E2open(US:ETWO)2025-01-10 12:50Revenue Performance - Total revenue for the three months ended November 30, 2024, was $151.7 million, a decrease of $5.8 million, or 4%, compared to $157.5 million for the same period in 2023[162]. - Subscriptions revenue was $132.0 million for the three months ended November 30, 2024, a decrease of $0.8 million, or 1%, compared to $132.8 million for the same period in 2023[162]. - Professional services and other revenue decreased by $5.0 million, or 20%, to $19.7 million for the three months ended November 30, 2024, compared to $24.7 million for the same period in 2023[163]. - Subscriptions revenue for the nine months ended November 30, 2024, was $395.0 million, a decrease of $7.5 million, or 2%, compared to $402.4 million in the prior year[182]. - Professional services and other revenue decreased by $13.6 million, or 18%, to $60.1 million for the nine months ended November 30, 2024, from $73.7 million in the prior year[183]. - Total revenue for the nine months ended November 30, 2024, was $455.0 million, a decrease of $21.1 million, or 4%, compared to $476.1 million in the prior year[182]. Profitability and Expenses - Gross profit for the three months ended November 30, 2024, was $75.7 million, a decrease of $2.8 million, or 4%, compared to $78.6 million for the same period in 2023[161]. - Gross profit for the nine months ended November 30, 2024, was $223.0 million, a decrease of $14.1 million, or 6%, compared to $237.2 million in the prior year[186]. - Research and development expenses were $23.3 million for the three months ended November 30, 2024, a decrease of $1.7 million, or 7%, compared to $24.9 million for the same period in 2023[168]. - Sales and marketing expenses were $21.5 million for the three months ended November 30, 2024, a decrease of $1.1 million, or 5%, compared to $22.6 million in the prior year[169]. - General and administrative expenses decreased by $3.9 million, or 16%, to $20.8 million for the three months ended November 30, 2024, compared to $24.7 million in the prior year[170]. - General and administrative expenses were $65.8 million, a decrease of $19.7 million, or 23%, compared to $85.4 million in the prior year, primarily due to a $17.8 million accrual related to an unfavorable arbitration ruling[192]. Impairment Charges - The company recognized an impairment charge of $369.1 million to goodwill during the three and nine months ended November 30, 2024[158]. - Goodwill impairment charge was $369.1 million for the three months ended November 30, 2024, a decrease of $318.6 million, or 46%, compared to $687.7 million in the prior year[173]. - Intangible asset impairment charge was $10.0 million for the three months ended November 30, 2024, down from $30.0 million in the prior year, representing a 67% decrease[174]. - Goodwill impairment charge was $369.1 million for the nine months ended November 30, 2024, a decrease of $728.6 million, or 66%, compared to $1,097.7 million in the prior year[195]. - Intangible asset impairment charge was $10.0 million, a decrease of $24.0 million, or 71%, compared to $34.0 million in the prior year[196]. Cash Flow and Financing - The company had $151.2 million in cash and cash equivalents and $155.0 million of unused borrowing capacity as of November 30, 2024[221]. - Net cash provided by operating activities for the nine months ended November 30, 2024 was $46.1 million, a decrease of $10.5 million compared to $56.7 million for the same period in 2023[229]. - Cash, cash equivalents, and restricted cash at the end of the period was $168.4 million, an increase of $19.4 million from $149.0 million as of February 29, 2024[228]. - The company plans to seek additional equity or debt financing for future acquisitions or investments in complementary businesses[222]. - As of November 30, 2024, the principal balance of the 2021 Term Loan was $1,059.0 million, with an interest rate of 8.19%[225]. Tax and Other Liabilities - Income tax benefit was $2.4 million for the three months ended November 30, 2024, a decrease of $2.98 million, or 55%, compared to $5.4 million in the prior year[181]. - The Tax Receivable Agreement liability was $66.9 million as of November 30, 2024, reflecting potential future tax benefits[233]. - The company paid $1.8 million to Tax Receivable Agreement holders during the nine months ended November 30, 2024[232]. Market Position and Future Outlook - The company operates in a growing industry with a significant total addressable market, driven by the need for modern cloud-based supply chain solutions[156].