HomeMarket NewsMicro Cap Stocks Why E2open is Making Waves on Wall Street Why...

Why E2open is Making Waves on Wall Street Why E2open is Making Waves on Wall Street

Actionable Trade Ideas

always free

etwo

E2open Parent Holdings IncΒ ETWO shares are soaring, up by around 11%, following the company’s report of successful Q3 FY24 results.

The company saw a 4.5% year-over-year decline in revenue to $157.5 million, surpassing the anticipated $154.3 million. Additionally, GAAP subscription revenue dropped 1.5% year-over-year to $132.8 million in the quarter.

Adjusted gross profit also exhibited a 3.4% year-over-year decline to $109.7 million, with a margin of 69.6% compared to 68.9% from a year ago.

Adjusted EBITDA decreased by 1.4% year-over-year to $55.4 million, with a margin of 35.1% (compared to 34.1% the year prior).

The adjusted EPS of $0.04 met expectations.

Year-to-date, adjusted operating cash flow, exclusive of non-recurring expenses, stood at $79.0 million.

As of November 30, 2023, cash and cash equivalent balance stood at approximately $130 million.

Outlook: For the fiscal year 2024, the company adjusted its revenue guidance to $628 million to $633 million (from $625 million to $635 million) versus the consensus of $629.53 million, reflecting a 3.3% year-over-year decrease at the mid-point.

ETWO is now anticipating subscription revenue to be $533 million to $536 million (previously $530 million to $538 million), reflecting organic growth of 0.3% at the mid-point.

For the fiscal year 2024, ETWO foresees an adjusted gross margin of 68%-70% and adjusted EBITDA of $215 million-$220 million, reflecting an implied margin of 34% to 35%.

For the fourth quarter, the company expects subscription revenue of $131 million-$134 million, reflecting a 3.2% year-over-year decrease at the mid-point.

Marje Armstrong, chief financial officer, remarked, β€œAlthough we still have work to do to transform our go-to-market and client engagement model, and conditions in some end-markets remain uncertain, our improved third-quarter execution gives us confidence in the steps we are taking to re-accelerate E2open’s growth.”

Price Action: ETWO shares are up 11.2% to $4.27 premarket on the last check Wednesday.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.