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Nov 30, 2023
E2open Q3 2024 Earnings Report
Announced financial results for the fiscal third quarter ended November 30, 2023.
Key Takeaways
E2open reported a decrease in total GAAP revenue by 4.5% compared to the year-ago period, with subscription revenue also slightly declining. The company experienced a significant net loss, contrasting with a net income in the previous year. Despite these challenges, E2open maintained strong adjusted EBITDA margins and saw improved sales execution towards the end of the quarter.
GAAP subscription revenue was $132.8 million, a 1.5% decrease year-over-year.
Total GAAP revenue was $157.5 million, a 4.5% decrease year-over-year.
GAAP net loss was $740.0 million, compared to a net income of $5.5 million in the prior year.
Adjusted EBITDA was $55.4 million, a 1.4% decrease year-over-year.
E2open
E2open
Forward Guidance
E2open updated its full year 2024 guidance and provided fourth quarter 2024 guidance.
Positive Outlook
- GAAP subscription revenue for fiscal 2024 is expected to be in the range of $533 million to $536 million.
- Total GAAP revenue for fiscal 2024 is expected to be in the range of $628 million to $633 million.
- Non-GAAP gross profit margin for fiscal 2024 is still expected to be in the range of 68% to 70%.
- Adjusted EBITDA for fiscal 2024 is still expected to be in the range of $215 million to $220 million.
- GAAP subscription revenue for the fiscal fourth quarter of 2024 is expected to be in the range of $131 million to $134 million.
Challenges Ahead
- GAAP subscription revenue for fiscal 2024 reflects a 0.3% organic growth rate at the mid-point.
- Total GAAP revenue for fiscal 2024 reflects a 3.3% year-over-year decrease at the mid-point.
- GAAP subscription revenue for the fiscal fourth quarter of 2024 reflects a 3.2% year-over-year decrease at the mid-point.
- E2open is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures for non-GAAP gross profit margin or adjusted EBITDA without unreasonable effort.
- Conditions in some end-markets remain uncertain.