Shares tumbled 27.5% to $5.21 in after-hours trading, extending a year-to-date slide that had already erased 31% of the company’s market capitalization. For the first quarter ending September 30, eGain anticipates revenue between $20.9 million and $21.4 million, trailing the $22.3 million target set by market analysts. The shortfall is even more pronounced for the full fiscal year, with the company projecting revenue between $84.5 million and $86 million—a significant gap from the $94.1 million figure analysts anticipated.
In section Market Quotes
eGain Shares Plummet Following Weak Financial Forecast
Investors wiped more than a quarter off eGain’s market value Thursday after the AI-focused software company released fiscal guidance that fell short of Wall Street projections. The sharp decline arrived as the firm signaled a cooling in growth, failing to meet analyst expectations for both the current quarter and full fiscal year.
This downward revision follows a challenging fourth quarter where revenue slipped to $22.2 million from $23.2 million a year prior. Profitability saw a steeper contraction, dropping to $1.3 million, or 5 cents a share, compared to $30.9 million, or $1.11 a share, in the same period last year. The year-over-year comparison is heavily skewed by a one-time $29 million tax benefit that bolstered the company's previous results.
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