Wed, Oct 9, 8:29 PM (85 days ago)
E2open Parent Holdings, Inc. (ETWO) reported a challenging Q2 FY2025, with revenues declining to $152.2 million, a 4% decrease from $158.5 million in Q2 FY2024. Subscriptions revenue fell 2% to $131.6 million, while professional services dropped 13% to $20.6 million, driven by lower new bookings and increased churn. Gross profit also declined by 6% to $74.6 million, resulting in a gross margin of 49%. Operating expenses were reduced significantly, particularly general and administrative costs, which fell 44% due to a one-time legal settlement in the prior year. The company reported a net loss of $32.9 million, an improvement from $38.6 million a year ago, with an adjusted EBITDA of $54.9 million, reflecting a 2% decrease. Cash and cash equivalents increased to $142.2 million, supported by $28.4 million in operating cash flows. However, uncertainties persist regarding macroeconomic conditions and client retention, impacting future performance. The company continues to focus on enhancing its cloud-based supply chain solutions amidst these challenges.