On this page of StockholderLetter.com we present the 10/12/2023 shareholder letter from EGAIN Corp — ticker symbol EGAN. Reading current and past EGAN letters to shareholders can bring important insights into the investment thesis.

 •  10/12/2023 Letter Continued (Full PDF)
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 •  More "Application Software" Category Stockholder Letters
 •  EGAN Benford's Law Stock Score = 66

EGAN 10/12/2023 Shareholder/Stockholder Letter Transcript:

Dear Fellow Stockholder,
We faced a challenging economic environment in fiscal 2023. Our growth plans were stymied
by a broad slowdown in enterprise technology investments, exacerbated by the distraction
created by the launch of ChatGPT. We responded to the cyclical market challenge by paring
sales and marketing spend, while sharpening product innovation and doubling down on client
satisfaction. We also bought back $5.8 million of our own stock, while generating $4.6 million of
cash flow from operations in the fiscal year.
Since the launch of ChatGPT in November 2022, generative AI has disrupted most customer
engagement technology roadmaps. After the initial euphoria of hoping to solve almost every
problem with ChatGPT, businesses are getting around to recognizing that the power of
generative AI can best be marshalled for customer engagement transformation in concert with
knowledge hubs. A knowledge hub brings the right content, controls, and analytics to prime,
guide, and optimize generative AI capability which can be appropriately applied to the
workflow of knowledge authors, contact center agents, and business analysts.
In February 2023, we launched eGain Instant Answers    - a simple way to find relevant answers
from enterprise knowledge bases using generative AI. Instant Answers reimagines the contact
center agent experience as they are challenged to serve demanding customers using more
complex products. It integrates multiple AI technologies - including parallel reasoning, machine
learning, semantic search, and generative AI - to deliver a personalized, proactive knowledgepowered experience to contact center agents.
A leading U.S. property and casualty insurer client of ours reported a 40% improvement in
agent satisfaction with Instant Answers. In fact, their agents rated the eGain knowledge hub as
the #1 app (from over 100 agent desktop apps). We are proud of the business value our
solutions continue to deliver to our clients. As a result, eGain client satisfaction rating is at an
all-time high (4.9 out of 5.0 at the end of September 2023) on the Gartner Peer Review website.
According to Gartner, knowledge management is the #1 technology for driving customer
experience, agent experience, and operational effectiveness in customer service. Gartner
estimates that the penetration of modern knowledge management technology for customer
service is well below 20%, which means we are just scratching the surface of this large and
growing market opportunity.
In fiscal 2024, we are seeing improved pipeline activity, as leading enterprises seek to deploy a
modern knowledge platform to plug and play generative AI services that they have been
developing. At our eGain Solve 2023 event in London in September 2023 that focused on
generative AI and its application to knowledge management, conference registrations were at
an all-time high. We announced eGain AssistGPT   , an innovative way for knowledge authors,
contact center agents, and business analysts to use generative AI to automate many boring
parts of their daily work! Using AssistGPT, we believe non-technical users will get instant value

thanks to dozens of best-practice options. They do not need to know or learn prompt
engineering. Now that is "Easy with eGain.   
As we move further into fiscal 2024, we are excited by the positive signs in our pipeline activity.
While we remain cautious in the current macro-economic environment, we believe that with
the operational adjustments we made in fiscal 2023, we can continue to invest in product
innovation and customer success while pursuing new logo opportunities with enterprises.
By innovating smartly at the intersection of knowledge management and generative AI, we
believe we can help transform customer experience and boost agent satisfaction, while driving
down the cost of service by up to 30%. The road ahead is exciting and meaningful, and we
intend to capitalize on it.
Sincerely,
Ashu Roy

10/12/2023 Letter Continued (Full PDF)

 

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