Connect More Dots

Connect More Dots

Investor PresentationQ1 FY22

NASDAQ : EGAN

#1 Digital Customer Engagement SolutionGartner & Forrester

NA SDAQ: EGA N Q1 FY22 INVESTOR PRESENTA TION 2

This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of1995, including without limitation our financial guidance for the second quarter of fiscal 2022 ending December 31, 2021 and full year of fiscal 2022 endingJune 30, 2022; our plans to continue our momentum and grow our market share; and expectations regarding our growth prospects. The achievement orsuccess of the matters covered by such forward-looking statements, including future financial guidance, involves risks, uncertainties and assumptions,many of which involve factors or circumstances that are beyond our control. If any such risks or uncertainties materialize or if any of the assumptions proveincorrect, the Company’s actual results could differ materially from the results expressed or implied by the forward-looking statements we make, includingour ability to achieve our targets for the second quarter of fiscal 2022 ending December 31, 2021 and full year of fiscal 2022 ending June 30, 2022. The risksand uncertainties referred to above include, but are not limited to: risks to our business, operating results, financial condition, and prospects from theCOVID-19 pandemic and related economic downturns, including but not limited to, its effect on customer demand for the Company’s products andservices and the impact of potential delays in customer payments; risks associated with new product releases and new services and products features;risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments, particularly in the currenteconomic environment ; risks that our lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customerengagement; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to competesuccessfully and manage growth; our ability to develop and expand strategic and third party distribution channels; risks related to our internationaloperations; our ability to continue to innovate; our strategy of making investments in sales to drive growth; general political or destabilizing events,including war, intensified international hostilities, conflict or acts of terrorism; the effect of legislative initiatives or proposals, statutory changes,governmental or other applicable regulations and/or changes in industry requirements, including those addressing data privacy, cyber-security and cross-border data transfers; and other risks detailed from time to time in eGain’s public filings, including eGain’s annual report on Form 10-K filed on September10, 2021 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’sweb site at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. The Companyassumes no obligation and does not intend to update these forward-looking statements, except as required by law. These forward-looking statements arebased on current expectations and speak only as of November 9, 2021. The Company assumes no obligation and does not intend to update theseforward-looking statements, except as required by law.

SAFE HARBOR STATEMENT

Top-rated, knowledge-powered

customer engagement platform for enterprise and gov

WHO WE ARE

NA SDAQ: EGA N 3Q1 FY22 INVESTOR PRESENTA TION

$21.5MTOTAL REVENUE

FINANCIAL SNAPSHOT (FY2022 Q1)

25%SAAS REVENUE

CAGR PAST 3 YEARS

14%ADJUSTED

EBITDA

112%TTM SAAS CUSTOMER

NET RETENTION1

$70MCASH ASSETS

NO DEBT

$7MCASH FROM OPERATIONS

AT A GLANCEWHO WE A RE

NA SDAQ: EGA N 4

COMPANY OVERVIEW

1997Founded

~600Employees

~180SaaS Customers

Enterprise ClientsFinancial services, telco, retail, health, government

Sunnyvale, CAGlobal offices in UK & India

INVESTING FOR GROWTHSales & Marketing investment up 25% YoY

MISSIONAutomate Customer Engagement

1 Net Retention is the percentage of SaaS ARR retained from existing customers in a defined time period, including expansion revenue, downgrades, and cancels.

Q1 FY22 INVESTOR PRESENTA TION

THE TIME IS NOW


The market opportunity is massive and we are in position to dominate

MASSIVE MARKET DISRUPTED BY 3 MEGATRENDS…THE T I ME I S NOW

NA SDAQ: EGA N 6

Gartner Market Share: Customer Experience and Relationship Management, Worldwide, 2019

$19.4 B Customer

Service Market

On-Prem to Cloud Shift

Voice to Digital Shift

Automation with AI and Knowledge


…ACCELERATED BY COVID-19THE T I ME I S NOW

NA SDAQ: EGA N 7

$19.4 B Customer

Service Market

On-Prem to Cloud Shift

Voice to Digital Shift

Automation with AI and Knowledge

Guidance and Compliance

for Hybrid Workforce

Gartner Market Share: Customer Experience and Relationship Management, Worldwide, 2019


THE T I ME I S NOW

8

Growing Knowledge Gap in the Enterprise

Knowledge silos increasing in the enterprise, not decreasing

Businesses (and partners) struggle with complexity and fragmentation

Functional platforms create new knowledge silos – CRM, CC, UC, ITSM, HR…

Knowledge unification (with personalization) is a critical unaddressed need

Q1 FY22 INVESTOR PRESENTA TIONNA SDAQ: EGA N

Gartner analysts cite Knowledge Management (KM) as the #1

technology for enhancing the three main customer service perspectives of

operational performance, CX and employee experience

WHAT WE DO MATTERS


EGAIN PRODUCT IS TOP-RATEDWHA T WE DO MA TTERS

NA SDAQ: EGA N 10

#1Current Product

Offering—

Forrester New Wave Report on Digital-first Customer Service, 2020


#1Digital Engagement +

Knowledge Management + Engagement Automation

—Gartner Critical Capabilities Report

on Customer Engagement, 2021

HOW WE MAKE IT HAPPENWHA T WE DO MA TTERS

180+ enterprisesuse our platform to engage customers every day

WSS Portal

Website

ECOMMERCE • CRM • CMS • INTRANET • CC TELEPHONY

Voice

Virtual Assistant

SocialChat

CUSTOMER ENGAGEMENT PLATFORM

App

Facebook Messenger

IVR

Apple Business

Chat

Email

SMS

Twitter DM

Google Business

Messaging

11

CONVERSATION HUB | KNOWLEDGE HUB | ANALYTICS HUB

AI + ML

WHAT SETS US APARTWHA T WE DO MA TTERS

NA SDAQ: EGA N 12

Parallel reasoning—

Personalized content

—Machine learning

—Built-in collaboration

Knowledge Management + AI

Digital-first, Omnichannel

Conversation Hub, BYOB architecture

—Virtual Assistance

across touch points—

Modern advisor desktop

Composable, Secure Platform

Integrated with Cisco, Avaya,

Amazon, Genesys—

Connectors to SFDC, MS Dynamics, SAP,

SNOW, Adobe—

Open APIs

Innovation at Scale + Speed

Unique “innovation in 30 Days” offer

—Deep analytics to

measure & optimize—

Turnkey virtual coach solution for financial services

99.9%+ Cloud Uptime Over Past 15 Years—

Built on AWS and Azure IaaS. PCI, HIPAA, SOC2, FedRAMP Compliant


INDUSTRY LEADING CUSTOMERSWHA T WE DO MA TTERS

FINANCIAL SERVICES & INSURANCE

TELECOM & MEDIA

RETAIL & MANUFACTURING

FEDERAL & STATE GOVERNEMENT

HEALTHCARE


We deliver quick value and easy innovation to

transform CX

WE DELIVER WOW


CASE STUDY: PAYLOCITYWE DEL I VER WOW

NA SDAQ: EGA N 15

EGAIN SOLUTION

“Easy Self-Service, Empowered Agents”CHALLENGE• Hyper growth• Proliferating products• Increasing need to escalate to experts

SOLUTION• Web self-service to deflect assisted service requests• Knowledge and AI guidance portal within Salesforce desktop• Knowledge embedded in SaaS products for in-band answers

Contact Center

Knowledge AI Process Guidance

35%

CLIENT SUCCESS

Better first-timeright answer

67%Better time to answer

60%Better agent

confidence in answer


CASE STUDY: IRS

NA SDAQ: EGA N 16

400%

CLIENT SUCCESS

More taxpayers handled per hour

70%Call deflection

using Knowledge

25%Reduction in overall case

handle time

EGAIN SOLUTION

“Modernizing Taxpayer Engagement”CHALLENGE• 20 million unanswered phone calls per year• Long phone hold times and in person office wait times• Answers given to taxpayers were inconsistent

SOLUTION• Modernized taxpayer communications with secure messaging• Virtual assistant guides taxpayers and IRS employees to self-service• Chat supports general queries, applications, and payment options

AnalyticsChat MailVirtual Assistant Self Service Knowledge


WE DEL I VER WOW

eGain is the industry leader according to Gartner and

Forrester

WHO ELSE IS OUT THERE


WHAT ELSE IS OUT THEREWHO ELSE I S OUT THERE

NA SDAQ: EGA N 18

Many competitors claim to do what we do, but when it comes down to it, they all have major gaps compared to our full solution suite.

C A T E G O R Y eGain Liveperson Genesys Zendesk SFDC

CEC Suite

Mobile Apps. For Customer Service

KM for Customer Service

Customer Self-Service Suite

Virtual Customer Assistants

Consumer Messaging Apps

Live Chat

Co-Browsing

Recorded Video

Performance Management

Source: The Gartner Customer Service Technology Vendor Guide, 2019


20% SaaS growth in FY22Q1 driven by increased demand

from new and existing customers

FY22Q1 HIGHLIGHTS


Q1 FY22 FINANCIAL HIGHLIGHTSQ1 FY22 H I GHLIGHTS

M E T R I C P E R F O R M A N C E ( y e a r - o v e r - y e a r )

SaaS revenue $19.2 million, up 20%

Total revenue $21.5 million, up 13%

Non-GAAP Gross Margin 78%, compared to 76%

GAAP net income $0.6 million, or $0.02 per diluted share

Non-GAAP net income $2.7 million, or $0.08 per diluted share

Cash from operations $7.2 million, or 33% cash flow margin

Cash and equivalents $70.4 million, up 33%


POSITIVE ENTERPRISE SAAS METRICS

NA SDAQ: EGA N 21

GROWING ARR PER SAAS CUSTOMER

~$360kARR1

per SaaS

customer

GROWING CUSTOMER SUCCESS

122%TTM

SaaS Net expansion

rate2

HIGH-END CUSTOMER BASE

~90%ARR1 is with large

$1B+ annual revenue enterprise

clients and government orgs

1 Excluding OEM2 Net Expansion Rate is calculated as the ARR at the end of the period for the base set of customers from which we had ARR at the beginning of the period, divided by the ARR at the beginning of the period for the same customer base.


FY22Q1 H I GHL IGHTS

SAAS GROWTH + MARGIN EXPANSION + STRONG CASH FLOW

NA SDAQ: EGA N 22

$ IN MILL IONS

SAAS REVENUE GROSS MARGIN

$39.6 $46.0

$52.1

$59.4

FY18 FY19 FY20 FY21

65%68%

72% 76%

$ IN MILL IONS

$32.7

$44.8 $56.8

$66.9

FY18 FY19 FY20 FY21

$ IN MILL IONS

OPERATING CASH AND MARGIN

$6.6 $7.0

$14.1 $13.9

FY18 FY19 FY20 FY21

11%

10%

19%18%


FY21 H I GHL IGHTS

We intend to be the #1 Customer Engagement

Automation Company

WHERE WE’RE GOING


INVESTING TO GROW FASTER

24

Ramp investment in sales & marketing

Retain and expand enterprise SaaS clients

Acquire new enterprise SaaS logos

Enter adjacent markets

• Sales and marketing investment increased25% year over year

• Expand in our 180 plus enterprise SaaS accounts with more investment in PS & managed services

• Drive knowledge hub standardization across the enterprise, beyond customer service

• Virtual Financial Coach, a vertical solution for mid-market. Added 33 new mid-market logos since debut in Mar 21

• Focus sales hires on new logo acquisition

• Expand connectors to CRM and CC platforms to tap new market pools

• Develop SI partnerships to penetrate G1000

• Currently expect FedRAMP certification by CY21 end to grow in gov

Q1 FY22 INVESTOR PRESENTA TIONNA SDAQ: EGA N

WHERE WE’RE GOI NG

TARGET OPERATING MODEL

FY2021 Q1 FY2022

Inter im Target Model

(1– 2 years)

Long TermTarget Model

(3 – 5 years)

Total Revenue Growth 8% 13% 15% 25%

Non-GAAP Gross Margin1 76% 78% 76% 81%

S&M1 32% 32% 38% 38%

R&D1 22% 24% 24% 20%

G&A1 10% 8% 10% 8%

Adjusted EBITDA1 12% 14% 4% 15%

1. As of % revenue and excludes depreciation, intangibles amortization, stock-based compensation and unusual transactions.

WHERE WE’RE GOI NG

NA SDAQ: EGA N 25

Investments expected to accelerate revenue growth trajectory


KEY TAKEAWAYS

Multi-billion market undergoing digital

transformation

Knowledge, AI & Digital driving demand for our

Platform

#1 Digital Customer Engagement Solution

—Gartner & Forrester

Proven, scalable solution delivers quick value

Accelerating top-line growth in FY22


© 2021 eGain Corporation. All rights reserved.


APPENDIX


GAAP P&L LAST 5 QUARTERSA PPENDIX

NA SDAQ: EGA N 29

$ in thousands

For the Period Ending Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22

Subscription 17,747 17,699 18,078 18,846 20,145Professional services 1,316 1,534 1,665 1,402 1,306

Total Revenue 19,063 19,233 19,743 20,248 21,451Cost of revenue 4,631 4,711 4,846 5,076 5,298Gross Profit 14,432 14,522 14,897 15,169 16,153Gross Profit % 76% 76% 75% 75% 75%

Research and development 4,505 4,508 4,371 4,549 5,609Sales and marketing 5,631 6,266 6,927 7,176 7,404General and administrative 1,944 1,852 2,022 1,930 2,449Total Operating Expense 12,080 12,626 13,320 13,655 15,462

Operating Income 2,352 1,896 1,577 1,514 691Interest income 3 2 5 2 2Currency exchange gain/(loss)Other non-operating income/(exp.) (163) (160) (378) 144 10EBT 2,192 1,738 1,204 1,660 703

Income tax benefit/(provision) (148) (132) 57 388 (152)Net Income 2,044 1,606 1,261 2,048 551


GAAP TO NON-GAAP RECONCILIATIONA PPENDIX

NA SDAQ: EGA N 30

$ in thousands Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22

Gross profit $14,432 $14,522 $14,897 $15,169 $16,153

Gross profit % 76% 76% 75% 75% 75%

Stock-based compensation expense 74 80 88 83 518

Amortization of acquired intangible assets 26 0 0 0 0

Non-GAAP gross profit $14,532 $14,602 14,985 15,252 16,671

Non-GAAP gross profit % 76% 76% 76% 75% 78%

Operating income $2,352 $1,896 $1,577 $1,514 $691

Stock-based compensation expense 470 426 368 436 2,107


Non-GAAP operating income $2,848 $2,322 $1,945 $1,950 $2,798



NA SDAQ: EGA N 31

in thousands Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22GAAP Cost of subscription $3,222 $3,248 $3,341 $3,696 $3,487

Stock-based compensation expense - - - - -Amortization of acquired intangible assets (26) - - - -

Non-GAAP cost of subscription $3,196 $3,248 $3,341 $3,696 $3,487

GAAP Cost of professional services $1,409 $1,463 $1,505 $1,383 $1,811

Stock-based compensation expense (74) (80) (88) (83) (518)Amortization of acquired intangible assets - - - - -

Non-GAAP cost of professional services $1,335 $1,383 $1,417 $1,300 $1,293

GAAP research and development $4,505 $4,508 $4,371 $4,549 $5,609Stock-based compensation expense (158) (144) (92) (115) (540)Amortization of acquired intangible assets - - - - -

Non-GAAP research and development $4,347 $4,364 $4,279 $4,434 $5,069

GAAP sales and marketing $5,631 $6,266 $6,927 $7,176 $7,404Stock-based compensation expense (133) (175) (169) (182) (509)Amortization of acquired intangible assets - - - - -

Non-GAAP sales and marketing $5,498 $6,091 $6,758 $6,994 $6,895

GAAP general and administration $1,944 $1,852 $2,022 $1,930 $2,449Stock-based compensation expense (105) (27) (19) (56) (540)Amortization of acquired intangible assets - - - - -

Non-GAAP general and administration $1,839 $1,825 $2,003 $1,874 $1,909



NA SDAQ: EGA N 32

$ in thousands Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22

Net income $2,044 $1,606 $1,261 $2,048 $551

Depreciation and amortization expense 93 106 114 115 111

Stock-based compensation expense 470 426 368 436 2,107

Interest expense (income), net (3) (2) (5) (2) (2)

Income tax provision (benefit) 148 132 (57) (388) 152


Severance and related charges 11 0 0 3 13

Adjusted EBITDA $2,789 $2,268 $1,681 $2,212 $2,932

% of total revenue 15% 12% 9% 11% 14%


BALANCE SHEETA PPENDIX

NA SDAQ: EGA N 33

$ in thousands as of: SEP-30-2021 Jun-30-2021 $ in thousands as of: Sep-30-2021 Jun-30-2021

Current Assets Current LiabilitiesCash and Cash Equivalents 70,414 63,231 Accounts Payable 1,721 3,068Accounts Receivables 11,400 26,311 Accrued Expenses 9,578 12,795Prepaid & Other C/A 4,514 5,129 Operating Lease Liabilities 1,328 1,466Restricted Cash 7 7 Deferred Revenue 40,590 46,211Total Current Assets 86,335 94,678 Total Current Liabilities 53,217 63,541

Non-Current Assets Non-Current LiabilitiesPPE, Net 751 705

Operating lease right-of-use assets 4,696 2,191Operating Lease Liabilities, Net ofCurrent 3,348 797

Goodwill 13,186 13,186 Deferred Revenue, Net of Current 2,720 3,332Intangible Assets, Net 0 0 Other Long-term Liabilities 830 832Other Assets, Net 4,175 3,803 Total Non-Current Liabilities 6,898 4,961Total Assets 109,143 114,563

Shareholders' EquityCommon Stock 31 31APIC 379,555 377,141Retained Earnings (330,558) (331,109)Total Shareholders Equity 49,028 46,061Total Liabilities & Shareholders Equity 109,143 114,563


Connect More Dots

Documents