eGain (EGCA) AI Stock Analysis

Company Guidance

For the first quarter of fiscal 2027, eGain expects AI customer revenue of between $13.7 million to $14 million, total revenue of between $20.9 million and $21.4 million, GAAP net income of $500,000 to $1 million or $0.02 to $0.04 per share, non-GAAP net income of $1.4 million to $2 million or $0.05 to $0.08 per share, and adjusted EBITDA of $1.4 million to $1.9 million or a margin of 7% to 9%; for fiscal 2027, it expects AI customer revenue of between $59.5 million to $60.5 million, representing growth approximately of 8% to 10%, total revenue of between $84.5 million and $86 million, a 20% decline in revenue from profitable legacy customers, ARR from AI customers to grow approximately 20%, ARR from legacy customers to decline by 60%, GAAP net loss of $2 million to $3 million or $0.08 to $0.11 per share, non-GAAP net income of $1 million to $2 million or $0.04 to $0.07 per share, adjusted EBITDA of $650,000 to $1.4 million or a margin of 1% to 2%, and weighted average shares outstanding of approximately 26.6 million for the first quarter and 26.8 million for the full fiscal 2027; for fiscal 2030 relative to fiscal 2026, it targets AI customer ARR of between $100 million to $120 million, a 17% to 22% CAGR, total SaaS ARR of $100 million to $120 million, AI customer ARR representing approximately 100% of total SaaS ARR, AI customer revenue of $105 million to $115 million, representing a 17% to 20% CAGR and a 20% plus growth year-over-year by fiscal 2030, total revenue of $110 million to $120 million, representing approximately 15% to 20% growth year-over-year by fiscal 2030, AI customer revenue representing approximately 95% of total revenue, SaaS gross margins of approximately 80%, and an adjusted EBITDA margin that remains positive; non-AI business is expected to be to 0 as we get to the 2030 time frame, and there may be 1 or 2 points pressure over the next 2 to 3 years.