eGain Corporation (EGAN) Q4 2024 Earnings Report

eGain reported QQ4 2024 revenue of $22.5 million, bringing full-year revenue to $92.8 million, down 5% year over year. The quarter reflected ongoing churn stemming from two large clients lost in Q2, which weighing on top-line performance, but management emphasized material progress in the AI Knowledge market. Management highlighted that roughly half of revenue now derives from AI Knowledge offerings and signaled intent to accelerate R&D and brand investment to capitalize on this core growth driver. The company also underscored strong gross margins (71% in Q4) and improving operating discipline, with non-GAAP operating costs down 8% YoY and full-year non-GAAP costs down 13%. The strategic narrative centers on leveraging AI Knowledge to convert pilot activity into durable, multi-year relationships with large, multinational customers.

Looking ahead, eGain provided cautious near-term guidance reflecting a Cisco OEM revenue deferral of about $1.3 million into fiscal 2025, with most impact anticipated in Q1 2025. For Q1 2025, the company guided revenue of $21.4–$21.8 million and a non-GAAP loss per share of $0.01–$0.02, framing the period as a ramp into a more durable AI Knowledge growth trajectory. For fiscal year 2025, management targeted revenue of $92–$93 million and non-GAAP net income of $5–$6 million ($0.17–$0.20 per share), with GAAP net income breakeven to $1 million. The outlook reflects a shift toward more ratable recognition from Cisco OEM arrangements and continued investment in AI Knowledge capabilities as a core differentiator in a competitive CX software landscape.