Loading...
•
Aug 31, 2022
E2open Q2 2023 Earnings Report
Announced financial results for the fiscal second quarter, showcasing subscription revenue growth and resilience amidst a weakening macroeconomic environment.
Key Takeaways
E2open reported strong fiscal second quarter 2023 results, with a significant increase in GAAP subscription revenue and total GAAP revenue. The company is maintaining its fiscal year 2023 EBITDA guidance despite FX headwinds.
GAAP subscription revenue grew by 113.3% year-over-year to $131.6 million, representing 81.9% of total revenue.
Total GAAP revenue increased by 105.8% year-over-year to $160.7 million.
Adjusted EBITDA decreased by 4.0% year-over-year to $48.3 million, with an adjusted EBITDA margin of 30.1%.
Net loss for the quarter was $409.6 million, compared to $24.0 million in the year-ago period; GAAP EPS was $(1.22) and adjusted EPS was $0.05.
E2open
E2open
Forward Guidance
E2open provided updated guidance for the remainder of fiscal year 2023, which ends February 28, 2023.
Positive Outlook
- Fiscal 2023 GAAP subscription revenue is expected to be in the range of $535 million to $543 million.
- Fiscal 2023 Total GAAP revenue is expected to be in the range of $668 million to $676 million.
- Fiscal 2023 Non-GAAP gross profit margin is reaffirmed in the range of 68% to 70%.
- Fiscal 2023 Adjusted EBITDA is reaffirmed in the range of $217 million to $223 million reflecting an implied adjusted EBITDA margin of 32% to 33%.
- GAAP subscription revenue for the fiscal third quarter of 2023 is expected to be in the range of $131 million to $134 million including an approximate $4 million negative year-over-year impact from foreign exchange rate fluctuations.
Challenges Ahead
- GAAP subscription revenue for fiscal 2023 is expected to be in the range of $535 million to $543 million versus prior guidance of $538 million to $546 million, due to an approximate $3 million negative impact from foreign exchange rate fluctuations when compared to our prior guidance.
- Total GAAP revenue is expected to be in the range of $668 million to $676 million versus prior guidance of $672 million to $680 million, due to an approximate $4 million negative impact from foreign exchange rate fluctuations when compared to our prior guidance.
- GAAP subscription revenue for the fiscal third quarter of 2023 is expected to be in the range of $131 million to $134 million including an approximate $4 million negative year-over-year impact from foreign exchange rate fluctuations.
- Adjusted EBITDA includes an approximate $6 million of previously disclosed strategic investments in marketing, sales and systems integrators partnerships that e2open did not have in the comparable year-ago period.
- GAAP cash flow from operations was $2.2 million compared to $41.5 million from the year-ago comparable period, inclusive of M&A-related expenses.