eGain Corporation reported its financial results for the third quarter of fiscal year 2025, revealing a decline in both revenue and profitability compared to the same period last year. For the three months ended March 31, 2025, eGain generated total revenue of $21.0 million, a decrease of 6% from $22.4 million in the same quarter of fiscal year 2024. The company's Software as a Service (SaaS) revenue, which constitutes the majority of its income, fell to $19.6 million, down from $20.3 million, marking a 4% decline. Professional services revenue also decreased significantly, dropping 29% to $1.4 million from $2.0 million.
The company's net income for the quarter was $66,000, a sharp decline from $1.5 million reported in the prior year, resulting in earnings per share of $0.00, compared to $0.05 in the same quarter of the previous year. The decrease in profitability was attributed to a reduction in gross margin, which fell to 68% from 69% year-over-year. Operating income was reported at $27,000, down from $938,000, reflecting a significant drop in operational efficiency.
In terms of operational metrics, eGain's customer engagement strategy continues to evolve, with the company focusing on enhancing its AI-driven solutions. The total number of customers remained stable, but the company noted challenges in subscription renewals and customer retention, which have impacted revenue. The company also reported a decrease in deferred revenue, which fell to $35.4 million from $46.0 million, indicating potential future revenue challenges.
Looking ahead, eGain remains cautiously optimistic about its growth prospects. The company is focusing on expanding its product offerings and enhancing customer engagement through its AI knowledge hub solutions. Management indicated that they are exploring opportunities for geographic expansion and strategic partnerships to bolster revenue streams. However, they acknowledged the ongoing challenges posed by market conditions and competition in the customer engagement software sector. The company expects to continue investing in research and development to drive innovation and improve its service offerings, while also managing costs to enhance profitability in the coming quarters.
About EGAIN Corp
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