E2open Reports 4% Revenue Decline, Net Loss of $381.6 Million for Quarter Ended November 30, 2024

E2open Parent Holdings, Inc. reported a total revenue of $151.7 million for the three months ended November 30, 2024, a decrease of 4% compared to $157.5 million in the same period last year. The company's subscription revenue remained relatively stable at $132.0 million, down slightly from $132.8 million, while professional services revenue fell significantly by 20% to $19.7 million from $24.7 million. For the nine-month period, total revenue also declined by 4% to $455.0 million from $476.1 million, with subscription revenue decreasing by 2% and professional services revenue dropping by 18%.

The company experienced substantial operational challenges, leading to a net loss of $381.6 million for the quarter, compared to a loss of $740.0 million in the prior year. This loss included a goodwill impairment charge of $369.1 million, reflecting a significant decline in the market price of its Class A common stock and overall market capitalization. The total operating expenses for the quarter were $450.5 million, which included a notable reduction in general and administrative expenses, down 16% to $20.8 million, primarily due to lower personnel costs and consulting expenses.

E2open's customer engagement metrics showed a decline in new bookings and an increase in churn, which contributed to the revenue drop. The company reported a total of 309.3 million shares of Class A common stock outstanding as of January 7, 2025. The firm continues to focus on enhancing customer satisfaction and retention, which has shifted resources away from professional services, impacting billable hours.

In terms of strategic developments, E2open has been actively managing its debt, with a total of $1.06 billion outstanding under its 2021 Term Loan as of November 30, 2024. The company has also entered into interest rate collars to mitigate exposure to fluctuations in interest rates on its variable-rate debt. Looking ahead, E2open anticipates that its existing cash reserves, along with cash generated from operations and available borrowing capacity, will be sufficient to meet its working capital and capital expenditure needs for at least the next twelve months. The company remains committed to exploring potential acquisitions to enhance its market position in the supply chain management sector.