E2open Parent Holdings: Turnaround Stalls In Q1

Core Viewpoint - E2open Parent Holdings, Inc. is experiencing a significant slowdown in business, with revenue growth stagnating in 2023, despite previous trading gains and a strategic review aimed at improving performance and efficiency [1][2] Financial Performance - Total revenue for Q1 was $151.2 million, down 5.6% year-over-year and approximately $7 million lower than the previous quarter [5] - Subscription revenue accounted for $131.4 million, a decrease of 2.6% from the same quarter last year, representing 86.9% of total revenue [5] - Gross profit fell to $72.7 million, an 8.5% decline from the prior year, with gross margin dipping to 48.1% from 49.6% [6] - The net loss on a GAAP basis was $42.8 million, an improvement from a loss of $360.9 million the previous year [6] - Adjusted EBITDA decreased to $50.7 million, down 5.7% year-over-year, with an adjusted EBITDA margin of 33.6% [6] Future Guidance - For fiscal 2025, subscription revenue is expected to be between $532 million and $542 million, indicating flat growth year-over-year at the midpoint [7] - Total revenue guidance is set at $630 million to $645 million, reflecting a 0.5% growth at the midpoint [7] - Q2 2025 subscription revenue is projected to be between $129 million and $132 million, indicating a negative 3.1% decline at the midpoint, which is lower than market expectations due to delayed deal closures [7]