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E2open Parent Holdings (ETWO)
NYSE:ETWO
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E2open Parent Holdings
(NYSE:ETWO)
54Neutral
Positive Factors
Client Interest
Greater uncertainty around US trade policy has driven an uptick in client interest in E2open’s Global Trade Management and Logistics applications according to management.
Management Execution
Another quarter of improving retention, bookings, and growth indicate better execution from the new management team.
Negative Factors
Debt and Leverage
E2open’s elevated leverage in a high-interest rate environment limits the company’s ability to pay down debt to meet its leverage targets.
Financial Performance
Professional services revenue was down 20% year-over-year, a downtick from Q2's 13%.
Revenue Guidance
The high-end of FY25 revenue guidance was lowered to $607-611 million from $607-617 million prior.
E2open Parent Holdings (ETWO) vs. S&P 500 (SPY)
Market Cap
$690.26M
Dividend YieldN/A
Average Volume (3M)940.80K
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth-4.50%
EPS Growth65.41%
CountryUS
Employees3,916
SectorTechnology
Sector Strength39
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.48
Shares Outstanding309,346,100
10 Day Avg. Volume1,074,659
30 Day Avg. Volume940,803
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.13
Price to Cash Flow (P/CF)9.80
P/FCF Ratio9.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.96Price Target Upside54.97% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering4
E2open Parent Holdings Business Overview & Revenue Model
Company DescriptionE2open Parent Holdings (ETWO) is a leading provider of cloud-based, end-to-end supply chain management solutions. The company operates within the technology and software sectors, offering a comprehensive suite of intelligent applications that enable businesses to manage their supply chain activities more efficiently. E2open's platform covers various areas such as demand sensing, supply planning, logistics, and global trade management, designed to integrate seamlessly with clients' existing systems to optimize their supply chain operations.
How the Company Makes MoneyE2open makes money primarily through a subscription-based revenue model, where clients pay recurring fees to access their cloud-based software solutions. The company capitalizes on its extensive portfolio of applications by offering different subscription tiers that cater to various business sizes and needs. Additionally, E2open generates revenue from professional services, which include implementation, training, and consulting services to help clients effectively utilize their solutions. Key revenue streams also include strategic partnerships and alliances with major industry players, which enhance the platform's capabilities and expand its market reach, contributing significantly to the company's earnings.
E2open Parent Holdings Financial Statement Overview
Summary
E2open Parent Holdings faces significant profitability challenges, with ongoing net losses impacting income statement metrics. The balance sheet remains relatively stable, with moderate leverage and substantial equity financing. Cash flow generation is a positive highlight, although free cash flow growth remains a concern. Overall, financial health is below industry standards, driven by persistent losses and operational inefficiencies.Income Statement
The company has shown a decrease in revenue over the TTM period compared to the previous annual report. Gross profit margin remains moderate, but net profit margin is heavily negative due to substantial losses. EBIT and EBITDA margins are also negative, indicating operational challenges and high costs relative to revenue.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, reflecting manageable leverage. However, the return on equity is negative due to net losses, indicating profitability issues. The equity ratio is satisfactory, suggesting a decent proportion of assets financed by equity.55
Neutral
Cash Flow
The cash flow statement shows positive operating cash flow, but the free cash flow growth is negative, indicating potential cash flow constraints. The operating cash flow to net income ratio is positive, suggesting better cash generation than accounting profit.60
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Dec 2020 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 613.46M | 634.55M | 652.22M | 425.56M | 305.10M | 305.10M |
| Gross Profit | |||||
| 283.49M | 317.69M | 330.28M | 202.59M | 184.04M | 184.04M |
| EBIT | |||||
| -420.06M | -1.19B | -29.43M | -53.81M | -3.89M | -14.38M |
| EBITDA | |||||
| -193.33M | 164.55M | 191.47M | 104.44M | -3.89M | 46.04M |
| Net Income Common Stockholders | |||||
| -457.84M | -1.07B | -720.20M | -189.91M | -72.70M | -101.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 151.21M | 134.48M | 93.03M | 155.48M | 194.72M | 19.49M |
| Total Assets | |||||
| 2.62B | 3.14B | 4.40B | 5.41B | 3.84B | 1.44B |
| Total Debt | |||||
| 1.07B | 1.08B | 1.08B | 985.78M | 518.62M | 951.71M |
| Net Debt | |||||
| 917.63M | 944.24M | 988.38M | 830.30M | 323.90M | 932.21M |
| Total Liabilities | |||||
| 1.48B | 1.56B | 1.67B | 1.92B | 1.36B | 1.23B |
| Stockholders Equity | |||||
| 1.09B | 1.48B | 2.50B | 3.19B | 2.08B | 214.59M |
| Cash Flow | Free Cash Flow | ||||
| 48.95M | 55.62M | 20.04M | 19.38M | -12.79M | -67.41M |
| Operating Cash Flow | |||||
| 74.36M | 84.87M | 68.10M | 51.15M | -1.23M | -55.85M |
| Investing Cash Flow | |||||
| -25.42M | -29.25M | -228.73M | -808.51M | -414.00M | -442.96M |
| Financing Cash Flow | |||||
| -12.86M | -14.02M | 90.44M | 710.71M | 415.69M | 467.62M |
E2open Parent Holdings Technical Analysis
Negative
1.91
Price Trends
2.41
Negative
2.66
Negative
3.38
Negative
Market Momentum
-0.08
Positive
34.96
Neutral
13.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETWO, the sentiment is Negative. The current price of 1.91 is below the 20-day moving average (MA) of 2.18, below the 50-day MA of 2.41, and below the 200-day MA of 3.38, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 34.96 is Neutral, neither overbought nor oversold. The STOCH value of 13.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETWO.
E2open Parent Holdings Risk Analysis
E2open Parent Holdings disclosed 54 risk factors in its most recent earnings report. E2open Parent Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
E2open Parent Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.77T | 30.05 | 34.29% | 0.85% | 15.04% | 12.38% | |
77 Outperform | $308.60B | 91.21 | 7.12% | 0.65% | 9.55% | -2.28% | |
75 Outperform | $156.52B | 24.19 | 47.28% | ― | 10.65% | 44.84% | |
75 Outperform | $245.28B | 40.12 | 10.26% | 0.63% | 8.72% | 51.47% | |
67 Neutral | $384.83B | 32.24 | 108.79% | 1.17% | 6.23% | 12.37% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
54 Neutral | $690.26M | ― | -35.18% | ― | -4.50% | 65.41% |
* Technology Sector Average
Performance Comparison
ETWO
E2open Parent Holdings
1.91
-2.40
-55.68%
ADBE
Adobe
367.25
-117.87
-24.30%
MSFT
Microsoft
373.11
-49.19
-11.65%
ORCL
Oracle
137.23
13.67
11.06%
CRM
Salesforce
255.23
-45.39
-15.10%
SAP
SAP AG
264.34
74.24
39.05%
E2open Parent Holdings Earnings Call Summary
Earnings Call Date: Jan 10, 2025 | % Change Since: -29.52% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with positive trends in subscription revenue stability, retention improvements, and strategic leadership appointments. However, challenges remain with Professional Services revenue decline, significant goodwill impairment, and prolonged deal closures. The cash position remains strong, but FX headwinds and revised guidance signal caution.Highlights
Stable Subscription Revenue
Subscription revenue was $132.0 million, above the midpoint of the $130 million to $133 million guidance, with a year-over-year decline of only 0.6%, showing improvement in retention and net new ARR.
Positive Retention Trends
Q3 retention results were positive and consistent with internal targets, showing recovery from peak churn in Q1 and stabilization towards industry benchmarks.
Strategic New Deals and Expansions
Closed deals with notable companies, including a household name manufacturer and a consumer goods client, expanding the scope of relationships and demonstrating cross-sell capabilities.
Strong Cash Position
Ended Q3 with $151.2 million in cash and cash equivalents, a $40.9 million increase year-over-year, demonstrating strong cash generation.
New Leadership and Strategic Focus
Pawan Joshi appointed as Chief Strategy Officer and Rachit Lohani as Chief Product and Technology Officer to enhance growth and innovation.
Lowlights
Professional Services Revenue Decline
Professional Services revenue was $19.7 million, a year-over-year decline of 20.4%, impacted by delayed deals and mix of subscription bookings.
Non-Cash Goodwill Impairment
Recorded a non-cash goodwill impairment charge of $369.1 million, contributing to a net loss of $381.6 million for the quarter.
Challenges with Large Deal Closures
Large deals continue to take longer to close, affecting sales cycles and impacting near-term revenue realization.
FX Headwinds Impacting Revenue
Guidance for Q4 and FY '25 revised due to a $1.1 million negative FX impact, affecting subscription revenue outlook.
Company Guidance
During the E2open Q3 2025 earnings call, the company provided guidance for the fiscal fourth quarter and full year 2025, with subscription revenue expected to be between $131 million and $134 million, representing a year-over-year decline of 2.5% to 0.3%. The full-year subscription revenue is anticipated to range from $526 million to $529 million, indicating a year-over-year growth rate of negative 2.0% to negative 1.5%. Total revenue for FY 2025 is projected to be between $607 million and $611 million, reflecting a decline of 4.3% to 3.7%. E2open also expects to maintain a gross profit margin between 68% and 70% and finish the year with an adjusted EBITDA near the low end of the initial guidance range of $215 million to $225 million, maintaining an adjusted EBITDA margin of approximately 35%. The guidance accounts for recent U.S. dollar strengthening and weaker-than-expected Q3 professional services revenue.E2open Parent Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
E2open Parent Holdings Announces Key Leadership Changes
Positive
Dec 20, 2024
E2open has announced significant leadership changes with the promotion of Pawan Joshi to Chief Strategy Officer and the appointment of Rachit Lohani as Chief Product and Technology Officer. These strategic roles aim to drive corporate growth, enhance client engagement, and foster innovation in E2open’s supply chain solutions. Joshi’s vast experience and leadership will help deepen the market understanding of E2open’s capabilities, while Lohani’s technical expertise will guide the evolution of the company’s SaaS platform to support client-centric growth and innovation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.