Good day, everyone, and welcome to the eGain Fiscal 2017 Third Quarter Financial Results Conference. Today's conference is being recorded. And at this time, I'd like to turn the conference over to Mr. Jim Byers at MKR Group. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone. Welcome to eGain's fiscal 2017 third quarter financial results conference call. On the call today are eGain's Chief Executive Officer, Ashu Roy; and Chief Financial Officer, Eric Smit. Before we begin, I would like to remind everyone that during this conference call management will make certain forward-looking statements which contain management's expectations, beliefs, plans and objectives, regarding future financial and operational performance. Forward-looking statements are generally preceded by words such as believe, plan, intend, expect anticipate or similar expressions. Forward-looking statements are protected by the Safe Harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a wide range of risks and uncertainties that could cause actual results to differ in material respects, including those related to our beliefs that we are seeing and will continue to see the benefits of the company's transition to a cloud-based business and we'll continue to see success in implementing the land-and-expand sales model. Actual results could differ materially from those described in this conference call and presentation. Information on various factors that could affect eGain's results are detailed in the company's reports filed with the Securities and Exchange Commission. eGain is making these statements, as of today, May 10, 2017 and assumes no obligation to publicly update or revise any forward-looking information in this conference call. In addition to GAAP results, we will also discuss certain non-GAAP financial measures in this conference call such as adjusted EBITDA and non-GAAP net income. Our earnings press release can be found on the news release link on the Investor Relations page of eGain's website at www.egain.com. The tables included with the earnings press release include reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures. A replay of this conference call will also be available at the Investor Relations section of the eGain's website. And with that said, I'd now like to turn the call over to eGain's CEO, Ashu Roy.

Thank you, Jim, and hello, everyone. We are pleased that we have successfully transitioned our business to SaaS. We delivered good bookings this quarter, even as we drove operating efficiency in our business. In terms of highlights, our new subscription and support ACV was up 47% sequentially and 88% year over year. Our total subscription and support ACV was up 7% year-over-year, despite the impact of a previously announced $5 million ACV reduction that took effect beginning of Q3. And our backlog was up 43% year-over-year to nearly $54 million. Turning to some of the client wins, I want to share a couple of them that were noteworthy. One of them is a top-five telco in the U.S. They were looking for a modern platform to drive greater digital engagement with customers. Starting with over 1,000 digital engagement seats for now, they intend to double their digital engagement volume in three years. Competing with us for this opportunity were the classic CRM incumbents and a few best-of-breed providers. Three reasons for our win, I believe: first, our product depth, solution breadth, platform scale; second, our try-and-buy experience, which was quite good for them; and third, our strong customer references. Now, we are excited that we are now implementing the solution for rollout this summer with this client. Of course, this is all in the eGain cloud. The other win which is interesting to mention is a significant cloud-based deal through the Cisco partnership. This client is a large U.S. based healthcare provider. They will use the eGain desktop bundle, including all our capabilities and digital knowledge in AI, to deliver better customer experience in concert with the Cisco contact center platform. Both these wins have been a result of not just our product, but also improved execution, both on the…

Thank you, Ashu, and thanks for joining us today. Before I begin my prepared remarks, I'd like to note that the P&L numbers I will be sharing today are non-GAAP unless otherwise noted. Included with the press release is a supplemental table that provides a reconciliation of the non-GAAP to GAAP numbers. I'll start by reviewing our SaaS bookings metrics for the quarter and then go into detail of our third quarter financial results. During the quarter, we saw a solid growth in our new SaaS bookings and our backlog. New bookings for the quarter was $4.6 million, up 47% sequentially and up 88% year over year. Gross bookings for the quarter was $21 million, up 27% sequentially and 64% year over year. Our total ACV at the end of the quarter was $44.8 million. This is up 7% on a constant currency basis with the prior year, despite the impact of a previously announced one-time $5 million reduction in ACV for the quarter due to the transition of one customer away from the cloud. Total backlog as of March 31, 2017 or totaled deferred revenue plus unbilled and uncollected orders was $53.5 million, up 43% year-over-year and up 50% in constant currency. Included in the backlog there are a few deals, we had booked earlier in the year that we have not - but we've not yet started revenue recognition due to acceptance requirements. Our expectation is to fulfill these requirements and start recognizing the revenue on these contracts in Q1 of fiscal year 2018. Turning to our revenue, total revenue for the third quarter was $13.9 million, $15 million in constant currency compared to $16.3 million in the comparable year-ago quarter. For the nine months, total revenue was $43.6 million, $47.6 million in constant currency compared to $51.8…

Thank you very much. [Operator Instructions] We'll take Mike Latimore with Northland Capital Markets first.

Yes, hey, guys. This is Nick Altmann on for Mike. Thanks for taking my questions. Can you guys - you guys mentioned that one of your bigger deals in the quarter was closed through kind of your try-and-buy sales strategy. Can you guys just kind of give us an update there on the success rate with that strategy and anything around how the sales force is utilizing that?

Sure, so - this is Ashu here. So for us the try-and-buy has become embedded as part of our sales model. And we use it where the customer is not late in the evaluation cycle and in an RFP mode. And we find that our success rate still continues to be in that above 50%, which is what we had said in the past, that we win more than 50% of the opportunities where we will successfully - we will deploy our try-and-buy. That's become a way that we show the difference between a lot of marketing claims out there from competitors and what we think as the proof point that businesses are looking for in their own environment, in a production pilot.

Got it, got it, okay. And then, can you guys just give a little bit more update in regards to the relationship with Cisco and maybe talk about the pipeline there?

So, a couple of points. One, we as you know, we have refreshed and sort of gone to the next version of our partnership with Cisco with the new bundled OEM, which is something that is now being sold and we are collecting royalties for it. That's a good thing. On top of that, we've also refined our resell partnership, which is the SolutionsPlus partnership. And that one is now on the forward-looking basis 100% subscription based pricing, which was a big thing for us and Cisco to effect. And that is now completely implemented. Put those two together and we are finding more streamlined pipeline generation than in the past. In the past, we would have a lot of variation as we were transitioning. Sometimes there would be perpetual deals. Sometimes there would be cloud deals. And now, all the forward-looking stuff is all subscription based, so that makes the execution a lot better. Specifically in the U.S., for instance we're finding good success in the healthcare market. And that's an area where we've been quite successful with the Cisco partnership in the U.S.

Got it. Got it. Okay. And just going off of that, any other verticals that you guys see any near-term opportunities, maybe more so than others or pretty consistent with how it's been in the past quarters?

On the direct side, I would say the one that is the most active for us right now is BFSI, which is Banking and Financial Services, Insurance, that sector all put together. That's been the most active vertical for us in the - on the direct side.

Got it. And then, just last one if I could. Do you guys anticipate any more bigger or larger customers in the future, that could go from cloud to on-prem?

No, we are not aware of any at this point, no.

Okay. Okay, thank you.

You're welcome.

[Operator Instructions]

Okay. Well, looks like we've come to the end here. Thanks again to everybody for joining us today and we look forward to updating you with our Q4 and fiscal year results. Thank you.