EGAIN Corp
For the period ended Dec 31, 2024. Filed Feb 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 13, 2025
EGAN$5.95+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001558370-24-015305
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-13.
0001558370-25-000941
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 110 current paragraphs.
64 unchanged; 30 reworded; 15 added; 9 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 76 previous and 76 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Total revenue for the three months ended December 31, 2024 decreased by $1.4 million, while SaaS revenue decreased by $1.1 million, compared to the same period in fiscal year 2024. Total revenue for the six months ended December 31, 2024 decreased by $3.8 million, while SaaS revenue decreased by $3.7 million, compared to the same period in fiscal year 2024.
Current report
SaaS revenue represents 93% and 92% of total revenue for the three and six months ended December 31, 2024, respectively, compared to 92% for the same periods in fiscal year 2024.
Current report
Revenue from North America sales decreased by 11% from $37.8 million during the six months ended December 31, 2023 to $33.8 million during the six months ended December 31, 2024, due to decreases of (i) $3.8 million in SaaS revenue and (ii) $288,000 in professional services revenue.
Current report
Revenue from EMEA sales increased by 3% from $10.2 million for the six months ended December 31, 2023 to $10.4 million during the six months ended December 31, 2024, due to increases of (i) $131,000 in SaaS revenue and (ii) $138,000 in professional services revenue.
Current report
Cost of SaaS revenue decreased by $1.0 million during the six months ended December 31, 2024, from the same period in fiscal year 2024. This decrease was primarily due to decreases of (i) $490,000 in cloud-computing costs, (ii) $393,000 in personnel related costs, and (iii) $132,000 in outside consulting costs.
Current report
Research and development expense increased by 14% to $15.1 million for the six months ended December 31, 2024, from $13.3 million in the same period in fiscal year 2024. Excluding an increase of $13,000 due to foreign exchange rate fluctuation, research and development expense increased primarily due to increases of (i) $1.6 million in personnel-related costs and (ii) $179,000 in outside consulting costs.
Current report
Sales and marketing expenses decreased by 2% but remained consistent at $5.3 million for the three months ended December 31, 2024, compared to the same period in fiscal year 2024. Excluding an increase of $40,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased primarily due to a decrease of $718,000 in personnel-related costs; partially offset by increases of (i) $530,000 in lead generation costs and (ii) $50,000 in outside consulting costs.
Current report
Sales and marketing expenses decreased by 13% to $10.0 million for the six months ended December 31, 2024, from $11.5 million in the same period in fiscal year 2024. Excluding an increase of $116,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased primarily due to decreases of (i) $1.5 million in personnel-related costs and (ii) $120,000 in lead generation costs; partially offset by an increase of $83,000 in outside consulting costs.
Current report
General and administrative expenses decreased by 19% to $4.5 million for the six months ended December 31, 2024, from $5.6 million in the same period in fiscal year 2024. Excluding an increase of $14,000 due to foreign exchange rate fluctuation, general and administrative expense decreased primarily due to decreases of (i) $792,000 in legal related costs, (ii) $155,000 in outside consulting costs, (iii) $121,000 in personnel-related costs, and (iv) $58,000 in accounting, audit, and administrative fees; partially offset by an increase of (i) $78,000 in credit loss expense.
Current report
Income from operations was $650,000 and $2.4 million with an operating margin of 3% and 10% during the three months ended December 31, 2024 and 2023, respectively. This is primarily due to a reduction in gross margin and an increase in total research and development cost.
Current report
Income from operations was $1.2 million and $3.8 million with an operating margin of 3% and 8% during the six months ended December 31, 2024 and 2023, respectively. This is primarily due to a reduction in gross margin and an increase in total research and development cost.
Current report
Other Expense, Net
Current report
Other expense, net was $431,000 and $697,000 during the three months ended December 31, 2024 and 2023, respectively. Other expense, net was $571,000 and $87,000 during the six months ended December 31, 2024 and 2023, respectively.
Current report
Provision for income taxes consists of state and foreign income taxes. As of December 28, 2024, the Company concluded that a full valuation allowance on its deferred tax assets in the U.S. continued to be appropriate considering cumulative pre-tax losses in recent years and uncertainty with respect to future taxable income. Release of the valuation allowance in the U.S. would result in a benefit to the income tax provision in the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective earnings in the U.S.
Current report
We recorded income tax provision of $209,000 and $697,000 for the three and six months ended December 31, 2024, respectively. We recorded income tax provision of $525,000 and $904,000 for the three and six months ended December 31, 2023, respectively.
Removed paragraphs (9)
Previous report
Total revenue decreased approximately $2.4 million during the three months ended September 30, 2024, compared to the same period in fiscal year 2024, due to a decrease in SaaS revenue of $2.5 million offset by an increase of $126,000 in professional services, respectively, during the three months ended September 30, 2024, compared to the same period in fiscal year 2024.
Previous report
SaaS revenue includes revenue from cloud delivery arrangements, term licenses and embedded OEM royalties, associated support, and an immaterial amount of legacy revenue. Revenue from SaaS decreased by $2.5 million during the three months ended September 30, 2024, compared to the same period in fiscal year 2024 primarily due to departures of two impactful customers.
Previous report
Sales and marketing expenses decreased by $1.3 million during three months ended September 30, 2024, from the same period in fiscal year 2024. The decrease was primarily due to decreases of (i) $804,000 in personnel-related expenses and (ii) $654,000 in marketing program expenses; partially offset by an increase of $33,000 in outside consulting expenses.
Previous report
Excluding an increase of $81,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased by $1.4 million during the three months ended September 30, 2024, compared to the same period in fiscal year 2024.
Previous report
General and administrative expenses decreased by $743,000 during the three months ended September 30, 2024, from the same period in fiscal year 2024. The decrease was primarily due to decreases of (i) $829,000 in legal expenses and (ii) $64,000 in personnel-related expenses, and (iii) $53,000 in outside-consulting expenses; partially offset by increases in (i) $185,000 in bad debt expenses, (ii) $12,000 in accounting, audit, and administrative expenses, and (iii) $1,000 in investor relations expenses.
Previous report
$748,000 during the three months ended September 30, 2024, compared to the same period in fiscal year 2024.
Previous report
Income from operations was $509,000 with an operating profit margin of 2% during the three months ended September 30, 2024. Income from operations was $1.4 million during the three months ended September 30, 2023.
Previous report
Other (Expense) Income, Net
Previous report
Provision for income taxes consists of state and foreign income taxes. Due to cumulative losses, we maintain a valuation allowance against U.S. deferred tax assets as of September 30, 2024. We consider all available evidence, both positive and negative, including but not limited to earnings history, projected future outcomes, industry and market trends and the nature of each of the deferred tax assets. We recorded income tax provision of $488,000 and $379,000 for the three months ended September 30, 2024 and 2023, respectively.
Reworded paragraphs (30)
Previous wording
eGain automates customer engagement with an AI knowledge hub SaaS solution. We sell to enterprises who want to better serve customers at scale by delivering trusted answers across self-service, contact centers, and field staff. True to our mantra ofAX + BX + CX = DX™, our AI knowledge hub orchestrates effortless Digital eXperience (DX) as it assists Agent eXperience (AX), empowers Business eXperience (BX) and assures Customer eXperience (CX). Many global brands use eGain to improve experience and reduce costs. We are headquartered in the Sunnyvale, California, United States. We also operate in the United Kingdom and India
Current wording
eGain automates customer engagement with an AI knowledge hub SaaS solution. We sell to enterprises who want to better serve customers at scale by delivering trusted answers across self-service, contact centers, and field staff. True to our mantra ofAX + BX + CX = DX™, our AI knowledge hub orchestrates effortless Digital eXperience (DX) as it assists Agent eXperience (AX), empowers Business eXperience (BX) and assures Customer eXperience (CX). Many global brands use eGain to improve experience and reduce costs. We are headquartered in Sunnyvale, California in the United States. We also operate in the United Kingdom and India.
Previous wording
Management believes that it is useful to exclude certain non-cash charges and non-core operational charges from non-GAAP operating income because (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations; and (ii) such expenses can vary significantly between periods as a
Current wording
Management believes that it is useful to exclude certain non-cash charges and non-core operational charges from non-GAAP operating income because (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations; and (ii) such expenses can vary significantly between periods as a result of the timing of new stock-based awards. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Previous wording
We believe that the assumptions and estimates, which are described in Note 1 “Summary of Business and Significant Accounting Policies” to our condensed consolidated financial statements, associated with revenue recognition, stock-based compensation, provision for credit losses, the valuation of goodwill, the valuation of deferred tax allowance, and legal contingencies have the greatest potential impact on our condensed consolidated financial statements. We evaluate these estimates on an ongoing basis. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Current wording
We believe that the assumptions and estimates, which are described in Note 1 “Summary of Business and Significant Accounting Policies” to our condensed consolidated financial statements, associated with revenue recognition, stock-based compensation, provision for credit losses, the valuation of goodwill, the valuation of deferred tax allowance, and legal contingencies have the greatest potential impact on our condensed consolidated financial statements. We evaluate these estimates on an ongoing basis. Management bases its estimates and judgments on historical experience and on various
Previous wording
Our revenue is comprised of two categories including SaaS and professional services. SaaS revenue includes cloud delivery arrangements, term licenses, embedded original equipment manufacturer (OEM) royalties, and associated support. An immaterial amount of SaaS revenue is comprised of our legacy revenue which is associated with license, maintenance, and support contracts on perpetual license arrangements that we no longer sell. Professional services includes consulting, implementation, training, and managed services.
Current wording
Our revenue is comprised of two categories including SaaS and professional services. SaaS revenue includes cloud delivery arrangements, term licenses, embedded OEM royalties, and associated support. An immaterial amount of SaaS revenue is comprised of our legacy revenue which is associated with license, maintenance, and support contracts on perpetual license arrangements that we no longer sell. Professional services includes consulting, implementation, training, and managed services.
Previous wording
these arrangements are for sales-based licenses of intellectual property, we recognize revenue only as the subsequent sale occurs. However, since such sales are reported by the customer with a quarter in arrears, such revenue is recognized at the time it is reported and paid by the customer given that any estimated variable consideration would have to be fully constrained due to the unpredictability of such estimate and the unavoidable risk that it may lead to significant revenue reversals.
Current wording
We have a royalty revenue agreement with a customer related to our embedded intellectual property. Under the terms of the agreement, the customer is to provide a combined fixed fee, per agent, for each software license sold containing the embedded software to us. These embedded OEM royalties are included as SaaS revenue. Under revenue guidance, since these arrangements are for sales-based licenses of intellectual property, we recognize revenue only as the subsequent sale occurs. However, since such sales are reported by the customer with a quarter in arrears, such revenue is recognized at the time it is reported and paid by the customer given that any estimated variable consideration would have to be fully constrained due to the unpredictability of such estimate and the unavoidable risk that it may lead to significant revenue reversals.
Previous wording
As of September 30, 2024, our remaining performance obligations were $70.4 million, of which we expect to recognize $54.5 million and $15.9 million as revenue within one year and beyond one year, respectively.
Current wording
As of December 31, 2024, our remaining performance obligations were $73.6 million, of which we expect to recognize $50.9 million and $22.7 million as revenue within one year and beyond one year, respectively.
Previous wording
The following table presents our SaaS and professional services revenue during the three months ended September 30, 2024 and 2023, respectively:
Current wording
The following table presents our SaaS and professional services revenue during the three and six months ended December 31, 2024 and 2023, respectively:
Previous wording
Our revenue was impacted by foreign exchange rate fluctuation between the U.S. Dollar, Euro, and British Pound. We recalculate our current period results using the comparable prior period exchange rates to exclude the impact of foreign exchange rate fluctuation. Foreign exchange rate fluctuation resulted in an increase of $144,000 and $426,000 in total revenue during the three months ended September 30, 2024 and 2023, respectively.
Current wording
Our revenue was impacted by foreign exchange rate fluctuation between the U.S. Dollar, Euro, and British Pound. We recalculate our current period results using the comparable prior period exchange rates to exclude the impact of foreign exchange rate fluctuation. Foreign exchange rate fluctuation resulted in an increase of $151,000 and $340,000 in total revenue during the three months ended December 31, 2024 and 2023, respectively. Foreign exchange rate fluctuation resulted in an increase of $298,000 and an increase of $769,000 for the six months ended December 31, 2024 and 2023, respectively.
Previous wording
SaaS revenue represents 91% of total revenue for the three months ended September 30, 2024, compared to 92% during the same period in fiscal year 2024. This represented a decrease in SaaS revenue of 11% for the three months ended September 30, 2024, compared to the same period in fiscal year 2024.
Current wording
SaaS revenue includes revenue from cloud delivery arrangements, term licenses and embedded OEM royalties and associated support. Revenue from SaaS decreased by $1.1 million and $3.7 million during the three and six months ended December 31, 2024, respectively, compared to the same periods in fiscal year 2024. This represented a decrease in SaaS revenue of 5% and 8% for the three and six months ended December 31, 2024, respectively, compared to the same periods in fiscal year 2024.
Previous wording
Excluding an increase of $132,000 due to foreign exchange rate fluctuation, SaaS revenue decreased by $2.6 million during the three months ended September 30, 2024, compared to the same period in fiscal year 2024.
Current wording
Excluding an increase of $144,000 and $276,000 due to foreign exchange rate fluctuation, SaaS revenue decreased by $1.3 million and $3.9 million during the three and six months ended December 31, 2024, respectively, compared to the same periods in fiscal year 2024.
Previous wording
Professional services revenue includes consulting, implementation, training, and managed services. Revenue from professional services increased by $126,000 during the three months ended September 30, 2024, compared to the same period in fiscal year 2024.
Current wording
Professional services revenue includes consulting, implementation, training, and managed services. Revenue from professional services decreased by $277,000 and $151,000 during the three and six months ended December 31, 2024, respectively, compared to the same periods in fiscal year 2024.
Previous wording
Excluding an increase of $12,000 due to foreign exchange rate fluctuation, professional services revenue increased by $114,000 during the three months ended September 30, 2024, compared to the same period in fiscal year 2024.
Current wording
Excluding an increase of $7,000 and $21,000 due to foreign exchange rate fluctuation, professional services revenue decreased by $284,000 and $172,000 during the three and six months ended December 31, 2024, respectively, compared to the same periods in fiscal year 2024.
Previous wording
Revenue from North America sales decreased by 14% from $19.0 million during the three months ended September 30, 2023 to $16.4 million during the three months ended September 30, 2024 primarily due to a decrease of $2.5 million in SaaS revenue.
Current wording
Revenue from North America sales decreased by 8% from $18.8 million during the three months ended December 31, 2023 to $17.3 million during the three months ended December 31, 2024, due to decreases of (i) $1.1 million in SaaS revenue and (ii) $356,000 in professional services revenue.
Previous wording
Revenue from EMEA sales increased by 4% from $5.2 million for the three months ended September 30, 2023 to $5.4 million during the three months ended September 30, 2024, due to increases of (i) $57,000 in SaaS revenue and (ii) $132,000 in professional services revenue.
Current wording
Revenue from EMEA sales increased by 2% from $5.0 million for the three months ended December 31, 2023 to $5.1 million during the three months ended December 31, 2024, due to increases of (i) $73,000 in SaaS revenue and (ii) $5,000 in professional services revenue.
Previous wording
Cost of SaaS revenue decreased by $525,000 during the three months ended September 30, 2024, from the same period in fiscal year 2024. This decrease was primarily due to decreases of (i) $282,000 in cloud-computing costs and (ii) $230,000 in personnel-related costs, and (iii) $16,000 in outside consulting costs.
Current wording
Cost of SaaS revenue decreased by $483,000 during the three months ended December 31, 2024, from the same period in fiscal year 2024. This decrease was primarily due to decreases of (i) $208,000 in cloud-computing costs, (ii) $164,000 in personnel-related costs, and (iii) $116,000 in outside consulting costs.
Previous wording
Excluding an increase of $3,000 due to foreign exchange rate fluctuation, cost of SaaS revenue decreased by $528,000 during the three months ended September 30, 2024, from the same period in fiscal year 2024.
Current wording
Excluding an increase of $4,000 and $7,000 due to foreign exchange rate fluctuation, cost of SaaS revenue decreased by $487,000 and $1.0 million during the three and six months ended December 31, 2024, respectively, from the same periods in fiscal year 2024.
Previous wording
Cost of professional services increased by $353,000 during the three months ended September 30, 2024, from the same period in fiscal year 2024. This increase was primarily due to an increase of $358,000 in personnel-related costs; partially offset by a decrease of $2,000 in outside consulting costs.
Current wording
Cost of professional services increased by $173,000 during the three months ended December 31, 2024, from the same period in fiscal year 2024. This increase was primarily due to increases of (i) $146,000 in personnel-related costs and (ii) $16,000 in outside consulting costs.
Previous wording
Research and development expense increased by $789,000 during the three months ended September 30, 2024, from the same period in fiscal year 2024. This increase was primarily due to increase of $795,000 in personnel-related costs and partially offset by a decrease of $12,000 in outside consulting costs.
Current wording
Cost of professional services increased by $526,000 during the six months ended December 31, 2024, from the same period in fiscal year 2024. This increase was primarily due to increases of (i) $505,000 in personnel-related costs and (ii) $14,000 in outside consulting costs.
Previous wording
Excluding a decrease of $3,000 due to foreign exchange rate fluctuation, cost of professional services revenue increased by $356,000 during the three months ended September 30, 2024, compared to the same period in fiscal year 2024.
Current wording
Excluding increase of $13,000 and $8,000 due to foreign exchange rate fluctuation, cost of professional services revenue increased by $160,000 and $518,000 during the three and six months ended December 31, 2024, respectively, compared to the same periods in fiscal year 2024.
Previous wording
Research and development expense primarily consists of personnel-related expenses directly associated with our engineering, product management and development, and quality assurance staff. Included in these costs are salaries,
Current wording
Research and development expense primarily consists of personnel-related expenses directly associated with our engineering, product management and development, and quality assurance staff. Included in these costs are salaries, benefits, bonuses, and stock-based compensation and allocated overhead. Research and development expense also includes outside consulting services contracted for research and development.
Previous wording
Excluding an increase of $6,000 due to foreign exchange rate fluctuation, research and development expense increased by $783,000 during the three months ended September 30, 2024, compared to the same period in fiscal year 2024.
Current wording
Research and development expense increased by 16% to $7.7 million for the three months ended December 31, 2024, from $6.7 million in the same period in fiscal year 2024. Excluding an increase of $7,000 due to foreign exchange rate fluctuation, research and development expense increased primarily due to increases of (i) $848,000 in personnel-related costs and (ii) $191,000 in outside consulting costs.
Previous wording
Excluding an increase of $5,000 due to foreign exchange rate fluctuation, general and administrative expense decreased
Current wording
General and administrative expenses decreased by 12% to $2.1 million for the three months ended December 31, 2024, from $2.4 million in the same period in fiscal year 2024. Excluding an increase of $7,000 due to foreign exchange rate fluctuation, general and administrative expense decreased primarily due to decreases of (i) $106,000 in credit loss expense, (ii) $103,000 in outside-consulting costs, (iii) $70,000 in accounting, audit, and administrative fees, (iv) $57,000 in personnel-related costs and (v) $1,000 in investor relations cost; partially offset by an increase of $37,000 in legal related costs.
Previous wording
Interest income primarily consists of interest earned on money market accounts. Interest income was $771,000 and $949,000 during the three months ended September 30, 2024 and 2023, respectively, due to lower interest rates in the current period.
Current wording
Interest income primarily consists of interest earned on money market accounts which have decreased rates compared to prior years. Interest income was $661,000 and $982,000 during the three months ended December 31, 2024 and 2023, respectively. Interest income was $1.4 million and $1.9 million during the six months ended December 31, 2024 and 2023, respectively.
Previous wording
Other (expense) income, net was expense of $140,000 and income of $610,000 during the three months ended September 30, 2024 and 2023, respectively. Other (expense) income, net primarily included foreign exchange rate fluctuations on international trade receivables, net of transactions.
Current wording
Other expense, net primarily included foreign exchange rate fluctuations on international trade receivables, net of transactions.
Previous wording
As of September 30, 2024 and June 30, 2024, our principal sources of liquidity were cash and cash equivalents, restricted cash, and accounts receivable totaling $90.3 million and $101.7 million, respectively. Our cash, cash equivalents and restricted cash were $67.2 million and $70.0 million as of September 30, 2024 and June 30, 2024, respectively.
Current wording
As of December 31, 2024 and June 30, 2024, our principal sources of liquidity were cash and cash equivalents, restricted cash, and accounts receivable totaling $86.3 million and $101.7 million, respectively. Our cash, cash equivalents and restricted cash were $70.5 million and $70.0 million as of December 31, 2024 and June 30, 2024, respectively.
Previous wording
For the three months ended September 30, 2024 and 2023, our cash flows were as follows (in thousands):
Current wording
For the six months ended December 31, 2024 and 2023, our cash flows were as follows (in thousands):
Previous wording
Net cash provided by operating activities decreased by $7.2 million during the three months ended September 30, 2024, from the same period in fiscal year 2024, driven primarily by the timing of collections for accounts receivable, payments of accounts payable, and recognition of deferred revenue.
Current wording
Net cash provided by operating activities decreased by $8.4 million during the six months ended December 31, 2024, from the same period in fiscal year 2024, driven primarily by the change in net income, deferred revenue, stock-based compensation expense, and the timing of collections for accounts receivable.
Previous wording
Net cash used in investing activities increased by $77,000 during the three months ended September 30, 2024, from the same period in fiscal year 2024, driven primarily by activities related to the purchase of equipment for new employees and facility expenditures. Historically, cash used in investing activities has been used to purchase equipment and software to support our business and growth.
Current wording
Net cash used in investing activities increased by $113,000 during the six months ended December 31, 2024, from the same period in fiscal year 2024, driven primarily by activities related to the purchase of equipment for new employees and facility expenditures. Historically, cash used in investing activities has been used to purchase equipment and software to support our business and growth.
Previous wording
Net cash used in financing activities increased by $3.9 million during the three months ended September 30, 2024, from the same period in fiscal year 2024. Our current proceeds consist primarily of proceeds from the exercise of employee stock options, our employee stock purchase plan, and funds used for repurchases of our common stock of approximately $4.6 million.
Current wording
Net cash used in financing activities increased by $4.0 million during the six months ended December 31, 2024, from the same period in fiscal year 2024, driven primarily by funds used for repurchases of our common stock of approximately $7.0 million, offset by proceeds from exercises of employee stock options and our employee stock purchase plan.
Previous wording
Our principal commitments consist of obligations under leases for office space. Lease agreements are evaluated to determine whether an arrangement is or contains a lease in accordance with ASC 842, Leases. As of September 30, 2024, the future non-cancelable minimum payments under these commitments were approximately $4.7 million.
Current wording
Our principal commitments consist of obligations under leases for office space. Lease agreements are evaluated to determine whether an arrangement is or contains a lease in accordance with ASC 842,Leases. As of December 31, 2024, the future non-cancelable minimum payments under these commitments were approximately $5.0 million.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
result of the timing of new stock-based awards. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America (GAAP).
Previous report — wording carried elsewhere
We have a royalty revenue agreement with a customer related to our embedded intellectual property. Under the terms of the agreement, the customer is to provide a combined fixed fee, per agent, for each software license sold containing the embedded software to us. These embedded OEM royalties are included as SaaS revenue. Under revenue guidance, since
Previous report — wording carried elsewhere
benefits, bonuses, and stock-based compensation and allocated overhead. Research and development expense also includes outside consulting services contracted for research and development.