AUSTIN, Texas--(BUSINESS WIRE)--E2open Parent Holdings, Inc. (NYSE: ETWO), the connected supply chain SaaS platform with the largest multi-enterprise network, today announces the appointment of Andrew Appel as its new chief executive officer. Appel has served as e2open’s interim CEO since October, bringing over 25 years of executive leadership experience, most recently as president and CEO of software and business intelligence leader IRI for nearly a decade. “On behalf of the board, I am pleased to welco ...

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].

(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 ...

Financial Data and Key Metrics Changes - For fiscal year 2023, subscription revenue was $532.9 million, growing 8.1% on a pro forma basis and 9.8% on a constant currency basis, falling short of the original expectations of 11% to 12% growth [49][50] - Adjusted EBITDA for fiscal year 2023 was $217.1 million, an increase of 10.7% compared to the prior fiscal year, with an adjusted EBITDA margin of 33.3% [80][85] - The net loss for the fiscal fourth quarter was $303.5 million, including a non-cash goodwill impairment charge of $386.8 million [54][55] Business Line Data and Key Metrics Changes - Professional services revenue for the fiscal fourth quarter was $29.4 million, reflecting a negative organic growth rate of 6.9% [78] - Total revenue for the fiscal fourth quarter was $166.3 million, reflecting pro forma organic growth of 3.0% [79] Market Data and Key Metrics Changes - The company noted that economic uncertainty and lower shipment volumes, particularly in the high-tech sector, are current headwinds affecting performance [7][23] - The company has seen a shift in customer behavior, with larger project spending being delayed due to macroeconomic factors [50][78] Company Strategy and Development Direction - The company is pivoting from a rapid scaling model through acquisitions to a focus on organic growth, emphasizing the importance of a strong marketing organization and a network of system integrators [6][15][36] - The strategy includes increasing sales headcount to improve client engagement and drive subscription growth [43][119] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential despite current challenges, indicating that the macro environment is expected to improve in the second half of fiscal year 2024 [89][124] - The company anticipates subscription revenue growth of 2% to 4% for fiscal year 2024, with total revenue expected to be between $655 million and $670 million [56][83] Other Important Information - The company has made significant investments in marketing and system integrator partnerships, which are expected to yield results in the future [10][35] - The company ended fiscal year 2023 with $93 million in cash and cash equivalents, reflecting a sequential increase [55] Q&A Session Summary Question: What are the challenges from the macro environment? - Management acknowledged challenges from the macro environment but expressed confidence in overcoming them and improving commercial performance [62] Question: What is the sensitivity of outcomes in fiscal 2024 guidance? - Management indicated they have a good handle on the range of outcomes and do not foresee dramatic changes [64] Question: Can you provide details on internal issues related to acquisition integration? - Management noted that softness in the macro economy and integration challenges impacted larger transaction bookings [68] Question: What are the recent trends in customer behavior? - Management reported minimal exposure to financial sector turmoil and noted that customer engagement remains strong [74][99] Question: What are the macro assumptions behind fiscal year 2024 subscription revenue? - Management stated that guidance is informed by internal metrics and pipeline visibility, with expectations for improvement in the second half of fiscal year 2024 [100][101]

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 ...

PART I. Financial Information This section presents the company's unaudited financial statements, management's analysis, and disclosures on market risks and internal controls [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the period ended November 30, 2022, detailing the Logistyx acquisition and a significant goodwill impairment charge [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$4.79 billion** from **$5.41 billion** as of November 30, 2022, primarily due to a goodwill impairment, impacting overall financial position Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | November 30, 2022 | February 28, 2022 | | :--- | :--- | :--- | | **Total current assets** | $274,736 | $356,138 | | **Goodwill** | $3,306,233 | $3,756,871 | | **Total assets** | $4,792,382 | $5,405,455 | | **Total current liabilities** | $339,805 | $440,367 | | **Notes payable (long-term)** | $1,042,459 | $863,577 | | **Total liabilities** | $1,774,665 | $1,921,284 | | **Total stockholders' equity** | $3,017,717 | $3,484,171 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue for the three months ended November 30, 2022, increased to **$164.9 million** with a **$5.5 million** net income, contrasting with a **$416.7 million** net loss for the nine-month period due to a **$514.8 million** goodwill impairment Three Months Ended November 30, (Unaudited, in thousands) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Total revenue** | $164,893 | $137,002 | | Subscriptions | $134,884 | $106,969 | | **Gross Profit** | $84,143 | $64,216 | | **Loss from operations** | $(6,251) | $(54,442) | | **Net income (loss)** | $5,503 | $(64,289) | | **Net income (loss) attributable to E2open** | $4,805 | $(59,217) | | **Basic EPS** | $0.02 | $(0.19) | Nine Months Ended November 30, (Unaudited, in thousands) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Total revenue** | $485,950 | $281,408 | | Subscriptions | $396,052 | $219,728 | | **Gross Profit** | $243,268 | $130,912 | | **Goodwill impairment** | $514,816 | $— | | **Loss from operations** | $(555,594) | $(94,786) | | **Net loss** | $(416,703) | $(257,632) | | **Net loss attributable to E2open** | $(375,239) | $(221,992) | | **Basic EPS** | $(1.24) | $(0.98) | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$43.2 million** for the nine months ended November 30, 2022, while investing activities used **$222.7 million** primarily for acquisitions, ending with **$98.8 million** in cash Cash Flow Summary for Nine Months Ended November 30, (Unaudited, in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $43,151 | $28,182 | | **Net cash used in investing activities** | $(222,716) | $(798,859) | | *Payments for acquisitions, net* | *$(179,243)* | *$(774,232)* | | **Net cash provided by financing activities** | $103,351 | $632,987 | | **Net decrease in cash, cash equivalents and restricted cash** | $(75,736) | $(136,033) | | **Cash, cash equivalents and restricted cash at end of period** | $98,818 | $71,509 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial statement specifics, including the Logistyx and BluJay acquisitions, a **$514.8 million** goodwill impairment, debt structure, and revenue recognition - On March 2, 2022, the company acquired Logistyx for an estimated fair value of **$183.4 million**, including **$90 million** in cash at closing and subsequent installment payments[37](index=37&type=chunk) - A significant decline in the company's market capitalization triggered an interim goodwill impairment test in Q2 fiscal 2023, resulting in a non-cash impairment charge of **$514.8 million**[64](index=64&type=chunk)[66](index=66&type=chunk) - As of November 30, 2022, the company had **$1.08 billion** outstanding on its 2021 Term Loan and **$10.0 million** outstanding on its Revolving Credit Facility, with **$145.0 million** available borrowing capacity[85](index=85&type=chunk)[90](index=90&type=chunk) - Remaining performance obligations totaled approximately **$795.1 million** as of November 30, 2022, expected to be recognized as revenue over the next five years[126](index=126&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting the impact of acquisitions, the **$514.8 million** goodwill impairment, liquidity, and non-GAAP financial measures for the reported periods [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Revenue for Q3 FY23 increased **20%** to **$164.9 million** and **73%** to **$486.0 million** for the nine-month period, though a **$514.8 million** goodwill impairment led to a **$555.6 million** operating loss Revenue Comparison (in thousands) | Period | 2022 | 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Three Months Ended Nov 30** | $164,893 | $137,002 | $27,891 | 20% | | **Nine Months Ended Nov 30** | $485,950 | $281,408 | $204,542 | 73% | Gross Profit Comparison (in thousands) | Period | 2022 | 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Three Months Ended Nov 30** | $84,143 | $64,216 | $19,927 | 31% | | **Nine Months Ended Nov 30** | $243,268 | $130,912 | $112,356 | 86% | - The nine-month period was heavily impacted by a **$514.8 million** goodwill impairment charge recognized in the second quarter of fiscal 2023 due to a significant decline in the company's market capitalization[182](index=182&type=chunk)[221](index=221&type=chunk) - Interest expense increased significantly year-over-year for both the three-month and nine-month periods, driven by additional term loans for acquisitions and higher market interest rates[199](index=199&type=chunk)[222](index=222&type=chunk) [Non-GAAP Financial Measures](index=52&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP metrics like Adjusted EBITDA, which was **$56.2 million** for Q3 FY23 (up **22%**) and **$155.9 million** for the nine-month period (up **44%**), to reflect core operating performance Adjusted EBITDA Reconciliation Highlights (in thousands) | Period | Net Income (Loss) | Adjusted EBITDA | Adjusted EBITDA Margin | | :--- | :--- | :--- | :--- | | **Three Months Ended Nov 30, 2022** | $5,503 | $56,155 | 34.1% | | **Three Months Ended Nov 30, 2021** | $(64,289) | $45,890 | 31.1% | | **Nine Months Ended Nov 30, 2022** | $(416,703) | $155,902 | 32.1% | | **Nine Months Ended Nov 30, 2021** | $(257,632) | $108,581 | 33.1% | - Non-GAAP measures exclude items like amortization of deferred revenue fair value adjustments, goodwill impairment, transaction costs, and share-based compensation to better reflect core performance[231](index=231&type=chunk)[233](index=233&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) As of November 30, 2022, the company had **$85.7 million** in cash and **$145.0 million** available credit, with management confident in sufficient resources to meet obligations, despite a **$1.08 billion** term loan - The company had **$85.7 million** in cash and cash equivalents and **$145.0 million** of unused borrowing capacity as of November 30, 2022[253](index=253&type=chunk) - Net cash from operating activities for the nine months ended Nov 30, 2022 was **$43.2 million**, up from **$28.2 million** YoY[264](index=264&type=chunk) - The company has a Tax Receivable Agreement (TRA) liability of **$58.2 million** as of November 30, 2022, which requires payments to selling equity holders based on realized tax savings[269](index=269&type=chunk) - On January 9, 2023, the company repaid the outstanding **$10.0 million** balance on its 2021 Revolving Credit Facility, increasing available capacity to **$155.0 million**[260](index=260&type=chunk)[177](index=177&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes in its market risks during the three and nine months ended November 30, 2022, from those previously disclosed in its Annual Report on Form 10-K for the fiscal year ended February 28, 2022 - No material changes in market risks were reported for the period[282](index=282&type=chunk) [Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of November 30, 2022, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[284](index=284&type=chunk) - No material changes to internal controls over financial reporting were identified during the quarter ended November 30, 2022[285](index=285&type=chunk) PART II. Other Information This section provides disclosures on legal proceedings, risk factors, equity sales, and a comprehensive list of exhibits [Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various contingencies in the ordinary course of business but does not currently believe their resolution will have a material adverse effect on its financial statements - The company does not expect any current legal proceedings to have a material adverse effect on its financial condition or results of operations[287](index=287&type=chunk) [Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors during the reported period from those disclosed in its Annual Report on Form 10-K for the fiscal year ended February 28, 2022 - No material changes in risk factors were reported for the period[288](index=288&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a **$100.0 million** share repurchase program approved on January 20, 2022, under which no shares of Class A Common Stock have been repurchased to date - A **$100.0 million** share repurchase program is authorized, but no shares have been repurchased to date[289](index=289&type=chunk)[290](index=290&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Certificate of Incorporation, Bylaws, and certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act

E2open Parent Holdings, Inc. (NYSE:ETWO) Q2 2023 Earnings Conference Call October 11, 2022 5:00 PM ET Company Participants Adam Rogers - Head, IR Michael Farlekas - CEO Marje Armstrong - CFO Conference Call Participants Chad Bennett - Craig-Hallum Mark Schappel - Loop Capital David Ridley-Lane - Bank of America Fred Lee - Credit Suisse Presentation Operator Good afternoon, ladies and gentlemen, and welcome to the E2Open Fiscal Second Quarter 2023 Earnings Call. At this time, all participants have been place ...