The following is a summary of the EGain Corporation (EGAN) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Q1 revenue was $21.8 million, slightly down by 10% year-over-year but at the high end of guidance.

• Non-GAAP gross profit was $15.4 million with a gross margin of 70%, slightly down from 73% a year ago.

• Non-GAAP net income was $1.3 million, or $0.04 per share, compared to $3.8 million, or $0.12 per share in the year-ago quarter.

Business Progress:

• eGain continues to expand and innovate in its AI and knowledge management offerings, focusing on centralization of knowledge across enterprises.

• The introduction of eGain AI Agent, a new conversational self-service product, is a strategic move to enhance customer self-service capabilities.

• Strong momentum is observed in the AI Knowledge business with increased year-over-year ARR for Knowledge customers by 16%.

Opportunities:

• The ongoing development and implementation of AI Knowledge Hub and other AI-driven solutions represent a growing market opportunity, reflecting a shift towards more sophisticated, integrated knowledge management systems.

• The launch of new products like eGain AI Agent underlines opportunities in improving and expanding self-service solutions across industries.

Risks:

• Revenue decline primarily due to the loss of two large clients in the Conversation and Analytics business.

• Ongoing market confusion about AI capabilities and applications poses a risk of elongated sales cycles or adoption hesitancy among potential clients.

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