NYSE$ETWO

E2open Parent Holdings Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced financial results for the fiscal third quarter ended November 30, 2023.

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.

Headline financials

Total Revenue

$157M

Previous: $165M-4.5%
EPS (adj)

$0.04

Previous: $0.06-33.3%
Capital Expenditures

-$6.24M

Previous: $8.92M-170.0%
Free Cash Flow

-$850K

Previous: $32.1M-102.7%
Net Income

-$740M

Previous: $5.5M-13554.5%
Operating Income

-$731M

Previous: -$6.25M-11600.6%
Gross Profit

$78.6M

Previous: $84.1M-6.5%
R&D Expense

$24.9M

No prior period
Stock-Based Comp

$6.84M

Previous: $4.8M+42.6%

Revenue & EPS history

E2open · Revenue · Quarterly

$157M

Q3 2024-4.5%vs Q3 2023
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 updated its full year 2024 guidance and provided fourth quarter 2024 guidance.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2024

Historical avgQ3 2024

-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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