The following is a summary of the E2open Parent Holdings, Inc. (ETWO) Q2 2025 Earnings Call Transcript:
Financial Performance:
Subscription revenue for Q2 2025 was $131.6 million, which while down year-over-year, was above the midpoint of guidance.
Total revenue for Q2 was $152.2 million, marking a year-over-year decline of 4%.
Professional services and other revenue showed a year-over-year decline of 13.1% at $20.6 million.E2open achieved an adjusted EBITDA of $54.9 million in Q2, with a margin of 36.1%, indicative of efficiency gains despite a revenue decline.
Business Progress:
E2open reported progress in key areas such as sales execution, pipeline management, solution delivery, and partner relations.
Significant improvements were made in client retention and reducing churn compared to Q1, with a sharp focus on client-centric operations.
Subscription bookings grew year-over-year, demonstrating resilience in demand for E2open's supply chain solutions.
Professional services revenue underperformed expectations, but management anticipates improvement as backlog execution accelerates.
Opportunities:
Renewed focus on customer satisfaction and strategic partnerships is seen as an opportunity to stabilize and eventually increase the business growth trajectory.
Risks:
The company continues experiencing delays in closing large deals which is affecting the financial performance and outlook.
Professional Services revenue has been impacted by delayed subscription bookings, reflecting execution challenges in larger deals and project completions.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
