eGain Corporation

Good afternoon, and welcome to the eGAIN Fiscal 2025 Fourth Quarter and Full Year Financial Results Conference 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 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, Pondeau Wilkinson, Investor Relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Welcome to eGames Fiscal 2025 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 Schmidt. 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, September 4th, 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 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 call will be available for one week. And now with that, I'd like to turn the call over to EGAIN's CEO, Ashu Roy.

Thank you, Jim. And good afternoon, everyone. We finished fiscal 2025 with strong bookings, a good revenue growth, and improved profitability in the fourth quarter ahead of our projections and street consensus. I note that our fourth quarter results also include one-time tax benefit from the release of our full income tax valuation allowance. So let me start with some business highlights. Last quarter, we signed up the largest nonprofit healthcare network in New Jersey as a client. They run 18 hospitals and have 36,000 team members. This client faced an urgent need to unify their knowledge management with strong governance because it was critical to support their rapid growth. They chose our solution to unify these knowledge assets And these correct consistent compliant answers now coming out of the knowledge hub will be delivered to their contact center agents on the desktop provided by Cisco in the flow of the conversation with the patients. Another new client we won was one of the nation's largest credit unions. They set out to implement an enterprise knowledge management system and in the past had had a challenging experience with another vendor. They recognized the value of our AI knowledge hub, and now they'll be using it to deliver trusted answers to all employees, including contact center agents who are using a Genesys CCaaS desktop. Another great win for us last quarter was a deal we signed with an existing client. This is a global leader in workforce services, They support employees of over 4,300 businesses, including 70% of the Fortune 100. They will be deploying our AI agent for contact center. As you know, this is a new product we launched last quarter. This solution will help their service associates better handle over 15 million phone calls every year. This will scale up next year to that level. with proactive real-time guidance powered by trusted answers from our knowledge hub. It's very exciting for us to see the early interest in our AI agent products. We are now engaged with many CX leaders who we note have been unsuccessful as they have tried to implement agent assist solutions from other providers over the past couple of years. They seem to now understand that without a trusted knowledge infrastructure, all the AI-powered agent tools cannot deliver value because you cannot rely on those answers. Stepping back. I also want to share what I think is an important update to the large deal news that we talked about last quarter at the earnings call. As you may recall, we signed one of our largest deals in company history in April with a U.S. mega bank. That bank is JPMorgan Chase. This deal was our third win inside the bank. building on our success in their travel group and their international business unit. Our AI Knowledge Hub will now serve all bank employees in their US Chase business. What is exciting for us is that we are now actively partnering with JPMorgan Chase to improve customer experience and drive AI efficiencies across their business. To strengthen this partnership, We issued warrants to JPMC in August, and they agreed to nominate a senior executive to join our board as an observer. She will be a great addition to our strategic brain trust. I'm super excited about our innovative partnership with JPMC. As we know, they are one of the most tech-savvy banks in America. They understand the criticality of a trusted knowledge infrastructure. to scale their AI ambitions. Their better knee game, we will deliver. And we will also benefit from their strategic insights and needs as we partner with them to design our next generation products. Looking at the market, AI is starting to move down from what we would all agree is the hype peak toward more pragmatic pastures. Most of you probably read the recent MIT study based on extensive survey of businesses. It reported that 95% of AI investments are not showing significant ROI. We know one big reason why. Without trusted knowledge, generative AI is stuck in the rut of garbage in garbage out. No amount of language model improvement and deep reasoning solves this problem. The student can do only so well as the book she reads. Increasingly, businesses are recognizing this foundational need for trusted knowledge to deliver AI ROI. Our bookings in fiscal 25 have started to reflect this growing demand. Our total AI knowledge ARR grew by 25% year over year. We expect that our total AI knowledge will grow by 20% or so in fiscal 26. To continue to extend our product leadership in this critical AI infrastructure market, we will continue to invest and, in fact, modestly increase our product development investments. Our R&D spend in fiscal 26 will grow by roughly 6% year over year. At the same time, we are defocusing from less strategic products in our portfolio. So our messaging products, which have been in sustained mode for a few years, will now be sunset in fiscal 2026. On the operational front, we are streamlining our business with AI. This is improving productivity and quality. And we are deploying some of those savings into R&D, and the rest goes to a bottom line. Thanks to increased investment in R&D in fiscal 25, we launched our new AI agent products, one for customer self-service in March and the other for contact center in June. Since then, we have enhanced the products with deep connectors to enterprise platforms like SharePoint, Genesis, and Salesforce. These products are well received now in the CX market where businesses are looking for solutions that deliver real ROI. We saw this interest firsthand at our eGainSolve customer event in London this June. Our demo lounge and the AI agent workshop were packed with attendees who wanted to play with the product and configure their own use cases. And so new pipeline opportunities have started to grow out of those engagements. Our next eGainSolve customer event will be held in Chicago on October 14th and 15th at the Hyatt Regency O'Hare. In addition to customer success stories, new product intros, demos, workshops, we will also host an analyst day at the event. And we look forward to seeing some of you there. So to conclude, I believe we have made good progress in fiscal 2025. With a sharp focus on the AI knowledge opportunity in customer service, we invested early and heavy on R&D. We launched E&AI Agent, a new product set that effectively leverages our deep differentiation in knowledge management. We also acquired good logos in our target market. including JPNC, a marquee client, and now a design partner in our journey to deliver the most trusted knowledge infrastructure for AI. With that, I'll hand it over to Eric Schmidt, our CFO, to provide more detail on the financials.