E2open Parent Holdings Reports Decline in Revenue, Improved Net Loss in Latest Quarter

E2open Parent Holdings, Inc. reported its financial results for the three and six months ended August 31, 2024, revealing a decline in revenue and improvements in net loss compared to the previous fiscal period. Total revenue for the three months was $152.2 million, down 4% from $158.5 million in the same period of 2023. For the six months, revenue decreased by 5% to $303.4 million from $318.6 million. The decline in revenue was primarily attributed to lower new bookings and increased churn, particularly in subscription services, which accounted for 86% of total revenue in the latest quarter.

Gross profit for the three months ended August 31, 2024, was $74.6 million, a decrease of 6% from $79.2 million in the prior year. For the six months, gross profit fell to $147.3 million from $158.6 million. The gross margin for the three months was 49%, slightly down from 50% in the previous year. Operating expenses for the three months decreased to $89.7 million from $105.1 million, while for the six months, they significantly dropped to $179.3 million from $607.2 million, reflecting cost-cutting measures and a reduction in litigation-related expenses.

E2open reported a net loss of $32.9 million for the three months ended August 31, 2024, an improvement from a net loss of $38.6 million in the same period of 2023. For the six months, the net loss was $75.6 million, a substantial reduction from $399.5 million in the prior year. The net loss attributable to E2open Parent Holdings, Inc. for the three months was $29.9 million, compared to $34.9 million in the previous year. The company’s net loss per share for the three months was $(0.10), an improvement from $(0.12) in the prior year.

Strategically, E2open has relocated its headquarters from Austin, Texas, to Addison, Texas, effective September 16, 2024. The company has also recognized goodwill impairment charges totaling $1.1 billion during the fiscal year ended February 29, 2024, primarily due to a significant decline in market price and lower growth projections. As of August 31, 2024, E2open's total assets were $3.0 billion, down from $3.1 billion as of February 29, 2024, while total liabilities decreased to $1.5 billion from $1.6 billion.

The company continues to focus on its connected supply chain software platform, which is designed to enhance manufacturing, logistics, and distribution for large enterprises. Despite the challenges faced, E2open's management remains committed to improving operational efficiency and addressing market conditions.