Good day, welcome to the eGain Fiscal 2021 Fourth Quarter and Full Year Financial Results Conference Call. Today's conference is being recorded. 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 2021 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 certain 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. 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 are detailed in the company's reports filed with the Securities and Exchange Commission. eGain is making these statements as of today, September 1st, 2021, 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. The tables included with the earnings press release include a reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures. Our earnings press release can be found on the news release link on the investor relations page at eGain's website at egain.com, and a phone replay of this conference call will be available for one week. 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. We are very pleased with our financial performance for the quarter and fiscal 2021 full year. We exceeded our guidance for the quarter as well as for the fiscal year 2021. Our top and bottom line results were ahead of Street consensus. With a strong balance sheet, we intend to continue to invest in our business to further translate our product leadership into market leadership. In fiscal 2021, we grew our top line by 8%. In fiscal 2022, we believe we can grow our top line faster. We plan to grow 13%-15% in fiscal 2022. That's an exciting jump for us as a team, and we are off to a good start in pursuit of that growth goal. We've already closed two, seven-figure ARR deals in the current first quarter of fiscal 2022. The first one is a new logo win, a hypergrowth crypto exchange looking to better serve its global customers. The other one is an existing client, a U.S. government agency actively deploying knowledge-powered automation to improve citizen experience. In both cases, our leading cloud security, on-demand scalability, and proven CRM and contact center connectors were key considerations beyond the functional richness of our solution. According to Gartner, enterprises are looking to modernize knowledge management systems to get more value from digital investment in customer engagement. We, eGain, are being seen as the premier provider of modern knowledge management solutions in that context. This status is validated by analysts like Gartner and Forrester when they rate our product capabilities. Plus, a growing roster of big platform partners who are looking to enhance their customer engagement offerings with best-in-class knowledge and digital engagement capabilities are partnering with us. Last week, for instance, we announced the availability of our certified eGain connector for SAP. This connector will enable global SAP clients to seamlessly enhance their customer engagement capabilities with eGain Knowledge. We are already seeing early interest in the global SAP client base for our knowledge solution. We will continue to expand our CRM connector library, which now includes Salesforce, Microsoft, and now SAP. Thanks to sustained investment, our customers are getting good value from eGain and expanding their eGain deployments. As a result, the total number of $1 million plus ARR clients grew by 30% for us in fiscal 2021. As we have mentioned before, this is sort of counterbalanced by the fact that our average ARR for new logo wins has been trending down as enterprise buyers look to launch multi-year programs with pilot scale projects to establish success metrics. On the flip side, which is positive, after the evidence of user adoption and business value in these early engagements, expansion opportunities are going nicely. Switching to other initiatives, we continue to be bullish about our Virtual Financial Coach Solution that we launched in partnership with GreenPath in March this year. Last month, we announced more than 25 paying credit union clients for our Coach Solution. Within a matter of five months, we've now got 25 paying credit union clients. These are small clients, as we are going after the small to mid-size credit unions and banks with the solution. The solution uniquely suits small to mid-size banks and credit unions because they need turnkey capability to serve customers with personalized and intelligent financial coaching options. We believe it's a no-brainer for over 6,000 credit unions and small to mid-size banks in the U.S. That gives us plenty of opportunity to pursue this growth with our partner, GreenPath. Looking ahead, we are very excited about fiscal 2022. As you all know, we've been setting the stage to accelerate growth for some time. First with our SaaS transition, and then with sales and marketing investments in fiscal 2021. These investments are now bearing fruit, as seen in our increased new customer sales and enterprise expansion in fiscal 2021. In fiscal 2022, we will continue to invest disproportionately in sales and marketing. We plan to hire and onboard our next tranche of sales reps by December 2021, as we go after these knowledge opportunities in the enterprise. We also plan to increase our product development investment in fiscal 2022 to aggressively build out our ecosystem, the marketplace, to enhance functional enrichment of the eGain platform. Today, we have just a handful of partners who offer value-added capabilities on our platform. At the same time, there is growing interest from partners to develop and sell value-added solutions on the eGain platform in an integrated and certified manner. Moreover, there is interest from our customers and prospects to consume such value-added capabilities to accelerate innovation at their end. This is not a new idea in the market, as we know. Most successful SaaS businesses do this well. However, in our market segment of knowledge-powered engagement, we would be among the first. We believe that this increased R&D investment in fiscal 2022 will create significant product-driven growth options, which is really what we are driving toward because that creates the best growth leverage as we know. That product-driven growth option will emerge in fiscal 2023 based on the investments we make in fiscal 2022 on the R&D front. We look forward to sharing our financial performance and progress along strategic initiatives with you throughout this fiscal year. With that, I'll ask Eric Smit, our Chief Financial Officer, to add more color around our financial operations. Eric? Great. Thanks, Ashu, and thanks, everyone, for joining us today. As Ashu noted, we delivered a strong financial performance in fiscal 2021 with top and bottom-line results that exceeded our guidance and Street consensus. Even with our increased investments in sales and marketing, we delivered improved gross margins and strong earnings and cash flow for the fiscal year. Another highlight was hitting the target to bring our legacy sales to less than 5% of total revenue in Q4 2021. With our model transition finally behind us, we are starting the new fiscal year with a plan to accelerate our top-line growth in fiscal 2022 and beyond. Before getting into our outlook and guidance for fiscal 2022, let me share some financial highlights for the quarter and full year. We grew our SaaS revenue by 15% for the quarter and 18% for the year compared to the same period a year ago. Our total revenue grew by 6% for the quarter and 8% for the year compared to the same period a year ago. Looking at our non-GAAP gross profits and gross margins, gross profit for the fourth quarter was $15.3 million or a gross margin of 75%, up from 74% a year ago. For fiscal 2021, gross profit was $59.4 million or a gross margin of 76%, up from 72% in the prior year. Looking at our bottom line, non-GAAP net income for the fourth quarter was $2.5 million or $0.08 per share. This compares to non-GAAP net income of $2.7 million or $0.08 per diluted share in the year-ago quarter. Non-GAAP net income for the fiscal year was $8.7 million or $0.27 per diluted share compared to non-GAAP net income of $9.3 million or $0.29 per diluted share in the prior fiscal year. Turning to our balance sheet and cash flows, our balance sheet remains strong. During the year, we generated cash flow from operations of $13.9 million, and total cash and cash equivalents at the end of fiscal 2021 were $63.2 million, up 36% from a year ago. Looking at our current remaining performance obligation or RPO as I've mentioned in the past, due to customer concentrations, the timing of renewals can create fluctuations in this balance from quarter to quarter. However, with healthy renewals we experienced in the fourth quarter, with over 33 customers renewing, our current RPO increased 17% year-over-year to $55.2 million. Looking at other customer metrics, our trailing 12 months retention rate, which includes upsell, uplift, and churn, continued to be over 100% and was up sequentially from Q3, with no unusual churn in the quarter. Our trailing 12 months SaaS expansion rate, which excludes customer churn, was over 110%, which it's been consistently over the last eight quarters. The number of $1 million ARR increased 30% year-over-year. On to our financial outlook and guidance. With the start of fiscal 2022, our primary focus will be on top line growth. We have seen great early results from our sales and marketing investments, with significant SaaS customer wins and expansions this past fiscal year. Based upon this success, we plan to continue this investment in the coming year to further increase our brand awareness and penetrate and capture more market share of this massive opportunity we see in front of us. In addition, we plan to increase investment in R&D to maintain our competitive advantage and build on our product-led growth strategy. We also plan to invest in internal systems and processes that will be needed to scale the business as planned. On to our guidance. For the first quarter of fiscal 2022, we expect total revenue of between $20.9 million-$21.3 million, which would represent growth of 10%-12% year-over-year. GAAP net income of breakeven to $1 million or zero cent to $0.03 per share, and non-GAAP net income of $500,000-$1.5 million, or $0.02 to $0.05 per share. For fiscal 2022 full year, we expect total revenue of between $88.2 million-$89.8 million, which would represent growth of 13%-15% year-over-year. GAAP net loss of $3.5 million-$4.5 million or a loss of $0.11-$0.14 per share, non-GAAP net loss of breakeven to a loss of $1 million or zero cent per share to $0.03 per share. A few additional items to highlight. We estimate stock-based compensation expense of approximately $500 for Q1 and $3.5 million for the entire fiscal 2022. Depreciation and amortization of expense of approximately $120,000 for Q1 and $500,000 for fiscal 2022. Weighted average shares outstanding of approximately $32.8 million for Q1 and $33.1 million for the fiscal year 2022. In summary, we are pleased with our financial performance this past year. The demand is high for our best-in-class products. We continue to see expansion from our installed base of customers and our expanding partner ecosystem driving more new logo opportunities. Also, our sales momentum is growing, as evidenced by the large deals already closed in Q1. Finally, we have the balance sheet strength to support continued investment to drive top-line growth in fiscal year 2022 and beyond. We look forward to providing updates on our progress as we execute on our growth plan throughout the fiscal year. Lastly, looking at the investor relations calendar, eGain will be participating in two virtual investor conferences later this month. Next week, we'll be participating in the D.A. Davidson Software and Internet Virtual Conference on September 9th. We will also be presenting at the Jefferies Virtual Software Conference on September 14th. We hope to see some of you virtually at these conferences. This concludes our prepared remarks. Operator, we will now open the call for questions. Thank you. If you would like to signal with questions, please press star one on your touch tone telephone. If you're joining today using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, that is star one if you would like to signal with questions, star one. Our first question come from Richard Baldry with Roth Capital. Thanks. Could you maybe talk about the drivers of the deferred revenue line this quarter? It spiked pretty sharply, both sequentially and up 26% year-over-year, and I'm just looking at the current deferred. Is there anything unusual in there? That would argue for growth to accelerate fairly meaningfully above even what the implied guidance is. I'm just trying to figure out if there's anything anomalous there. Thanks. Hi, Rich. Yeah, I think as I mentioned, we had a strong number of renewals that came in at the end of the quarter. I would say that's a big part of what drove that. Yeah, I think again, we feel good about the renewal rates. No unusual churn and so but nothing outside of that I would want to comment on at this point. There wasn't any meaningful change to the average duration of contracts or anything else to drive that? No. I think we did have a couple of federal contract renewals. Those are typically one year in duration. That certainly would have skewed the shorter term element from that regard. Maybe can you talk about, you're into some cohorts a little deeper on the hiring or tenure now. How has that experience been, both from recruiting, onboarding, ramping? Are there things that you've learned that you think will help you with the next cohorts that you plan to add by year-end? Overall, how that process is going in a sort of COVID dampened environment? Yeah. That's a good way to put it, COVID dampened. Yes, we obviously learning much like everyone else on how to do this in a remote way. What we have found is that we are able to attract, it's not easy to attract sales talent, but we are able to attract the mid-level sales talent, which then we feel we can bring in and onboard quite well. That's been our strategy, and we are working that quite consistently now. I think the first bunch, we had some hiccups, some people joined, some people, or there was a few left. What we found was that the big thing, and outside of things that are not in our control, like COVID, but other than that, the big thing we noticed was that people who could learn faster, learn easier, seem to be the ones that stuck around. That's one of the things we have learned, and we are obviously driving that harder with the next cohort. It looks like the legacy maintenance side now under $1 million and dropping several $100,000 a quarter. Can you talk about the end of that? Is that really maybe only another 2, 3 quarters and then that should run to zero and be done? Or is that something that you think will push past fiscal 2022? Eric, do you want to provide some color on that, please? Sure. I can take that, Ashu. I think where we sit at the moment, obviously very pleased that it's now down below that 5% level. The good news is that for the material customers that make up the remainder, we're actively engaged with most of them. Again, many of them have plans to move and migrate, but there may be internal dependencies that they have in place that are sort of creating the lag. Instead of forcing them to meet a date so that we can sort of drop this off to zero, we are working with the small list of customers. From that perspective, continue to trail out over time. For us, as we look forward to fiscal 2022, we don't believe that is going to have that meaningful drag that it's had in previous years. That's why our focus on this call is to really focus on total revenue growth, knowing that this is going to have less of an impact than it's had in previous years, of course. Okay. Last for me would be, the revenues beat what we had pretty solidly, but the professional services is actually below. Recurring being above is where we'd want to see it. Just sort of curious, the pro services was down below the prior two quarters. Is there any way to think about how that should grow in tandem with the top line, or what factors sort of make it oscillate quarter to quarter as we look to build our 2022 models? Thanks. No, I think good question. Something that we've been looking at closely. I think as we've talked about in the past, easy deployments, we've seen the PS numbers decline as a percentage of revenue down below that 10% mark. We look forward to expansion opportunities where customers are just buying more of the same product, there's typically less PS associated with that. As you get into new deployments, that's where the attach rate goes up. I would say that as we look forward, our expectation is not to see a significant further decline in PS. I expect to stabilize the- Sir, it is becoming difficult to hear you. We did lose connection with that speaker. Please just remain on the line while we reestablish his line. Thank you. Hey, Richard, we will come back to you once Eric reconnects. I'm not sure, he's having some technical issues, but I'm sure he'll complete his thought then. I apologize for that. No, it largely did answer my question. I'm good. I'll take anything else offline. Congrats on a good end of the year and a nice outlook for next year. Thank you, Richard. Cheers. Our next question will come from Mark Schappel with The Benchmark Company. Hi, thank you for taking my question. Ash, on the sales force, in fiscal 2021, the company grew, or at least planned to grow its sales headcount by 50%. I think that was what was announced in the beginning of the year. How much of a sales capacity increase are you anticipating in the coming fiscal year? Yeah. My sense is that we will endeavor to scale by another 50%. Certainly, capacity-wise, I think we'll go up by 50%. Whether it's headcount-wise or not, that depends on how we organize the quotas and the direct versus channel kind of programs. I think capacity-wise, that's what we are targeting. Okay, great. Thank you. I was wondering if you could provide some additional color around the product development investments that you're planning for the upcoming year. What capabilities are you looking to add or grow into, and what are you planning to focus on in product development? Sure. One thing I already mentioned, which was kind of the delta that I alluded to in terms of level of investment as a percentage of our revenue. That has to do with building out the marketplace and the developer environment for our platform so that we can get more small to mid-size value-added solution providers. We are getting quite a few inbound inquiries around that, both from direct partners or partners who are working with some of the clients we are now selling to. They are all interested in integrating into the eGain platform and do it efficiently and do it profitably. That's a marketplace capability that we do not have today. We want to make sure that we put that in place quickly. That's one big element. The second area where more on the functional side where we are going to be focusing is the whole knowledge. Embedding knowledge into more and more parts of the enterprise is something we are getting a lot of interest in. We're starting out in almost every case, we start out on the customer engagement side, whether it is self-service or it is agent-facing. What we are seeing as a quick next step with customers is an interest in taking that capability and system of knowledge management and scaling it across the enterprise, sometimes internal facing HR, IT, so on and so forth. That's an area where we will also increase our product investment in. Great. Thank you. That's all for me. Thanks. Okay. Our next question come from Jeff Van Rhee with Craig-Hallum. Great. Thanks for taking my questions. A couple from me, if you would. Ashu, on the partners side, I know it's been a big focus. I didn't hear as much commentary about it this quarter. I guess a couple of specific questions. You've had two, I think, in the most recent quarter, 10% customers, 123% and 113%. Any commentary or directionally, any changes with those two customers in terms of meaningful trends one way or another? The second question is kind of more specific to the overall partner growth, and that is, can you put some numbers around maybe the growth in bookings value from partners or the growth in logos from partners? Just give us a little finer point on your momentum there. Okay. I'll try to address the second question first, Jeff. Then Eric, maybe you could take the first part of Jeff's question. Okay. Sure. Okay. In terms of new logos from last fiscal, meaning fiscal 2021, we saw good new logo acquisition through partners. That continues even this fiscal year, fiscal 2022. Our pipeline has good number of new logo opportunities from partners as well. I think we're seeing a healthy split, if you will. That split is probably in the, I would say, 50/50 kind of zone on the new logo side of partner versus direct today. In terms of the first question, Eric, maybe you can answer that more. For sure, Jeff. Just to be clear, both of those customers, as they are listed, one is solely a partner, so it's a resale relationship. Then the second one is a combination of a partner and a customer. I think for this quarter, I haven't seen, if anything, the business has continued in the right direction, so no changes anticipated or seen in the revenue from those two customers in the quarter. Yep. Maybe just along that line then on the partner side, I know you've had a lot going with Avaya. You've talked from time to time about Amazon. Cisco obviously, or BT, Infogain. You've got a lot of things going. Just any particular call-outs in terms of where you're seeing particular strength? I would say in the U.S., Cisco and Avaya are the top two right now on the channel side for us. In Europe, BT is probably the leader from a partner standpoint for us. Now we're kind of excited about, though it's zero dollar so far, but about the SAP partnership because we are seeing good mutual interest in developing go-to-market motion with some of their field teams globally as well as in the U.S. Fair enough. one last one, if I could. You mentioned the two, seven-figure ARR deals that you signed post quarter close, and I think you said one was an existing government agency, the other being a new logo crypto player. Assuming there was some competition in each of those, can you just give a quick glimpse into who you're seeing in deals like that? Right. The expansion was clearly we already were in the game, so there was no significant competitive play in that deal. There were some very large players in the government agency environment where we or our sponsors made the case to go with the eGain proposition versus all-in-one kind of solutions from alternatives. In the case of the crypto client, which is a new logo, the competitive environment was with people like In this case, this particular client has Salesforce as their CRM system of record. They were evaluating Salesforce for the knowledge management piece as well, and they were evaluating some pure-play knowledge players. In this case, they evaluated Oracle as well, very seriously. Those were the ones they told us about. What we will be doing in the case of this crypto client is we will be integrating our solution tightly through our connectors, into Salesforce. Okay. Great. Very nice quarter. Thank you. Thank you. Our next question will come from Tim Horan with Oppenheimer. Thanks, guys. Can you give a little bit more color on the value-added services that partners can bring? Do you think kind of where does this evolve to in the next two years? I just had a quick follow-up on the financial guidance. Okay. We are just beginning the journey here, Tim. The idea is to begin with a simple marketplace where we can certify these apps and put them for our clients to be able to use with the confidence that it will work in the eGain environment and not in, but connected into the eGain platform. That will be step one. Then step two will be looking at whether we want to create some sort of economic model around that, something that people like Salesforce and others do today. We are a couple of steps behind that. We know that there is a need, and especially in our market segment, which is knowledge-centric customer engagement. I think that there is a unmet need, and we are seeing that from both small players trying to add value, as well as customers and prospects asking for that sort of ease of plugging and playing with smaller value-add providers onto our platform. Does that help? Yes, that's helpful. Thanks. On the guide, it looks like you're looking for operating expenses to grow basically double what your revenue is going to grow at, if I'm looking at it right, almost 30%. Can you even ramp up spending that rapidly? Are you doing this because you think you can accelerate revenue growth faster than you're showing this year, or are you doing it to maintain revenue growth the next few years? Thanks. My view, and Eric, you can add more here. My view is that we need to get to what I would call minimum efficient scale, using industry parlance. We are at a level. If you look at the operational capabilities and the foundational IT systems and sort of core people capabilities, we need to invest in that, somewhat in a step function way to get to that level where we can then look at more marginal investments and better returns on top of that. That's what you're seeing in fiscal 2022. That may not reflect in fiscal 2022 top-line growth, as in a lot of surprise on top of whatever we are saying. It certainly will and should accelerate our top-line growth in tail end of 2022 and 2023. I think just to add to that, one other point I think is many of the investments that we began in 2021 were more back-end loaded. If you just look at the sequential ramp, it's not as steep as it looks when just looking at the year-over-year comparisons. That's very helpful. Thank you. Thank you. That does conclude the question and answer session. I'll now turn the conference back over to management. Great. Well, thanks everybody for listening in. Again, very excited about the upcoming year. Look forward to providing you updates as we put out our Q1 results. Thank you. Thank you. That does conclude today's conference. We do thank you for your participation. Have an excellent day.