NYSE$ETWO

E2open Parent Holdings Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Announced fiscal first quarter 2023 financial results, demonstrating subscription revenue growth and adjusted EBITDA performance.

E2open reported strong first-quarter results, highlighted by a 154% increase in GAAP subscription revenue and a 12% organic subscription revenue growth on a constant currency basis. The company's adjusted EBITDA also grew to $51.4 million, reflecting the resilience of its subscription revenue base.

  • GAAP subscription revenue grew by 153.9% year-over-year to $129.5 million, representing 80.8% of total revenue.
  • Organic subscription revenue growth was 10.7%, or 12.1% on a constant currency basis.
  • Total GAAP revenue increased by 141.8% year-over-year to $160.4 million.
  • Adjusted EBITDA grew by 12.4% year-over-year to $51.4 million, with an adjusted EBITDA margin of 31.6%.

Headline financials

Total Revenue

$160M

Previous: $88.8M+80.6%
EPS (adj)

$0.07

Previous: $0.15-53.3%
Adjusted EBITDA Margin

31.6%

Previous: 32.9%-4.0%
Capital Expenditures

$19.3M

Previous: $12.4M+55.7%
Free Cash Flow

$41.3M

Previous: $26.9M+53.6%
Net Income

-$12.6M

Previous: -$169M+92.6%
Operating Income

-$13.7M

Previous: -$27.4K-49812.3%
Gross Profit

$81.7M

Previous: $28.2M+190.0%
Cash & Equivalents

$129M

Previous: $221M-41.5%
Total Assets

$5.47B

Previous: $3.82B+43.0%
Stock-Based Comp

$3.19M

Previous: $2.04M+56.0%

Revenue & EPS history

E2open · Revenue · Quarterly

$160M

Q1 2023+80.6%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

E2open · $30M total across 1 segment · Q3 2022

  • Professional Services
    $30M

Forward guidance

E2open provided updated guidance for the remainder of fiscal year 2023, reaffirming its Adjusted EBITDA outlook while adjusting GAAP subscription and total revenue expectations due to foreign exchange headwinds.

Tailwinds

  • GAAP subscription revenue for fiscal 2023 is expected to be in the range of $538 million to $546 million.
  • Total GAAP revenue is expected to be in the range of $672 million to $680 million.
  • Non-GAAP gross profit margin is expected to be in the range of 68% to 70%.
  • Adjusted EBITDA is reaffirmed in the range of $217 million to $223 million.
  • There is no change to our guidance on a constant currency basis.

Headwinds

  • GAAP subscription revenue for fiscal 2023 revised down from prior guidance of $545 million to $553 million, due to an approximate $7 million negative impact from foreign exchange rate fluctuations.
  • Total GAAP revenue revised down from prior guidance of $681 million to $689 million, due to an approximate $9 million negative impact from foreign exchange rate fluctuations.
  • Non-GAAP gross profit margin revised down from prior guidance of 69% to 71% which includes an approximate 50 basis point negative impact from foreign exchange rate fluctuations.
  • GAAP subscription revenue for the fiscal second quarter of 2023 is expected to be in the range of $129 million to $132 million, including an approximate $3 million negative year over year impact from foreign exchange rate fluctuations.
  • The company 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-5.7%

Avg return

Earnings day

-9.5%

Avg return

5 days after

-1.5%

Avg return

30 days after

33%

7 / 21 earnings

Positive

+15.4%

Q4 2021

Best reaction

-48.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026
Q1 2026+0.0%+0.3%
Q4 2025-6.2%+7.7%+53.1%
Q3 2025-5.9%-4.5%+3.0%
Q2 2025-20.2%-20.0%-16.6%
Q1 2025-11.2%-3.2%-10.8%
Q4 2024+12.8%+10.2%+8.6%
Q3 2024+1.7%-11.8%-5.6%
Q2 2024-48.1%-42.0%-25.2%
Q1 2024+3.1%-7.4%-12.8%
Q4 2023-29.9%-26.4%-20.4%
Q3 2023-0.9%+3.3%+12.1%
Q2 2023-5.7%-13.8%+0.3%
Q1 2023-14.6%-16.5%-4.0%
Q4 2022+6.4%
Q3 2022-16.2%
Q2 2022+1.3%
Q1 2022-1.1%
Q4 2021+15.4%
Q3 2021+0.4%
Q2 2021-0.4%
Q1 2021-0.8%
Q4 2020

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