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.

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.