eGain Corporation reported its financial results for the second 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 December 31, 2024, eGain generated total revenue of $22.4 million, a decrease of 6% from $23.8 million in the prior year. The company's Software as a Service (SaaS) revenue fell to $20.8 million, down 5% year-over-year, while professional services revenue decreased by 15% to $1.5 million. For the six-month period, total revenue was $44.2 million, down 8% from $48.0 million in the same period last year.
The company's net income for the quarter was $671,000, significantly lower than the $2.2 million reported in the same quarter of the previous year. This decline in profitability was attributed to increased operating expenses, particularly in research and development, which rose by 16% to $7.7 million. Total operating expenses for the quarter were $15.1 million, compared to $14.4 million in the prior year, leading to an operating income of $650,000, down from $2.4 million a year earlier.
In terms of operational developments, eGain's customer base and engagement metrics showed mixed results. The company reported a decrease in accounts receivable, which fell to $15.8 million from $31.7 million, indicating a potential reduction in sales or collection issues. The company also noted a decrease in deferred revenue, which dropped to $37.4 million from $46.0 million, reflecting a decline in future revenue expectations. eGain continues to focus on its strategic initiatives, including enhancing its AI-driven customer engagement solutions and expanding its market presence in North America and EMEA.
Looking ahead, eGain's management expressed cautious optimism about future growth, despite the current challenges. The company anticipates that its ongoing investments in product development and customer engagement will yield positive results in the long term. eGain's remaining performance obligations stood at $73.6 million as of December 31, 2024, with expectations to recognize $50.9 million within the next year. The company also has approximately $10 million remaining under its stock repurchase program, which may provide additional support for its stock price amid fluctuating market conditions.
About EGAIN Corp
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