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eGain Communications Corporation (EGAN)
NASDAQ:EGAN
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eGain
(NASDAQ:EGAN)
68Neutral
eGain (EGAN) vs. S&P 500 (SPY)
Market Cap
$138.94M
Dividend YieldN/A
Average Volume (3M)44.45K
Price to Earnings (P/E)52.2
Beta (1Y)0.86
Revenue Growth-7.70%
EPS Growth-64.90%
CountryUS
Employees539
SectorTechnology
Sector Strength76
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.03
Shares Outstanding27,350,693
10 Day Avg. Volume47,192
30 Day Avg. Volume44,445
Financial Highlights & Ratios
PEG Ratio-2.51
Price to Book (P/B)2.76
Price to Sales (P/S)0.00
P/FCF Ratio70.85
Enterprise Value/Market Cap0.53
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit1.22
Enterprise Value/Ebitda3.01
Forecast
1Y Price Target
$8.00Price Target Upside55.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
eGain Business Overview & Revenue Model
Company DescriptioneGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides unified cloud software solutions to automate, augment, and orchestrate customer engagement. It also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting, implementation, and training services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.
How the Company Makes MoneyeGain makes money through a subscription-based revenue model, where clients pay recurring fees to access its cloud-based customer engagement solutions. Key revenue streams include software-as-a-service (SaaS) subscriptions, professional services such as implementation and consulting, and ongoing customer support. The company also benefits from strategic partnerships with major technology firms, which help expand its market reach and enhance its offerings. Additionally, eGain's ability to continually innovate and adapt its software to emerging market trends and customer needs plays a significant role in driving its earnings.
eGain Financial Statement Overview
Summary
eGain exhibits a strong gross profit margin and a solid balance sheet with low leverage, reflecting financial stability. However, the company faces challenges in revenue growth and cash flow management, which could impact long-term profitability if not addressed. Focused efforts on operational efficiency and cash generation can enhance financial performance.Income Statement
eGain's TTM (Trailing-Twelve-Months) gross profit margin stands strong at 69.2%, showcasing effective cost management. However, the net profit margin of 5.95% indicates room for improvement in operational efficiency. The revenue declined by 4.1% from the previous year, suggesting challenges in maintaining growth. The EBIT and EBITDA margins are moderate at 3.7% and 5.4%, respectively, indicating potential for higher earnings with operational optimizations.72
Positive
Balance Sheet
The company's debt-to-equity ratio is low at 0.07, indicating a strong equity position with minimal reliance on debt. The return on equity (ROE) is modest at 9.58%, reflecting moderate profitability. With an equity ratio of 49.7%, eGain maintains a solid balance of assets financed by equity, ensuring financial stability.78
Positive
Cash Flow
The free cash flow growth rate is negative, reflecting a decrease in cash generation capabilities. The operating cash flow to net income ratio is negative, indicating challenges in converting profits into cash. The free cash flow to net income ratio is also negative, signaling potential liquidity issues. These metrics highlight the need for improved cash management strategies.65
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 87.66M | 92.80M | 98.01M | 91.95M | 78.29M | 72.73M | Gross Profit |
| 60.68M | 65.21M | 70.70M | 67.41M | 59.02M | 51.65M | EBIT |
| 2.38M | 5.97M | 1.39M | -2.14M | 5.25M | 5.29M | EBITDA |
| 4.61M | 5.97M | 1.39M | -614.00K | 7.34M | 7.41M | Net Income Common Stockholders |
| 3.40M | 7.78M | 2.11M | -2.44M | 6.96M | 7.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 68.74M | 70.00M | 73.20M | 72.17M | 63.23M | 46.61M | Total Assets |
| 106.22M | 127.85M | 130.12M | 126.01M | 114.56M | 93.70M | Total Debt |
| 3.80M | 3.77M | 2.59M | 3.58M | 2.26M | 3.14M | Net Debt |
| -64.94M | -66.23M | -70.61M | -68.59M | -60.97M | -43.47M | Total Liabilities |
| 54.63M | 69.36M | 68.42M | 69.15M | 68.50M | 59.06M | Stockholders Equity |
| 51.59M | 58.50M | 61.70M | 56.86M | 46.06M | 34.64M |
| Cash Flow | Free Cash Flow | ||||
| 1.96M | 12.26M | 4.33M | 7.49M | 13.46M | 13.54M | Operating Cash Flow |
| 2.26M | 12.45M | 4.62M | 8.12M | 13.86M | 14.06M | Investing Cash Flow |
| -297.00K | -198.00K | -288.00K | -628.00K | -402.00K | -514.00K | Financing Cash Flow |
| -14.04M | -15.39M | -4.08M | 3.33M | 2.35M | 1.41M |
eGain Technical Analysis
Neutral
5.14
Price Trends
4.87
Positive
5.42
Negative
5.55
Negative
Market Momentum
0.08
Negative
52.26
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGAN, the sentiment is Neutral. The current price of 5.14 is above the 20-day moving average (MA) of 5.01, above the 50-day MA of 4.87, and below the 200-day MA of 5.55, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EGAN.
eGain Risk Analysis
eGain disclosed 38 risk factors in its most recent earnings report. eGain reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
eGain Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $138.94M | 52.16 | 5.01% | ― | -7.70% | -64.90% | |
60 Neutral | $11.59B | 10.39 | -7.23% | 2.94% | 7.46% | -10.76% | |
53 Neutral | $231.49M | ― | -24.47% | ― | -8.39% | 7.79% | |
51 Neutral | $238.37M | ― | -24.28% | ― | -2.23% | 19.48% | |
47 Neutral | $75.86M | ― | -137.76% | ― | -23.04% | 11.60% | |
47 Neutral | $288.77M | 50.30 | -24.21% | ― | -39.77% | -28.49% |
* Technology Sector Average
Performance Comparison
EGAN
eGain
5.14
-1.17
-18.54%
EGHT
8X8
1.80
-0.98
-35.25%
LPSN
Liveperson
0.79
0.11
16.18%
OCFT
OneConnect Financial Technology
7.06
4.80
212.39%
NUKK
Nukkleus
16.04
8.47
111.89%
ONTF
ON24
5.45
-0.88
-13.90%
eGain Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q3-2025)
| % Change Since: 1.58%|
Next Earnings Date:Sep 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements such as securing a major deal with a US mega bank and launching a new AI product, offset by challenges like a decline in revenue and extended sales cycles. The overall sentiment is neutral as the highlights and lowlights are evenly balanced.Q3-2025 Updates
Positive Updates
Mega Bank Deal Secured
eGain secured one of its largest deals ever with a US mega bank, expanding its AI knowledge platform to over 100,000 users across more than half the bank.
Launch of AI Agent for Contact Center
eGain launched a new AI Agent for Contact Centers, which is seeing strong customer interest and is already being rolled out by a banking client.
Gartner Recognition
eGain was rated a leader in Gartner's emerging market quadrant for generative AI knowledge management apps.
Profitability Exceeded Projections
The company exceeded its profitability projections and delivered solid operating cash flow.
Increased R&D Investment
R&D spending increased by 15% year-over-year to support product innovation and capitalize on emerging market opportunities.
Negative Updates
Revenue Decline
Total revenue for the third quarter was $21 million, down 6% year-over-year due to the loss of two large clients last year.
Extended Sales Cycles
Bookings were impacted by extended sales cycles, with sales cycles now averaging nine to twelve months.
Decline in SaaS Gross Margins
SaaS gross margin for the quarter was 77%, down from 78% a year ago, and total gross margin was 69%, down from 71% a year ago.
Net Income Decline
Non-GAAP net income was $765,000 or $0.03 per share, down from $2.6 million or $0.08 per share in the year-ago quarter.
Revised Downward Revenue Guidance
The company revised its full-year revenue guidance down to $88 million to $88.5 million from an original range of $88.5 million to $90 million.
Company Guidance
In the eGain Fiscal 2025 Third Quarter Financial Results Conference Call, the company provided several key metrics and guidance for the future. During the third quarter, eGain reported total revenue of $21 million, which was a 6% decline year-over-year, primarily due to the loss of two large clients in the previous year. SaaS revenue accounted for 93% of the total revenue, with the remainder coming from professional services. The company achieved a non-GAAP net income of $765,000 or $0.03 per share, surpassing the high-end of their guidance range. For Q4, eGain expects total revenue between $22.8 million to $23.3 million and a non-GAAP net income of $1.7 million to $2.2 million or $0.06 to $0.08 per share. For the full fiscal year 2025, eGain revised its revenue guidance to between $88 million to $88.5 million, slightly down from the original range, but raised its GAAP net income guidance to $2.5 million to $3 million or $0.09 to $0.10 per share. The company highlighted a significant expansion deal with a US mega bank, which is expected to positively impact SaaS ARR and contribute to sequential revenue growth into fiscal 2026.eGain Corporate Events
Executive/Board Changes
eGain Approves CEO Compensation and Executive Stock Options
Neutral
Dec 12, 2024
eGain Corporation’s Board approved a variable annual cash compensation of $60,000 for CEO Ashutosh Roy for fiscal year 2024, without altering his base salary. Additionally, stock options were granted to key executives, priced at $5.71 per share, vesting in September 2025, potentially impacting executive retention and motivation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.