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eGain (EGAN) Q2 Earnings Beat Estimates, SaaS Revenues Up Y/Y

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eGain EGAN reported second-quarter fiscal 2021 adjusted earnings of 6 cents per share, which surpassed the Zacks Consensus Estimate by 500%. However, the figure decreased 25% year over year.

Revenues of $19.2 million increased 5.4% year over year and beat the consensus mark by 4.1%.

Quarter Details

Subscription revenues (92% of total revenues) increased 7.7% year over year to $17.7 million. SaaS revenues grew 15.2% year over year to $16.2 million. However, legacy support revenues declined 33.8% year over year to $1.5 million.

Professional services revenues (8% of total revenues) decreased 15.3% year over year to $1.5 million.

Gladstone Investment Corporation Price, Consensus and EPS Surprise

Gladstone Investment Corporation Price, Consensus and EPS Surprise
Gladstone Investment Corporation Price, Consensus and EPS Surprise

Gladstone Investment Corporation price-consensus-eps-surprise-chart | Gladstone Investment Corporation Quote

Gross profit rose 12.1% year over year to $14.6 million. Gross margin expanded 450 basis points (bps) to 75.9%. The increase was due to growth in high-margin SaaS revenues and improvement in scale and efficiency of eGain’s cloud operations.

Research & development and sales & marketing expenses increased 7.7% and 29.9% year over year to $4.4 million and $6.1 million, respectively.

However, general & administration expenses decreased 5.8% year over year to $1.8 million.

Operating income was $2.3 million down 9% year over year.

Balance Sheet

As of Dec 3, 2020, cash and cash equivalents were $54.2 million.

Guidance

For fiscal third-quarter 2021, eGain expects SaaS revenues between $15.8 million and $16.3 million. Total revenues are expected between $18.3 million and $18.8 million.

Moreover, eGain expects to report between break-even and loss of 3 cents per share.

Zacks Rank & Stocks to Consider

eGain currently has a Zacks Rank #4 (Sell).

Better-ranked stocks in the broader technology sector are Baidu BIDU, CEVA CEVA and CrowdStrike Holdings CRWD. While Baidu sports a Zacks Rank #1 (Strong Buy), both CEVA and CrowdStrike carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CEVA and Baidu are set to report their quarterly results on Feb 16 and 17, respectively. CrowdStrike is set to report the same on Mar 16.

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