eGain Corporation (NASDAQ:EGAN) Q2 2024 Earnings Call Transcript

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On the second one, the Analytics one, I think the what we — we don’t know enough about that, to be honest, because it’s behind the partner and we don’t have enough visibility to know what is the economic sort of trade-off between their homegrown and ours.

Jeff Van Rhee: Okay. All right, that’s helpful. And then, Eric, you mentioned on the year-over-year compares, I think you mentioned something about a volume — $1 million in volume that didn’t repeat. Can you just refresh me on what that was a year ago?

Eric Smit: Yes. So, I think what we had seen was an account that was driving an increase in messaging business that it was running a special program at the end of this quarter last year that drove that spike. There will be more increase in volume usage.

Jeff Van Rhee: Okay. All right. And then just on the AssistGPT, obviously, you’re trying to get it in the hands of a lot of folks that will let them use it and get feedback. I realize it’s early, but any areas of pushback in places where you’ve decided to pivot, accentuate, deemphasize already?

Ashu Roy: Yes. A couple of learnings we have got. One is that people are very — in the enterprise, not in the mid-market, but in the enterprise, people are very focused on controls, safety, and auditability. So, we have — we are enhancing that significantly around generative capabilities. So, that is a learning for us. And the second is that the results that people are seeing in the pilots, and these pilots are obviously trials, right, they’re not production levels at scale, they’re limited production trials; people seem to be very happy with the solution results. So, we’re consistently seeing a strong positive feedback saying, yes, we like this, right? So, that’s the second thing that we are seeing.

Jeff Van Rhee: Okay. And then maybe just one last, Eric, and then we can take this offline if it’s easier. Just trying to — there’s obviously going to be some volatility in results in the next couple of quarters as you kind of reset to the new revenue level. Do you have a sense of gross margins, Q3, Q4?

Eric Smit: So, we’ll definitely see some pressure, obviously, given the — that reduction. But I think one of these accounts actually had — sort of the profile wasn’t at the high level. So, — but yes, I think we’ll — maybe I’ll have to get back to you on the exact percentage where we see it. But certainly, there’ll be some pressure.

Jeff Van Rhee: Okay, fair enough. I’ll leave it there. Thank you.

Ashu Roy: Thanks.

Operator: Thank you. [Operator Instructions] And seeing no further questions, we’ll conclude the question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Ashu Roy: Okay. Well, thanks, everybody. I appreciate you taking the time. We look forward to updating you as we continue to proceed with this exciting knowledge driven by the AssistGPT product. Thank you.

Operator: Thank you. This concludes the conference. Thank you for attending today’s presentation. You may now disconnect.

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