eGain Communications Corporation ( (EGAN) ) has released its Q1 earnings. Here is a breakdown of the information eGain Communications Corporation presented to its investors.
eGain Communications Corporation is a leading provider of AI-powered knowledge management solutions, primarily serving businesses to enhance customer experience and operational efficiency. In its fiscal 2025 first quarter, eGain reported a notable increase in annual recurring revenue for its AI Knowledge Hub customers, showcasing a 16% year-over-year growth. However, the company experienced a downturn in total revenue, reporting $21.8 million, a 10% decrease compared to the same period last year. GAAP net income also fell to $652,000 from $2.6 million in Q1 2024.
Key financial metrics indicate a challenging quarter for eGain, with non-GAAP net income declining to $1.3 million from $3.8 million in the previous year. Cash flow from operations remained positive at $1.0 million, and the company maintained a substantial cash reserve of $67.2 million. The firm also continued its stock repurchase program, acquiring around 671,000 shares at an average price of $6.84 per share.
Looking ahead, eGain has set a revenue guidance of $22.2 million to $22.6 million for the second quarter of fiscal 2025, with expectations of a GAAP net loss ranging between $400,000 to $900,000. For the full fiscal year, the company projects total revenues between $92.0 million and $93.0 million and anticipates a non-GAAP net income of $5.0 million to $6.0 million. Despite current challenges, eGain remains focused on product innovation and client partnerships to leverage opportunities in the AI and knowledge management sectors.
