eGain Corporation

Hello and welcome to the eGain Fiscal 2025 Second Quarter Financial Results Call. All participants will be in listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentations, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad, and to withdraw from the question queue, you may press star, then two. As a reminder, this conference is being recorded. I would now like to hand the call to Jim Byers, Pondell Wilkinson, Investor Relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Welcome to EGAIN's Fiscal 2025 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 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 13, 2025, 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 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 release's link on the investor relations page of eGain's website at eGain.com. 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. In the second quarter, we closed some exciting new enterprise logos for our AI Knowledge Hub offering. Let me share three examples. First, we signed up a major U.S. airline, one of the largest in the world, They wanted to modernize their knowledge platform to improve customer experience and reduce service cost using AI automation. And we are the selected provider for that. Second, we signed up a leading interactive entertainment company, one that has 800 million player accounts worldwide. This company has a vision of putting knowledge in the game for their players. but they were struggling with the existing knowledge platform they had because it could not provide the necessary APIs and functionality to implement the vision. After a successful innovation in 30 days pilot with us, they selected our solution. The last one, a global money transfer company with 150 million customers across 200 countries. They, incidentally, had successfully or successfully unsuccessfully, sorry, tried to implement a customer knowledge platform two times before they ended up selecting us. Looking at trends in our overall business, the first trend which continues is knowledge centralization in enterprises. This trend is attracting even greater focus due to its foundational relevance to AI projects, As enterprises push to operationalize meaningful AI use cases, particularly in customer service, they are struggling with content silos and fragmented knowledge, which makes it hard to ensure that AI systems relying on these silos for input can generate correct, consistent, and compliant answers. As a result, having a single source of truth in a knowledge central hub across the business is becoming critical. The other trend we see emerging is that knowledge management projects starting out with a mandate of automating customer service are incrementally adding enterprise-facing use cases for employee service or partner service during the sales process. As a result, we see larger knowledge opportunities in our pipeline. In the last six months, for example, we have seen the number of seven-figure deals in our pipeline more than doubled. This is exciting. At the same time, though, the side effect of this trend is more scrutiny on these projects, and the vetting process now includes groups like the AI office. So these bigger deals are taking some more time to close. On balance, we see this as a very good thing for us. We have the ability and patience to nurture these deals to close. Turning to our customers and products. At the end of October last year, we had a very successful eGain Solve24 event in Chicago. This is our main U.S. customer event. Many of our clients shared success stories about getting real value from AI capabilities in our platform. One client presentation in particular comes to mind, the head of knowledge management at Specialized Bikes, which is a name brand bike manufacturer for high-end cyclists. She was on stage talking about their experience with eGainAI Knowledge Hub. And she said, I quote, eGainAI is like having an army of interns on Red Bull. Our content team is really freaking happy, end quote. At the event, we also announced eGainAI Agent, a new omni-channel conversational product that guides and resolves customer and agent questions using documents, websites, and our knowledge base. Customer interest in eGain AI agents is very strong. We see the pressure in enterprises all the way up or coming down from the board and the CEO to show real business value with AI this year. Most of our clients are actively looking for full-stack AI solutions to quickly move the needle in customer service, both in cost and experience. And we are on track to launch our eGain AI agent in the current quarter as planned. To conclude, our AI Knowledge Hub solution is driving growth in our pipeline. We are actively investing and leading and shaping the AI Knowledge Hub market to automate business operations, starting with customer service. And eGain AI agent, our omnichannel conversational solution that we announced at our SOLVE event, will be available this quarter. With that, I'll ask Eric Schmidt, our Chief Financial Officer, to add more color around our financial operations.