The chart below shows how EGAN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EGAN sees a +4.09% change in stock price 10 days leading up to the earnings, and a -7.78% change 10 days following the report. On the earnings day itself, the stock moves by +0.70%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Customer Acquisition: Closed several new enterprise logos, including a major U.S. airline, leading interactive entertainment company, and a global money transfer company, indicating strong customer acquisition.
AI Segment Growth: AI Knowledge ARR increased by 17% year over year, demonstrating robust growth in the AI segment.
SaaS Revenue Dominance: SaaS revenue accounted for 93% of total revenue, reflecting a strong focus on subscription-based business model.
Strong Operational Efficiency: Generated $6,400,000 in cash flow from operations, resulting in a 29% operating cash flow margin, showcasing strong operational efficiency.
Share Repurchase Confidence: Repurchased approximately 421,000 shares at an average price of $5.73 per share, totaling $2,400,000, indicating confidence in the company's value.
Negative
Q2 Revenue Decline: Total revenue for Q2 was $22,400,000, down 6% year over year, primarily due to the impact of two large client losses from the previous year.
Revenue Target Adjustment: Professional services revenue targets for fiscal 2025 are being lowered by approximately $2,800,000 due to decreased attach rates and faster deployment times.
Gross Margin Decline: Total gross margin for the quarter decreased to 71%, down from 72% in the year-ago quarter, indicating a decline in overall profitability.
Earnings Decline Analysis: Non-GAAP net income fell to $1,300,000 or $0.05 per share, down from $3,400,000 or $0.11 per share in the year-ago quarter, reflecting a significant drop in earnings.
RPO Decline Analysis: Total remaining performance obligations (RPO) decreased by 5% year over year, with short-term RPO down 9%, primarily due to the two large customer losses previously mentioned.
Earnings call transcript: eGain Q2 2024 misses EPS forecast, stock drops
EGAN.O
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