GAAP subscription revenue of $131.4 million within Q1 FY25
guidance range
Strong cash flow generation in Q1 FY25
E2open Parent Holdings, Inc. (NYSE: ETWO) (“e2open” or the
“Company”), the connected supply chain SaaS platform with the
largest multi-enterprise network, today announced financial results
for its fiscal first quarter ended May 31, 2024.
“During the fiscal first quarter, e2open continued to make
progress on our multi-quarter plan to return to strong, sustainable
organic growth,” said Andrew Appel, e2open chief executive officer.
“We have successfully put in place a disciplined operational
cadence and a client-centric mindset designed to restore retention
to our normal historical levels. Due to our proactive approach, we
are on track for material improvements in retention metrics through
the end of FY25. We are prioritizing and investing in e2open’s most
important asset – our client relationships – and in Q1, this
enabled us to improve client satisfaction and secure long-term
contract extensions to support future growth. We closed important
new subscription business in Q1, and although we experienced some
temporary deal closure delays, we have already closed a number of
those delayed deals in June. We remain confident in our strong
market position and are moving forward aggressively with our
client-focused growth re-acceleration plan.”
“In Q1 FY25, e2open delivered subscription revenue at the
mid-point of our guidance,” said Marje Armstrong, chief financial
officer of e2open. “Adjusted EBITDA margins remained strong and our
Q1 cash generation was very robust. Our sound underlying business
fundamentals provide important support for the changes we are
making to improve client retention, sales execution, and
implementation excellence. Gaining traction with these changes, we
remain well positioned to build booking and revenue momentum as we
move through the fiscal year.”
Armstrong also noted continued engagement in the strategic
review that e2open announced in March, anticipating its completion
in the near future. “We look forward to being able to share the
outcome of the review with our customers, employees, and
shareholders as soon as appropriate.”
Fiscal First Quarter 2025 Financial
Highlights
- Revenue
- GAAP subscription revenue for the first quarter of 2025
was $131.4 million, a decrease of 2.6% from the year-ago comparable
period and 86.9% of total revenue.
- Total GAAP revenue for the first quarter of 2025 was
$151.2 million, a decrease of 5.6% from the year-ago comparable
period.
- GAAP gross profit for the first quarter of 2025 was
$72.7 million, a decrease of 8.5% from the year-ago comparable
period. Non-GAAP gross profit was $102.6 million, down 7.1%.
- GAAP gross margin for the first quarter of 2025 was
48.1% compared to 49.6% from the year-ago comparable period.
Non-GAAP gross margin was 67.8% compared to 69.0% from the
comparable year-ago period.
- GAAP Net loss for the first quarter of 2025 was $42.8
million compared to $360.9 million from the year-ago comparable
period. Adjusted EBITDA for the first quarter of 2025 was
$50.7 million, a decrease of 5.7% from the year-ago comparable
period. Adjusted EBITDA margin was 33.6% consistent with the
comparable year-ago period.
- GAAP EPS for the first quarter of 2025 was a loss of
$0.13. Adjusted EPS for the first quarter of 2025 was
$0.04.
Recent Business
Highlights
- Selected by one of the world’s largest retailers in a new logo
win for e2open, to provide a global trade program with customs
filing and trade automation solutions in multiple countries to
support their business priorities.
- Expanded business with several major clients including a large,
multi-year renewal with a global technology manufacturer, and a top
multinational manufacturer in the automotive industry that selected
e2open’s Supplier Network Discovery solution to address regulatory
compliance and supply assurance risk.
- Launched Supply Network Discovery, a new solution that helps
clients meet regulatory compliance requirements and strengthen
their supply assurance with capabilities to discover, map, trace,
and assess multiple tiers of suppliers. The e2open Supply Network
Discovery application and its supply collaboration platform help
brand owners and their supply partners share the strategic
information necessary to get components, raw materials, and
products where they are needed most and avoid risk of
disruptions.
- Released quarterly product update 24.2, including the launch of
Supply Network Discovery plus enhancements across the platform
including: updates to customs filing capabilities supporting
modernization initiatives for the US 21st Century Customs Framework
(21CCF), the United Kingdom Customs Declaration System, Germany
ATLAS, Netherlands AES, Italy NCTS and the EU’s ICS2 Import Control
System; sustainability calculation tools to support tariff due
diligence and decision-making considerations to reduce carbon
footprint; upgraded capabilities for shippers to view and take
action on electronic bills of lading via e2open’s ocean booking
platform.
- Recognized customers and partners at annual award program
during international customer conference for supply chain
innovations and transformations that accelerate their business
outcomes, including: JLR for Connected Supply Chain; Sanofi for
Supply Chain Innovator; RS Group for Supply Chain Visibility;
Goikid Consulting for Connected Supply Chain Partner; and Shippeo
for Supply Chain Alliance Partner.
- Achieved interoperability certification on Catena-X, an open
data ecosystem for the automotive industry to support multi-tier
supplier collaboration. E2open is the first supply chain software
provider to be certified outside of founding Catena-X members.
Financial Outlook for Fiscal Year
2025
As of July 10, 2024, e2open is reiterating full year 2025
guidance previously provided on April 29, 2024, and providing
second quarter 2025 guidance as follows:
Fiscal 2025 and Second Quarter GAAP Subscription
Revenue
- GAAP subscription revenue for fiscal 2025 is expected to be in
the range of $532 million to $542 million, reflecting flat growth
year over year at the mid-point.
- GAAP subscription revenue for the fiscal second quarter of 2025
is expected to be in the range of $129 million to $132 million,
reflecting a negative 3.1% organic growth rate at the
mid-point.
Fiscal 2025 Total GAAP Revenue
- Total GAAP revenue for fiscal 2025 is expected to be in the
range of $630 million to $645 million, reflecting a 0.5% organic
growth rate at the mid-point.
Fiscal 2025 Non-GAAP Gross Profit Margin
- Non-GAAP gross profit margin for fiscal 2025 is expected to be
in the range of 68% to 70%.
Fiscal 2025 Adjusted EBITDA
- Adjusted EBITDA for fiscal 2025 is expected to be in the range
of $215 million to $225 million, reflecting an implied adjusted
EBITDA margin in the range of 34% to 35%.
Quarterly Conference
Call
E2open will host a conference call today at 5:00 p.m. ET to
review fiscal first quarter 2025 financial results, in addition to
discussing the Company’s outlook for the full fiscal year 2025. To
access this call, dial 888-506-0062 (domestic) or 973-528-0011
(international). The conference ID is 721473. A live webcast of the
conference call will be accessible in the “Investor Relations”
section of e2open’s website at www.e2open.com. A replay of this
conference call can also be accessed through July 24, 2024, at
877-481-4010 (domestic) or 919-882-2331 (international). The replay
passcode is 50762. An archived webcast of this conference call will
also be available after the completion of the call in the “Investor
Relations” section of the Company’s website at www.e2open.com.
About e2open
E2open is the connected supply chain software platform that
enables the world’s largest companies to transform the way they
make, move, and sell goods and services. With the broadest
cloud-native global platform purpose-built for modern supply
chains, e2open connects more than 480,000 manufacturing, logistics,
channel, and distribution partners as one multi-enterprise network
tracking over 16 billion transactions annually. Our SaaS platform
anticipates disruptions and opportunities to help companies improve
efficiency, reduce waste, and operate sustainably. Moving as one.™
Learn More: www.e2open.com.
E2open and “Moving as one.” are the registered trademarks of
E2open, LLC. All other trademarks, registered trademarks and
service marks are the property of their respective owners.
Non-GAAP Financial
Measures
This press release includes certain financial measures not
presented in accordance with generally accepted accounting
principles (“GAAP”) including non-GAAP revenue, non-GAAP
subscription revenue, non-GAAP professional services and other
revenue, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross
profit, non-GAAP net income, non-GAAP gross margin, adjusted free
cash flow and adjusted earnings per share. These non-GAAP financial
measures are not a measure of financial performance in accordance
with GAAP and may exclude items that are significant in
understanding and assessing the Company’s financial results.
Therefore, these measures should not be considered in isolation or
as an alternative to net income, cash flows from operations or
other measures of profitability, liquidity, or performance under
GAAP. You should be aware that the Company’s presentation of these
measures may not be comparable to similarly titled measures used by
other companies.
The Company believes this non-GAAP measure of financial results
provides useful information to management and investors regarding
certain financial and business trends relating to the Company’s
financial condition and results of operations. The Company believes
that the use of these non-GAAP financial measures provides an
additional tool for investors to use in evaluating ongoing
operating results and trends in comparing the Company’s financial
measures with other similar companies, many of which present
similar non-GAAP financial measures to investors. These non-GAAP
financial measures are subject to inherent limitations as they
reflect the exercise of judgments by management about which expense
and income are excluded or included in determining these non-GAAP
financial measures.
NOTE: 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, and therefore no reconciliation
of certain forward-looking non-GAAP financial measures for non-GAAP
gross profit margin or adjusted EBITDA is included.
Safe Harbor Statement
Certain statements in this press release are "forward-looking
statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and are subject to the safe
harbor created thereby. These statements relate to future events or
the Company's future financial performance and involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, levels of activity, performance or achievements of
the Company or its industry to be materially different from those
expressed or implied by any forward-looking statements. In
particular, statements about the Company's expectations, beliefs,
plans, objectives, assumptions, future events or future performance
contained in this press release are forward-looking statements. In
some cases, forward-looking statements can be identified by
terminology such as "may," "will," "could," "would," "should,"
"expect," "plan," "anticipate," "intend," "believe," "estimate,"
"predict," "potential," "outlook," "guidance" or the negative of
those terms or other comparable terminology.
Please see the Company's documents filed or to be filed with the
Securities and Exchange Commission, including the annual report
filed on Form 10-K, and any amendments thereto for a discussion of
certain important risk factors that relate to forward-looking
statements contained in this press release. The Company has based
these forward-looking statements on its current expectations,
assumptions, estimates and projections. While the Company believes
these expectations, assumptions, estimates, and projections are
reasonable, such forward-looking statements are only predictions
and involve known and unknown risks and uncertainties, many of
which are beyond the Company's control. These and other important
factors may cause actual results, performance or achievements to
differ materially from those expressed or implied by these
forward-looking statements. Any forward-looking statements are made
only as of the date hereof, and unless otherwise required by
applicable securities laws, the Company disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
E2OPEN PARENT HOLDINGS,
INC
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended May
31,
(In thousands, except per share
amounts)
2024
2023
Revenue
Subscriptions
$
131,404
$
134,903
Professional services and other
19,759
25,217
Total revenue
151,163
160,120
Cost of Revenue
Subscriptions
37,099
36,544
Professional services and other
16,752
19,528
Amortization of acquired intangible
assets
24,652
24,630
Total cost of revenue
78,503
80,702
Gross Profit
72,660
79,418
Operating Expenses
Research and development
24,797
25,866
Sales and marketing
20,996
19,558
General and administrative
23,343
22,125
Acquisition-related expenses
283
389
Amortization of acquired intangible
assets
20,086
20,128
Goodwill impairment
—
410,041
Intangible asset impairment
—
4,000
Total operating expenses
89,505
502,107
Loss from operations
(16,845
)
(422,689
)
Other income (expense)
Interest and other expense, net
(25,373
)
(25,726
)
Loss from change in tax receivable
agreement liability
(3,974
)
(2,460
)
Gain from change in fair value of warrant
liability
3,761
14,680
(Loss) gain from change in fair value of
contingent consideration
(2,280
)
9,000
Total other expense
(27,866
)
(4,506
)
Loss before income tax benefit
(44,711
)
(427,195
)
Income tax benefit
1,923
66,311
Net loss
(42,788
)
(360,884
)
Less: Net loss attributable to
noncontrolling interest
(3,926
)
(35,489
)
Net loss attributable to E2open Parent
Holdings, Inc.
$
(38,862
)
$
(325,395
)
Weighted-average common shares
outstanding:
Basic
306,732
302,502
Diluted
306,732
302,502
Net loss attributable to E2open Parent
Holdings, Inc. common shareholders per share:
Basic
$
(0.13
)
$
(1.08
)
Diluted
$
(0.13
)
$
(1.08
)
E2OPEN PARENT HOLDINGS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands)
May 31, 2024
February 29, 2024
Assets
Cash and cash equivalents
$
160,203
$
134,478
Restricted cash
15,737
14,560
Accounts receivable, net
111,359
161,556
Prepaid expenses and other current
assets
33,072
28,843
Total current assets
320,371
339,437
Goodwill
1,845,209
1,843,477
Intangible assets, net
796,551
841,031
Property and equipment, net
65,638
67,177
Operating lease right-of-use assets
19,629
21,299
Other noncurrent assets
29,669
29,234
Total assets
$
3,077,067
$
3,141,655
Liabilities, Redeemable Share-Based
Awards and Stockholders' Equity
Accounts payable and accrued
liabilities
$
85,112
$
90,594
Channel client deposits payable
15,737
14,560
Deferred revenue
187,197
213,138
Current portion of notes payable
11,277
11,272
Current portion of operating lease
obligations
6,996
7,378
Current portion of financing lease
obligations
1,473
1,448
Income taxes payable
5,748
584
Total current liabilities
313,540
338,974
Long-term deferred revenue
1,615
2,077
Operating lease obligations
15,799
17,372
Financing lease obligations
3,248
3,626
Notes payable
1,036,007
1,037,623
Tax receivable agreement liability
72,394
67,927
Warrant liability
10,952
14,713
Contingent consideration
20,308
18,028
Deferred taxes
49,767
55,586
Other noncurrent liabilities
1,052
602
Total liabilities
1,524,682
1,556,528
Commitments and Contingencies
Redeemable share-based awards
930
—
Stockholders' Equity
Class A common stock
31
31
Class V common stock
—
—
Series B-1 common stock
—
—
Series B-2 common stock
—
—
Additional paid-in capital
3,415,627
3,407,694
Accumulated other comprehensive loss
(44,341
)
(46,835
)
Accumulated deficit
(1,912,565
)
(1,873,703
)
Treasury stock, at cost
(2,473
)
(2,473
)
Total E2open Parent Holdings, Inc.
equity
1,456,279
1,484,714
Noncontrolling interest
95,176
100,413
Total stockholders' equity
1,551,455
1,585,127
Total liabilities, redeemable share-based
awards and stockholders' equity
$
3,077,067
$
3,141,655
E2OPEN PARENT HOLDINGS,
IN
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended May
31,
(In thousands)
2024
2023
Cash flows from operating
activities
Net loss
$
(42,788
)
$
(360,884
)
Adjustments to reconcile net loss to net
cash from operating activities:
Depreciation and amortization
53,605
53,319
Amortization of deferred commissions
2,109
1,344
Provision for credit losses
151
69
Amortization of debt issuance costs
1,320
1,320
Amortization of operating lease
right-of-use assets
1,722
1,946
Share-based compensation
11,787
4,445
Deferred income taxes
(5,972
)
(67,833
)
Right-of-use assets impairment charge
—
362
Goodwill impairment charge
—
410,041
Indefinite-lived intangible asset
impairment charge
—
4,000
Loss from change in tax receivable
agreement liability
3,974
2,460
Gain from change in fair value of warrant
liability
(3,761
)
(14,680
)
Loss (gain) from change in fair value of
contingent consideration
2,280
(9,000
)
Loss (gain) on disposal of property and
equipment
79
(154
)
Changes in operating assets and
liabilities:
Accounts receivable
50,047
48,176
Prepaid expenses and other current
assets
(3,905
)
(1,304
)
Other noncurrent assets
(2,544
)
(1,772
)
Accounts payable and accrued
liabilities
(10,702
)
(12,228
)
Channel client deposits payable
1,177
2,539
Deferred revenue
(26,403
)
(23,401
)
Changes in other liabilities
3,740
(2,306
)
Net cash provided by operating
activities
35,916
36,459
Cash flows from investing
activities
Capital expenditures
(6,084
)
(6,552
)
Net cash used in investing activities
(6,084
)
(6,552
)
Cash flows from financing
activities
Repayments of indebtedness
(2,808
)
(2,741
)
Repayments of financing lease
obligations
(353
)
(223
)
Proceeds from exercise of stock
options
155
—
Net cash used in financing activities
(3,006
)
(2,964
)
Effect of exchange rate changes on cash
and cash equivalents
76
2,105
Net increase in cash, cash equivalents and
restricted cash
26,902
29,048
Cash, cash equivalents and restricted
cash at beginning of period
149,038
104,342
Cash, cash equivalents and restricted
cash at end of period
$
175,940
$
133,390
E2OPEN PARENT HOLDINGS,
INC.
RECONCILIATION OF PRO FORMA
INFORMATION
TABLE I
(in millions)
Q1
Q1
$ Var
% Var
FY2025
FY2024
PRO FORMA REVENUE
RECONCILIATION
Total GAAP Revenue
151.2
160.1
(9.0)
(5.6%)
Constant currency FX impact (1)
0.1
-
0.1
n/m
Total non-GAAP revenue (constant
currency basis) (2)
$151.2
$160.1
($8.9)
(5.6%)
GAAP Subscription Revenue
131.4
134.9
(3.5)
(2.6%)
Constant currency FX impact (1)
-
-
-
n/m
Non-GAAP subscription revenue (constant
currency basis) (2)
$131.4
$134.9
($3.5)
(2.6%)
GAAP Professional Services and other
revenue
19.8
25.2
(5.5)
(21.6%)
Constant currency FX impact (1)
-
-
-
n/m
Non-GAAP professional services and
other revenue (constant currency basis) (2)
$19.8
$25.2
($5.5)
(21.6%)
PRO FORMA GROSS PROFIT
RECONCILIATION
GAAP Gross profit
72.7
79.4
(6.8)
(8.5%)
Depreciation and amortization
28.5
28.6
(0.1)
(0.5%)
Share-based compensation (3)
1.2
0.6
0.6
92.1%
Non-recurring/non-operating costs (4)
0.2
1.7
(1.5)
(88.5%)
Non-GAAP gross profit
$102.6
$110.4
($7.9)
(7.1%)
Non-GAAP Gross Margin %
67.8%
69.0%
Constant currency FX impact (1)
(0.1)
-
(0.1)
n/m
Total non-GAAP gross profit (constant
currency basis) (2)
$102.4
$110.4
($8.0)
(7.2%)
Non-GAAP Gross Margin % (constant currency
basis) (2)
67.7%
69.0%
PRO FORMA ADJUSTED EBITDA
RECONCILIATION
Net loss
(42.8)
(360.9)
318.1
n/m
Interest expense, net
24.7
24.3
0.4
1.8%
Income tax benefit
(1.9)
(66.3)
64.4
(97.1%)
Depreciation and amortization
53.6
53.3
0.3
0.5%
EBITDA
$33.6
($349.6)
$383.2
n/m
Share-based compensation (3)
11.8
4.5
7.3
164.3%
Non-recurring/non-operating costs (4)
2.6
5.3
(2.8)
(52.0%)
Acquisition-related adjustments (5)
0.3
0.4
(0.1)
(28.2%)
Change in tax receivable agreement
liability (6)
4.0
2.5
1.5
61.4%
Change in fair value of warrant liability
(7)
(3.8)
(14.7)
10.9
(74.4%)
Change in fair value of contingent
consideration (8)
2.3
(9.0)
11.3
n/m
Goodwill impairment (9)
-
410.0
(410.0)
n/m
Intangible asset impairment charge
(10)
-
4.0
(4.0)
n/m
Right-of-use assets impairment charge
(11)
-
0.4
(0.4)
n/m
Adjusted EBITDA
$50.7
$53.8
($3.0)
(5.7%)
Adjusted EBITDA Margin %
33.6%
33.6%
Constant currency FX impact (1)
(0.3)
-
(0.3)
n/m
Total adjusted EBITDA (constant
currency basis) (2)
$50.4
$53.8
($3.3)
(6.2%)
Adjusted EBITDA Margin % (constant
currency basis) (2)
33.4%
33.6%
(1) Constant Currency refers to pro-forma
amounts excluding the impact of translating foreign currencies into
U.S. dollars. To calculate foreign currency translation on a
constant currency basis, operating results for the current year
period for entities reporting in currencies other than the U.S.
dollar are translated into U.S. dollars at the exchange rates in
effect during the comparable period of the prior year (rather than
the actual exchange rates in effect during the current year
period).
(2) Constant Currency refers to pro forma
amounts excluding translation and transactional impacts from
foreign currency exchange rates.
(3) Reflects non-cash, long-term
share-based compensation expense.
(4) Primarily includes other non-recurring
expenses such as non-acquisition related severance, foreign
currency transaction gains and losses, systems integrations, legal
entity rationalization, expenses related to retention of key
employees from acquisitions and non-recurring consulting and
advisory fees.
(5) Primarily includes advisory,
consulting, accounting and legal expenses and severance incurred in
connection with mergers and acquisitions activities, including
related valuation, negotiation and integration costs and
capital-raising activities, related to the Business Combination,
acquisitions of BluJay and Logistyx and the strategic review.
(6) Represents the fair value adjustment
at each balance sheet date for the Tax Receivable Agreement along
with the associated interest.
(7) Represents the fair value adjustment
at each balance sheet date of the warrant liability related to our
warrants.
(8) Represents the fair value adjustment
at each balance sheet date of the contingent consideration
liability related to the restricted Series B-1 and B-2 common stock
and Sponsor Side Letter and Series 1 and 2 RCUs. The Series B-1
common stock, Sponsor Side Letter and Series 1 RCUs were
automatically converted into our Class A Common Stock on a
one-to-one basis as of June 8, 2021.
(9) Represents the goodwill impairment
taken in the first quarter of fiscal 2024.
(10) Represents the indefinite-lived
trademark/trade name impairment taken in the first quarter of
fiscal 2024.
(11) Represents the impairment on our
operating lease ROU assets and leasehold improvements due to
vacating certain facilities.
E2OPEN PARENT HOLDINGS,
INC.
RECONCILIATION OF NON-GAAP
EXPENSES
TABLE II
Fiscal First Quarter 2025
(in millions)
GAAP
Non- Recurring(1)
Depreciation &
Amortization
Share-Based
Compensation
Non- GAAP (Adjusted)
% of Revenue
Subscriptions
37.1
(0.0)
(3.6)
(0.7)
32.7
24.9%
Professional services and other
16.8
(0.2)
(0.2)
(0.5)
15.9
80.5%
Amortization of intangibles
24.7
-
(24.7)
0.0
-
Total cost of revenue
$78.5
($0.2)
($28.5)
(1.2)
$48.6
32.2%
Gross Profit
$72.7
$0.2
$28.5
$1.20
$102.5
67.8%
OPERATING COSTS
Research & development
24.8
(0.1)
(4.5)
(1.9)
18.2
12.0%
Sales & marketing
21.0
(0.8)
(0.3)
(1.6)
18.3
12.1%
General & administrative
23.3
(0.8)
(0.2)
(7.1)
15.3
10.1%
Acquisition related expenses
0.3
(0.3)
-
-
-
Amortization of intangibles
20.1
-
(20.1)
-
-
Total operating expenses
$89.5
($2.0)
($25.1)
($10.6)
$51.8
34.3%
(1) Primarily includes other non-recurring
expenses such as non-acquisition related severance, foreign
currency transaction gains and losses, systems integrations, legal
entity rationalization, expenses related to retention of key
employees from acquisitions and non-recurring consulting and
advisory fees.
E2OPEN PARENT HOLDINGS, INC.
RECONCILIATION OF ADJUSTED
EARNINGS PER SHARE
TABLE III
(in millions, except per share
amounts)
Q1 25
GAAP Net loss
(42.8)
Interest expense, net
24.7
Income taxes benefit
(1.9)
Depreciation & amortization
53.6
EBITDA
$33.6
Share-based compensation
11.8
Non-recurring/non-operating costs
2.6
Acquisition-related adjustments
0.3
Change in tax receivable agreement
liability
4.0
Change in fair value of warrant
liability
(3.8)
Change in fair value of contingent
consideration
2.3
Adjusted EBITDA
$50.7
Depreciation
(8.9)
Interest and other expense, net
(24.7)
Normalized income taxes (1)
(4.1)
Adjusted Net Income
$13.0
Adjusted basic shares outstanding
344.4
Adjusted earnings per share
$0.04
(1) Income taxes calculated using 24%
effective rate.
E2OPEN PARENT HOLDINGS,
INC.
ADJUSTED FREE CASH
FLOW
TABLE IV
(in millions)
Q1 25
GAAP operating cash flow
35.9
Add: Non recurring cash payments (1)
4.3
Add: Change in channel client deposits
payable (2)
(1.2)
Adjusted operating cash flow
$39.1
Capital expenditures
(6.1)
Adjusted free cash flow
$33.0
(1) Primarily includes other non-recurring
expenses such as non-acquisition related severance, foreign
currency transaction gains and losses, systems integrations, legal
entity rationalization, expenses related to retention of key
employees from acquisitions and non-recurring consulting and
advisory fees.
(2) Channel Client Deposits Payable
represents client deposits for the incentive payment program
associated with the Company's channel shaping application. The
Company offers services to administer incentive payments to
partners on behalf of the Company’s clients. The Company’s clients
deposit these funds into a restricted cash account with an offset
included as a liability in incentive program payable in the
Consolidated Balance Sheets.
E2OPEN PARENT HOLDINGS,
INC.
CONSOLIDATED CAPITAL
TABLE V
Description
Shares (000's)
Notes
Shares outstanding as of May 31, 2024
307,516
Shares outstanding
Common Units
30,919
Units issued in the Business Combination
that have not been converted from common units to Class A common
stock (Common units are represented by Class V shares).
Series B-2 Shares (unvested)
3,372
Represents the right to acquire shares of
Class A common stock when the 20-day VWAP reaches $15.00 per
share.
Restricted Common Units Series 2
(unvested)
2,628
Represents the right in E2open Holdings,
LLC that converts into common units when the 20-day VWAP reaches
$15.00. Upon conversion to common units, the holders can elect to
convert the common units to Class A common stock.
Adjusted Basic Shares
344,435
Warrants
29,080
Outstanding warrants with an exercise
price of $11.50.
Options (vested/unreleased and
unvested)
6,322
Options issued to management under the
long-term incentive plan.
Restricted Shares (vested/unreleased and
unvested)
16,779
Restricted shares issued to employees,
management and directors under the long-term incentive plan.
Fully Converted Shares
396,616
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240710240699/en/
Investor Contact Dusty Buell
dusty.buell@e2open.com investor.relations@e2open.com
Media Contact 5W PR for
e2open e2open@5wpr.com 718-757-6144
Corporate Contact Kristin
Seigworth VP Communications, e2open kristin.seigworth@e2open.com
pr@e2open.com
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