E2open(US:ETWO)2022-07-10 16:00Revenue Growth - Total revenue for the three months ended May 31, 2022, was $160.4 million, a 142% increase from $66.3 million in the same period of 2021[162]. - Subscription revenue reached $129.5 million, up $78.5 million from $51.0 million year-over-year, primarily driven by acquisitions and organic growth[164]. - Professional services revenue increased to $30.8 million, a $15.5 million rise compared to $15.3 million in the prior year, also influenced by acquisitions[165]. - Non-GAAP revenue for the three months ended May 31, 2022, was $160.4 million, up from $88.8 million in the prior year, indicating strong growth in subscriptions and professional services[195]. - Non-GAAP subscriptions revenue was $129.5 million for the three months ended May 31, 2022, an increase of $56.0 million or 76% compared to $73.5 million for the same period in 2021[200]. Profitability - Gross profit for the three months ended May 31, 2022, was $81.7 million, compared to $28.2 million in the same period of 2021, reflecting a significant increase[162]. - The gross margin improved to 51% for the three months ended May 31, 2022, compared to 42% in the same period of 2021[168]. - Non-GAAP gross profit was $111.3 million for the three months ended May 31, 2022, a $45.8 million increase or 70% compared to $65.4 million for the same period in 2021[210]. - Adjusted EBITDA was $51.4 million for the three months ended May 31, 2022, a $22.2 million increase or 76% compared to $29.2 million for the same period in 2021[208][212]. - EBITDA was $47.8 million for the three months ended May 31, 2022, a $189.4 million increase compared to a loss of $141.6 million for the same period in 2021, with an EBITDA margin of 29.8%[206][211]. Expenses - Operating expenses totaled $95.4 million, up from $55.5 million year-over-year, with significant increases in research and development, and sales and marketing expenses[162]. - Research and development expenses increased by $6.9 million, or 44%, to $22.6 million for the three months ended May 31, 2022, driven by acquisitions and strategic initiatives[173]. - Sales and marketing expenses rose to $24.2 million, a 93% increase from $12.5 million in the prior year, largely due to acquisitions and new marketing initiatives[174]. - General and administrative expenses were $20.3 million, a $6.6 million increase from $13.7 million in the previous year, primarily due to acquisition-related costs[175]. - Interest and other expense, net was $15.4 million for the three months ended May 31, 2022, a $10.5 million increase compared to $4.9 million in the prior year, driven by higher interest rates and term loans[185]. Net Loss and Tax - The net loss for the three months ended May 31, 2022, was $12.6 million, a decrease from a net loss of $169.4 million in the same period of 2021[162]. - Loss before income taxes was $21.1 million, a $146.9 million improvement from a loss of $168.0 million in the prior year, influenced by increased gross profit from acquisitions[190]. - Income tax benefit was $8.5 million for the three months ended May 31, 2022, compared to an expense of $1.4 million in the prior year, reflecting changes in effective tax rates[191]. Cash Flow and Financing - Net cash provided by operating activities for the three months ended May 31, 2022 was $24.9 million, a decrease of 37% from $39.3 million for the same period in 2021[224]. - Net cash used in investing activities increased significantly to $146.4 million in Q1 2023 from $12.4 million in Q1 2022, primarily due to the Logistyx Acquisition costing $124.2 million[225]. - Net cash provided by financing activities was $102.3 million for the three months ended May 31, 2022, compared to a net cash used of $0.7 million in the same period of 2021, driven by a $190.0 million incremental term loan[226]. - The company had $129.2 million in cash and cash equivalents and $155.0 million of unused borrowing capacity under its 2021 Revolving Credit Facility as of May 31, 2022[214]. - The 2021 Term Loan had a principal balance outstanding of $1,086.4 million as of May 31, 2022, with a variable interest rate of 4.83%[220]. Acquisitions - E2open acquired Logistyx Technologies for $185 million, with $90 million paid in cash at closing and additional payments scheduled[160]. - The Logistyx Acquisition was completed for a total purchase price of $185 million, with $90 million paid in cash at closing and the remaining $95 million to be paid in installments[235]. - The company may seek additional equity or debt financing to facilitate future acquisitions or investments in complementary businesses[215]. Other Financial Metrics - The contingent consideration liability decreased to $41.4 million as of May 31, 2022, from $45.6 million as of February 28, 2022, indicating a gain of $4.2 million in fair value remeasurements[233]. - The liability related to the Tax Receivable Agreement was $68.3 million as of May 31, 2022, reflecting potential future tax savings[229]. - Future cash flows from non-cancelable operating leases were estimated at $7.6 million for June 1, 2022 through February 28, 2023, and $8.5 million for fiscal 2024[237].