What changed in this filing

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Item 1. Business

2021-09-10 compared with 2020-09-11 · 17 added, 85 removed, 235 unchanged (30% of the section changed)

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

These statements may be identified by the use of the words such as “anticipates,” “believes,” “continue,” “could,” “would,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “potential,” “should,” or “will” and similar expressions or the negative of those terms.

The forward-looking statements include, but are not limited to, statements regarding:

the impact of the COVID-19 pandemic on our business, employees and customers;

our SaaS only business model and our belief that it affords recurring revenue visibility, more predictability and 50% faster time to value to SaaS clients;

our belief that SaaS revenue better reflects business momentum;

expectations regarding our revenue, including visibility and predictability;

our beliefs regarding the value of our platform;

the opportunities afforded by automation of contact centers, innovation in cloud and growing API economy;

our business strategies;

the effect of changes in macroeconomic factors beyond our control;

our ability to predict subscription renewals or upgrade rates;

our lengthy sales cycles and the difficulty in predicting timing of sales or delays;

competition in the markets in which we do business and our competitive advantages;

our expectations regarding the composition of our customers and the result of a loss of a significant customer;

our beliefs regarding our prospects for our business;

the adequacy of our capital resources and our ability to raise additional financing;

the development and expansion of our strategic and third party distribution partnerships and relationships with systems integrators;

legal liability or the effect of negative publicity for the services provided to consumers through our technology platforms;

our ability to compete;

the operational integrity and maintenance of our systems;

the effect of unauthorized access to a customer’s data or our data or our IT systems and cybersecurity attacks;

the uncertainty of demand for our products;

our beliefs regarding the attributes and anticipated customer benefits of our products;

the actual mix in new business between subscription and license transactions;

our ability to increase the profitability of our recurring products and services;

our ability to increase revenue as a result of the increased investment in sales and marketing;

our ability to hire additional personnel and retain key personnel;

our ability to expand and improve our sales performance and marketing activities;

our ability to manage our expenditures and estimate future expenses, revenue, and operational requirements;

the effect of changes to management judgments and estimates;

the impact of any modification to our pricing practices in the future;

our beliefs regarding our international operations;

our ability to timely adapt and comply with changing European regulatory and political environments;

uncertainty relating to the implementation and effect of Brexit;

the effect of recent changes in U.S.

tax legislation;

the effect of compliance with California privacy laws and regulations on our business and our customers;

our inability to successfully detect weaknesses or errors in our internal controls;

our ability to take adequate precautions against claims or lawsuits made by third parties, including alleged infringement of proprietary rights;

the potential impact of foreign currency fluctuations;

the impact of accounting pronouncements and our critical accounting policies, judgments, estimates, models and assumptions on our financial results;

and our expectations with respect to revenue, cost of revenue, expenses and other financial metrics.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expected.

These risks and uncertainties include, but are not limited to, those risks discussed in Item 1A “Risk Factors” in this report, as well as the effect of the COVID-19 pandemic on our business;

our ability to manage our business plans, strategies and outlooks and any business-related forecasts or projections;

our ability to effectively implement and improve our current products;

our ability to innovate and respond to rapid technological change and competitive challenges;

customer acceptance of our existing and future products;

the impact of new legislation or regulations, or of judicial decisions, on our business;

legal and regulatory uncertainties and other risks related to protection of our intellectual property assets;

our ability to compete against third parties;

the success of our partnerships;

our ability to obtain capital when needed;

the economic environment;

our history of operating losses;

our ability to manage future growth;

the market price of our common stock;

and foreign currency fluctuations.

These forward looking statements speak only as of the date hereof.

We expressly disclaim any obligation or undertaking to update any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

All references to “eGain”, the “Company”, “our”, “we” or “us” mean eGain Corporation and its subsidiaries, except where it is clear from the context that such terms mean only this parent company and exclude subsidiaries.

eGain and the eGain® are trademarks of eGain Corporation.

We also refer to trademarks of other corporations and organizations in this report

eGain automates customer engagement with an innovative software as a service (SaaS) platform, powered by deep digital, artificial intelligence (AI), and knowledge capabilities.

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With our mantra of AX + BX + CX = DX™ , we guide clients to effortless digital experience (DX) by holistically optimizing agent experience (AX), business experience (BX) and customer experience (CX).

One hundred fifty leading brands use eGain cloud software to improve customer satisfaction, empower agents, reduce service cost and boost sales.

More than one hundred eighty leading brands use eGain’s cloud software to improve customer satisfaction, empower agents, reduce service cost, and boost sales.

Industry Background

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Further, these applications ensure that all agents effectively resolve all contact types, regardless of product or procedure.

Correct, compliant, and consistent responses across touchpoints - automated and assisted - boost customer satisfaction.

First contact resolution surges and agent time to competency drops.

Correct, compliant, and consistent responses across touchpoints (automated and assisted) boost customer satisfaction as first contact resolution surges and agent’s time to competency drops.

Analytics and Machine Learning Optimize

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Through Cisco’s partner ecosystem and direct sales network, we also resell cloud-based, eGain-branded solutions.

In fiscal year 2020, we announced our cloud-based OEM partnership with Avaya for our digital connect portfolio.

In the fiscal year ended June 30, 2020 (which we refer to as fiscal year 2020), we announced our cloud-based OEM partnership with Avaya for our digital connect portfolio.

We are now building an active pipeline with Avaya field sales and their partners.

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We mostly sell to large enterprises, which we define as businesses with over a billion dollars in annual revenue or government organizations.

Approximately 90% of our annual recurring cloud revenue for fiscal year 2020 came from such large enterprises.

Approximately 90% of our annual recurring cloud revenue for the fiscal year ended June 30, 2021 (which we refer to as fiscal year 2021) came from such large enterprises.

We focus on the following verticals:

financial services, telco, retail, government, health care and utilities.

financial services, telecommunication, retail, government, health care and utilities.

For fiscal year 2021, domestic and international revenue accounted for 69% and 31% of total revenue.

One of our largest customers, who is also a partner, accounted for 18% of total revenue in fiscal year 2020.

We compete with application software providers, including Genesys Telecommunications, LivePerson, Moxie Software, Verint, Nuance, and Oracle.

Two of our largest customers, who are also our partners, accounted for 21% and 13% of total revenue in fiscal year 2021.

We compete with application software providers, including Genesys Telecommunications, LivePerson, Nice, Verint, Nuance, and Oracle.

In addition, we engage in partnerships with some of our competitors, including Salesforce, Microsoft, and ServiceNow.

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land enterprise logos with a limited footprint in one business unit, demonstrate business value, and then expand in the enterprise.

We are increasing the value of investment in eGain for our clients by deeply integrating our capabilities via our enhanced APIs with enterprise assets like enterprise collaboration platforms, CRM systems, transaction and billing, and content sources.

We believe we are increasing the value of investment in eGain for our clients by deeply integrating our capabilities via our enhanced APIs with enterprise assets like enterprise collaboration platforms, CRM systems, transaction and billing, and content sources.

Migrate Our Remaining Legacy Customers to eGain Cloud

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Our consultants work with customers to understand their requirements, analyze their business needs, and implement effective solutions.

We provide these services independently or in partnership with systems integrators who have developed expertise on our platform.

We provide these services independently or in partnership with distribution partners who have developed expertise on our platform.

o Training Services.

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Our product roadmap effectively combines build, partner and buy options.

[The last company we acquired was Exony Limited, a UK-based leader in enterprise contact center analytics software, in August 2014.]

Intellectual Property

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These agreements typically provide that some party will have a limited, non-exclusive right to access and use this code as authorized by the license agreement if there is a bankruptcy proceeding instituted by or against us, or if we materially breach a contractual commitment to provide support and maintenance to the party.

As of June 30, 2020, we had 522 full-time employees, of which 179 were in product development, 197 in services and support, 89 in sales and marketing, and 57 in finance and administration.

Human Capital

Our key human capital management objectives are to attract, retain and develop the highest quality talent.

To support these objectives, our human resources programs are designed to develop talent to prepare them for critical roles and leadership positions for the future;

reward and support employees through competitive pay and benefits;

enhance our culture through efforts aimed at making the workplace more engaging and inclusive;

acquire talent and facilitate internal talent mobility to create a high-performing and diverse workforce.

As of June 30, 2021, we had 570 employees, including 563 full-time employees, of which 187 were in product development, 203 in services and support, 123 in sales and marketing, and 57 in finance and administration.

None of our employees are covered by collective bargaining agreements.

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Senior Vice President of Products and Engineering

Todd Woodstra

Senior Vice President of Global Sales

Ashutosh Roy co-founded eGain and has served as Chief Executive Officer and a Director of eGain since September 1997 and as President since October 1, 2003.

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Roy’s qualifications to serve on our Board of Directors include his industry experience and deep knowledge of eGain from his position as a founder of our Company and as our Chief Executive Officer for over 20 years.

Eric Smit has served as Chief Financial Officer since August 2002.

Smit has served as Chief Financial Officer since August 2002.

Prior to that, Mr.

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Narang holds a Bachelor of Science in Computer Science from Wayne State University.

Todd Woodstra has served as Senior Vice President of Global Sales since August 2017.

Prior to joining eGain, Mr.

Woodstra was the Senior Vice President of Enterprise/Channels at Sparks Compass, a real time data analytics platform company, and the Senior Vice President of Enterprise Sales for Interactions LLC from January 2015 to February 2017, where he led enterprise customer sales focused on virtual assistant solutions.

From November 2009 to July 2014, Mr.

Woodstra was Vice President of Global Channel and Partner Alliances for Nuance Communications where he managed and executed business in channels and commercial enterprise, self-service, mobile, collaboration, unified communications, natural language speech recognition, voice biometrics, gesture technologies, inbound/outbound notification and voice-to-text transcription.

Woodstra holds a Bachelor of Arts in Business Administration, Management Information Systems from California State University, San Bernardino

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-K

Item 1. Business