E2open shares plunge 24% as guidance disappoints, revenue falls short of estimates

NEW YORK - E2open Parent Holdings, Inc. (NYSE: ETWO) saw its shares tumble 24% in after-hours trading on Wednesday after the supply chain software company reported second quarter revenue that fell short of expectations and provided disappointing full-year guidance.

E2open reported Q2 revenue of $152.2 million, down 4% YoY and below the analyst consensus of $154.81 million. Adjusted earnings per share came in at $0.05, in line with estimates.

The company's GAAP subscription revenue for the quarter was $131.6 million, a decrease of 2.3% from the year-ago period.

Looking ahead, E2open lowered its fiscal 2025 revenue outlook to a range of $607 million to $617 million, well below the $632.4 million analysts were expecting. The new guidance reflects a negative 3.6% organic growth rate at the midpoint.

"While we have more work to do to return to sustainable double-digit growth, we enjoy a strong market foundation of highly competitive solutions and an impressive blue-chip customer base that we will build on going forward," said CEO Andrew Appel.

The company cited delays in closing certain large, complex deals due to extended client decision timelines as a factor impacting results. E2open said it is taking a more conservative view of full-year performance given these challenges.

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Source: Investing.com