What changed in this filing

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Item 1A. Risk Factors

2020-11-12 compared with 2020-05-11 · 77 added, 104 removed, 381 unchanged (32% of the section changed)

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Risks Related to Our Business and Strategy

Our business is influenced by a range of factors that are beyond our control and that we have no comparative advantage in forecasting.

Factors influencing our business include:

general economic and business conditions;

currency exchange rate fluctuations;

the overall demand for enterprise software and services;

customer acceptance of cloud-based solutions;

governmental budgetary constraints or shifts in government spending priorities;

general political developments.

The global economic climate continues to influence our business.

This includes items such as, a general tightening in the credit markets, lower levels of liquidity, increases in the rates of default and bankruptcy, and extreme volatility in credit, equity and fixed income markets.

These macroeconomic developments negatively affected, and could continue to negatively affect, our business, operating results or financial condition which, in turn, could adversely affect our stock price.

A general weakening of, and related declining corporate confidence in, the global economy or the curtailment in government or corporate spending could cause current or potential customers to reduce their technology budgets or be unable to fund software or services purchases, which could cause customers to delay, decrease or cancel purchases of our products and services or cause customers to not pay us or to delay paying us for previously purchased products and services.

We face risks related to health epidemic, including the COVID-19 pandemic, which could have a material adverse effect on our business, financial condition and results of operations.

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The pandemic has resulted in government authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place or stay-at-home orders, and business shutdowns.

For example, employees at our headquarters located in Sunnyvale, California, are currently subject to a shelter-in-place order from the local government.

Our offices in India and United Kingdom have also been impacted by COVID-19 and have been subject to various measures implemented by local government to reduce the spread of COVID-19.

For example, employees at our headquarters located in Sunnyvale, California, have been subject to shelter-in-place or stay-at-home orders from state and local governments.

Our offices in India and United Kingdom have also been impacted by COVID-19 and have been subject to various measures implemented by the local government to reduce the spread of COVID-19.

These measures may adversely impact our employees and operations and the operations of our customers and third-party distribution partners, and may negatively impact our sales and marketing activities.

These measure by government authorities may remain in place for a significant period of time and they are likely to continue to adversely affect our sales and marketing activities and our business, financial condition and results of operations.

These measures by government authorities may remain in place for a significant period of time and they are likely to continue to adversely affect our sales and marketing activities and our business, financial condition and results of operations.

The spread of COVID-19 has caused us to modify our business practices (including employee travel, mandating that all non-essential personnel in our headquarters to work from home, temporary closures of our offices, and cancellation of physical participation in sales activities, meetings, events and conferences), and we may take further actions as may be required by government authorities, or that we determine are in the best interests of our employees and customers.

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In addition, we face additional risks and challenges related to having a portion of our workforce working from home, including added pressure on our IT systems and the security of our network, and new challenges as our team adjust to online collaboration.

If significant portions of our workforce are unable to work effectively, including due to illness, quarantines, social distancing, government actions or other restrictions in connection with the COVID-19 pandemic, our operations will be impacted.

If significant portions of our workforce are unable to work effectively, including

due to illness, quarantines, social distancing, government actions or other restrictions in connection with the COVID-19 pandemic, our operations will be impacted.

The extent to which the COVID-19 pandemic impacts our business, prospects and results of operations will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating activities can resume.

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There are no comparable recent events which may provide guidance as to the effect of the spread of COVID-19 and a pandemic, and, as a result, the ultimate impact of COVID-19 pandemic or a similar health epidemic is highly uncertain and subject to change.

We do not yet know the full extent of COVID-19’s impact on our business, our operations, or the global economy as a whole.

However, the effects could have a material impact on our results of operations, and we will continue to monitor the situation closely.

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We cannot accurately predict renewal rates given our varied customer base of enterprise and small and medium size business customers and the number of multiyear subscription contracts.

Our renewal rates may decline or fluctuate as a result of a number of factors, including customer dissatisfaction with our service, decreases in customers’

spending levels, decreases in the number of users at our customers, pricing changes and general economic conditions.

Our renewal rates may decline or fluctuate as a result of a number of factors, including customer dissatisfaction with our service, decreases in customers’ spending levels, decreases in the number of users at our customers, pricing changes and general economic conditions.

If our customers do not renew their subscriptions for our service or reduce the number of paying subscriptions at the time of renewal, our revenue will decline, and our business will suffer.

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This may also require increasingly sophisticated and costly sales efforts that are targeted at senior management.

Similarly, the rate at which our customers purchase new or enhanced services depends on a number of factors, including general economic conditions and our customers’

reactions to price changes related to these additional features and services.

Similarly, the rate at which our customers purchase new or enhanced services depends on a number of factors, including general economic conditions and our customers’ reactions to price changes related to these additional features and services.

If our efforts to upsell to our customers are not successful and negative reaction occurs, our business may suffer.

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We believe that our future success depends in part upon our ability to develop, maintain and expand strategic, long-term and profitable partnerships and reseller relationships.

If we are unable to do so for any reason, including as a result of any change in the leadership of our distribution partners, or if any existing or future distribution partners fail to successfully market, resell, implement or support our products for their customers, or if distribution partners represent multiple providers and devote greater

resources to market, resell, implement and support competing products and services, our future revenue growth could be impeded.

Our failure to develop, maintain and expand relationships with systems integrators could harm our business.

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Moreover, if these firms fail to implement our products successfully for their customers, we may not have the resources to implement our products on the schedule required by their customers.

To the extent we devote resources to these relationships and the partnerships do not proceed as anticipated or provide revenue or other results as anticipated, our business may be harmed.

To the extent we devote resources to these relationships and the partnerships do not proceed

as anticipated or provide revenue or other results as anticipated, our business may be harmed.

Once partnerships are forged, there can be no guarantee that such relationships will be renewed in the future or available on acceptable terms.

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Difficulties and delays in customers implementing our products could harm our revenue and margins.

We generally recognize license or subscription revenue from a customer sale when persuasive evidence of an arrangement exists, the product or access to the product has been delivered, the arrangement does not involve significant customization of the software, the license or subscription fee is fixed or determinable and collection of the fee is probable.

We generally recognize revenue upon the transfer of control of promised services to our customers in the amount that is commensurate with the consideration that we expect to receive in exchange for those services.

If an arrangement requires significant customization or implementation services from us, recognition of the associated license or subscription and service revenue could be delayed.

The timing of the commencement and completion of these services is subject to factors that may be beyond our control, as this process may require access to the customer’s facilities and coordination with the customer’s personnel after delivery of the software.

In addition, customers could cancel or delay product implementations.

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These risks in turn could cause our operating results and financial condition to suffer.

We derived 37% and 43% of our revenue from international sales during three months ended March 31, 2020 and 2019, respectively.

We derived 40% and 44% of our revenue from international sales during the nine months ended March 31, 2020 and 2019, respectively.

We derived 28% and 44% of our revenue from international sales during three months ended September 30, 2020 and 2019, respectively.

In addition to those discussed elsewhere in this section, our international sales operations are subject to a number of specific risks, such as:

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● foreign currency fluctuations and imposition of exchange controls;

changes in data privacy laws including GDPR;

● changes in data privacy laws including the European Union’s General Data Protection Regulation (GDPR);

● difficulty and costs in staffing and managing our international operations;

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● reduced intellectual property protections in some countries.

As of March 31, 2020 approximately 47% of our workforce was employed in India.

As of September 30, 2020 approximately 49% of our workforce was employed in India.

Of our employees in India, 48% are allocated to research and development.

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The growth in the use of the Internet has caused interruptions and delays in accessing the Internet and transmitting data over the Internet.

Interruptions also occur due to systems burdens brought on by unsolicited bulk email or “Spam,”

malicious service attacks, denial of service attacks and hacking into operating systems, viruses, worms and a “Trojan”

horse, the proliferation of which is beyond our control and may seriously impact our and our customers’

Because we provide cloud-based software, interruptions or delays in Internet transmissions will harm our customers’

ability to receive and respond to online interactions.

Interruptions also occur due to systems burdens brought on by unsolicited bulk email or “Spam,” malicious service attacks, denial of service attacks and hacking into operating systems, viruses, worms and a “Trojan” horse, the proliferation of which is beyond our control and may seriously impact our and our customers’ businesses.

Because we provide cloud-based software, interruptions or delays in Internet transmissions will harm our customers’ ability to receive and respond to online interactions.

Therefore, our market depends on ongoing improvements being made to the entire Internet infrastructure to alleviate overloading and congestion.

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We maintain a business continuity plan for our customers in the event of an outage.

We maintain other co-locations for the purposes of disaster recovery as well as maintaining backups of our customer’s information.

We maintain other co-locations for the purpose of disaster recovery as well as maintaining backups of our customer’s information.

We provide premium disaster recovery and standard disaster recovery to our customers.

If a customer opts not to pay for premium disaster recovery, we will only assure that their data is available within 72 hours.

This delay could cause severe disruptions to our customers’

customers and may result in customer termination of our solutions.

This delay could cause severe disruptions to our customers’ customers and may result in customer termination of our solutions.

Our premium disaster recovery service provides for an alternative data center and a return to operations within one business day.

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Software errors could be costly and time-consuming for us to correct, and could harm our reputation and impair our ability to sell our solutions.

Our solutions are based on complex software that may contain errors, or “bugs,”

that could be costly to correct, harm our reputation and impair our ability to sell our solutions to new customers.

Our solutions are based on complex software that may contain errors, or “bugs,” that could be costly to correct, harm our reputation and impair our ability to sell our solutions to new customers.

Moreover, customers relying on our solutions may be more sensitive to such errors, and potential security vulnerabilities and business interruptions for these applications.

If we incur substantial costs to correct any errors of this nature, our operating margins could be adversely affected.

Because our customers depend on our solutions for critical business functions, any service interruptions could result in lost or delayed market acceptance and lost sales, higher service-level credits and warranty costs, diversion of development resources and product liability suits.

Because our customers depend on our solutions for critical business functions, any service interruptions could result in lost or

delayed market acceptance and lost sales, higher service-level credits and warranty costs, diversion of development resources and product liability suits.

The terms we agree to in our Service Level Agreements or other contracts may result in increased costs or liabilities, which would in turn affect our results of operations.

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We may be unable to respond to the rapid technological change and changing customer preferences in the online sales, marketing, customer service, and/or online consumer services industries and this may cause our business to suffer.

or Internet users’

requirements or preferences, our business, results of operations and financial condition would be materially and adversely affected.

If we are unable, for technological, legal, financial or other reasons, to adapt in a timely manner to changing market conditions in the online sales, marketing, customer service and/or e-commerce industry or our customers’ or Internet users’ requirements or preferences, our business, results of operations and financial condition would be materially and adversely affected.

Business on the Internet is characterized by rapid technological change.

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● respond to technological advances and emerging industry standards and practices in a cost-effective and timely manner.

If any of our new services, including upgrades to our current services, do not meet our customers’

or Internet users’

expectations, our business may be harmed.

If any of our new services, including upgrades to our current services, do not meet our customers’ or Internet users’ expectations, our business may be harmed.

Updating our technology may require significant additional capital expenditures and could materially and adversely affect our business, results of operations and financial condition.

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Our failure to expand our operations in an efficient manner could cause our expenses to grow, our revenue to decline or grow more slowly than expected and could otherwise have a material adverse effect on our business, results of operations and financial condition.

We depend on broad market acceptance of our applications and of our business model.

If our expectations regarding the market for our applications are not met, our business could be seriously harmed.

We depend on the widespread acceptance and use of our applications as an effective solution for businesses seeking to manage high volumes of customer interactions across multiple channels, including Web, phone, email, print and in-person.

While we believe the potential to be very large, we cannot accurately estimate the size or growth rate of the potential market for such product and service offerings generally, and we do not know whether our products and services in particular will achieve broad market acceptance.

The market for customer engagement software is rapidly evolving, and concerns over the security and reliability of online transactions, the privacy of users and quality of service or other issues may inhibit the growth of the Internet and commercial online services.

If the market for our applications fails to grow or grows more slowly than we currently anticipate, our business will be seriously harmed.

Furthermore, our business model is premised on business assumptions that are still evolving.

Our business model assumes that both customers and companies will increasingly elect to communicate through multiple channels, as well as demand integration of the online channels into the traditional telephone-based call center.

If any of these assumptions is incorrect or if customers and companies do not adopt digital technology in a timely manner, our business will be seriously harmed and our stock price will decline.

We may need to license third-party technologies and may be unable to do so on commercially reasonable terms or in a timely manner.

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or Internet users’

requirements or preferences, our business, results of operations and financial condition would be materially and adversely affected.

Business on the Internet is characterized by rapid technological change.

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Changes in customer and Internet user requirements and preferences, frequent new product and service introductions embodying new technologies and the emergence of new industry standards and practices such as but not limited to security standards could render our services and our proprietary technology and systems obsolete.

The rapid evolution of these products and services will require that we continually improve the performance, features and reliability of our services.

The rapid evolution of these products and services will require that

we continually improve the performance, features and reliability of our services.

Our success will depend, in part, on our ability to:

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● respond to technological advances and emerging industry standards and practices in a cost-effective and timely manner.

If any of our new services, including upgrades to our current services, do not meet our customers’

or Internet users’

expectations, our business may be harmed.

If any of our new services, including upgrades to our current services, do not meet our customers’ or Internet users’ expectations, our business may be harmed.

Updating our technology may require significant additional capital expenditures and could materially and adversely affect our business, results of operations and financial condition.

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We must ensure that our international resources and personnel are aware of and understand development specifications and customer support, as well as implementation and configuration requirements and that they can meet applicable timelines.

If we are unable to maintain

acceptable standards of quality in support, product development and professional services, our attempts to reduce costs and drive growth through new products and margin improvements in technical support and professional services may be negatively impacted, which would adversely affect our results of operations.

If we are unable to maintain acceptable standards of quality in support, product development and professional services, our attempts to reduce costs and drive growth through new products and margin improvements in technical support and professional services may be negatively impacted, which would adversely affect our results of operations.

Outsourcing services to offshore providers may expose us to misappropriation of our intellectual property or that of our customers, or make it more difficult to defend intellectual property rights in our technology.

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If we cannot hire and retain qualified personnel, our ability to expand our business would be impaired and our results of operations would suffer.

We may not be able to realize the benefits of offering the limited “Innovation in 30 days”

free version of our service.

We offer a limited version of our subscription service to customers or potential customers free of charge (known as “Innovation in 30 days”) in order to promote usage, brand and product awareness, and adoption, and we invest time and resources for such initial engagements without compensation from the customers.

We may not be able to realize the benefits of offering the limited, free “Innovation in 30 days” version of our service.

Some customers never enter into a definitive contract for our paid subscription service despite the time and effort we may have expended on such initiatives.

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In addition, domestic and foreign legislation has been proposed that could prohibit or impose liability for the transmission over the Internet of certain types of information.

defense of any of these actions could be costly and involve significant time and attention of our management and other resources.

Our defense of any of these actions could be costly and involve significant time and attention of our management and other resources.

The Digital Millennium Copyright Act (DMCA) is intended, among other things, to reduce the liability of online service providers for listing or linking to third-party web properties that include materials that infringe copyrights or rights of others.

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If we are not covered by a safe harbor, for any reason, we could be exposed to claims, which could be costly and time-consuming to defend.

If our cybersecurity systems or the systems of our vendors, partners and suppliers are breached and unauthorized access is obtained to a customer’s data or our data or IT systems, our service may be perceived as not being secure, customers may curtail or stop using our service and we may incur significant legal and financial exposure and liabilities.

Our service involves the storage and transmission of customers’

proprietary information, and security breaches could expose us to a risk of loss of this information, loss of access, litigation and possible liability.

These security measures may be breached as a result of third-party action, including intentional misconduct by computer hackers (which may involve nation states and individuals sponsored by them), employee error, malfeasance or otherwise and result in someone obtaining unauthorized access to our customers’

data or our data, including our intellectual property and other confidential business information, or our IT systems.

Additionally, third parties may attempt to fraudulently induce employees or customers into disclosing sensitive information such as user names, passwords or other information in order to gain access to our customers’

data or our data or IT systems.

Our service involves the storage and transmission of customers’ proprietary information, and security breaches could expose us to a risk of loss of this information, loss of access, litigation and possible liability.

Employees or contractors have introduced vulnerabilities in, and enabled the exploitation of, our IT environments in the past and may do so in the future.

These cybersecurity attacks threaten to misappropriate our proprietary information, cause interruptions of our IT services and commit fraud.

Because the techniques used to obtain unauthorized access, or to sabotage systems, change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures.

Because the techniques used to obtain unauthorized access, or to sabotage systems, change frequently and generally are not recognized until launched against a target, we may be unable to

anticipate these techniques or to implement adequate preventative measures.

Further, if unauthorized access or sabotage remains undetected for an extended period of time, the effects of such breach could be exacerbated.

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A successful cybersecurity attack involving our data center, network or software products could also negatively impact the market perception of the effectiveness of our products or lead to contractual disputes, litigation or government regulatory action against us, any of which could materially adversely affect our business, reputation and resulting operations.

Changes in the European regulatory environment regarding privacy and data protection regulations, such as the European Union’s General Data Protection Regulation (GDPR), could expose us to risks of noncompliance and costs associated with compliance.

Changes in the European regulatory environment regarding privacy and data protection regulations, such as the European Union’s GDPR, could expose us to risks of noncompliance and costs associated with compliance.

We have in the past relied on adherence to the U.S.

Department of Commerce’s Safe Harbor Privacy Principles and compliance with the U.S.-European Union (EU) and U.S.

- Swiss Safe Harbor Frameworks as agreed to and set forth by the U.S.

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companies doing business in Europe from the European Economic Area (EEA) to the U.S.

As a result of the October 6, 2015 EU Court of Justice (ECJ), opinion in Case C-362/14 (Schrems

As a result of the October 6, 2015 EU Court of Justice (ECJ), opinion in Case C-362/14 (Schrems v.

Data Protection Commissioner) regarding the adequacy of the U.S.-EU Safe Harbor Framework, the U.S.

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have been subject to challenges, whose outcomes remain uncertain.

Furthermore, on May 25, 2018, the EU’s GDPR became enforceable, imposing new obligations directly on us as both a data controller and a data processor, as well as on many of our customers.

It is possible that these new laws may be interpreted or applied in a manner that is adverse to us, unforeseen, or otherwise inconsistent with our practices or that we may not adequately adapt our internal policies and/or procedures to evolving regulations, any of which could result in litigation, regulatory investigations and potential legal liability (including potential liability exposure through higher potential penalties for non-compliance), require us to make changes to our services to enable us and/or our customers to meet the new legal requirements, in case we have to change locations of data centers to meet privacy laws, increased requirements for customers to buy add-ons to meet additional requirements imposed by new laws, require us to change our practices in a manner adverse to our business or limit access to our products and services in certain countries.

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Our publication of our privacy policy and other statements we publish that provide promises and assurances about privacy and security can subject us to potential governmental action if they are found to be deceptive or misrepresentative of our practices.

Further, t he costs of compliance with, and other burdens imposed by, such laws, regulations and policies that are applicable to us may limit the use and adoption of our products and solutions and could have a material adverse impact on our results of operations.

Further, the costs of compliance

with, and other burdens imposed by, such laws, regulations and policies that are applicable to us may limit the use and adoption of our products and solutions and could have a material adverse impact on our results of operations.

Privacy concerns and laws, evolving regulation of cloud computing, cross-border data transfer restrictions and other domestic or foreign regulations may limit the use and adoption of our solutions and adversely affect our business.

Regulation related to the provision of services on the Internet is increasing, as federal, state and foreign governments continue to adopt new laws and regulations addressing data privacy and the collection, processing, storage and use of personal information.

Further, laws are increasingly aimed at the use of personal information for marketing purposes, such as the EU’s e-Privacy Directive (which is set to be replaced in the coming months by a new EU e-Privacy Regulation which will have a “direct effect”

in each EU Member State), and the country-specific regulations that implement that directive.

Such laws and regulations are subject to differing interpretations and may be inconsistent among jurisdictions.

A recent decision by the European Court of Justice invalidated the US-EU Privacy Shield program as a protection for cross-border data transfers out of the European Union.

Such laws, decisions, and regulations are subject to differing interpretations and may be inconsistent among jurisdictions.

These and other requirements could reduce demand for our solutions or restrict our ability to store and process data or, in some cases, impact our ability to offer our services and solutions in certain locations.

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The CCPA provides for civil penalties for violations, as well as a private right of action for data breaches that is expected to increase data breach litigation.

The CCPA may increase our compliance costs and potential liability.

Some observers have noted that the CCPA could mark the beginning of a trend toward more stringent privacy legislation in the U.S., which could increase our potential liability and adversely affect our business.

New York enacted the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act), which became effective in March 2020 and requires companies with data relating to New Yorkers to adopt comprehensive cybersecurity programs.

These statutes may increase our compliance costs and potential liability.

Some observers have noted that the CCPA and the SHIELD Act could mark the beginning of a trend toward more stringent privacy legislation in the U.S., which could increase our potential liability and adversely affect our business.

In addition to government activity, privacy advocacy and other industry groups have established or may establish new self-regulatory standards that may place additional burdens on us.

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The costs of compliance with and other burdens imposed by laws, regulations and standards may limit the use and adoption of our service and reduce overall demand for it, or lead to significant fines, penalties or liabilities for any noncompliance.

Furthermore, concerns regarding data privacy may cause our customers’

customers to resist providing the data necessary to allow our customers to use our service effectively.

Furthermore, concerns regarding data privacy may cause our customers’ customers to resist providing the data necessary to allow our customers to use our service effectively.

Even the perception that the privacy of personal information is not satisfactorily protected or does not meet regulatory requirements could inhibit sales of our products or services, and could limit adoption of our subscription solution.

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Regulators in certain industries have adopted and may in the future adopt regulations or interpretive positions regarding the use of cloud computing and other outsourced services.

The costs of compliance with, and other burdens imposed by, industry-specific laws, regulations and interpretive positions may limit customers’

use and adoption of our services and reduce overall demand for our services.

The costs of compliance with, and other burdens imposed by, industry-specific laws, regulations and interpretive positions may limit customers’ use and adoption of our services and reduce overall demand for our services.

For example, some financial services regulators have imposed guidelines for use of cloud computing services that mandate specific controls or require financial services enterprises to obtain regulatory approval prior to outsourcing certain functions.

If we are unable to comply with these guidelines or controls, or if our customers are unable to obtain regulatory approval to use our service where required, our business may be harmed.

In addition, an inability to satisfy the standards of certain voluntary third-party certification bodies that our customers may expect, such as an attestation of compliance with the Payment Card Industry (PCI) Data Security Standards, may have an adverse impact on our business.

In addition, an inability to satisfy the standards of certain voluntary third-

party certification bodies that our customers may expect, such as an attestation of compliance with the PCI Data Security Standards, may have an adverse impact on our business.

If we are unable to achieve or maintain these industry-specific certifications or other requirements or standards relevant to our customers, it could adversely affect our ability to provide our services to certain customers and harm our business.

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The UK formally left the EU on January 31, 2020, and is now in a transition period through December 31, 2020.

Although the UK will remain in the EU single market and customs union during the transition period, the long-term nature of the UK’s relationship with the EU is unclear and there is considerable uncertainty any agreement will be reached and implemented.

The political and economic instability created by Brexit has caused and may continue to cause significant volatility in global financial markets and uncertainty regarding the regulation of data protection in the UK.

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Our products may infringe issued patents that may relate to our products because patent applications in the United States are not publicly disclosed until the patent is issued, and hence applications may have been filed which relate to our software products.

Intellectual property litigation is expensive, time consuming, and could divert management’s attention away from running our business.

Litigation could also require us to develop non-infringing technology or enter into royalty or license agreements.

These royalty or license agreements, if required, may not be available on acceptable terms, if at all, in the event of a successful claim of infringement.

Risks Related to Our Common Stock

General Risk Factors

Our business is influenced by a range of factors that are beyond our control and that we have no comparative advantage in forecasting.

● Factors influencing our business include:

● general economic and business conditions;

● currency exchange rate fluctuations;

● the overall demand for enterprise software and services;

● customer acceptance of cloud-based solutions;

● governmental budgetary constraints or shifts in government spending priorities;

● general political developments.

The global economic climate continues to influence our business.

This includes items such as a general tightening in the credit markets, lower levels of liquidity, increases in the rates of default and bankruptcy, and extreme volatility in credit, equity and fixed income markets.

Our stock price has demonstrated volatility and continued market conditions may cause declines or fluctuations.

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● concerns related to liquidity of our stock;

actual or anticipated fluctuations in our operating results, our ability to meet announced or anticipated profitability goals and changes in or failure to meet securities analysts’

expectations;

● actual or anticipated fluctuations in our operating results, our ability to meet announced or anticipated profitability goals and changes in or failure to meet securities analysts’ expectations;

● announcements of technological innovations and/or the introduction of new services by us or our competitors;

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Our insiders who are significant stockholders have the ability to exercise significant control over matters requiring stockholder approval, including the election of our board of directors, and may have interests that conflict with those of other stockholders.

Our directors and executive officers, together with their affiliates and members of their immediate families, beneficially owned, in the aggregate, approximately 32% of our outstanding capital stock as of March 31, 2020, of which our Chief Executive Officer, Ashutosh Roy, beneficially owned approximately 28% as of such date.

Our directors and executive officers, together with their affiliates and members of their immediate families, beneficially owned, in the aggregate, approximately 32% of our outstanding capital stock as of September 30, 2020, of which our Chief Executive Officer, Ashutosh Roy, beneficially owned approximately 28% as of such date.

As a result of these concentrated holdings, Mr.

Roy individually or together with this group has the ability to exercise significant control over most matters requiring our stockholders’

approval, including the election and removal of directors and the approval of significant corporate transactions, such as a merger or sale of our company or its assets.

Roy individually or together with this group has the ability to exercise significant control over most matters

requiring our stockholders’ approval, including the election and removal of directors and the approval of significant corporate transactions, such as a merger or sale of our company or its assets.

Description of Exhibits

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Interactive Data Files Pursuant to Rule 405 of Regulation S-T:

(i) Condensed Consolidated Balance Sheets as of March 31, 2020 and June 30, 2019, (ii) Condensed Consolidated Statements of Operations for the three and nine months ended March 31, 2020 and 2019, (iii) Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended March 31, 2020 and 2019, (iv) Condensed Consolidated Statements of Stockholders’

Equity for the three and nine months ended March 31, 2020 and 2019, (v) Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2020 and 2019 and (vi) Notes to Condensed Consolidated Financial Statements.

(i) Condensed Consolidated Balance Sheets as of September 30, 2020 and June 30, 2020, (ii) Condensed Consolidated Statements of Operations for the three months ended September 30, 2020 and 2019, (iii) Condensed Consolidated Statements of Comprehensive Income for the three months ended September 30, 2020 and 2019, (iv) Condensed Consolidated Statements of Stockholders’ Equity for the three months ended September 30, 2020 and 2019, (v) Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2020 and 2019 and (vi) Notes to Condensed Consolidated Financial Statements.

XBRL Instance Document

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In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No.

34-47986, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed “filed”

for purposes of Section 18 of the Exchange Act or deemed to be incorporated by reference into any filing under the Exchange Act or the Securities Act except to the extent that the registrant specifically incorporates it by reference.

34-47986, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act or deemed to be incorporated by reference into any filing under the Exchange Act or the Securities Act except to the extent that the registrant specifically incorporates it by reference.

Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

November 12, 2020

eGain Corporation

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors