E2open Announces Fiscal 2025 Second Quarter Financial Results
E2open Parent Holdings, Inc. (NYSE: ETWO) announced financial results for its fiscal second quarter ended August 31, 2024. GAAP subscription revenue was $131.6 million, a 2.3% decrease year-over-year. Total GAAP revenue was $152.2 million, down 4.0%. The company reported a GAAP net loss of $32.9 million and Adjusted EBITDA of $54.9 million, with a 36.1% margin.
E2open updated its fiscal year 2025 guidance, projecting GAAP subscription revenue between $526 million and $532 million, reflecting a negative 1.5% organic growth rate at the mid-point. Total GAAP revenue is expected to be in the range of $607 million to $617 million. The company is focusing on improving client retention, sales execution, and implementation excellence to build revenue momentum.
E2open Parent Holdings, Inc. (NYSE: ETWO) ha annunciato i risultati finanziari per il secondo trimestre fiscale chiuso il 31 agosto 2024. Il fatturato da abbonamento GAAP è stato di 131,6 milioni di dollari, con una diminuzione del 2,3% rispetto all'anno precedente. Il fatturato totale GAAP è stato di 152,2 milioni di dollari, in calo del 4,0%. L'azienda ha riportato una perdita netta GAAP di 32,9 milioni di dollari e un EBITDA rettificato di 54,9 milioni di dollari, con un margine del 36,1%.
E2open ha aggiornato le previsioni per l'anno fiscale 2025, prevedendo che il fatturato da abbonamento GAAP si aggirerà tra 526 milioni e 532 milioni di dollari, riflettendo un tasso di crescita organica negativo dell'1,5% a metà intervallo. Il fatturato totale GAAP è previsto in un intervallo compreso tra 607 milioni e 617 milioni di dollari. L'azienda si sta concentrando sul miglioramento della fidelizzazione dei clienti, sull'esecuzione delle vendite e sull'eccellenza nell'implementazione per costruire slancio nei ricavi.
E2open Parent Holdings, Inc. (NYSE: ETWO) anunció los resultados financieros para su segundo trimestre fiscal que terminó el 31 de agosto de 2024. Los ingresos por suscripción GAAP fueron de 131.6 millones de dólares, una disminución del 2.3% interanual. Los ingresos totales GAAP alcanzaron los 152.2 millones de dólares, una caída del 4.0%. La compañía reportó una pérdida neta GAAP de 32.9 millones de dólares y un EBITDA ajustado de 54.9 millones de dólares, con un margen del 36.1%.
E2open actualizó su guía para el año fiscal 2025, proyectando los ingresos por suscripción GAAP entre 526 millones y 532 millones de dólares, lo que refleja una tasa de crecimiento orgánico negativa del 1.5% en el punto medio. Se espera que los ingresos totales GAAP estén en el rango de 607 millones a 617 millones de dólares. La compañía se está enfocando en mejorar la retención de clientes, la ejecución de ventas y la excelencia en implementación para construir un impulso en los ingresos.
E2open Parent Holdings, Inc. (NYSE: ETWO)는 2024년 8월 31일에 종료된 회계 연도 두 번째 분기에 대한 재무 결과를 발표했습니다. GAAP 구독 수익은 1억 3,160만 달러로, 전년 대비 2.3% 감소했습니다. 총 GAAP 수익은 1억 5,220만 달러로 4.0% 감소했습니다. 회사는 GAAP 순손실 3,290만 달러와 조정 EBITDA 5,490만 달러를 보고했으며, 마진은 36.1%입니다.
E2open은 2025 회계 연도 지침을 업데이트하며 GAAP 구독 수익이 5억 2,600만 달러에서 5억 3,200만 달러 사이에 이를 것으로 예상하며, 중간값에서 -1.5%의 유기적 성장률을 반영합니다. 총 GAAP 수익은 6억 700만 달러에서 6억 1,700만 달러 사이에 이를 것으로 예상됩니다. 회사는 고객 유지, 판매 실행 및 구현 우수성 향상을 통해 수익 모멘텀을 구축하는 데 집중하고 있습니다.
E2open Parent Holdings, Inc. (NYSE: ETWO) a annoncé les résultats financiers pour son deuxième trimestre fiscal, se terminant le 31 août 2024. Les revenus d'abonnement GAAP étaient de 131,6 millions de dollars, soit une baisse de 2,3 % par rapport à l'année précédente. Le revenu total GAAP était de 152,2 millions de dollars, en baisse de 4,0 %. La société a rapporté une perte nette GAAP de 32,9 millions de dollars et un EBITDA ajusté de 54,9 millions de dollars, avec une marge de 36,1 %.
E2open a mis à jour ses prévisions pour l'année fiscale 2025, projetant les revenus d'abonnement GAAP entre 526 millions et 532 millions de dollars, reflétant un taux de croissance organique négatif de 1,5 % au point médian. Le revenu total GAAP devrait se situer entre 607 millions et 617 millions de dollars. L'entreprise se concentre sur l'amélioration de la rétention des clients, l'exécution des ventes et l'excellence des mises en œuvre pour construire une dynamique de revenus.
E2open Parent Holdings, Inc. (NYSE: ETWO) gab die finanziellen Ergebnisse für das zweite Quartal des Geschäftsjahres bekannt, das am 31. August 2024 endete. Der GAAP-Abonnementeinnahmen betrug 131,6 Millionen Dollar, was einem Rückgang von 2,3 % im Jahresvergleich entspricht. Der Gesamtumsatz GAAP betrug 152,2 Millionen Dollar, ein Rückgang um 4,0 %. Das Unternehmen meldete einen GAAP-Nettoverlust von 32,9 Millionen Dollar und ein bereinigtes EBITDA von 54,9 Millionen Dollar, mit einer Marge von 36,1 %.
E2open aktualisierte seine Prognose für das Geschäftsjahr 2025 und rechnet mit GAAP-Abonnementeinnahmen zwischen 526 Millionen und 532 Millionen Dollar, was einer negativen organischen Wachstumsrate von 1,5 % im Mittel entspricht. Der Gesamtumsatz GAAP wird voraussichtlich im Bereich von 607 Millionen bis 617 Millionen Dollar liegen. Das Unternehmen konzentriert sich darauf, die Kundenbindung, die Vertriebsausführung und die Implementierungskompetenz zu verbessern, um Umsatzdynamik aufzubauen.
- Subscription revenue of $131.6 million at the high end of Q2 FY25 guidance range
- Adjusted EBITDA margin improved to 36.1% from 35.4% in the comparable year-ago period
- Sequential improvement in Q2 retention performance, on track for further improvement in Q3
- Increased quarterly subscription bookings both year-over-year and compared to the prior quarter
- GAAP subscription revenue decreased 2.3% year-over-year
- Total GAAP revenue decreased 4.0% year-over-year
- GAAP net loss of $32.9 million for the quarter
- Adjusted EBITDA decreased 2.2% year-over-year
- Lowered FY25 subscription and services revenue guidance due to extended timeline of large deal closures
Insights
E2open's Q2 FY25 results present a mixed picture. GAAP subscription revenue of
Positively, adjusted EBITDA margin improved to
While e2open is making progress on client retention and operational improvements, the revised outlook suggests ongoing challenges in returning to sustainable double-digit growth. Investors should monitor the company's ability to close delayed deals and improve sales execution in the coming quarters.
E2open's Q2 results highlight both opportunities and challenges in the supply chain software market. The company's focus on client retention and cross-selling is yielding some positive results, evidenced by new logo wins and increased quarterly subscription bookings. The introduction of AI-powered innovations across their platform, including the universal forecasting engine and business risk monitor, demonstrates e2open's commitment to staying competitive in a rapidly evolving tech landscape.
However, the extended decision timelines for large, complex deals point to a cautious spending environment among enterprise clients. This trend could persist, affecting not just e2open but the broader enterprise software sector. The company's ability to adapt its sales strategy and accelerate deal closures will be important for reversing the current negative growth trajectory.
The upcoming quarters will be critical in assessing whether e2open's strategic initiatives, including its comprehensive client-focused plan and cultural shift towards prioritizing client success, can translate into improved financial performance and a return to growth.
GAAP subscription revenue of
“During the second fiscal quarter, e2open continued to execute our comprehensive, client-focused plan to re-position the company for strong organic growth, and we made important progress in key areas,” said Andrew Appel, e2open chief executive officer. “Notably, we met our plan for sequential improvement in our Q2 retention performance and are on track to improve further in Q3. Rigorous operational cadence around client management, as well as a cultural shift to make client success our top priority, are making a difference in this vital area. During Q2, we closed important subscription wins with cross-sell and new logo clients in diverse industries and increased quarterly subscription bookings both year over year and compared to the prior quarter, although we also experienced delays in closing certain large, complex deals due to extended client decision timelines. While we have more work to do to return to sustainable double-digit growth, we enjoy a strong market foundation of highly competitive solutions and an impressive blue-chip customer base that we will build on going forward.”
“In Q2 FY25, e2open delivered subscription revenue above the mid-point of our guidance and our adjusted EBITDA margins remained strong,” said Marje Armstrong, chief financial officer of e2open. “Our focused work to improve client retention, sales execution, and implementation excellence is resonating very well with our customer base. Given the extended timeline of large deal closures that we have experienced in the first half of this fiscal year, we are adjusting our FY25 subscription and services revenue guidance to take a more conservative view of full-year performance. We remain well positioned to build revenue momentum and close many of the delayed deals as we move through the fiscal year and as we work to complete our ongoing strategic review.”
Fiscal Second Quarter 2025 Financial Highlights
-
Revenue
-
GAAP subscription revenue for the second quarter of 2025 was
$131.6 million 2.3% from the year-ago comparable period and86.5% of total revenue. -
Total GAAP revenue for the second quarter of 2025 was
$152.2 million 4.0% from the year-ago comparable period.
-
GAAP subscription revenue for the second quarter of 2025 was
-
GAAP gross profit for the second quarter of 2025 was
$74.6 million 5.7% from the year-ago comparable period. Non-GAAP gross profit was$105.0 million 4.1% . -
GAAP gross margin for the second quarter of 2025 was
49.0% compared to50.0% for the year-ago comparable period. Non-GAAP gross margin was69.0% compared to69.1% from the comparable year-ago period. -
GAAP Net loss for the second quarter of 2025 was
$32.9 million $38.6 million $54.9 million 2.2% from the year-ago comparable period. Adjusted EBITDA margin was36.1% versus35.4% from the comparable year-ago period. -
GAAP EPS for the second quarter of 2025 was a loss of
$0.10 $0.05
Recent Business Highlights
-
Held e2open Connect 2024, the company’s annual customer and partner conference, in
Orlando, Florida . More than 50 educational sessions were delivered, nearly half by clients on their use cases and supply chain transformations over three days at this year’sNorth America event. - Closed new logo and cross-sell business with large, well-known global companies in diverse market segments including consumer goods manufacturing and distribution, high-technology manufacturing, and retail. These clients selected e2open solutions to automate and connect client transportation operations, provide enhanced visibility over component supply and inventory, enable seamless global trade compliance, and reduce the total landed cost of goods, all of which will help drive cost savings and growth for the respective companies. Among the customer go-lives in the quarter is a notable supply solution with a long-standing communications and information technology client that enables consolidation of and visibility to critical business data from multiple source systems.
- Introduced innovations including the launch of Appointment Scheduling API, and showcased at Connect a range of pragmatic applied AI across the platform: universal forecasting engine in Connected Planning, business risk monitor in Supply, expanded next-generation capabilities in Connected Logistics, and AI-powered advancements in Global Trade.
- Released 2024 Sustainability Report providing continued transparency into the company’s approach to environmental, social, and governance (ESG), and highlighting the role of network-based supply chain management platforms in addressing ESG risks and opportunities at the scope and scale of business.
Financial Outlook for Fiscal Year 2025
As of October 9, 2024, e2open is updating full year 2025 guidance previously provided on April 29, 2024, and providing third quarter 2025 guidance as follows:
Fiscal 2025 and Fiscal Third Quarter GAAP Subscription Revenue
-
GAAP subscription revenue for fiscal 2025 is expected to be in the range of
$526 million $532 million 1.5% organic growth rate at the mid-point. -
GAAP subscription revenue for the fiscal third quarter of 2025 is expected to be in the range of
$130 million $133 million 1.0% organic growth rate at the mid-point.
Fiscal 2025 Total GAAP Revenue
-
Total GAAP revenue for fiscal 2025 is expected to be in the range of
$607 million $617 million 3.6% organic growth rate at the mid-point.
Fiscal 2025 Non-GAAP Gross Profit Margin
-
Non-GAAP gross profit margin for fiscal 2025 is expected to be in the range of
68% to70% .
Fiscal 2025 Adjusted EBITDA
-
Adjusted EBITDA for fiscal 2025 is expected to be at the low end of the previously provided range of
$215 million $225 million 35% .
Quarterly Conference Call
E2open will host a conference call today at 5:00 p.m. ET to review fiscal second quarter 2025 financial results, in addition to discussing the Company’s outlook for the full fiscal year 2025. To access this call, dial 888-506-0062 (domestic) or 973-528-0011 (international). The conference ID is 101565. A live webcast of the conference call will be accessible in the “Investor Relations” section of e2open’s website at www.e2open.com. A replay of this conference call can also be accessed through October 23, 2024, at 877-481-4010 (domestic) or 919-882-2331 (international). The replay passcode is 51226. An archived webcast of this conference call will also be available after the completion of the call in the “Investor Relations” section of the Company’s website at www.e2open.com.
About e2open
E2open is the connected supply chain software platform that enables the world’s largest companies to transform the way they make, move, and sell goods and services. With the broadest cloud-native global platform purpose-built for modern supply chains, e2open connects more than 480,000 manufacturing, logistics, channel, and distribution partners as one multi-enterprise network tracking over 16 billion transactions annually. Our SaaS platform anticipates disruptions and opportunities to help companies improve efficiency, reduce waste, and operate sustainably. Moving as one.™ Learn More: www.e2open.com.
E2open and “Moving as one.” are the registered trademarks of E2open, LLC. All other trademarks, registered trademarks and service marks are the property of their respective owners.
Non-GAAP Financial Measures
This press release includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including non-GAAP revenue, non-GAAP subscription revenue, non-GAAP professional services and other revenue, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross profit, non-GAAP net income, non-GAAP gross margin, adjusted free cash flow and adjusted earnings per share. These non-GAAP financial measures are not a measure of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies.
The Company believes this non-GAAP measure of financial results provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures.
NOTE: E2open is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures for non-GAAP gross profit margin or adjusted EBITDA without unreasonable effort, and therefore no reconciliation of certain forward-looking non-GAAP financial measures for non-GAAP gross profit margin or adjusted EBITDA is included.
Safe Harbor Statement
Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company's expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance" or the negative of those terms or other comparable terminology.
Please see the Company's documents filed or to be filed with the Securities and Exchange Commission, including the annual report filed on Form 10-K, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this press release. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
E2OPEN PARENT HOLDINGS, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(Unaudited) |
||||||||
Three Months Ended August 31, |
||||||||
(In thousands, except per share amounts) |
2024 |
|
2023 |
|||||
Revenue |
||||||||
Subscriptions |
$ |
131,555 |
|
$ |
134,734 |
|
||
Professional services and other |
|
20,637 |
|
|
23,754 |
|
||
Total revenue |
|
152,192 |
|
|
158,488 |
|
||
Cost of Revenue |
||||||||
Subscriptions |
|
36,317 |
|
|
36,780 |
|
||
Professional services and other |
|
16,531 |
|
|
17,844 |
|
||
Amortization of acquired intangible assets |
|
24,699 |
|
|
24,698 |
|
||
Total cost of revenue |
|
77,547 |
|
|
79,322 |
|
||
Gross Profit |
|
74,645 |
|
|
79,166 |
|
||
Operating Expenses |
||||||||
Research and development |
|
25,979 |
|
|
24,945 |
|
||
Sales and marketing |
|
20,325 |
|
|
21,551 |
|
||
General and administrative |
|
21,579 |
|
|
38,550 |
|
||
Acquisition-related expenses |
|
1,720 |
|
|
18 |
|
||
Amortization of acquired intangible assets |
|
20,143 |
|
|
19,993 |
|
||
Goodwill impairment |
|
— |
|
|
— |
|
||
Intangible asset impairment |
|
— |
|
|
— |
|
||
Total operating expenses |
|
89,746 |
|
|
105,057 |
|
||
Loss from operations |
|
(15,101 |
) |
|
(25,891 |
) |
||
Other income (expense) |
||||||||
Interest and other expense, net |
|
(25,150 |
) |
|
(25,517 |
) |
||
Gain (loss) from change in tax receivable agreement liability |
|
2,908 |
|
|
7,927 |
|
||
Gain from change in fair value of warrant liability |
|
4,399 |
|
|
1,489 |
|
||
Gain (loss) from change in fair value of contingent consideration |
|
2,040 |
|
|
1,260 |
|
||
Total other expense |
|
(15,803 |
) |
|
(14,841 |
) |
||
Loss before income tax provision |
|
(30,904 |
) |
|
(40,732 |
) |
||
Income tax (expense) benefit |
|
(1,949 |
) |
|
2,103 |
|
||
Net loss |
|
(32,853 |
) |
|
(38,629 |
) |
||
Less: Net loss attributable to noncontrolling interest |
|
(2,990 |
) |
|
(3,757 |
) |
||
Net loss attributable to E2open Parent Holdings, Inc. |
$ |
(29,863 |
) |
$ |
(34,872 |
) |
||
|
||||||||
Weighted-average common shares outstanding: |
||||||||
Basic |
|
308,059 |
|
|
303,220 |
|
||
Diluted |
|
308,059 |
|
|
303,220 |
|
||
Net loss attributable to E2open Parent Holdings, Inc. common
|
||||||||
Basic |
$ |
(0.10 |
) |
$ |
(0.12 |
) |
||
Diluted |
$ |
(0.10 |
) |
$ |
(0.12 |
) |
||
E2OPEN PARENT HOLDINGS, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(In thousands) |
August 31, 2024 |
February 29, 2024 |
||||||
Assets |
||||||||
Cash and cash equivalents |
$ |
142,164 |
|
$ |
134,478 |
|
||
Restricted cash |
|
16,593 |
|
|
14,560 |
|
||
Accounts receivable, net |
|
112,592 |
|
|
161,556 |
|
||
Prepaid expenses and other current assets |
|
35,974 |
|
|
28,843 |
|
||
Total current assets |
|
307,323 |
|
|
339,437 |
|
||
Goodwill |
|
1,858,263 |
|
|
1,843,477 |
|
||
Intangible assets, net |
|
753,166 |
|
|
841,031 |
|
||
Property and equipment, net |
|
65,167 |
|
|
67,177 |
|
||
Operating lease right-of-use assets |
|
17,658 |
|
|
21,299 |
|
||
Other noncurrent assets |
|
29,903 |
|
|
29,234 |
|
||
Total assets |
$ |
3,031,480 |
|
$ |
3,141,655 |
|
||
Liabilities, Redeemable Share-Based Awards and Stockholders' Equity |
||||||||
Accounts payable and accrued liabilities |
$ |
82,234 |
|
$ |
90,594 |
|
||
Channel client deposits payable |
|
16,593 |
|
|
14,560 |
|
||
Deferred revenue |
|
170,990 |
|
|
213,138 |
|
||
Current portion of notes payable |
|
11,283 |
|
|
11,272 |
|
||
Current portion of operating lease obligations |
|
6,746 |
|
|
7,378 |
|
||
Current portion of financing lease obligations |
|
2,171 |
|
|
1,448 |
|
||
Income taxes payable |
|
8,756 |
|
|
584 |
|
||
Total current liabilities |
|
298,773 |
|
|
338,974 |
|
||
Long-term deferred revenue |
|
1,513 |
|
|
2,077 |
|
||
Operating lease obligations |
|
13,563 |
|
|
17,372 |
|
||
Financing lease obligations |
|
4,209 |
|
|
3,626 |
|
||
Notes payable |
|
1,034,389 |
|
|
1,037,623 |
|
||
Tax receivable agreement liability |
|
62,760 |
|
|
67,927 |
|
||
Warrant liability |
|
6,553 |
|
|
14,713 |
|
||
Contingent consideration |
|
18,268 |
|
|
18,028 |
|
||
Deferred taxes |
|
48,952 |
|
|
55,586 |
|
||
Other noncurrent liabilities |
|
1,052 |
|
|
602 |
|
||
Total liabilities |
|
1,490,032 |
|
|
1,556,528 |
|
||
Commitments and Contingencies |
||||||||
Redeemable share-based awards |
|
1,710 |
|
|
— |
|
||
Stockholders' Equity |
||||||||
Class A common stock |
|
31 |
|
|
31 |
|
||
Class V common stock |
|
— |
|
|
— |
|
||
Series B-1 common stock |
|
— |
|
|
— |
|
||
Series B-2 common stock |
|
— |
|
|
— |
|
||
Additional paid-in capital |
|
3,425,542 |
|
|
3,407,694 |
|
||
Accumulated other comprehensive loss |
|
(32,178 |
) |
|
(46,835 |
) |
||
Accumulated deficit |
|
(1,942,428 |
) |
|
(1,873,703 |
) |
||
Treasury stock, at cost |
|
(2,473 |
) |
|
(2,473 |
) |
||
Total E2open Parent Holdings, Inc. equity |
|
1,448,494 |
|
|
1,484,714 |
|
||
Noncontrolling interest |
|
91,244 |
|
|
100,413 |
|
||
Total stockholders' equity |
|
1,539,738 |
|
|
1,585,127 |
|
||
Total liabilities, redeemable share-based awards and stockholders' equity |
$ |
3,031,480 |
|
$ |
3,141,655 |
|||
E2OPEN PARENT HOLDINGS, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
Six Months Ended August 31, |
||||||||
(In thousands) |
2024 |
|
2023 |
|||||
Cash flows from operating activities |
||||||||
Net loss |
$ |
(75,641 |
) |
$ |
(399,513 |
) |
||
Adjustments to reconcile net loss to net cash from operating activities: |
||||||||
Depreciation and amortization |
|
107,058 |
|
|
107,168 |
|
||
Amortization of deferred commissions |
|
4,400 |
|
|
2,758 |
|
||
Provision for credit losses |
|
1,054 |
|
|
1,294 |
|
||
Amortization of debt issuance costs |
|
2,640 |
|
|
2,640 |
|
||
Amortization of operating lease right-of-use assets |
|
3,492 |
|
|
3,890 |
|
||
Share-based compensation |
|
24,710 |
|
|
11,887 |
|
||
Deferred income taxes |
|
(7,865 |
) |
|
(72,721 |
) |
||
Right-of-use assets impairment charge |
|
576 |
|
|
549 |
|
||
Goodwill impairment charge |
|
— |
|
|
410,041 |
|
||
Indefinite-lived intangible asset impairment charge |
|
— |
|
|
4,000 |
|
||
Loss (gain) from change in tax receivable agreement liability |
|
1,066 |
|
|
(5,467 |
) |
||
Gain from change in fair value of warrant liability |
|
(8,160 |
) |
|
(16,169 |
) |
||
Loss (gain) from change in fair value of contingent consideration |
|
240 |
|
|
(10,260 |
) |
||
Gain on operating lease termination |
|
(126 |
) |
|
(189 |
) |
||
Loss (gain) on disposal of property and equipment |
|
78 |
|
|
(147 |
) |
||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
|
47,910 |
|
|
51,394 |
|
||
Prepaid expenses and other current assets |
|
(9,482 |
) |
|
(3,338 |
) |
||
Other noncurrent assets |
|
(5,069 |
) |
|
(4,172 |
) |
||
Accounts payable and accrued liabilities |
|
(16,827 |
) |
|
(7,825 |
) |
||
Channel client deposits payable |
|
2,033 |
|
|
11,451 |
|
||
Deferred revenue |
|
(42,711 |
) |
|
(33,296 |
) |
||
Changes in other liabilities |
|
(949 |
) |
|
(2,714 |
) |
||
Net cash provided by operating activities |
|
28,427 |
|
|
51,261 |
|
||
Cash flows from investing activities |
||||||||
Capital expenditures |
|
(12,277 |
) |
|
(16,057 |
) |
||
Net cash used in investing activities |
|
(12,277 |
) |
|
(16,057 |
) |
||
Cash flows from financing activities |
||||||||
Repayments of indebtedness |
|
(5,617 |
) |
|
(5,587 |
) |
||
Repayments of financing lease obligations |
|
(841 |
) |
|
(2,243 |
) |
||
Proceeds from exercise of stock options |
|
155 |
|
|
— |
|
||
Net cash used in financing activities |
|
(6,303 |
) |
|
(7,830 |
) |
||
Effect of exchange rate changes on cash and cash equivalents |
|
(128 |
) |
|
2,885 |
|
||
Net increase in cash, cash equivalents and restricted cash |
|
9,719 |
|
|
30,259 |
|
||
Cash, cash equivalents and restricted cash at beginning of period |
|
149,038 |
|
|
104,342 |
|
||
Cash, cash equivalents and restricted cash at end of period |
$ |
158,757 |
|
$ |
134,601 |
|||
E2OPEN PARENT HOLDINGS, INC. |
||||
RECONCILIATION OF PRO FORMA INFORMATION |
||||
TABLE I |
||||
(in millions) |
Q2 |
Q2 |
$ Var |
% Var |
FY2025 |
FY2024 |
|||
PRO FORMA REVENUE RECONCILIATION |
|
|
|
|
Total GAAP Revenue |
152.2 |
158.5 |
(6.3) |
( |
Constant currency FX impact (1) |
- |
- |
- |
n/m |
Total non-GAAP revenue (constant currency basis) (2) |
|
|
( |
( |
|
|
|
|
|
GAAP Subscription Revenue |
131.6 |
134.7 |
(3.1) |
( |
Constant currency FX impact (1) |
- |
- |
- |
n/m |
Non-GAAP subscription revenue (constant currency basis) (2) |
|
|
( |
( |
|
|
|
|
|
GAAP Professional Services and other revenue |
20.6 |
23.8 |
(3.1) |
( |
Constant currency FX impact (1) |
- |
- |
- |
n/m |
Non-GAAP professional services and other revenue (constant currency basis) (2) |
|
|
( |
( |
|
|
|
|
|
PRO FORMA GROSS PROFIT RECONCILIATION |
|
|
|
|
GAAP Gross profit |
74.6 |
79.2 |
(4.5) |
( |
Depreciation and amortization |
28.2 |
28.8 |
(0.6) |
( |
Share-based compensation (3) |
1.8 |
1.1 |
0.7 |
|
Non-recurring/non-operating costs (4) |
0.3 |
0.4 |
(0.1) |
( |
Non-GAAP gross profit |
|
|
( |
( |
Non-GAAP Gross Margin % |
|
|
|
|
Constant currency FX impact (1) |
(0.1) |
- |
(0.1) |
n/m |
Total non-GAAP gross profit (constant currency basis) (2) |
|
|
( |
( |
Non-GAAP Gross Margin % (constant currency basis) (2) |
|
|
|
|
|
|
|
|
|
PRO FORMA ADJUSTED EBITDA RECONCILIATION |
|
|
|
|
Net income (loss) |
(32.9) |
(38.6) |
5.8 |
n/m |
Interest expense, net |
24.5 |
24.7 |
(0.2) |
( |
Income tax benefit |
2.0 |
(2.1) |
4.1 |
n/m |
Depreciation and amortization |
53.5 |
53.9 |
(0.4) |
( |
EBITDA |
|
|
|
|
Share-based compensation (3) |
12.9 |
7.4 |
5.5 |
|
Non-recurring/non-operating costs (4) |
2.0 |
3.6 |
(1.6) |
( |
Acquisition-related adjustments (5) |
1.7 |
- |
1.7 |
n/m |
Change in tax receivable agreement liability (6) |
(2.9) |
(7.9) |
5.0 |
( |
Change in fair value of warrant liability (7) |
(4.4) |
(1.5) |
(2.9) |
|
Change in fair value of contingent consideration (8) |
(2.0) |
(1.3) |
(0.8) |
|
Right-of-use assets impairment charge (9) |
0.6 |
0.2 |
0.4 |
|
Legal settlement (10) |
- |
17.8 |
(17.8) |
n/m |
Adjusted EBITDA |
|
|
( |
( |
Adjusted EBITDA Margin % |
|
|
|
|
Constant currency FX impact (1) |
(0.2) |
- |
(0.2) |
n/m |
Total adjusted EBITDA (constant currency basis) (2) |
|
|
( |
( |
Adjusted EBITDA Margin % (constant currency basis) (2) |
|
|
|
|
(1) Constant Currency refers to pro forma amounts excluding the impact of translating foreign currencies into |
(2) Constant Currency refers to pro forma amounts excluding translation and transactional impacts from foreign currency exchange rates. |
(3) Reflects non-cash, long-term share-based compensation expense. |
(4) Primarily includes non-recurring expenses such as the non-acquisition severance related to cost reduction initiatives, reorganizations and executive transition costs; foreign currency transaction gains and losses; systems integrations; legal entity rationalization and non-recurring consulting and advisory fees. |
(5) Primarily includes advisory, consulting, accounting and legal expenses incurred in connection with the strategic review. |
(6) Represents the fair value adjustment at each balance sheet date for the Tax Receivable Agreement along with the associated interest. |
(7) Represents the fair value adjustment at each balance sheet date of the warrant liability related to our warrants. |
(8) Represents the fair value adjustment at each balance sheet date of the contingent consideration liability related to the restricted B-2 common stock and Series 2 RCUs. |
(9) Represents the impairment on our operating lease ROU assets and leasehold improvements due to vacating certain facilities. |
(10) Represents the |
E2OPEN PARENT HOLDINGS, INC. |
|||||||
RECONCILIATION OF NON-GAAP EXPENSES |
|||||||
TABLE II |
|||||||
Fiscal Second Quarter 2025 |
|
|
|
|
|
|
|
(in millions) |
GAAP |
Non- recurring(1) |
|
Depreciation & Amortization |
Share-Based Compensation |
Non- GAAP (Adjusted) |
% of Revenue |
Impairment Charges(2) |
|||||||
COST OF GOODS |
|
|
|
|
|
|
|
Subscriptions |
36.3 |
(0.2) |
- |
(3.3) |
(1.1) |
31.7 |
|
Professional services and other |
16.5 |
(0.2) |
- |
(0.2) |
(0.7) |
15.5 |
|
Amortization of intangibles |
24.7 |
- |
- |
(24.7) |
- |
- |
|
Total cost of revenue |
|
( |
- |
( |
(1.8) |
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS |
|
|
|
|
|
|
|
Research & development |
26.0 |
(0.6) |
- |
(4.6) |
(2.5) |
18.3 |
|
Sales & marketing |
20.3 |
(0.2) |
- |
(0.3) |
(2.3) |
17.5 |
|
General & administrative |
21.6 |
(0.1) |
(0.6) |
(0.2) |
(6.4) |
14.4 |
|
Acquisition related expenses |
1.7 |
(1.7) |
- |
- |
- |
- |
|
Amortization of intangibles |
20.1 |
- |
- |
(20.1) |
- |
- |
|
Total operating expenses |
|
( |
( |
( |
( |
|
|
|
|
|
|
|
|
|
|
(1) Primarily includes non-recurring expenses such as the non-acquisition severance related to cost reduction initiatives, reorganizations and executive transition costs; foreign currency transaction gains and losses; systems integrations; legal entity rationalization and non-recurring consulting and advisory fees. |
|||||||
(2) Represents the impairment on our operating lease ROU assets and leasehold improvements due to vacating certain facilities. |
|||||||
E2OPEN PARENT HOLDINGS, INC. |
|
RECONCILIATION OF ADJUSTED EARNINGS PER SHARE |
|
TABLE III |
|
|
|
(in millions, except per share amounts) |
Q2 25 |
GAAP Net income (loss) |
(32.9) |
Interest expense, net |
24.5 |
Income taxes benefit |
2.0 |
Depreciation & amortization |
53.5 |
EBITDA |
|
Share-based compensation |
12.9 |
Non-recurring/non-operating costs |
2.0 |
Acquisition-related adjustments |
1.7 |
Change in tax receivable agreement liability |
(2.9) |
Change in fair value of warrant liability |
(4.4) |
Change in fair value of contingent consideration |
(2.0) |
Right-of-use assets impairment charge |
0.6 |
Adjusted EBITDA |
|
Depreciation |
(8.6) |
Interest and other expense, net |
(24.5) |
Normalized income taxes (1) |
(5.2) |
Adjusted Net Income |
|
Adjusted basic shares outstanding |
345.3 |
Adjusted earnings per share |
|
(1) Income taxes calculated using |
|
E2OPEN PARENT HOLDINGS, INC. |
|||
ADJUSTED FREE CASH FLOW |
|||
TABLE IV |
|||
(in millions) |
Q1 25 |
Q2 25 |
Q2 YTD |
GAAP operating cash flow |
35.9 |
(7.5) |
28.4 |
|
|
|
|
Add: Non-recurring cash payments (1) |
4.3 |
2.9 |
7.2 |
Add: Change in channel client deposits payable (2) |
(1.2) |
(0.9) |
(2.0) |
Adjusted operating cash flow |
|
( |
|
|
|
|
|
Capital expenditures |
(6.1) |
(6.2) |
(12.3) |
Adjusted free cash flow |
|
( |
|
(1) Primarily includes non-recurring expenses such as the non-acquisition severance related to cost reduction initiatives, reorganizations and executive transition costs; foreign currency transaction gains and losses; systems integrations; legal entity rationalization and non-recurring consulting and advisory fees. |
|||
(2) Channel Client Deposits Payable represents client deposits for the incentive payment program associated with the Company's channel shaping application. The Company offers services to administer incentive payments to partners on behalf of the Company’s clients. The Company’s clients deposit these funds into a restricted cash account with an offset included as a liability in incentive program payable in the Consolidated Balance Sheets. |
|||
E2OPEN PARENT HOLDINGS, INC. |
|||
CONSOLIDATED CAPITAL |
|||
TABLE V |
|||
Description |
Shares (000's) |
Notes |
|
Shares outstanding as of August 31, 2024 |
308,605 |
|
Shares outstanding |
Common Units |
30,692 |
Units issued in the Business Combination that have not been converted from common units to Class A common stock (Common units are represented by Class V shares). |
|
Series B-2 Shares (unvested) |
3,372 |
|
Represents the right to acquire shares of Class A common stock when the 20-day VWAP reaches |
Restricted Common Units Series 2 (unvested) |
2,628 |
Represents the right in E2open Holdings, LLC that converts into common units when the 20-day VWAP reaches |
|
Adjusted Basic Shares |
345,297 |
|
|
|
|||
Warrants |
29,080 |
|
Outstanding warrants with an exercise price of |
Options (vested/unreleased and unvested) |
6,305 |
Options issued to management under the long-term incentive plan. |
|
Restricted Shares (vested/unreleased and unvested) |
17,802 |
|
Restricted shares issued to employees, management and directors under the long-term incentive plan. |
Fully Converted Shares |
398,484 |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241009461585/en/
Investor Contact
Dusty Buell
dusty.buell@e2open.com
investor.relations@e2open.com
Media Contact
5W PR for e2open
e2open@5wpr.com
408-504-7707
Corporate Contact
Kristin Seigworth
VP Communications, e2open
kristin.seigworth@e2open.com
pr@e2open.com
Source: E2open Parent Holdings, Inc.
FAQ
What was E2open's GAAP subscription revenue for Q2 FY25?
How did E2open's total GAAP revenue change in Q2 FY25 compared to the previous year?
What is E2open's updated GAAP subscription revenue guidance for fiscal year 2025?
What was E2open's Adjusted EBITDA and margin for Q2 FY25?
