E2open Parent Holdings Inc 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, “Although 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.