E2open(ETWO) - 2025 Q3 - Quarterly Results

Financial Performance - GAAP subscription revenue for Q3 FY25 was $132.0 million, a decrease of 0.6% year-over-year, representing 87.0% of total revenue[4] - Total GAAP revenue for Q3 FY25 was $151.7 million, down 3.7% from the same period last year[4] - GAAP net loss for Q3 FY25 was $381.6 million, compared to a net loss of $740.0 million in the year-ago period[4] - Adjusted EBITDA for Q3 FY25 was $53.6 million, a decrease of 3.2% year-over-year, with an adjusted EBITDA margin of 35.3%[4] - Full year 2025 GAAP subscription revenue is expected to be in the range of $526 million to $529 million, reflecting a negative 1.7% growth rate at the mid-point[7] - Total GAAP revenue for fiscal 2025 is projected to be between $607 million and $611 million, indicating a negative 4.0% organic growth rate at the mid-point[8] - Adjusted EBITDA for fiscal 2025 is anticipated to be approximately $215 million, with an implied adjusted EBITDA margin of around 35%[10] - GAAP net loss for Q3 2025 was $381.6 million, with an adjusted net income of $16.5 million, resulting in adjusted earnings per share of $0.05[36] - Adjusted EBITDA for Q3 2025 was reported at $53.6 million, indicating a recovery from the negative EBITDA of ($322.8) million[36] Revenue and Profitability - Non-GAAP gross profit margin for fiscal 2025 is expected to be in the range of 68% to 70%[9] - Non-GAAP gross profit for Q3 FY2025 was $104.3 million, down 4.9% from $109.7 million in Q3 FY2024[27] - Non-GAAP gross margin for Q3 FY2025 was 68.8%, slightly down from 69.6% in Q3 FY2024[27] - Total revenue cost was $75.9 million, leading to a gross profit of $75.7 million, which represents a gross margin of 68.8%[34] Expenses and Liabilities - Total operating expenses amounted to $450.5 million, with a significant goodwill impairment charge of $369.1 million[34] - Research and development expenses were $23.3 million, accounting for 11.3% of total revenue[34] - Sales and marketing expenses totaled $21.5 million, representing 12.9% of total revenue[34] - Total liabilities decreased from $1,556,528,000 on February 29, 2024, to $1,475,546,000 on November 30, 2024, a reduction of approximately 5.2%[23] Cash Flow and Assets - Cash, cash equivalents, and restricted cash at the end of the period increased to $168,434,000 from $129,938,000 year-over-year[25] - Adjusted operating cash flow for Q3 2025 was $21.1 million, with an adjusted free cash flow of $14.9 million[38] - Total assets decreased from $3,141,655,000 on February 29, 2024, to $2,622,144,000 on November 30, 2024, representing a decline of approximately 16.5%[23] Strategic Developments - E2open has appointed Pawan Joshi as chief strategy officer and Rachit Lohani as chief product and technology officer to enhance strategic client engagement and innovation[3] - E2open secured new logo and cross-sell business with large global companies across various sectors, including industrial manufacturing and consumer retail[7] Goodwill and Impairment - Goodwill impairment charge for the nine months ended November 30, 2024, was $369,100,000, significantly lower than $1,097,741,000 in the same period of 2023[25]