What changed in this filing

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Item 1. Business

2024-09-12 compared with 2023-09-14 · 68 added, 79 removed, 160 unchanged (48% of the section changed)

eGain automates customer engagement with an innovative knowledge hub, powered by conversational and generative AI and analytics.

We sell mostly to large enterprises across financial services, telecommunications, retail, government, healthcare, and utilities seeking to better serve customers at scale by eliminating content silos and helping to automate customer engagement processes of all levels of complexity that may also require regulatory compliance.

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).

Leading brands use eGain’s SaaS solution to improve customer satisfaction, empower agents, reduce service cost, and boost sales.

We are headquartered in the United States.

eGain automates customer engagement with an AI knowledge hub SaaS solution.

We sell to enterprises who want to better serve customers at scale by delivering trusted answers across self-service, contact centers, and field staff.

True to our mantra of AX + BX + CX = DX™, our AI knowledge hub orchestrates effortless Digital eXperience (DX) as it assists Agent eXperience (AX), empowers Business eXperience (BX) and assures Customer eXperience (CX).

Many global brands use eGain to improve experience and reduce costs.

We are headquartered in the Sunnyvale, California, United States.

We also operate in the United Kingdom and India.

Industry Background

According to Gartner, a majority of contact center agents are not satisfied with their desktop tools.

Our assessment, based on two decades of serving clients is that contact center agents when serving customers ignore most of the information piled on their screens across multiple windows and tabs.

Meanwhile, most businesses expect agents to retain and routinely refresh all relevant knowhow in their head - across complex, expanding product portfolios and compliance-heavy processes.

And recall it contextually in the moment of truth when serving customers.

This growing knowledge and guidance gap for agents explains Gartner Research’s only technology recommendation for customer service and support leaders since 2022:

According to Gartner Research, a majority of contact center agents are not satisfied with their desktop tools.

Our assessment, based on more than two decades of serving clients is that good contact center agents ignore most information piled on their screens across multiple windows and tabs when they are interacting with customers.

They focus on the customer conversation.

Meanwhile, businesses expect agents to remember and refresh growing knowhow that is needed to answer customer questions across complex, expanding product portfolios and compliance-heavy processes, and then recall relevant knowhow contextually in the moment of truth – when the customer is on the line.

In addition, this is expected of an entry-level workforce that is not well-paid, routinely replaced, and globally dispersed – mainly for cost reasons.

This knowledge and guidance gap for agents in the flow of their work explains Gartner Research’s top technology recommendation for customer service and support leaders since 2022:

invest in knowledge management tools.

It is time to reimagine the Contact Center Agent Experience.

Digital Economy Demands Modern Software

In a world selling commoditized products to information-rich customers who are short on time, smart tools must automate the routine and augment the interesting across agent, business and customer tasks.

AI Economy Demands Modern Knowledge Management

In a world selling commoditized, yet complex products to time-strapped customers, smart tools must automate the routine and augment the interesting across agent, business and customer support tasks.

This need has been amplified by the disruption of traditional work models by COVID-19.

Coming out of the pandemic tunnel and dealing with the new normal of millennial and generation Z employee expectations, businesses realize that they need to invest in tools to quickly and easily empower agents, while ensuring customer satisfaction and compliance.

Not surprisingly, businesses are increasingly seeking modern knowledge management solutions to layer on top of traditional systems of record like Customer Relationship Management (CRM), Contact Center as a Service (CCaaS) solutions, and content management systems.

Their goal is to empower contact center agents and deliver customer self-service with relevant knowledge everywhere.

Knowledge-Powered Customer Engagement

Energized by big-data, cloud-computing and most recently by generative AI, unsiloed Knowledge Hubs deliver transformational value in customer engagement.

Smart, connected experiences can be automated to successfully resolve majority of customer interactions.

The pressing challenge for solution buyers, however, is to separate the wheat from the chaff as they look for trusted, innovative, and aligned partners that can also add quick business value.

So they seek sustained product leadership, at-scale proof points and no-risk trials.

Businesses realize that they need to invest in tools that can guide agents and customers with trusted answers, ensuring customer satisfaction and compliance.

Recently we have seen the generative AI surprises pop up across businesses as businesses jumped into generative AI without solving the foundational knowledge needed to provide trusted input content to generative AI.

Not surprisingly, businesses are quickly seeking modern knowledge management solutions.

AI Knowledge for Customer Engagement

To automate customer engagement, generative AI needs trusted content from a knowledge hub that ensures correct, compliant content is served with adequate controls.

A knowledge hub can be built and maintained with much less time and cost using AI.

It is a perfect technology intersection where AI needs knowledge and knowledge can be built easier with AI.

Contact Centers are a Brand Battleground

Contact centers offer significant opportunity to automate customer engagement.

Globally, there were close to 17 million contact center agents in 2022 with 71% of contact centers looking to hire more, according to a 2023 Forrester survey.

Time-starved customers consuming complex products and grappling with marketing offers generate stubbornly high levels of customer contact.

Furthermore, contact centers worldwide are undergoing a technology refresh cycle from on-premise call centers to cloud-based contact centers.

This transition affords businesses the opportunity to reimagine and design customer contact strategies to drive digital-first automation, fueled by Knowledge and AI.

Contact centers offer significant opportunities to realize the transformation potential of generative AI.

According to Forrester Research, there were 17 million contact center agents in 2023, with 71% of contact centers looking to hire more.

Time-starved customers consuming complex products and grappling with extreme choices generate stubbornly high levels of customer contact.

They need quick, correct, and assured help.

The business impact of applying AI at scale on contact center operations can save the global economy hundreds of billions of dollars annually.

Customer Engagement Automation is a Large, Growing Market

Businesses are investing heavily in digital transformation, with customer engagement as a top priority.

Cloud-based solutions and a growing Application Programming Interface (API) economy present exciting opportunities to connect, solve, and optimize customer interactions.

Contact volumes are soaring and to handle them effectively while delivering great experiences, businesses are looking for innovative platform providers that harness AI, conversational interfaces, and digital channels with proof at scale to guide them on their automation journey.

Businesses continue to invest in digital transformation, especially in customer engagement.

To further reduce cost and improve experience, businesses want to harness AI knowledge to automate customer service via omnichannel, conversational interfaces.

According to McKinsey, the aggregate cost of customer operations in the global economy is $1.5 trillion.

They anticipate that businesses could reduce this cost by 35% using AI.

Given these potential savings, the associated market opportunity for SaaS solutions is huge.

According to a recent Gartner Research prediction, by 2025, 100% of all virtual customer assistant and virtual agent assistant projects that are not integrated with a modern knowledge management system will fail to meet their experience improvement and operational cost-reduction goals.

The eGain Approach and Benefits

What Customers Want

We believe where customers want help falls into three categories:

We believe customer service queries fall into three categories:

informational, transactional, and situational.

Any given customer contact can morph across these categories as the conversation develops.

Tools must orchestrate customer contact with context —accounting for machine-human hand-offs, channel switching, multimodal interaction, and conversational pause-and-resume.

During these interactions, customers increasingly want to be guided, even anticipated.

Siloed solutions like simplistic chatbots without contextual escalation or effective knowledge and guidance don’t work.

Tools must orchestrate customer contact with context —accounting for machine-human hand-offs (mixed-initiative interaction), channel switching, multimodal interaction, and conversational pause-and-resume.

During these interactions, customers increasingly want trusted answers and guidance.

The eGain Solution is Comprehensive

eGain offers a comprehensive, unified solution organized into three hubs—eGain Knowledge Hub™, eGain Conversation Hub™, and eGain Analytics Hub™, to automate, augment and orchestrate digital-first customer engagement.

Our feature-rich portfolio of applications empowers businesses to holistically connect, flexibly solve, and continuously optimize the experience for agents, businesses and customers.

Our solution experts and partners guide clients by aligning with their strategic priorities and demonstrating quick value through agile sprints.

We believe our feature-rich portfolio of applications empowers businesses to connect, solve, and optimize agent, business, and customer experience.

Solve with eGain Knowledge Hub

Our Knowledge Hub helps businesses to centralize knowledge, policies, procedures, situational expertise, and best-practices, while delivering guided, personalized, and trusted answers to customers, agents, and field staff.

We believe our guided knowledge and virtual assistance applications ensure that all agents easily resolve customer queries, regardless of product or procedure.

Connect with eGain Conversation Hub

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Rich applications, powered by our Knowledge and AI capabilities (from our Knowledge Hub), proactively guide agents to efficiently interact with customers using chatbots, messaging applications, short message service (SMS), chat, email, social media, phone, video, fax, and letter.

As part of our Conversation Hub, we offer a novel Bring Your Own (BYO) architecture to plug in external bots, messaging channels, and third-party agent desktops to compose differentiated customer experiences.

Finally, we offer a rich library of pre-built connectors to popular CRM, Contact Center, and Content Management platforms.

Solve with eGain Knowledge Hub

Our Knowledge Hub helps businesses to centralize knowledge, policies, procedures, situational expertise, and best-practices, while delivering guided, personalized solutions to customers and agents across all touch points.

Our guided knowledge and virtual assistance applications ensure that all agents effectively resolve all contact types, regardless of product or procedure.

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

Optimize with eGain Analytics Hub

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Our open, secure platform APIs enable clients and partners to extend and enhance our solutions and to integrate with enterprise assets to enable a single view of the customer.

Pre-built integrations include connectors to Adobe, Apple Business Chat, Avaya, Amazon Connect, Cisco, Five9, Google Dialogflow, Genesys, Talkdesk, IBM Watson, Microsoft Dynamics, Microsoft SharePoint, Microsoft Teams, Salesforce, SAP and ServiceNow.

We offer a novel

“Bring Your Own” composable architecture to plug external bots, messaging channels, and third-party agent desktops to compose differentiated customer experiences.

Compelling Benefits

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Specifically, we help businesses:

o Enhance customer experience with digital-first, omnichannel service, backed by AI knowledge.

o Reduce operating costs through self-service automation, improved first contact resolution, and compressed agent time-to-competence.

o Ensure compliance with regulations, policies, procedures, and best practices even as clients expand their product portfolio and customer segments.

This benefit is particularly sought after in regulated sectors like financial services and healthcare, as well as government.

o Deliver rich insights to improve service, enhance products and design new offerings.

Analyzing and learning from customer conversations provides a unique tool to quickly respond to customer dissatisfaction or agent challenges, while generating ideas for product innovation and process automation.

o Enhance customer experience with digital-first, omnichannel service, powered by AI knowledge.

o Reduce operating costs with self-service automation, improved agent productivity and time-to-competence.

o Ensure compliance with regulations, policies, procedures, and best practices.

o Deliver insights to improve service, enhance products and design new offerings .

Competitive Strengths

Composable Experience Platform with Rich APIs, Events, and UX Widgets

Composable Platform with Rich APIs, Events, and UX Widgets

The eGain solution is a comprehensive omnichannel solution for the customer engagement market, with AI and knowledge applications at its core.

We unlock the full power of our cloud platform with extensive APIs through a developer portal to enable digital engagement, knowledge management, and decision support capabilities.

We unlock the full power of our cloud platform with extensive APIs on a composable architecture, served via a developer portal to enable knowledge everywhere to power omnichannel customer and employee experiences.

Enterprise-Grade, Secure Cloud Service with Differentiated Offerings

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The Internal Revenue Service uses our solutions served from the eGain Cloud.

Furthermore, we offer an “Always On” capability for businesses who cannot afford to be down at any time, day or night, for scheduled maintenance.

Transformative Value at Scale Across Diversified Customer Base

Our solution delivers transformative value at scale today.

Our solution delivers transformative value at scale.

We believe that our understanding of the customer need and our ability to fulfill it with enterprise-grade capability is unmatched.

From over a hundred thousand users at a healthcare client using our solution on a 24x7 basis to a Property and Casualty (P&C) insurer with fifteen thousand contact center advisors and thirty-thousand field agents, we are the preferred choice for large brands looking to automate customer engagement.

Our clients range from over a hundred thousand users at a healthcare client using our solution on a 24x7 basis to a Property and Casualty (P&C) insurer with fifteen thousand contact center advisors and thirty-thousand field agents.

Market-leading Innovation with a Risk-free Trial Model

We are consistently seen as product leaders in knowledge-powered customer engagement by leading analysts.

Our enterprise-class virtual assistance and agent augmentation – powered by AI, ML, and knowledge – delivers transformational impact in simple to sophisticated use cases to solve, guide, and coach agents and customers.

Our conversation hub, deeply integrated with our knowledge hub, enables plug and play of third-party bots, channels, and desktops.

To de-risk customer decisions, we offer a unique Innovation in 30 Days ™ program—a 30-day guided production pilot in the eGain Cloud – at no cost and with no strings attached.

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We take our solutions to market through a direct sales model, primarily in North America and Western Europe.

We complement direct sales with resell partnerships based on product connectors into Cloud Contact Center platforms, including Amazon, Avaya, Cisco, Five9, Genesys, and Talkdesk.

We also partner with System Integrators and Managed Service Providers.

We complement direct sales with resell partnerships.

We also partner with System Integrators and boutique consultants.

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

Approximately 83% of our annual recurring cloud revenue for the fiscal year ended June 30, 2023 (which we refer to as fiscal year 2023) came from such large enterprises.

We focus on the following verticals:

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

Over 82% of our annual recurring cloud revenue for the fiscal year ended June 30, 2024 (which we refer to as fiscal year 2024) came from such large enterprises.

For fiscal year 2024, North America (NA) and combined Europe, Middle East, and Africa (EMEA) revenue accounted for 78% and 22% of total revenue.

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We are investing in multiple programs to accelerate growth.

Advance Product and Platform Leadership

Innovation is in our DNA.

We are investing actively in experimenting with, enhancing, and applying AI technologies to accelerate and automate tasks in the knowledge management and customer engagement lifecycle.

In addition, we are expanding our platform connectivity to CRM, CCaaS, UCaaS, and CMS platforms with enhanced APIs and connectors.

Invest in Direct Sales and Marketing

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We are developing new partnerships with complementary platform providers (with large customer bases) to enhance their proposition with our Knowledge-powered customer engagement capabilities.

Our Business Development team continues to develop and operationalize new partnerships.

At the same time, we are investing in delivery partnerships to scale our delivery capabilities.

Land and Expand in the Enterprise

With the sustained progress we have made in customer success, we see a replicable pattern emerging:

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

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

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.

Maintain Platform Leadership

Innovation is in our DNA.

We are developing vertical solutions on our platform to better acquire and serve customers.

We are also leveraging generative AI technologies to reduce manual effort and accelerate automation in knowledge management and customer engagement.

We continue to enhance our core capabilities, while improving usability and personalization.

Selectively Pursue Acquisitions

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Our sales strategy is to pursue targeted accounts, mostly B2C (Business-to-Consumer) enterprises and consumer-centric government agencies, through a combination of our direct sales force and partners.

These enterprises typically have thousands of customer service agents in their contact centers and, in the aggregate, communicate with billions of customers each year.

We utilize thought leadership and other marketing events to demonstrate our leadership position in the customer engagement software market and highlight our customer successes.

These enterprises typically have thousands of customer service agents in their contact centers.

Our direct sales force is organized into teams that include field sales representatives and sales consultants.

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Marketing and Partner Strategy

Our marketing strategy is to build our brand around innovative and robust products trusted by leading enterprises.

We accomplish this via public relations, analyst relations, marketing programs, and demand generation, infused with relevant content for our target audiences.

We employ a wide range of marketing avenues to deliver our message, including print and digital, targeted electronic and postal mailing, email newsletters, and a variety of trade shows, seminars, webinars, and interest groups.

Our marketing group produces sales tools, including product collateral, customer case studies, demonstrations, and presentations.

In addition, the group performs market and customer analyses to identify and develop key partnership opportunities and product capabilities.

We believe that our partners help extend the breadth and depth of our product offerings, drive market penetration, and augment our professional service capabilities.

Our marketing strategy is to build our brand around the following pillars:

thought leadership, product leadership, and customer advocacy.

We have a long track record of thought leadership in this market.

Our popular “Knowledge Management for Dummies” publication, for example, enjoys thousands of digital downloads and physical distribution in our target community.

Recently, we published a revised edition of this pioneering work with generative AI updates, including relevant AI-powered product info, customer case studies, and best-practices.

Our partners help extend the breadth and depth of our product offerings, drive market awareness, and augment our professional service capabilities.

We believe these relationships are important to delivering successful integrated products and services to our customers.

Our partner portal, eGain Econet™, provides comprehensive sales support and services information for channel partners.

Our partner portal, eGain Econet™, provides comprehensive sales support and services information for partners.

Subscription Services

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As of June 30, 2024, we had 17 issued patents in the United States.

In addition, we have one pending patent application in the United States, which is a non-provisional filing.

Our issued U.S.

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reward and support employees through competitive pay and benefits;

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

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.

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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-K

Item 1. Business