E2open Announces Fiscal Second Quarter 2022 Financial Results

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Achieved organic growth target one quarter early

Reiterates previously raised revenue guidance

Increases adjusted EBITDA guidance

AUSTIN, TexasE2open Parent Holdings, Inc. (NYSE: ETWO), a leading network-based provider of a cloud-based, mission-critical, end-to-end supply chain management platform, today announced financial results for its fiscal second quarter 2022 ended August 31, 2021.

“We had a very strong second quarter where we exceeded our plan on revenue, gross margin, and EBITDA. Earlier this year, we announced that we would achieve double-digit organic growth in our fiscal third quarter. We are excited to have achieved this important milestone one quarter early,” said Michael Farlekas, chief executive officer of E2open. “Due to our strong performance and accelerating momentum in the first half of our fiscal 2022, we are reaffirming our revenue guidance which we raised on September 1st. We also acquired BluJay Solutions and we are excited to share our combined capabilities with our customers and welcome BluJay’s talented team to E2open.”

Fiscal Second Quarter 2022 Financial Highlights

NOTE: Non-GAAP revenue adds back amortization of the purchase accounting fair value adjustment to deferred revenue resulting from the business combination with CC Neuberger Principal Holdings I (CCNB1) as required by GAAP. The Company is adding this back to provide better comparability in the calculation of our organic growth rate.

  • Revenue: Total GAAP revenue for fiscal second quarter 2022 reached $78.1 million, a decrease of 4.6% from $81.8 million in the fiscal second quarter of 2021. Total non-GAAP revenue was $92.3million, an increase of 12.8% compared to $81.8 million in the fiscal second quarter of 2021. E2open was able to achieve a double-digit organic growth rate one quarter early from previous expectations.

    GAAP subscription revenue for the fiscal second quarter of 2022 was $61.7 million compared to $69.0 million in the prior year period, a decrease of 10.6%. Fiscal second quarter 2022 non-GAAP subscription revenue was up 10.0% to $75.9 million compared to $69.0 million from the prior fiscal second quarter.
  • Gross Profit: Gross profit for the fiscal second quarter of 2022 was $38.5 million, a decrease of 25.4% compared with $51.7 million in the same quarter of 2021. Non-GAAP gross profit for the fiscal second quarter of 2022 was $68.1 million, an increase of 16.5% compared to $58.5 million in the prior year's second quarter.
  • Gross Margin: Gross margin was 49.3% versus 63.1% in the fiscal second quarter of 2022 versus 2021, respectively. Non-GAAP gross margin was 73.8% versus 71.5% when compared to fiscal second quarter of 2021.
  • EBITDA: EBITDA for the fiscal second quarter of 2022 was $8.8 million compared with $22.8 million in the same quarter of 2021. Adjusted EBITDA was $33.5 million with a margin of 36.3%, an increase from $26.2 million in the fiscal second quarter 2021 with a margin of 32.0%.
  • Net Loss: Net loss for the fiscal second quarter of 2022 was $24.0 million compared with a net loss of $17.5 million in the same quarter of 2021.
  • Cash flow: Cash provided by operating activities was $41.5 million for the second quarter of fiscal 2022, compared to cash provided by operating activities of $42.0 million in the prior year period.

 

Variance

(in millions)

Successor(a)

Q2 2022

Predecessor(a)

Q2 2021

%

 

 

 

 

 

Subscription Revenue

$61.7

$69.0

-10.6%

Deferred revenue purchase accounting adjustment (b)

14.2

-

-

Non-GAAP subscription revenue

75.9

69.0

10.0%

Professional Services Revenue

16.4

12.8

27.9%

Non-GAAP Revenue

$92.3

$81.8

12.8%

 

 

 

Gross Profit

$38.5

$51.7

-25.4%

 

Gross Profit Margin

49.3%

63.1%

 

 

Non-GAAP Gross Profit

$68.1

$58.5

16.5%

Non-GAAP Gross Profit Margin (c)

73.8%

71.5%

 

 

 

 

Adjusted EBITDA

$33.5

$26.2

28.1%

Adjusted EBITDA Margin (d)

36.3%

32.0%

 

 

 

Footnotes (see reconciliation table for GAAP to non-GAAP metrics)

(a)

As a result of the combination (Business Combination) of E2open Holdings, LLC and CC Neuberger Principal Holdings, I (CCNB1) on February 4, 2021, the financial results are broken out between the Predecessor period which is prior to February 4, 2021 and the Successor period which is February 4, 2021 and after.

(b)

Non-GAAP revenue adds back amortization of the purchase accounting fair value adjustment to deferred revenue resulting from the business combination as required by GAAP

(c)

Calculated utilizing non-GAAP gross profit as a percentage of non-GAAP revenue.

(d)

Calculated utilizing adjusted EBITDA as a percentage of non-GAAP revenue.

Recent Business Highlights

  • With the progress that E2open has made achieving its growth target and to capitalize on the momentum in the marketplace, the company is continuing its investments in sales and marketing, most recently hiring a chief marketing officer.
  • E2open closed the acquisition of BluJay Solutions, a leading cloud-based, logistics execution platform on September 1, 2021. The combination will provide more robust capabilities and value to our customers while helping E2open to accelerate long-term growth.
  • E2open has entered a strategic partnership with Vizient, the nation's largest member-driven health care services company to bring increased resiliency, transparency, and collaboration to their health care supply chain.

Financial Outlook for Fiscal Year 2022

As of October 13, 2021, E2open is reaffirming its non-GAAP revenue guidance which it raised in conjunction with the BluJay closure on September 1, 2021. E2open is also raising its adjusted EBITDA guidance for its full fiscal year 2022, which ends February 28, 2022, as follows:

Revenue Growth

  • Total non-GAAP revenue is expected to be in the range of $470 million to $474 million reflecting a more than 10% growth rate. Refer to the Non-GAAP Revenue Outlook Tables at the end of this press release for more detail.
Full Year:
E2open + BluJay
Revenue
E2open Full Year + BluJay 2nd Half
Revenue
($ in millions)Original Pro-forma
Guidance
Previous
Guidance
Reiterated Guidance @
9/1/2021
FY21FY22FY22$ Var
E2open

$370

$370

$373 - 375

$3 - 5

Growth %

10%

10%

11%

 
BluJay

$188

$96

$97 - 99

$1 - 3

Growth %

6%

3%

6%

 
Total Company

$558

$466

$470 - 474

$4 - 8

Growth %

8%

8%

10%

Adjusted EBITDA

  • Adjusted EBITDA is expected to be in the range of $161 million to $163 million versus prior guidance of $158 million provided at the announcement of the BluJay transaction. Refer to the Adjusted EBITDA Outlook Table at the end of this press release for more detail.
($ in millions)Full Year:
E2open + BluJay
Adjusted EBITDA
E2open Full Year +
BluJay 2nd Half
Adjusted EBITDA
Original Pro-forma
Guidance
As Reported
Guidance
Revised
Guidance
FY22FY22FY22
E2open

$121

$121

 
BluJay

$63

$32

 
Total Synergy

$20

$5

 
Total Company

$204

$158

$161 - 163

Margin

34%

34%

34%

Synergies and Margin

  • Total synergies related to the recent BluJay combination are projected to be $25 million compared to $20 million announced previously. The company expects to achieve between 50 to 60% run-rate savings by the end of fiscal 2022.
  • Non-GAAP gross profit margin is expected to be in the range of 70% to 72%.

Quarterly Conference Call

E2open will host a video webinar today at 5:00 p.m. ET to discuss fiscal second quarter 2022 financial results, in addition to discussing the Company’s outlook for the full fiscal year 2022. The video webinar will be available live on the Investor Relations section of the Company's website at www.e2open.com. A replay will be available within 12 hours after the conclusion of the live event.

About E2open

At E2open, we’re creating a more connected, intelligent supply chain. It starts with sensing and responding to real-time demand, supply and delivery constraints. Bringing together data from clients, distribution channels, suppliers, contract manufacturers and logistics partners, our collaborative and agile supply chain platform enables companies to use data in real time, with artificial intelligence and machine learning to drive smarter decisions. All this complex information is delivered in a single view that encompasses your demand, supply and logistics ecosystems. E2open is changing everything. Demand. Supply. Delivered. Visit www.e2open.com.

E2open and the E2open logo are registered trademarks of E2open, LLC. Demand. Supply. Delivered. is a trademark of E2open, LLC.

Non-GAAP Financial Measures

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including non-GAAP revenue, non-GAAP subscription revenue, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross profit, non-GAAP net income, net debt, and non-GAAP gross margin. These non-GAAP financial measures are not a measure of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies.

The Company believes this non-GAAP measure of financial results provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures.

Safe Harbor Statement

Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company's expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance" or the negative of those terms or other comparable terminology.

Please see the Company's documents filed or to be filed with the Securities and Exchange Commission, including the annual report filed on Form 10-K, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this press release. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

E2OPEN PARENT HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
SuccessorPredecessorSuccessorPredecessor
Three Months
Ended
Three Months
Ended
Six Months
Ended
Six Months
Ended
(In thousands, except per share amounts)August 31, 2021August 31, 2020August 31, 2021August 31, 2020
Revenue
Subscriptions

$

61,725

 

$

69,035

 

$

112,759

 

$

138,639

 

Professional services

 

16,354

 

 

12,782

 

 

31,647

 

 

26,302

Total revenue

 

78,079

 

 

81,817

 

 

144,406

 

 

164,941

 

Cost of Revenue
Subscriptions

 

16,246

 

 

14,860

 

 

32,754

 

 

28,998

 

Professional services

 

10,967

 

 

10,350

 

 

21,107

 

 

21,445

 

Amortization of acquired intangible asset

 

12,338

 

 

4,947

 

 

23,849

 

 

10,508

 

Total cost of revenue

 

39,551

 

 

30,157

 

 

77,710

 

 

60,951

 

Gross Profit

 

38,528

 

 

51,660

 

 

66,696

 

 

103,990

 

Operating Expenses
Research and development

 

16,208

 

 

14,356

 

 

31,909

 

 

28,987

 

Sales and marketing

 

11,174

 

 

11,992

 

 

23,688

 

 

24,302

 

General and administrative

 

13,401

 

 

9,861

 

 

27,118

 

 

19,625

 

Acquisition-related expenses

 

7,174

 

 

2,018

 

 

16,952

 

 

5,386

 

Amortization of acquired intangible assets

 

3,543

 

 

8,447

 

 

7,373

 

 

16,914

 

Total operating expenses

 

51,500

 

 

46,674

 

 

107,040

 

 

95,214

 

(Loss) income from operations

 

(12,972

)

 

4,986

 

 

(40,344

)

 

8,776

 

Other (expense) income
Interest and other expense, net

 

(6,332

)

 

(16,308

)

 

(11,235

)

 

(35,680

)

Change in tax receivable agreement liability

 

(637

)

 

 

 

(3,136

)

 

 

Gain (loss) from change in fair value of warrant liability

 

18,727

 

 

 

 

(41,216

)

 

 

Loss from change in fair value of contingent consideration

 

(16,780

)

 

 

 

(90,040

)

 

 

Total other expenses

 

(5,022

)

 

(16,308

)

 

(145,627

)

 

(35,680

)

Loss before income tax expense

 

(17,994

)

 

(11,322

)

 

(185,971

)

 

(26,904

)

Income tax expense

 

(5,994

)

 

(6,218

)

 

(7,372

)

 

(14,388

)

Net loss

 

(23,988

)

$

(17,540

)

 

(193,343

)

$

(41,292

)

Less: Net loss attributable to noncontrolling interest

 

(3,471

)

 

(30,568

)

Net loss attributable to E2open Parent Holdings, Inc.

$

(20,517

)

$

(162,775

)

 
Net loss attributable to E2open Parent Holdings, Inc. common shareholders per share:
Basic

$

(0.11

)

$

(0.85

)

Diluted

$

(0.11

)

$

(0.85

)

E2OPEN PARENT HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

 
Successor
(In thousands, except share amounts)August 31, 2021February 28, 2021
(unaudited)
Assets
Cash and cash equivalents

$

473,133

 

$

194,717

Restricted cash

 

10,553

 

 

12,825

Accounts receivable - net of allowance of $801 and $908, respectively

 

67,569

 

 

112,657

Prepaid expenses and other current assets

 

19,036

 

 

12,643

Total current assets

 

570,291

 

 

332,842

Long-term investments

 

219

 

 

224

Goodwill

 

2,629,624

 

 

2,628,646

Intangible assets, net

 

793,420

 

 

824,851

Property and equipment, net

 

47,695

 

 

44,198

Operating lease right-of-use assets

 

19,266

 

 

Other noncurrent assets

 

10,237

 

 

7,416

Total assets

$

4,070,752

 

$

3,838,177

Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities

$

64,431

 

$

70,233

Incentive program payable

 

10,553

 

 

12,825

Deferred revenue

 

107,428

 

 

89,691

Payable to sellers

 

280,000

 

 

Acquisition-related obligations

 

 

 

2,000

Current portion of notes payable

 

3,999

 

 

4,405

Current portion of operating lease obligations

 

4,788

 

 

Current portion of financing lease obligations

 

2,406

 

 

4,827

Total current liabilities

 

473,605

 

 

183,981

Long-term deferred revenue

 

2,827

 

 

482

Operating lease obligations

 

14,975

 

 

Financing lease obligations

 

2,211

 

 

6,588

Notes payable

 

502,616

 

 

502,800

Tax receivable agreement liability

 

63,325

 

 

50,114

Warrant liability

 

109,988

 

 

68,772

Contingent consideration

 

65,848

 

 

150,808

Deferred taxes

 

399,600

 

 

396,217

Other noncurrent liabilities

 

1,025

 

 

1,057

Total liabilities

 

1,636,020

 

 

1,360,819

Commitments and Contingencies
Stockholders' Equity
Class A common stock; $0.0001 par value, 2,500,000,000 shares authorized;
197,751,492 and 187,051,142 issued and outstanding as of August 31, 2021 and
February 28, 2021

 

20

 

 

19

Class V common stock; $0.0001 par value; 42,747,890 and 40,000,000 shares authorized;
35,876,893 and 35,636,680 issued and outstanding as of August 31, 2021 and
February 28, 2021

 

 

 

Series B-1 common stock; $0.0001 par value; 9,000,000 shares authorized; 94 and 8,120,367
issued and outstanding as of August 31, 2021 and February 28, 2021

 

 

 

Series B-2 common stock; $0.0001 par value; 4,000,000 shares authorized; 3,372,184 issued
and outstanding as of August 31, 2021 and February 28, 2021

 

 

 

Additional paid-in capital

 

2,272,139

 

 

2,071,206

Accumulated other comprehensive (loss) income

 

(2,660

)

 

2,388

(Accumulated deficit) retained earnings

 

(151,975

)

 

10,800

Treasury stock, at cost: 176,654 shares as of August 31, 2021

 

(2,473

)

 

Total E2open Parent Holdings, Inc. equity

 

2,115,051

 

 

2,084,413

Noncontrolling interest

 

319,681

 

 

392,945

Total stockholders' equity

 

2,434,732

 

 

2,477,358

Total liabilities and stockholders' equity

$

4,070,752

 

$

3,838,177

 

E2OPEN PARENT HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 
SuccessorPredecessor
Six Months EndedSix Months Ended
(In thousands)August 31, 2021August 31, 2020
Cash flows from operating activities
Net loss

$

(193,343

)

$

(41,292

)

Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization

 

41,000

 

 

33,866

 

Amortization of deferred commissions

 

410

 

 

1,964

 

Amortization of debt issuance costs

 

1,334

 

 

2,158

 

Amortization of operating lease right-of-use assets

 

3,742

 

 

 

Share-based and unit-based compensation

 

4,552

 

 

4,017

 

Change in tax receivable agreement liability

 

3,136

 

 

 

Loss from change in fair value of warrant liability

 

41,216

 

 

 

Loss from change in fair value of contingent consideration

 

90,040

 

 

 

(Gain) loss on disposal of property and equipment

 

(236

)

 

34

 

Changes in operating assets and liabilities:
Accounts receivable, net

 

45,088

 

 

65,733

 

Prepaid expenses and other current assets

 

(6,401

)

 

(2,700

)

Other noncurrent assets

 

(3,232

)

 

(1,925

)

Accounts payable and accrued liabilities

 

(1,453

)

 

(13,927

)

Incentive program payable

 

(2,272

)

 

13,126

 

Deferred revenue

 

20,083

 

 

(32,476

)

Changes in other liabilities

 

(2,180

)

 

13,408

 

Net cash provided by operating activities

 

41,484

 

 

41,986

 

Cash flows from investing activities
Capital expenditures

 

(17,372

)

 

(7,762

)

Net cash used in investing activities

 

(17,372

)

 

(7,762

)

Cash flows from financing activities
Proceeds from PIPE investment

 

280,000

 

 

 

Proceeds from sale of membership units

 

 

 

1,778

 

Repayments of indebtedness

 

(1,582

)

 

(19,667

)

Repayments of financing lease obligations

 

(5,902

)

 

(2,443

)

Repurchase of common stock

 

(2,473

)

 

 

Repurchase of Common Units

 

(16,767

)

 

 

Net cash used in financing activities

 

253,276

 

 

(20,332

)

Effect of exchange rate changes on cash and cash equivalents

 

(1,244

)

 

(448

)

Net increase in cash, cash equivalents and restricted cash

 

276,144

 

 

13,444

 

Cash, cash equivalents and restricted cash at beginning of period

 

207,542

 

 

48,428

 

Cash, cash equivalents and restricted cash at end of period

$

483,686

 

$

61,872

 

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents

$

473,133

 

$

19,813

 

Restricted cash

 

10,553

 

 

42,059

 

Total cash, cash equivalents and restricted cash

$

483,686

 

$

61,872

 

Supplemental Information - Cash Paid for:
Interest

$

10,504

 

$

33,888

 

Income taxes

 

824

 

 

1,146

 

Non-Cash Investing and Financing Activities:
Capital expenditures financed under financing lease obligations

$

 

$

11,005

 

Capital expenditures included in accounts payable and accrued liabilities

 

1,435

 

 

10

 

Right-of-use assets obtained in exchange for operating lease obligations

 

23,008

 

 

 

Prepaid software, maintenance and insurance under notes payable

 

 

 

417

 

Conversion of Common Units to Class A Common Stock

 

27,228

 

 

 

Conversion of Series B1 common stock to Class A Common Stock

 

175,000

 

 

 

Business Combination purchase price adjustment

 

2,965

 

 

 

E2OPEN PARENT HOLDINGS, INC.

RECONCILIATION OF NON-GAAP INFORMATION TABLE

 
SuccessorPredecessor
($ in millions)Three Months
ended August
31, 2021
Three Months
ended August
31, 2020
Subscription revenue

$

61.7

 

$

69.0

 

Professional services revenue

 

16.4

 

 

12.8

 

Revenue

 

78.1

 

 

81.8

 

Deferred revenue purchase accounting adjustment (a)

 

14.2

 

 

-

 

Non-GAAP Revenue

 

92.3

 

 

81.8

 

 
Gross Profit

 

38.5

 

 

51.7

 

Adjustments
Deferred revenue purchase accounting adjustment (a)

 

14.2

 

 

-

 

Depreciation expenses

 

2.7

 

 

1.7

 

Amortization of intangible assets

 

12.3

 

 

4.9

 

Share - based compensation (b)

 

0.2

 

 

0.1

 

Non-recurring/non-operating costs (c)

 

0.2

 

 

0.1

 

Non-GAAP Gross Profit

 

68.1

 

 

58.5

 

Gross profit margin

 

49.3

%

 

63.1

%

Non-GAAP Gross profit margin (d)

 

73.8

%

 

71.5

%

EBITDA

 

8.8

 

 

22.8

 

Adjustments
Deferred revenue purchase accounting adjustment (a)

 

14.2

 

 

-

 

Change in fair value of financial instruments (e)

 

(1.9

)

 

-

 

Change in tax receivable agreement (f)

 

0.6

 

 

-

 

Acquisition-related adjustments (g)

 

7.1

 

 

2.0

 

Non-recurring/non-operating costs (c)

 

2.1

 

 

(0.6

)

Share - based compensation (b)

 

2.5

 

 

2.0

 

Adjusted EBITDA

 

33.5

 

 

26.2

 

EBITDA Margin

 

11.3

%

 

27.9

%

Adjusted EBITDA Margin (h)

 

36.3

%

 

32.0

%

Footnotes

 

 

 

(a)

 

Non-GAAP revenue adds back amortization of the purchase accounting fair value adjustment to deferred revenue resulting from the business combination as required by GAAP.

 

 

(b)

 

Reflects non-cash, long-term share-based compensation expense, primarily related to senior management.

 

 

 

(c)

 

Primarily includes foreign currency exchange gain and losses and other non-recurring expenses such as systems integrations, legal entity simplification, and advisory fees.

 

(d)

 

Calculated utilizing non-GAAP gross profit as a percentage of non-GAAP revenue.

 

(e)

 

Represents the fair value adjustment at each balance sheet date of the warrant liability related to the public, private placement and forward purchase warrants and the fair value adjustment at each balance sheet date of the contingent consideration liability related to the restricted Series B-1 and B-2 common stock and Sponsor Side Letter.

 

(f)

 

Represents the expense related to the change in the fair value of the tax receivable agreement liability, including interest.

 

(g)

 

Primarily includes advisory, consulting, accounting and legal expenses incurred in connection with mergers and acquisitions activities, including related valuation, negotiation and integration costs and capital-raising activities, including costs related to the acquisition of Amber Road, Inc., the Business Combination and the acquisition of BluJay.

 

(h)

 

Calculated utilizing adjusted EBITDA as a percentage of non-GAAP revenue.

E2OPEN PARENT HOLDINGS, INC.
NON-GAAP REVENUE(1) OUTLOOK
($ in millions)

Adjusting for the closing of BluJay on September 1, 2021 (the first day of E2open’s fiscal third quarter), the combined company guidance at the time of announcement of the transaction was $466 million of non-GAAP revenue guidance. The total pro forma revenue guidance for the full fiscal year ending February 28, 2022 for the combined business was $558 million.

Full Year:
E2open + BluJay

E2open Full Year +
BluJay 2nd Half

Original Pro-forma
Guidance(2)

As Reported
Guidance(4)

FY22

FY22

E2open

$370(6)

$370(6)

Growth %

10%

10%

 

 

BluJay

$188

$96

Growth %

6%(7)

3%

 

 

Total Company

$558

$466

Growth %

8%(7)

8%

Fiscal year 2022 non-GAAP revenue guidance on a combined company basis is $470 million to $474 million, an increase of $4 million to $8 million from the $466 million guidance provided at the announcement of the transaction.

E2open Full Year + BluJay 2nd Half

Actual(3)

Previous
Guidance(4)

Reiterated Guidance(5) @
9/1/2021

FY21

FY22

FY22

$ Var

E2open

$338

$370(6)

$373 - 375

$3 - 5

Growth %

 

10%

11%(8)

 

 

 

 

 

BluJay

$93

$96

$97 - 99

$1 - 3

Growth %

 

3%

6%(8)

 

 

 

 

 

Total Company

$431

$466

$470 - 474(9)

$4 - 8

Growth %

 

8%

10%(8)

 

(1)

Non-GAAP revenue adds back amortization of the purchase accounting fair value adjustment to deferred revenue resulting from the business combinations as required by GAAP

 

 

(2)

Full pro-forma view of both businesses with E2open fiscal year end February 28 and BluJay fiscal year end March 31

 

(3)

Reflects non-GAAP full year revenue of E2open and 2nd half of BluJay

 

 

(4)

Reflects full year of E2open per our previous guidance and the corresponding 2nd half BluJay guidance given a 9/1/2021 transaction close date

 

 

(5)

Reflects full year of E2open and the corresponding 2nd half BluJay revised guidance for full fiscal year 2022 as of the transaction closing September 1, 2021

 

 

(6)

Based on the mid-point of non-GAAP revenue guidance reaffirmed on July 14, 2021

 

 

(7)

Fiscal year 2022 BluJay and total company growth rate at announcement was 7% and 9% respectively. The updated growth rate of 6% and 8% respectively are due to the over performance of the BluJay’s business in fiscal fourth quarter 2021

 

 

(8)

Revised guidance growth rate based on mid-point of revised guidance range

 

 

(9)

Total company revised non-GAAP revenue midpoint of $472 million equates to $570 million on a full pro forma basis for fiscal year 2022 vs. original pro forma guidance of $558 million

E2OPEN PARENT HOLDINGS, INC.
ADJUSTED EBITDA OUTLOOK
($ in millions)

Adjusting for the closing of BluJay on September 1, 2021 (the first day of E2open’s fiscal third quarter), the combined company guidance at the time of announcement of the transaction was $158 million of adjusted EBITDA. The total pro forma adjusted EBITDA guidance for the full fiscal year ending February 28, 2022 for the combined business was $204 million. We are increasing our like-for-like guidance based on the closing date of the BluJay transaction to $161 million to $163 million.

($ in millions)

Full Year:
E2open + BluJay
Adjusted EBITDA

 

E2open Full Year + BluJay 2nd Half
Adjusted EBITDA

Original Pro-forma
Guidance(1)

 

As Reported
Guidance(3)

Revised
Guidance

FY22

 

FY22

FY22

E2open

$121(2)

 

$121(2)

 

 

 

 

 

BluJay

$63

 

$32

 

 

 

 

 

Total Synergy

$20

 

$5(4)

 

 

 

 

 

Total Company

$204

$158

$161 - 163

Margin

34%

 

34%

34%

(1) Full pro-forma view of both businesses with E2open fiscal year end February 28 and BluJay fiscal year end March 31

(2) Based on the mid-point adjusted EBITDA guidance reaffirmed on July 14, 2021

(3) Reflects full year of E2open per our previous guidance and the corresponding 2nd half BluJay guidance given a 9/1/2021 transaction close date

(4) Reflects the amount projected to be realized in adjusted EBITDA related to the actioned synergies during the second half of fiscal 2022

 

Investor Contact
Adam Rogers
E2open
adam.rogers@e2open.com
515-556-1162

Media Contact
WE Communications for E2open
e2open@we-worldwide.com
512-527-7029

Source: E2open Parent Holdings, Inc.