E2open Parent Holdings, Inc. ETWO will release earnings results for the first quarter, after the closing bell on Thursday, July 10.Analysts expect the Addison, Texas-based company to report quarterly earnings at 4 cents per share, compared to 4 cents per share in the year-ago period. E2open projects to report quarterly revenue of $148.92 million, compared to $151.16 million a year earlier, according to data from Benzinga Pro.On May 25, E2open agreed to be acquired by WiseTech Global for $3.30/share in all-c ...

Group 1 - The core focus of Quad 7 Capital is to provide investment opportunities through their BAD BEAT Investing platform, emphasizing both long and short trades [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, aiming to educate investors on proficient trading [1] - Since May 2020, the company has maintained an average position of 95% long and 5% short, showcasing their strategic approach to market conditions [1] Group 2 - BAD BEAT Investing offers various benefits, including weekly well-researched trade ideas, access to multiple chat rooms, and daily summaries of key analyst upgrades and downgrades [2] - The platform also provides education on basic options trading and extensive trading tools to enhance investor knowledge and skills [2]

Financial Data and Key Metrics Changes - Subscription revenue for Q4 FY 2025 was $133 million, slightly above the guidance range of $131 to $134 million, but a year-over-year decline of 1% was noted. On a constant currency basis, the decline was only 0.5% [33] - Total revenue for Q4 FY 2025 was $152.7 million, reflecting a decline of 3.6% year-over-year. For the full fiscal year, total revenue was $607.7 million, a decrease of 4.2% compared to the previous year [34][35] - The net loss for Q4 FY 2025 was $268.5 million, which included a noncash goodwill impairment charge of $245 million. The full fiscal year net loss was $725.8 million, also impacted by goodwill impairment charges [38] Business Line Data and Key Metrics Changes - Professional services revenue in Q4 FY 2025 was $19.7 million, a year-over-year decline of 18.3%. For the full fiscal year, professional services revenue was $79.7 million, down 18.4% [34] - Subscription bookings in Q4 FY 2025 were the highest quarterly total since the end of FY 2023, indicating positive momentum in the go-to-market strategy [22][27] Market Data and Key Metrics Changes - E2Open's global trade application suite is positioned as a critical asset for clients navigating tariff volatility, with significant updates made to the global trade content database [17][18] - The company reported that its end-to-end platform reached over half a million interconnected supply chain partners, the highest number in its history [12] Company Strategy and Development Direction - The company is focused on improving client retention, enhancing the client experience, and laying the groundwork for durable growth, with a commitment to long-term value creation [6][7] - E2Open is investing in product innovation, particularly in artificial intelligence and machine learning, to enhance its software capabilities and maintain competitive advantage [14][15] - The strategic review initiated last year is ongoing, with no further comments provided during the call [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for sustainable growth, citing improvements in retention and subscription bookings momentum [43] - The company expects FY 2026 subscription revenue to range from $525 million to $535 million, indicating a potential return to positive growth [39][40] Other Important Information - The company has made significant progress in reducing customer support backlog by over 60% and improving client satisfaction metrics [6][10] - Adjusted EBITDA for Q4 FY 2025 was $56.3 million, reflecting a margin of 36.9%, with continued strong margins indicating operational efficiency [36][37] Q&A Session Summary Question: Fiscal year 2026 revenue guidance and subscription side linearity - Management indicated that subscription revenue guidance reflects a conservative approach, expecting steady improvement similar to FY 2025 [49][50] Question: Professional services growth confidence - Management noted a conservative view on professional services revenue but highlighted improvements in bookings and backlog [50] Question: Investments in product and commercial business - Management discussed targeted investments in product differentiation and client-specific data platforms to enhance service delivery [51][53] Question: Customer conversations regarding global trade - Management emphasized the importance of supporting clients through tariff complexities and the potential for future opportunities as conditions stabilize [61][64] Question: Demand environment in trucking and freight - Management reported stable conditions in both road and ocean transportation without significant shifts [66] Question: Factors driving first quarter subscription revenue guidance down - Management explained that higher churn is expected in Q1 due to elevated renewals, which is a seasonal trend [70] Question: Willingness to invest in Salesforce structure and headcount - Management confirmed a commitment to invest in client-facing organizations, including commercial and product teams [72] Question: Legacy customer satisfaction and churn normalization - Management indicated that they are in the process of addressing past issues and expect to normalize churn levels in the coming quarters [77][80]

Company Performance - E2open Parent Holdings, Inc. (ETWO) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, and up from $0.05 per share a year ago, representing an earnings surprise of 20% [1] - The company posted revenues of $152.68 million for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 0.82%, but down from $158.45 million year-over-year [2] - Over the last four quarters, E2open has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - E2open shares have declined approximately 21.8% since the beginning of the year, compared to a decline of 6% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $148.25 million, and for the current fiscal year, it is $0.20 on revenues of $605.98 million [7] Industry Outlook - The Zacks Industry Rank indicates that the Internet - Software sector is currently in the bottom 43% of over 250 Zacks industries, suggesting potential underperformance compared to the top 50% of ranked industries [8] - The estimate revisions trend for E2open is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expectations of underperformance in the near future [6]

Financial Data and Key Metrics Changes - Subscription revenue for Q4 FY 2025 was $133 million, slightly above the guidance range of $131 to $134 million, with a year-over-year decline of 1% [36] - On a constant currency basis, the year-over-year decline in subscription revenue was only 0.5%, indicating an improvement in growth performance [36] - Total revenue for Q4 was $152.7 million, reflecting a decline of 3.6% year-over-year, while total revenue for FY 2025 was $607.7 million, a decrease of 4.2% [37][38] - Adjusted EBITDA for Q4 was $56.3 million, with a margin of 36.9%, compared to $55.1 million and a margin of 34.8% in the prior year [39] - The net loss for Q4 was $268.5 million, including a noncash goodwill impairment charge of $245 million [42] Business Line Data and Key Metrics Changes - Professional services revenue in Q4 was $19.7 million, a year-over-year decline of 18.3%, with full-year professional services revenue at $79.7 million, also down 18.4% [37] - Subscription bookings in Q4 were the highest quarterly total since the end of FY 2023, indicating positive momentum in the go-to-market strategy [25] Market Data and Key Metrics Changes - E2Open's global trade application suite is positioned as a first line of defense against tariff-related challenges, with updates made to the global trade content database impacting over 2 million landed cost records [19][20] - The company reached over half a million interconnected supply chain partners in FY 2025, the highest number in its history [14] Company Strategy and Development Direction - The company is focused on client satisfaction, retention, and operational discipline, with a commitment to long-term value creation [9][12] - E2Open is investing in product innovation, particularly in artificial intelligence and machine learning, to enhance its software capabilities [16][17] - The strategic review initiated last year is ongoing, with no further comments provided during the call [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for sustainable growth, citing improvements in retention and subscription bookings [47][48] - The company expects FY 2026 subscription revenue to range from $525 million to $535 million, indicating a potential return to positive growth [43][44] Other Important Information - The company ended FY 2025 with a cash balance of $197.4 million, an increase of $46 million from the previous quarter, highlighting robust cash generation capabilities [43] - Adjusted operating cash flow for FY 2025 was $111.4 million, with expectations to maintain similar performance in FY 2026 [47] Q&A Session Summary Question: Fiscal Year 2026 revenue guidance and subscription side linearity - Management expects a similar improvement style as seen in FY 2025, with room for further growth [53] Question: Professional services side improvement confidence - Management has taken a conservative view but sees potential for growth in professional services revenue as the business stabilizes [54] Question: Investments in product and commercial business - Investments are focused on enhancing product differentiation and client-specific data platforms, among other areas [56][57] Question: Customer conversations regarding global trade - Current focus is on delivering solutions to navigate complexities in global trade, with expectations for future opportunities as conditions stabilize [66] Question: Demand environment in trucking or freight - No significant movements observed in the near term; stability noted in both road and ocean transportation [70] Question: Exposure to changes in global trade volumes - Pure volume-based revenue exposure is currently at 2%, down from 4% two years ago, indicating reduced sensitivity to trade volume fluctuations [86]

Market Potential - The company reported a significant total addressable market (TAM) for supply chain management (SCM) software in North America and Europe, indicating substantial growth potential[20] - The company operates in a complex supply chain management (SCM) industry with a total addressable market (TAM) that includes significant whitespace within its current client base, indicating strong growth potential[20] Product and Technology - The SaaS platform integrates advanced algorithms with artificial intelligence (AI) to enhance decision-making across supply chain functions, organized into five product families: Channel, Planning, Global Trade, Logistics, and Supply[28] - The software architecture allows for seamless integration of acquisitions and new product applications into a consolidated SaaS solution, enhancing scalability[35] - The SaaS platform offers end-to-end supply chain visibility and is designed to help clients improve efficiency, reduce waste, and operate sustainably, leveraging advanced algorithms and artificial intelligence[21][28] Client Relationships and Growth Strategy - The company aims to expand within existing clients, leveraging cross-selling opportunities due to substantial whitespace within the current client base[40] - The company’s focus on client satisfaction and long-term relationships with a diversified Fortune 1000 client base is central to its growth strategy[37][39] - The client base includes diversified Fortune 1000 companies across various industries, highlighting the software's critical role in managing complex supply chain needs[37] Strategic Partnerships and Acquisitions - The company is focusing on winning new clients through strategic partnerships with system integrators to enhance market reach and identify clients with supply chain software needs[42] - The company evaluates strategic acquisition opportunities to broaden product offerings and expand technology capabilities, focusing on mission-critical solutions and complementary cloud applications[43] Operational and Financial Management - The company aims to maintain a strong operational and financial resource base to support growth and navigate market uncertainties[18] - The company conducts regular enterprise risk assessments to evaluate risks and determine necessary oversight, involving the board of directors and relevant committees[47] - The company operates under an umbrella partnership C corporation structure, allowing equity ownership retention while providing voting rights through Class V common stock[46] Employee Engagement and Culture - The company promotes a culture of diversity and inclusion, reinforced through annual training programs[49] - The company offers a competitive Total Rewards and Health Benefits Program, including unlimited paid time off and retirement plan matching[54] - The company maintains regular communication with employees through All Hands meetings and utilizes internal tools for engagement and feedback[57] - The company utilizes employee feedback from global surveys to improve the employee experience[57] - E2WIN aims to increase the attraction, retention, and promotion of women at the company through various initiatives[53] - E2unite is an employee resource group designed to connect remote employees and enhance their sense of well-being[56] Innovation and Development - The company fosters innovation through an annual contest aimed at developing cost-saving and cutting-edge solutions[55] - The annual e2opennovation contest encourages innovation that aligns with the company's three-year strategic goals[55] Transparency and Reporting - Electronic copies of SEC filings are available on the company's website for investor transparency[59] - The company operates in one reportable segment consisting of cloud-based, end-to-end SCM software and related professional services[58]

Revenue Performance - Q4 FY25 GAAP subscription revenue was $133.0 million, a decrease of 1.0% year-over-year, representing 87.0% of total revenue[3] - Total GAAP revenue for Q4 FY25 was $152.7 million, down 3.6% from the previous year[3] - For fiscal year 2025, GAAP subscription revenue was $528.0 million, a decrease of 1.6% from the prior year[6] - Total GAAP revenue for fiscal year 2025 was $607.7 million, down 4.2% from the previous fiscal year[6] - Total revenue for the fiscal year ended February 28, 2025, was $607,688,000, a decrease of 4.3% from $634,554,000 in the previous year[23] - Subscription revenue decreased to $527,958,000 from $536,792,000, reflecting a decline of 1.5% year-over-year[23] - Total GAAP Revenue for Q4 FY2025 was $152.7 million, a decrease of $5.8 million or 3.6% compared to Q4 FY2024[31] - GAAP Subscription Revenue decreased by $1.4 million or 1.0% year-over-year, totaling $133.0 million in Q4 FY2025[31] Profitability and Loss - GAAP net loss for Q4 FY25 was $268.5 million, compared to a net loss of $45.5 million in the same period last year[6] - Net loss attributable to E2open Parent Holdings, Inc. was $659,830,000, compared to a net loss of $1,070,024,000 in the prior year, indicating an improvement of 38.3%[23] - The company reported a net loss of $268.5 million in Q4 FY2025, compared to a loss of $45.5 million in Q4 FY2024[31] - For the fiscal fourth quarter of 2025, the GAAP net loss was $268.5 million, contributing to a total net loss of $725.8 million for the fiscal year[44] Adjusted Metrics - Adjusted EBITDA for Q4 FY25 was $56.3 million, an increase of 2.3% year-over-year, with an adjusted EBITDA margin of 36.9%[6] - The adjusted EBITDA for Q4 2025 was $56.3 million, with a total adjusted EBITDA of $215.5 million for FY2025[44] - The adjusted net income for Q4 2025 was $20.2 million, leading to an adjusted net income of $66.2 million for the entire fiscal year[44] - The adjusted earnings per share for Q4 2025 was $0.06, with a total of $0.19 for FY2025[44] - The adjusted free cash flow for Q4 2025 was $50.0 million, resulting in a total adjusted free cash flow of $86.2 million for FY2025[46] Expenses and Cash Flow - Total operating expenses for the fiscal year were $952,059,000, down from $1,511,299,000, a reduction of 37%[23] - Total operating expenses for FY2025 were $952.1 million, with a significant portion attributed to goodwill impairment[39] - The total operating expenses for Q4 2025 amounted to $322.3 million, with a significant goodwill impairment charge of $245 million[44] - The company reported a net cash provided by operating activities of $99,137,000, compared to $84,871,000 in the previous year, an increase of 16.8%[29] - The company reported a GAAP operating cash flow of $53.0 million for Q4 2025, contributing to a total of $99.1 million for FY2025[46] Goodwill and Assets - Goodwill decreased significantly to $1,213,794,000 from $1,843,477,000, a decline of 34.2%[27] - Goodwill impairment charge for Q4 FY2025 was $245.0 million, significantly impacting net income[36] Future Projections - The company expects GAAP subscription revenue for fiscal 2026 to be in the range of $525 million to $535 million, reflecting a 0.4% growth rate at the mid-point[7] - Total GAAP revenue for fiscal 2026 is projected to be between $600 million and $618 million, indicating a positive 0.2% growth rate at the mid-point[8] - Non-GAAP gross profit margin for fiscal 2026 is expected to be in the range of 68% to 68.5%[10] Operational Metrics - E2open expanded its multi-enterprise network to 500,000 connected enterprises and 18 billion annual supply chain transactions, up from 480,000 and 16 billion in FY24[12] - The company reported a gross profit of $299,684,000, down from $317,691,000, a decrease of 5.7%[23] - The gross profit for Q4 2025 was $76.6 million, representing a gross margin of 68.2%[42] - The total cost of revenue for Q4 2025 was $76.0 million, with subscription costs accounting for 25.0% of revenue[42] - Research and development expenses for Q4 2025 were $23.9 million, representing 11.8% of revenue[42] - Non-GAAP gross profit for Q4 FY2025 was $104.2 million, down $6.7 million or 6.1% from Q4 FY2024[31] - The weighted-average common shares outstanding increased to 308,268,000 from 303,751,000, reflecting a growth of 1.7%[23]

Core Viewpoint - The market anticipates E2open Parent Holdings, Inc. (ETWO) to report flat earnings of $0.05 per share for the quarter ended February 2025, with revenues expected to decline by 4.4% to $151.44 million compared to the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for April 29, and the stock price may increase if actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 20% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [10][11]. - The stock currently holds a Zacks Rank of 3, suggesting a neutral outlook [11]. Historical Performance - In the last reported quarter, E2open was expected to post earnings of $0.06 per share but delivered only $0.05, resulting in a surprise of -16.67% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - E2open does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors before making investment decisions [16].

Company Overview - E2open Parent Holdings, Inc. (NYSE: ETWO) is a significant player in the cloud-based supply chain management software sector, known for its extensive acquisitions since 2000 [1] - The company has strategically acquired other firms to enhance its market position, with notable acquisitions contributing to its growth [1] Investment Focus - The mission of Grassroots Trading emphasizes providing objective and balanced research, focusing on small- to mid-cap companies while also identifying opportunities in larger firms [1]

Group 1 - The core viewpoint is that E2open Parent Holdings (NYSE: ETWO) is recommended as a buy due to a belief that the temporary setback in 2Q25 does not reflect the underlying positive demand [1] - The ideal investment is characterized by core business performance in a sector expected to experience structural growth exceeding GDP growth over the next 5-10 years [1] - Profits should stem from sustainable competitive advantages that lead to attractive unit economics, managed by competent and ethical long-term thinkers, and offered at a fair valuation [1]