eGain Corporation

Good day, and welcome to eGain Fiscal 2026 First Quarter Financial Results Call. All participants will be in a 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 the touch-tone 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, Pondell Wilkinson, Investor Relations. Please go ahead.

Jim Byers Thank you, operator, and good afternoon, everyone. Welcome to EGAIN's fiscal 2026 first 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, 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 the 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, November 12, 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 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 release link on the investor relations page of eGain's website at eGain.com. Along with the earnings release, we will also 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 said, I'd like to turn the call over to eGain's CEO, Ashu Roy.

Ashu Roy Thank you, Jim. And good afternoon, everyone. We are off to a good start to our fiscal year with strong first quarter results across the board. and ahead of consensus. Our total revenue was up 8% year-over-year. Our SAS revenue was up 10% year-over-year. And our AI knowledge line of product business, the ARR for it was up 23% year-over-year. So we're making progress in the right direction in this exciting space of AI knowledge that we are now firmly leading. Turning to business highlights, Let me share a couple of notable new logo wins in the portal. First, we signed up one of New York's largest insurers, health insurers. They serve 2 million members, roughly. This company saw the critical gap in their business operation where lack of trusted knowledge that was available to all their employees and clinical staff was hurting compliance. They were struggling with their knowledge content fragmented across silos. Some were SharePoint, some were Confluence, and then many other repositories. So following an extensive process, RFP, and so on, they selected us to centralize their knowledge across the business for 8,000 users. Now, what's interesting to us is within 100 days, They've gone live with our solution with a powerful, scalable AI experience that aligns perfectly with their mission to deliver great healthcare to New Yorkers. Another one which is quite interesting is a multinational energy company that we recently won. They serve over 20 million customers across gas and electricity. This company, they have set up an ambitious goal to achieve a top quartile CSAT ranking because that would enable them to compete for millions of pounds of government incentives. A key challenge for them as part of this is replacing their outdated knowledge experience for something that is spread across thousands of different documents, PowerPoints, SharePoints, Word documents, And so they're replacing that with eGain, a modern solution to support their contact center, their field agents, and their service engineers. Again, this client went live within 100 days. We're already live now with our AI knowledge solution. They internally call it WATT, W-A-T-T, a fitting name for a knowledge tool in an energy company. On the expansion front, we are seeing a nice pattern where existing knowledge clients are increasingly coming to us to add the AI agent products to leverage the trusted knowledge they have in their knowledge base and either go into the contact center to assist the agents or, in some cases, extend it into customer self-service directly. So, for example, one of our branded manufacturing clients last quarter decided to expand their core knowledge implementation now into customer self-service. And this is a leading manufacturer of premium bicycles. And what we have been able to now do is reduce a lot of their inbound contact center volume, and they can drive a lot more growth without increasing cost of service. This combination of AI and knowledge is really working for our customers now, and we are seeing more and more of them starting to drive that expansion and build out of agentic capabilities on top of a trusted knowledge infrastructure from us. The other thing, just looking at exciting stuff we have announced recently, is we made a whole bunch of new product announcements at our Solve25 event last month. It was very successful. We held it in Chicago. About half a dozen of our global 2,000 clients shared success stories with pretty much a common theme, and that was the power of trusted knowledge and agentic AI working hand in hand to deliver both contact center improvements in performance, as well as self-service improvements. The three new capabilities that we announced at the event, incidentally, that's our biggest product announcement ever, where we have announced three new capabilities. So that's sort of testimonial to the great work that our team has been doing for the last year and a half in this area of AI knowledge. So the first product we announced was more a process that we have now translated into a product. And this was our, what used to be called the e-gain knowledge method. The knowledge method was our way, our proprietary way of building out and maintaining enterprise knowledge in a very efficient way for our business clients. And what we've been able to do is to apply AI to that and develop what we are now calling the EGAN AI knowledge method. This includes comprehensive AI-powered knowledge intelligence, content orchestration, and answer synthesis capabilities. All that put together with expert in the loop to ensure that quality and compliance are always front and center. With these automation capabilities, we are confident that we can accelerate most knowledge management tasks by a factor of 10. And also reduce customer implementation time by 2 to 3x. In fact, when I mentioned the other two clients earlier, they were benefiting from some of the early usage of this capability of AI knowledge methods. Our attendees at the conference were simply delighted with this because for the longest time, knowledge management has been a great ROI, but the investment required has been a lot of manual labor. Now with automating back with our AI capabilities, that just creates a lot of energy around knowledge and the priority businesses are able to put onto knowledge automation, not knowledge management. The next product we announced was the second version of eGain AI Agent. And so it's a breakthrough approach we have taken now to enhance the first version to automate conversations in customer service. And what we're doing there is we are combining hybrid AI with in-band expert assurance where needed. And by doing that, we can deliver non-trivial use cases which involve transactions, which involve decisions that are compliance-oriented to customers using AI and automation. And that's something which we have seen is a big gap in the industry where a lot of agentic solutions that are out there now talk about in automation, but really when we see the automation in practice, it's all around very trivial use cases because these agentic AI solutions will occasionally make mistakes. And so you need to have a hybrid AI approach where you combine deterministic reasoning with model reasoning. And you do that intelligently and with compliance in mind. And that's what we have implemented in AI Agent 2. Finally, we announced the eGain Composer, which is our first product, first product targeting developers. It's a modular AI knowledge platform for developers that leverages trusted knowledge sources to power agentic automation. And so now what we're doing is These developers can now mix and match the components we have on our platform, including the knowledge hub, the retrieval engine, the agentic flows, and the user experiences. So they can decide to configure what we already have, or they can decide to develop their own components and plug them in to meet specific needs using our extensive APIs and SDKs and connectors that we announced as part of the Composer solution. Over the last couple of years, we've been working with many enterprise AI teams in our clientele. And what we have seen is a common pattern where these AI teams are looking to deploy The same sort of reliable, trusted, knowledge-powered agentic capabilities increasingly that we are doing in the customer service groups and CX groups, they want to do it outside of those groups. But in order to do that, they need more flexibility. They want to use the common knowledge architecture and infrastructure, but they also want the ability to develop their own agentic layer on top of it. And the composer offering allows them to do just that. So we've seen some good interest from our existing customers around Composer and some new partner interest in that in the short period of time that we have announced it. Very exciting for us. Looking at the third aspect, which is again very interesting now for us, is the team and how we are adding some key talent as we are growing the business and investing on top of this product-led growth plan that we have put in place. So a couple of new hires I want to highlight. We did a press release around John Copeland, who is our new VP of Marketing. He comes in from ServiceNow, and before that he was with Adobe and eBay and McKinsey. He's leading a marketing effort. Our solid event last month was his public introduction to the eGain stage. The next person that I want to mention, and I'm very happy to have him on board, is Vikas Palewal. Vikas has joined as our VP of Product Marketing. He comes to us from the AWS AI team. And before that, he was with Intel and Broadcom and a host of other technology-heavy companies. He brings deep experience in the product development, the product management, and now leading product marketing. So at eGain, his first mandate is to drive the GTM for our new composer product. As I mentioned, we are targeting developers and partners who are looking for a composable platform to operationalize their AI solutions built on trusted knowledge. And finally, we're very happy to have Gautam Garg who has joined us as the VP of Finance. He's joined Eric's team and comes to us from BTIS, which is a respected investment bank, and before that with Oracle in a variety of roles, starting in engineering and moving on to business and product. So Eric, I know, is quite excited about having him on the team, looking to further automate our finance and operations as we drive our growth plans. With a lot going on, just to conclude, we are pleased with our first quarter financial performance and what I see as growing market momentum. Our recent product introductions are resonating in the marketplace, the three we talked about. So that's the time we are now investing in building out the team. And so we are excited to expand our leadership team with the hires that I just mentioned. With that, I'll hand it over to Eric, our CFO, to provide more detail on the financials. Eric?