NYSE$ETWO

E2open Parent Holdings Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

E2open's Q3 2023 financial results were announced, demonstrating subscription revenue above guidance and record adjusted EBITDA.

E2open announced its Q3 2023 financial results, with subscription revenue exceeding guidance and a record adjusted EBITDA. The company's platform and network are driving growth, as evidenced by recent selections by a global retailer and a large agribusiness innovator.

  • GAAP subscription revenue increased by 26.1% year-over-year to $134.9 million.
  • Total GAAP revenue increased by 20.4% year-over-year to $164.9 million.
  • Net income was $5.5 million, compared to a net loss of $64.3 million in the year-ago period.
  • Adjusted EBITDA increased by 22.4% year-over-year to $56.2 million.

Headline financials

Total Revenue

$165M

Previous: $147M+11.9%
EPS (adj)

$0.06

Previous: $0.00+1900.0%
Gross Margin

51.0%

Previous: 46.9%+8.7%
Adjusted EBITDA

$56.2M

No prior period
Adjusted EBITDA Margin

34.1%

Previous: 31.1%+9.6%
Capital Expenditures

$8.92M

Previous: $7.26M+22.9%
Free Cash Flow

$32.1M

Previous: -$20.6M+256.0%
Net Income

$5.5M

Previous: -$64.3M+108.6%
Operating Income

-$6.25M

Previous: -$54.4M+88.5%
Gross Profit

$84.1M

Previous: $64.2M+31.0%
Cash & Equivalents

$85.7M

Previous: $56.5M+51.8%
Total Assets

$4.79B

Previous: $5.29B-9.4%
Stock-Based Comp

$4.8M

Previous: $3.98M+20.5%

Revenue & EPS history

E2open · Revenue · Quarterly

$165M

Q3 2023+11.9%vs Q3 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 $533 million to $536 million.
  • Fiscal 2023 GAAP subscription revenue on a constant currency basis is expected to be in the range of $542 million to $545 million.
  • Fiscal 2023 Total GAAP revenue is expected to be in the range of $655 million to $660 million.
  • Fiscal 2023 Total GAAP revenue on a constant currency basis is expected to be in the range of $667 million to $672 million.
  • Fiscal 2023 Non-GAAP gross profit margin is reaffirmed in the range of 68% to 70%.

Headwinds

  • GAAP subscription revenue for fiscal 2023 is expected to be in the range of $533 million to $536 million versus prior guidance of $535 million to $543 million.
  • GAAP subscription revenue for fiscal 2023 on a constant currency basis is expected to be in the range of $542 million to $545 million versus prior guidance of $545 million to $553 million.
  • Total GAAP revenue is expected to be in the range of $655 million to $660 million versus prior guidance of $668 million to $676 million.
  • Total GAAP revenue on a constant currency basis is expected to be in the range of $667 million to $672 million versus prior guidance of $681 million to $689 million.
  • GAAP subscription revenue for the fiscal fourth quarter of 2023 is expected to be in the range of $137 million to $140 million including an approximate $2 million negative year-over-year impact from foreign exchange rate fluctuations.

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 Q3 2023

Historical avgQ3 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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