E2open(US:ETWO)2025-04-29 22:02Financial Data and Key Metrics Changes - Subscription revenue for Q4 FY 2025 was $133 million, slightly above the guidance range of $131 to $134 million, with a year-over-year decline of 1% [36] - On a constant currency basis, the year-over-year decline in subscription revenue was only 0.5%, indicating an improvement in growth performance [36] - Total revenue for Q4 was $152.7 million, reflecting a decline of 3.6% year-over-year, while total revenue for FY 2025 was $607.7 million, a decrease of 4.2% [37][38] - Adjusted EBITDA for Q4 was $56.3 million, with a margin of 36.9%, compared to $55.1 million and a margin of 34.8% in the prior year [39] - The net loss for Q4 was $268.5 million, including a noncash goodwill impairment charge of $245 million [42] Business Line Data and Key Metrics Changes - Professional services revenue in Q4 was $19.7 million, a year-over-year decline of 18.3%, with full-year professional services revenue at $79.7 million, also down 18.4% [37] - Subscription bookings in Q4 were the highest quarterly total since the end of FY 2023, indicating positive momentum in the go-to-market strategy [25] Market Data and Key Metrics Changes - E2Open's global trade application suite is positioned as a first line of defense against tariff-related challenges, with updates made to the global trade content database impacting over 2 million landed cost records [19][20] - The company reached over half a million interconnected supply chain partners in FY 2025, the highest number in its history [14] Company Strategy and Development Direction - The company is focused on client satisfaction, retention, and operational discipline, with a commitment to long-term value creation [9][12] - E2Open is investing in product innovation, particularly in artificial intelligence and machine learning, to enhance its software capabilities [16][17] - The strategic review initiated last year is ongoing, with no further comments provided during the call [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for sustainable growth, citing improvements in retention and subscription bookings [47][48] - The company expects FY 2026 subscription revenue to range from $525 million to $535 million, indicating a potential return to positive growth [43][44] Other Important Information - The company ended FY 2025 with a cash balance of $197.4 million, an increase of $46 million from the previous quarter, highlighting robust cash generation capabilities [43] - Adjusted operating cash flow for FY 2025 was $111.4 million, with expectations to maintain similar performance in FY 2026 [47] Q&A Session Summary Question: Fiscal Year 2026 revenue guidance and subscription side linearity - Management expects a similar improvement style as seen in FY 2025, with room for further growth [53] Question: Professional services side improvement confidence - Management has taken a conservative view but sees potential for growth in professional services revenue as the business stabilizes [54] Question: Investments in product and commercial business - Investments are focused on enhancing product differentiation and client-specific data platforms, among other areas [56][57] Question: Customer conversations regarding global trade - Current focus is on delivering solutions to navigate complexities in global trade, with expectations for future opportunities as conditions stabilize [66] Question: Demand environment in trucking or freight - No significant movements observed in the near term; stability noted in both road and ocean transportation [70] Question: Exposure to changes in global trade volumes - Pure volume-based revenue exposure is currently at 2%, down from 4% two years ago, indicating reduced sensitivity to trade volume fluctuations [86]