eGain Corporation (NASDAQ:EGAN) Q4 2019 Earnings Conference Call Transcript

Good day, everyone, and welcome to the eGain Fiscal 2019 Fourth Quarter and Full-Year Financial Results Conference. [Operator Instructions]

At this time I'd like to turn the conference over to Jim Byers of MKR Investor Relations. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone. Welcome to eGain's fiscal 2019 fourth quarter and full-year financial results conference call. On the call today are eGain's Chief Executive Officer, Ashu Roy and Chief Financial Officer, Eric Smit.

Before we begin, I would like to remind everyone that during this conference call, management will make forward looking statements which convey management's expectations, beliefs, plans and objectives regarding future financial and operational performance. Forward-looking statements are generally preceded by words such as believe, plan, intend, expect, anticipate or similar expressions. Forward-looking statements are protected by safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. And these forward-looking statements are subject to a wide range of risks and uncertainties that could cause actual results to differ in material respects.

Information on various factors that could affect eGain's results is detailed in the Company's reports filed with the Securities and Exchange Commission. eGain is making these statements as of today, September 3, 2019, and assumes no obligation to publicly update or revise any of the forward-looking information in this conference call. In addition to GAAP results, we will discuss certain non-GAAP financial measures, such as non-GAAP operating income. Our earnings press release can be found on the news release link on the Investor Relations page at eGain's website at www.egain.com. The tables included with the earnings press release include reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures. And lastly, a replay of this conference call will also be available in the Investor Relations section of eGain's website.

And now with that said, I'd like to turn the call over to eGain's CEO, Ashu Roy.

Thank you, Jim and good afternoon, everyone. At the top level we execute quite well in fiscal 2019. Our full year revenue came in ahead of our guidance and Street consensus. We also generated strong cash flow and profits for the year. And finally, we completed a successful capital rate with those funds we paid down our debt and now we are investing in growth.

Let me share some financial highlights from the full year. We grew our SaaS revenue 37% over the prior year to almost $45 million. Our subscription revenue grew 17% year-over-year to $60 million and comprised 89% of our total revenue. We were GAAP profitable, with net income of $4.2 million compared to a net loss for the prior year and our non-GAAP net income increased to $6.2 million or $0.21 per diluted share from $1.7 million or $0.06 per diluted share a year ago. We also had strong cash flow from operations of $7 million for the year.

Looking at the business highlights, we continue to see strong demand for AI powered customer engagement capability,