Expose profitability projections and …

Appearance date: May 14, 2025

For the complete protocol of the earnings call, see the full profit call transcription.

• Egain Corp (Nasdaq: Egan) exceeded the profitability projections and delivered a solid operational cash flow in the second quarter of 2025.

• The company secured one of its greatest offers of all time with a US MEGabank and expanded its AI knowledge platform to over 100,000 users.

• Egain Corp (Nasdaq: Egan) started the Egain AI agent for Contact Centers, which has received a strong customer interest.

• Gartner rated Egain Corp (Nasdaq: Egan) as a leader in the threshold quadrant for generative AI knowledge management -apps.

• The company reported a strong start to the fourth quarter with good deals, including the important Megabank deal.

• The total turnover for the third quarter of 2025 was $ 21 million, a decrease of 6% compared to the previous year.

• The decline in sales in the previous year was influenced by the loss of two large customers last year.

• The SaaS gross parade for the quarter decreased to 77% compared to 78% a year ago.

• The entire arrangement for all customers decreased by 6% compared to the previous year.

• The sales cycles have been expanded and have now had an average of 9 to 12 months at the time of closing closures.

Q: Can you provide further details about the Megabank offer, including the extent of the expansion and its repeatability in your customer base? A: The provision continues at speed and is expected to be implemented completely by late autumn, with a six -month provision being used in several phases. The expansion is significantly larger and about 10 times the size of previous engagements. This pattern of expansion of knowledge solutions in companies is becoming increasingly common, driven by the AI ​​needs and can be repeated over our customer base. – Ashu Roy, CEO

Q: Have the extended sales cycles stabilize and how high is the current duration? A: The sales cycles have stabilized and now an average of 9 to 12 months, which is about 25% longer than before. This increase is due to the greater size of the possibilities and the inclusion of more groups in the evaluation process. – Ashu Roy, CEO

Q: The implementation process will look like the Megabank deal and how will sales increase? A: Implementation is similar to other large companies, whereby the bank is aggressive on AI and pulls more knowledge content from our hub. The income is increased from the beginning and not by a gradual purchase over time. – Ashu Roy, CEO and Eric Smith, CFO

Q: What drives the expected sequential growth from Q3 to Q4 and what is the visibility of this growth? A: The sequential growth is powered by the significant influence of the Megabank deal and its timing as well as a combination of other factors. The visibility is strong due to the size and time of the deal. – Eric Smith, CFO