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Feb 28, 2022
E2open Q4 2022 Earnings Report
E2open's Q4 performance exceeded expectations, driven by substantial subscription growth and strategic acquisitions.
Key Takeaways
E2open announced strong Q4 and fiscal year 2022 results, exceeding annual revenue guidance. The company's platform is playing a critical role in improving supply chain health and resiliency. The acquisition and integration of BluJay Solutions added significant talent and capabilities in transportation and logistics.
GAAP subscription revenue grew 79% year-over-year to $115.8 million.
Total GAAP revenue increased by 78% year-over-year to $144.2 million.
Net income for the quarter was $67.7 million, compared to $33.3 million in the prior year.
Adjusted earnings per share for the fourth quarter of 2022 was $0.08.
E2open
E2open
Forward Guidance
E2open provided guidance for fiscal year 2023, projecting GAAP subscription revenue in the range of $545 million to $553 million, reflecting an 11.4% organic growth rate at the mid-point. GAAP revenue is expected to be in the range of $681 million to $689 million, reflecting an 11.2% organic growth rate at the mid-point.
Positive Outlook
- GAAP subscription revenue for fiscal 2023 is expected to be in the range of $545 million to $553 million.
- Reflects a 11.4% organic growth rate at the mid-point.
- GAAP revenue is expected to be in the range of $681 million to $689 million.
- Reflects an 11.2% organic growth rate at the mid-point.
- Non-GAAP gross profit margin is expected to be in the range of 69% to 71%.
Challenges Ahead
- To accelerate growth beyond 12%, E2open is increasing its strategic investments in sales and marketing by $20 million in fiscal 2023.
- These investments include incremental sales personnel, channel development, and marketing.
- Adjusted EBITDA is expected to be in the range of $217 million to $223 million, after the strategic investments in sales and marketing.
- This results in a 32% to 33% adjusted EBITDA margin for the year.
- There will not be a GAAP to Non-GAAP revenue adjustment associated with amortization of the purchase accounting fair value adjustment to deferred revenue resulting from the business combination with CC Neuberger Principal Holdings I (CCNB1) beginning in fiscal 2023.