E2open reports fourth-quarter revenue that beats expectations, releases guidance for FY25



NEW YORK – E2open Parent Holdings, Inc. (NYSE: ETWO), a leading connected supply chain SaaS platform, reported fiscal fourth quarter and full-year results, with revenue beating expectations but subscription revenue declining slightly.

For the fourth quarter ended February 29, 2024, the company reported adjusted earnings per share (EPS) of $0.05, which was $0.01 higher than analysts' expectations of $0.04. Total revenue for the quarter reached $158.5 million, exceeding consensus estimates of $154.37 million and down 4.7% from the same period last year.

Although revenue beat expectations, the company's GAAP subscription revenue fell 1.8% compared with the prior year to $134.4 million. On a constant currency basis, subscription revenue fell even more sharply, at 2.4%. GAAP gross profit also declined, down 7.5% from the same period last year to $80.5 million.

Adjusted EBITDA for the quarter was US$55.1 million, a decrease of 10.0% from the same period last year, and the adjusted EBITDA margin fell to 34.8% from 36.8% in the same period last year.

e2open CEO Andrew Appel attributed the quarter's performance to the company's renewed focus on organic growth and a customer-centric approach. He also highlighted several strategic subscription software deals completed during the quarter, underscoring e2open's strong market position.

e2open reported that full-year 2024 GAAP subscription revenue edged up 0.7% to $536.8 million, accounting for the majority of total revenue. However, total GAAP revenue fell 2.7% to $634.6 million compared with the previous fiscal year.

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The company's GAAP net loss for the year was severe, totaling $1.1851 billion, while adjusted earnings per share were $0.19.

Looking ahead, e2open provided guidance for fiscal 2025, projecting GAAP subscription revenue in the range of $532 million to $542 million, indicating flat growth at the midpoint.

The GAAP total revenue forecast is set at a range of $630 million to $645 million, which suggests midpoint organic growth of 0.5%, slightly below analysts' expectations of $636.4 million. The company also expects fiscal 2025 adjusted EBITDA to be in the range of $215 million to $225 million.

e2open Chief Financial Officer Marje Armstrong is confident in the resilience of the company's business model and its ability to deliver value to customers, as evidenced by strong adjusted EBITDA margin and cash flow.

The company did not provide information on stock price movements following the earnings release, nor did it identify specific drivers of market reaction.

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