2024 Fourth Quarter and Full Year 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 1 on the touchtone phone. 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, MKR Investor Relations. Please go ahead.

Thank you, operator, and good afternoon, everyone. Welcome to EGAIN's fiscal 2024 fourth quarter and full year 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 eGAIN's results are detailed in the company's reports filed with the Securities and Exchange Commission. Regain is making these statements as of today, September 5th, 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. 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. EGAIN's earnings press release can be found by clicking the press releases link on the investor relations page of EGAIN's website at EGAIN.com. And along with the earnings release, we will post an updated investor presentation to the investor relations page of EGAIN's 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 EGAIN's CEO, Ashu Roy.

Thank you, Jim. And hello, everyone. We finished our fiscal year with revenue and profitability ahead of our projections. Total revenue for the year was $92.8 million, and our non-GAAP net income was $12.3 million, or 39 cents per diluted share. Looking at the fourth quarter specifically, we saw increased new logo momentum, in our AI knowledge offering. This included some big brands, for example, a travel management subsidiary of a financial mega brand in the US. Our AI knowledge hub will replace their homegrown knowledge base. Next is a mobility division of a multinational conglomerate in Germany. Here, our AI Knowledge Hub will consolidate their knowledge across multiple silos, which includes Salesforce and other internal knowledge bases. The third logo I want to point out is a global consumer brand based out of London. To support their new product introductions across 84 countries, they have selected eGames AI Knowledge Hub. And the last one I want to highlight is an industry leader for higher education savings in the US. Our AI knowledge hub will replace this client's legacy knowledge systems. Looking at our overall business and the market, we are seeing growing inbound interest in our knowledge AI offerings. In fiscal 2024, our new logo win and RFPs for AI knowledge were up 50% year-over-year. And our pipeline activity remained strong in July and August. In fact, this summer has been the strongest in four years, pretty much since COVID. To give you a good sense of the foundational role of knowledge in delivering value with AI in customer service specifically, let me share verbatim an excerpt from a Gartner report that was recently published in June this year. I quote, 100% of generative AI virtual customer assistant and virtual agent assistant projects that lack integration to modern knowledge management systems will fail to meet their customer experience and operational cost reduction goals. That's a very strong statement coming from Gartner. I'm sure many of you read Gartner reports over the years. You have read many. I cannot recall, and I've been doing this for many years, a prediction like this that has a 100% number on the predictor and a timeframe which is basically 12 months from now or a few months from now and running on an average 12 months. What that means, and we are seeing this, that every CEO of a large business is urgently demanding that their teams apply generative AI technology. And the key is application. Apply generative AI technology to reduce operating costs and do it at scale so they move the needle. As we know, customer service is one of the significant operating line item costs in business. Given that Gen AI needs a solid knowledge foundation to deliver that value, as Gartner points out, not surprising that we are seeing more and more businesses looking to centralize and modernize their knowledge platform. So as we've been saying for a few quarters, we are doubling down on this AI knowledge market opportunity. Currently, half of our revenue comes from AI knowledge offerings. Over the past year, we have increasingly rotated our R&D investments toward AI knowledge products. As you may know, we launched Assist GPT, an eGain product, in February this year, a novel solution to automate and accelerate what are routine but time-taking tasks for customer service agents and knowledge authors. This has been enthusiastically received in the market. Historically, knowledge centralization and creation at scale has been what you would call a proverbial guardian knot, and we are helping clients flash through it with the eGainAI knowledge offerings. Before I ask Eric, our chief financial officer, to add more color to our financial operation, I want to mention that our annual customer event, Solve24, will be held in Chicago on October 29th and 30th. At that event, we'll have many clients sharing success stories using our AI Knowledge Hub, and we'll also announce and demo new product capabilities. So we're very excited about that. And now, over to Eric.