Why E2open Parent Holdings Stock Dived by 7% Today

Core Viewpoint - E2open Parent Holdings experienced a decline in both revenue and net income in its fiscal first quarter of 2025, leading to a significant drop in its stock price, which fell nearly 7% on the day of the earnings release [2][3]. Financial Performance - Revenue for the fiscal first quarter of 2025 was reported at just over $151 million, down from$160 million in the same quarter of 2024, indicating a year-over-year decline [2]. - Non-GAAP net income for the quarter was $13 million, or$0.04 per share, compared to nearly $16 million in the previous year [2]. - E2open met the average analyst estimate for profitability but fell short on revenue expectations, which were slightly over$155 million [7]. Guidance and Strategy - The company reiterated its subscription and total revenue guidance for fiscal 2025, projecting overall revenue between $630 million and$645 million, aligning with the consensus analyst estimate of just over $637 million [4]. - Foundational subscription revenue is forecasted to be between$532 million and $542 million, indicating essentially flat year-over-year growth [6]. - E2open acknowledged challenges during the quarter, including "temporary deal closure delays," but stated it is making progress on its long-term growth strategy [4].