E2open Parent Holdings, Inc. (NYSE:ETWO) Q3 2024 Earnings Call Transcript January 9, 2024 5:00 PM ET Company Participants Dusty Buell - Head of IR Andrew Appel - Interim CEO Greg Randolph - Chief Commercial Officer Marje Armstrong - CFO Conference Call Participants Adam Hotchkiss - Goldman Sachs Taylor McGinnis - UBS Mark Schappel - Loop Capital Markets Chad Bennett - Craig-Hallum Operator Greetings. Welcome to the E2open Third Quarter Fiscal Year 2024 Earnings Call. At this time, all participants are in a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39272 E2open Parent Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of inco ...

Financial Data and Key Metrics Changes - Total revenue for the fiscal second quarter was $158.5 million, reflecting organic growth of negative 1.4% over the prior year quarter [13] - Professional services and other revenue in the fiscal second quarter was $23.8 million, reflecting an organic growth rate of negative 18.2% [12] - Adjusted EBITDA for the second quarter was $56.1 million, an increase of 16.1% compared to $48.3 million in the prior year quarter [57] - Gross profit was $109.5 million, reflecting a 2.5% increase on an organic basis, with a gross margin of 69.1% compared to 66.5% in the prior-year quarter [85] Business Line Data and Key Metrics Changes - Subscription revenue was $134.7 million, representing 85% of total revenue, with a year-over-year growth rate of 2.4% [43] - The company experienced weaker sales of new unattached professional services projects and lower attached services from new subscription bookings [44] Market Data and Key Metrics Changes - The company noted continued weakness in end markets, particularly in technology and transportation sectors, impacting overall performance [66] - The company is taking a more conservative view on second-half churn, expecting improvement compared to the first half but acknowledging ongoing macro pressures [30] Company Strategy and Development Direction - The company is focused on transforming its sales organization to create a repeatable and scalable go-to-market motion [11] - A new Global Client Experience Organization has been established to enhance customer satisfaction and engagement [25] - The company aims to maintain an efficient cost structure while investing in growth initiatives [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that changes in the sales organization have led to disruptions, impacting top-line performance [18] - The company is committed to improving customer engagement and sales execution, with a focus on long-term growth [63] - Management expressed confidence in the company's growth potential and the unique advantages it holds in the supply chain software market [91] Other Important Information - The company is updating its full-year guidance, now expecting subscription revenue to be in the range of $530 million to $538 million for FY '24 [60] - The net loss for the fiscal second quarter was $38.6 million, which included a $17.8 million non-recurring expense related to an arbitration ruling [86] Q&A Session Summary Question: What changed at the end of the quarter to drive the bookings weakness? - Management indicated that the bookings weakness was due to a combination of macroeconomic factors and internal challenges related to sales account coverage changes [65][66] Question: Does the calculus around the trade-off between growth and profitability change? - Management stated that the focus remains on investing in the sales team and go-to-market motion while finding efficiencies across other areas [68][69] Question: Can you provide an update on leadership changes? - Management confirmed that significant changes have been made, including the appointment of a new Interim CEO and ongoing evaluations within the go-to-market organization [74][75] Question: What is the source of the churn being seen in the business? - Management noted that churn is primarily driven by macro pressures on freight volumes and higher churn in smaller customer accounts, with actions being taken to address these issues [77][78] Question: Have any of the delayed deals been lost to competitors? - Management indicated that while some deals have been lost, the reasons remain consistent and are not significantly different from previous periods [102][103]

Revenue Performance - Total revenue for the three months ended August 31, 2023, was $158.5 million, a decrease of $2.2 million, or 1%, compared to $160.7 million for the same period in 2022[179]. - Subscription revenue increased by $3.1 million, or 2%, to $134.7 million for the three months ended August 31, 2023, driven by new organic subscription sales[180]. - Professional services and other revenue decreased by $5.3 million, or 18%, to $23.8 million for the three months ended August 31, 2023, due to macroeconomic impacts and lower order volume[182]. - Total revenue for the six months ended August 31, 2023, was $318.6 million, a decrease of $2.4 million, or 1%, compared to $321.1 million in the prior year[206]. - Subscriptions revenue increased by $8.5 million, or 3%, to $269.6 million for the six months ended August 31, 2023, driven by new organic subscription sales[206]. - Professional services and other revenue decreased by $10.9 million, or 18%, to $49.0 million, attributed to macroeconomic impacts and lower order volume[207]. Profitability Metrics - Gross profit for the three months ended August 31, 2023, was $79.2 million, an increase of $1.7 million, or 2%, compared to $77.4 million for the same period in 2022[179]. - The gross margin for total revenue increased to 50% for the three months ended August 31, 2023, compared to 48% for the same period in 2022[184]. - Gross profit for the six months ended August 31, 2023, was $158.6 million, a slight decrease of $0.5 million compared to $159.1 million in the prior year[209]. - Non-GAAP gross profit for the three months ended August 31, 2023, was $109.5 million, a $2.7 million, or 3%, increase compared to $106.9 million for the same period in 2022[235]. - Adjusted EBITDA for the three months ended August 31, 2023, was $56.1 million, a $7.8 million, or 16%, increase compared to $48.3 million for the same period in 2022[237]. - EBITDA for the three months ended August 31, 2023, was $37.8 million, a $489.6 million increase compared to a negative $451.8 million for the same period in 2022[236]. Expenses Overview - Research and development expenses for the three months ended August 31, 2023, were $24.9 million, a decrease of $0.6 million, or 3%, compared to $25.6 million for the same period in 2022[190]. - Sales and marketing expenses were $21.6 million, a decrease of $1.2 million, or 5%, from $22.7 million in the prior year, primarily due to a $3.5 million decrease in marketing expenses[192]. - General and administrative expenses increased by $15.2 million, or 65%, to $38.6 million, mainly due to a $17.8 million unfavorable arbitration ruling[193]. - Research and development expenses increased by $2.7 million, or 6%, to $50.8 million for the six months ended August 31, 2023, representing 16% of revenue[213]. - Sales and marketing expenses decreased by $5.8 million, or 12%, to $41.1 million for the six months ended August 31, 2023, accounting for 13% of revenue[215]. - General and administrative expenses rose by $21.0 million, or 48%, to $64.7 million for the six months ended August 31, 2023, which is 20% of revenue[216]. Impairment Charges - The company recognized a goodwill impairment charge of $410.0 million in the first quarter of fiscal 2024 due to a significant decline in market capitalization[176]. - The fair value of E2open's indefinite-lived intangible asset was determined to be less than its carrying amount, resulting in a $4.0 million impairment charge for the same period[177]. - The company recorded a goodwill impairment charge of $514.8 million in the second quarter of fiscal 2023, with no impairment charge in the second quarter of fiscal 2024[196]. - Goodwill impairment charge was $410.0 million for the six months ended August 31, 2023, a decrease of $104.8 million compared to $514.8 million in the prior year[219]. Cash Flow and Financing - Cash and cash equivalents as of August 31, 2023, totaled $134.6 million, reflecting a $30.3 million increase from $104.3 million at the beginning of the period[250]. - Net cash provided by operating activities for the six months ended August 31, 2023, was $51.3 million, a significant increase from $2.2 million in the same period of 2022[251]. - Net cash used in investing activities decreased to $16.1 million in the six months ended August 31, 2023, compared to $158.7 million in the same period of 2022[251]. - The company had $111.8 million in cash and cash equivalents and $155.0 million of unused borrowing capacity under its 2021 Revolving Credit Facility as of August 31, 2023[243]. - The principal balance of the 2021 Term Loan was $1,072.7 million as of August 31, 2023, with an interest rate of 8.95%[247]. - The company plans to seek additional equity or debt financing for potential acquisitions or investments in complementary businesses[244]. Tax and Other Liabilities - The income tax benefit was $2.1 million, or 5.2%, for the three months ended August 31, 2023, compared to $113.7 million, or 21.7%, in the prior year[205]. - The Tax Receivable Agreement liability was $64.3 million as of August 31, 2023, reflecting potential future tax benefits[254]. - The contingent consideration liability was $19.3 million as of August 31, 2023, down from $29.5 million in February 2023[260]. Accounting and Reporting - The company prepares its financial statements in accordance with U.S. GAAP, requiring management to make significant judgments and estimates[264]. - Recent accounting pronouncements are detailed in the Notes to the Unaudited Condensed Consolidated Financial Statements[266].

E2open Parent Holdings, Inc. (NYSE:ETWO) Q1 2024 Earnings Conference Call July 10, 2023 5:00 PM ET Company Participants Dusty Buell - Head of Investor Relations Michael Farlekas - Chief Executive Officer Marje Armstrong - Chief Financial Officer Conference Call Participants Adam Hotchkiss - Goldman Sachs Taylor McGinnis - UBS Fred Lee - Credit Suisse Mark Schappel - Loop Capital Chad Bennett - Craig-Hallum David Ridley-Lane - Bank of America Operator Greetings. Welcome to the E2open First Quarter Fiscal Yea ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q Delaware 86-1874570 (I.R.S. Employer Identification No.) (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (866) 432-6736 For the quarterly period ended May 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transitio ...

Full Year Subscription organic Y/Y growth of 8% and CC(2) Y/Y growth of 10% (1) Non-GAAP pro forma revenue includes the pre-acquisition revenue from BluJay and Logistyx (2) Constant Currency (CC): Prior year FX rates applied to current year actuals to normalize for FX impact 11 (1) Q4FY23 Gross Margin organic Y/Y growth of 3% and CC(4) Y/Y growth of 4% 12 FY23 Gross Margin organic Y/Y growth of 5% and CC(4) Y/Y growth of 6% Notes: Figures are in USD millions. Please refer to appendix for non-GAAP reconcilia ...

E2open Parent Holdings, Inc. (NYSE:ETWO) Q4 2023 Earnings Conference Call May 1, 2023 4:30 PM ET Company Participants Dusty Buell - Head, Investor Relations Michael Farlekas - Chief Executive Officer Marje Armstrong - Chief Financial Officer Conference Call Participants Adam Hotchkiss - Goldman Sachs Mark Schappel - Loop Capital Jeff Hickey - UBS David Ridley-Lane - Bank of America Merrill Lynch Nick Mattiacci - Craig-Hallum Fred Lee - Credit Suisse Operator Greetings. Welcome to the E2open Fourth Quarter a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 28, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to . Commission File Number 001-39272 Securities registered pursuant to Section 12(b) of Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which register ...

E2open Parent Holdings, Inc. (NYSE:ETWO) Q3 2023 Results Conference Call January 9, 2023 5:00 PM ET Company Participants Adam Rogers - Head, IR Michael Farlekas - CEO Marje Armstrong - CFO Conference Call Participants Mark Schappel - Loop Capital Adam Hotchkiss - Goldman Sachs Chad Bennett - Craig-Hallum Taylor McGinnis - UBS David Ridley-Lane - Bank of America Fred Lee - Credit Suisse Operator Greetings. Welcome to the E2open Earnings Call for Fiscal Third Quarter 2023 Conference Call. At this time, all pa ...