- 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.
For further details see:
eGain: 2 Dreaded Words Investors Need Not Fear