CRM - eGain: 2 Dreaded Words Investors Need Not Fear

• Q1'21 performance was strong with beats on top and bottom lines. SaaS revenue growth was 29% YoY.
• Guidance for Q2 was soft, primarily due to loss of revenue from two customers and also the underlying economic conditions. YoY revenue growth is expected to be 0%-3%.
• Company management has stated that this will be an investment year with increased spending on sales and marketing that won't likely translate into higher revenue this year.
• eGain's stock price got hammered after the quarterly results were released. The stock is now down almost 45% from its July high.
• eGain is quite undervalued and I view the currently depressed stock price as a buy opportunity.

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