NYSE$ETWO

E2open Parent Holdings Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced financial results for the fiscal second quarter, showcasing subscription revenue growth and resilience amidst a weakening macroeconomic environment.

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.

Headline financials

Total Revenue

$161M

Previous: $92.3M+74.1%
EPS (adj)

$0.05

Previous: $0.02+150.0%
Adjusted EBITDA Margin

30.1%

Previous: 36.3%-17.1%
Capital Expenditures

$12.3M

Previous: $4.99M+146.2%
Free Cash Flow

$40.6M

Previous: -$2.77M+1566.2%
Net Income

-$410M

Previous: -$24M-1606.7%
Operating Income

-$7.22M

Previous: -$13M+44.3%
Gross Profit

$77.4M

Previous: $38.5M+101.0%
Cash & Equivalents

$98.1M

Previous: $473M-79.3%
Total Assets

$4.85B

Previous: $4.07B+19.2%
Stock-Based Comp

$5.15M

Previous: $2.51M+105.4%

Revenue & EPS history

E2open · Revenue · Quarterly

$161M

Q2 2023+74.1%vs Q2 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, which ends February 28, 2023.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q2 2023

Historical avgQ2 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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