NEW YORK - E2open Parent Holdings, Inc. (NYSE: ETWO), a leading connected supply chain SaaS platform, announced its fiscal fourth quarter and full year results, surpassing revenue expectations but showing a slight decline in subscription revenue.
For the fourth quarter ended February 29, 2024, the company reported adjusted earnings per share (EPS) of $0.05, which was $0.01 higher than the analyst estimate of $0.04. Total revenue for the quarter reached $158.5 million, exceeding the consensus estimate of $154.37 million and marking a 4.7% decrease from the same quarter last year.
Despite the revenue beat, the company experienced a 1.8% decline in GAAP subscription revenue compared to the previous year, amounting to $134.4 million. The decrease in subscription revenue was slightly more pronounced on a constant currency basis at 2.4%. GAAP gross profit also saw a downturn, with a 7.5% decline from the year-ago quarter to $80.5 million.
Adjusted EBITDA for the quarter was $55.1 million, a decrease of 10.0% from the same period last year, with the adjusted EBITDA margin contracting to 34.8% from 36.8% YoY.
Andrew Appel, e2open's CEO, attributed the quarter's performance to the company's renewed focus on organic growth and a client-centric approach. He also highlighted several strategic subscription software deals closed during the quarter, emphasizing e2open's strong market position.
For the full fiscal year 2024, e2open reported a modest increase in GAAP subscription revenue of 0.7% to $536.8 million, which constituted the majority of the total revenue. The total GAAP revenue, however, decreased by 2.7% to $634.6 million compared to the previous fiscal year.
The company's GAAP net loss for the year was significant, totaling $1,185.1 million, while adjusted EPS was $0.19.
Looking ahead, e2open provided guidance for fiscal year 2025 with expected GAAP subscription revenue in the range of $532 million to $542 million, indicating flat growth at the mid-point.
The forecast for total GAAP revenue is set between $630 million and $645 million, suggesting a slight organic growth rate of 0.5% at the mid-point, which is marginally below the analyst consensus of $636.4 million. The company also anticipates an adjusted EBITDA between $215 million and $225 million for fiscal 2025.
Marje Armstrong, e2open's CFO, expressed confidence in the resilience of the company's business model and its ability to deliver value to customers, as evidenced by strong adjusted EBITDA margins and cash flow.
The company did not provide information on stock movement following the earnings release, and no specific driver of market response was indicated.
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