In This Article:
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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eGain Corp (NASDAQ:EGAN) exceeded profitability projections and delivered solid operating cash flow in Q3 2025.
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The company secured one of its largest deals ever with a US megabank, expanding its AI knowledge platform to over 100,000 users.
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eGain Corp (NASDAQ:EGAN) launched the eGain AI agent for contact centers, which has received strong customer interest.
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Gartner rated eGain Corp (NASDAQ:EGAN) as a leader in the emerging market quadrant for Generative AI knowledge management apps.
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The company reported a strong start to Q4 with good deal closures, including the significant megabank deal.
Negative Points
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Total revenue for Q3 2025 was $21 million, down 6% year over year.
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The year-over-year revenue decline was impacted by the loss of two large clients last year.
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SaaS gross margin for the quarter decreased to 77% from 78% a year ago.
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Total ARR for all customers decreased by 6% year over year.
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Sales cycles have been extended, now averaging 9 to 12 months, impacting the timing of deal closures.
Q & A Highlights
Q: Can you provide more details about the megabank deal, including the scale of the expansion and its repeatability across your customer base? A: The deployment is progressing at pace and is expected to be fully implemented by late fall, with a six-month deployment in multiple phases. The expansion is significantly larger, about 10 times the size of previous engagements. This pattern of expanding knowledge solutions across businesses is becoming more common, driven by AI needs, and is repeatable across our customer base. - Ashu Roy, CEO
Q: Have the extended sales cycles stabilized, and what is the current duration? A: The sales cycles have stabilized, now averaging 9 to 12 months, which is about 25% longer than before. This increase is due to the larger size of opportunities and the involvement of more groups in the evaluation process. - Ashu Roy, CEO
Q: Regarding the megabank deal, what will the implementation process look like, and how will the revenue ramp up? A: The implementation is similar to other large enterprises, with the bank being aggressive on AI, pulling more knowledge content from our hub. Revenue will ramp up from the beginning rather than a phased purchase over time. - Ashu Roy, CEO and Eric Smith, CFO
Q: What is driving the expected sequential growth from Q3 to Q4, and what is the visibility on this growth? A: The sequential growth is driven by the significant impact of the megabank deal and its timing, along with a combination of other factors. The visibility is strong due to the size and timing of the deal. - Eric Smith, CFO