E2open Parent Holdings Inc Reports Q2 FY25 Revenue of $152.

Core Viewpoint - E2open Parent Holdings Inc reported fiscal Q2 2025 results that fell short of analyst expectations, highlighting challenges in revenue growth and deal closures while maintaining a focus on client retention and operational efficiency [1][2][6]. Company Overview - E2open is a leading provider of cloud-based supply chain management solutions, integrating networks, data, and applications to optimize operations across logistics, trade, and manufacturing [2]. Performance and Challenges - The company achieved sequential improvement in client retention but faced delays in closing large deals due to extended client decision timelines, impacting growth potential [2][6]. Financial Achievements - GAAP subscription revenue for Q2 FY25 was $131.6 million, accounting for 86.5% of total revenue, despite a 2.3% decrease from the previous year [3]. - Adjusted EBITDA margin improved to 36.1% from 35.4% year-over-year, indicating effective cost management [3]. Key Financial Details - GAAP gross profit for the quarter was $74.6 million, with a gross margin of 49.0%, while non-GAAP gross profit was $105.0 million, reflecting a margin of 69.0% [4]. Income Statement Highlights - Total revenue for Q2 FY25 was $152.2 million, down 4.0% from $158.5 million in Q2 FY24 - GAAP net loss decreased to $32.9 million from $38.6 million, a reduction of 14.8% - Adjusted EBITDA was $54.9 million, down 2.2% from $56.1 million in the prior year [5]. Balance Sheet and Cash Flow - As of August 31, 2024, total assets were reported at $3.03 billion, with cash and cash equivalents of $142.2 million and total liabilities of $1.49 billion, indicating a stable financial position [5]. Analysis and Outlook - E2open's Q2 FY25 performance reflects both achievements in client retention and challenges in revenue growth and deal closures - The company has adjusted its revenue guidance for FY25, anticipating GAAP subscription revenue between $526 million and $532 million, while focusing on building revenue momentum [6].