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GAAP Subscription Revenue: $132.8 million, a slight decrease of 1.5% year-over-year.
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Total GAAP Revenue: $157.5 million, down 4.5% from the previous year.
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GAAP Net Loss: Significant loss of $740.0 million compared to a net income of $5.5 million in the same quarter last year.
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Adjusted EBITDA: $55.4 million, marginally down by 1.4% year-over-year.
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Operating Cash Flow: Positive year-to-date GAAP operating cash flow of $56.7 million, an improvement from $43.2 million year-over-year.
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Financial Outlook: Updated full year 2024 guidance with GAAP subscription revenue expected to be between $533 million to $536 million.
On January 9, 2024, E2open Parent Holdings Inc (NYSE:ETWO) released its 8-K filing, detailing the financial outcomes for its fiscal third quarter ended November 30, 2023. The company, a leading provider of end-to-end, cloud-based supply chain management SaaS platform, reported GAAP subscription revenue at the high end of its Q3 guidance, despite a slight year-over-year decrease. Total GAAP revenue saw a more pronounced decline, and the company experienced a substantial GAAP net loss, primarily due to goodwill and intangible asset impairment charges.
Performance and Challenges
E2open's fiscal third quarter results reflect a challenging period, with GAAP subscription revenue reaching $132.8 million, a 1.5% decrease from the year-ago period. Total GAAP revenue also fell to $157.5 million, a 4.5% decrease year-over-year. The company's GAAP net loss was reported at $740.0 million, a stark contrast to the net income of $5.5 million in the same quarter of the previous fiscal year. This loss was largely due to a goodwill impairment of $687.7 million and an intangible asset impairment of $30.0 million.
Despite these challenges, E2open maintained strong adjusted EBITDA margins, reporting $55.4 million in adjusted EBITDA, only a slight decrease from the previous year. The company's operating cash flow improved, with GAAP operating cash flow on a year-to-date basis at $56.7 million, up from $43.2 million in the prior year. These financial achievements are critical for E2open as they indicate the company's ability to generate cash and maintain profitability in a difficult market environment.
Key Financial Metrics
Important metrics from E2open's financial statements include:
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GAAP gross margin decreased to 49.9% from 51.0% year-over-year.
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Non-GAAP gross margin improved slightly to 69.6% on an organic basis.
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Adjusted EPS for the third quarter was $0.04.
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The company's balance sheet shows $110.3 million in cash and cash equivalents as of November 30, 2023.