Financial News
E2open Announces Fiscal Third Quarter 2022 Financial Results
Growth Acceleration Continues
Raises Fiscal Year 2022 Revenue Guidance
E2open 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 third quarter 2022 ended November 30, 2021.
“I am extremely pleased with our exceptional performance in a very dynamic environment,” said Michael Farlekas, chief executive officer at E2open. “We outperformed our key metrics in the third quarter and organic growth is accelerating– all while integrating our largest acquisition to date. The BluJay integration is ahead of plan and reinforces our view of the large strategic value and financial accretion the transaction delivers to E2open.”
“Moreover, the market recognizes the strength of our supply chain operating platform and its ability to solve one of the most important and challenging problems companies face today–visibility and control to operate their global supply chains as one connected system,” Farlekas added.
Fiscal Third 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. Refer to the Reconciliation of Non-GAAP Information Table and Pro Forma Reconciliation Tables at the end of this press release for more detail.
-
Revenue
- Total GAAP revenue for third quarter of 2022 was $137.0 million compared to $84.1 million in the prior period. Total non-GAAP revenue was $147.4 million compared to a non-GAAP pro forma of $129.5 million in the prior third quarter, reflecting non-GAAP revenue growth of 13.8%. The prior period non-GAAP pro forma total revenue of $129.5 million represents the combination of E2open total revenue and BluJay total revenue for the period, as if BluJay was acquired on September 1, 2020.
- GAAP subscription revenue for the third quarter of 2022 was $107.0 million compared to $70.4 million in the prior period. Non-GAAP subscription revenue was $117.4 million compared to a non-GAAP pro forma of $105.6 million from the prior third quarter, reflecting non-GAAP revenue growth of 11.2%. The prior period non-GAAP pro forma subscription revenue of $105.6 million represents the combination of E2open subscription revenue and BluJay subscription revenue for the period, as if BluJay was acquired on September 1, 2020.
(in millions) |
Q3 FY2022 |
|
Q3 FY2021(1) |
|
$ Var |
|
% Var |
|
Total GAAP Revenue |
$137.0 |
|
$84.1 |
|
$52.9 |
|
62.9% |
|
Deferred revenue purchase accounting adjustment |
10.4 |
|
- |
|
- |
|
- |
|
Pre-acquisition revenue |
- |
|
45.5 |
|
- |
|
- |
|
Total non-GAAP Revenue |
$147.4 |
|
$129.5 |
|
$17.9 |
|
13.8% |
|
|
|
|
|
|
|
|
|
|
GAAP Subscription revenue |
$107.0 |
|
$70.4 |
|
$36.6 |
|
52.0% |
|
Deferred revenue purchase accounting adjustment |
10.4 |
|
- |
|
- |
|
- |
|
Pre-acquisition subscription revenue |
- |
|
35.2 |
|
- |
|
- |
|
Non-GAAP Subscription revenue |
$117.4 |
|
$105.6 |
|
$11.8 |
|
11.2% |
|
|
|
|
|
|
|
|
|
|
GAAP Professional services revenue |
$30.0 |
|
$13.7 |
|
$16.3 |
|
119.0% |
|
Pre-acquisition professional services revenue |
- |
|
10.2 |
|
- |
|
- |
|
Non-GAAP Professional services revenue |
$30.0 |
|
$23.9 |
|
$6.1 |
|
25.5% |
|
(1) Non-GAAP pro forma inclusive of BluJay as if acquired on September 1, 2020. Refer to the Pro forma Reconciliation Table at the end of this press release for more detail. |
||||||||
-
Gross Profit and Gross Margin
- GAAP gross profit for the third quarter of 2022 was $64.2 million compared to $52.2 million in the comparable quarter of 2021. Non-GAAP gross profit was $103.4 million compared to a non-GAAP pro forma of $89.6 million in the prior year's third quarter. The prior period non-GAAP pro forma gross profit of $89.6 million represents the combination of E2open gross profit and BluJay gross profit for the period, as if BluJay was acquired on September 1, 2020.
- GAAP gross margin for the third quarter of 2022 was 46.9% compared to 62.1% in the comparable quarter of 2021. Non-GAAP gross margin was 70.1% versus a non-GAAP pro forma of 69.2% when compared to third quarter of 2021. The prior period non-GAAP pro forma gross margin of 69.2% represents the combination of E2open gross profit and BluJay gross profit for the period, as if BluJay was acquired on September 1, 2020.
(in millions) |
Q3 FY2022 |
|
Q3 FY2021(1) |
|
$ Var |
|
% Var |
|
Non- GAAP Gross profit |
|
|
|
|
|
|
|
|
E2open |
$103.4 |
|
$59.7 |
|
$43.7 |
|
73.2% |
|
Pre-acquisition gross profit |
- |
|
29.9 |
|
- |
|
|
|
Total Non-GAAP Gross profit |
$103.4 |
|
$89.6 |
|
$13.8 |
|
15.4% |
|
Gross margin % |
70.1% |
|
69.2% |
|
|
|
|
|
(1) Pro forma inclusive of BluJay, as if acquired on September 1, 2020. Refer to the Pro forma Reconciliation Table at the end of this press release for more detail. |
||||||||
-
EBITDA and EBITDA Margin
- EBITDA for the third quarter of 2022 was -$14.6 million compared with $16.9 million in the comparable quarter of 2021. Adjusted EBITDA was $45.9 million, an increase from non-GAAP pro forma adjusted EBITDA of $45.2 million in the third quarter 2021. The prior period non-GAAP pro forma adjusted EBITDA of $45.2 million represents the combination of E2open adjusted EBITDA and BluJay adjusted EBITDA for the period, as if BluJay was acquired on September 1, 2020.
- Adjusted EBITDA margin for the third quarter of 2022 was 31.1% versus a non-GAAP pro forma of 34.9% in the comparable quarter of 2021. The prior period non-GAAP pro forma adjusted EBITDA margin of 34.9% represents the combination of E2open adjusted EBITDA margin and BluJay adjusted EBITDA margin for the period, as if BluJay was acquired on September 1, 2020.
(in millions) |
Q3 FY2022 |
|
Q3 FY2021(1) |
|
$ Var |
|
% Var |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
E2open |
$45.9 |
|
$28.3 |
|
17.6 |
|
62.4% |
|
Pre-acquisition adjusted EBITDA |
- |
|
16.9 |
|
- |
|
- |
|
Total Adjusted EBITDA |
$45.9 |
|
$45.2 |
|
$0.7 |
|
1.5% |
|
Adjusted EBITDA margin % |
31.1% |
|
34.9% |
|
|
|
|
|
(1) Pro forma inclusive of BluJay, as if acquired on September 1, 2020. Refer to the Pro forma Reconciliation Table at the end of this press release for more detail. |
||||||||
- Net Loss: Net loss for the third quarter of 2022 was $64.3 million compared with a net loss of $27.1 million in the comparable quarter of 2021.
- Cash flow: For the nine months ended November 30, 2021, cash provided by operating activities was $28.2 million compared to $30.1 million in the prior year period.
Recent Business Highlights
- E2open continues to build out a new logo sales team to drive performance in organic revenue growth. Nearly 30% of new bookings in the third quarter of 2022 came from new logos, compared to 15% in the third quarter of 2021.
- Average enterprise new logo contract size (over $100k of annual subscription revenue) was more than double that of the third quarter 2021 which was around $200k. This reflects greater scope, scale and pricing for initial client engagements.
- E2open recently launched “Global Logistics Orchestration” a network-based product that enables our customers to orchestrate materials and finished product to move across their network of carriers, across modes, regardless of whether movements are initiated by internal logistics teams or third-party logistics service providers or both.
Financial Outlook for Fiscal Year 2022
As of January 12, 2022, E2open is providing non-GAAP guidance for the remainder of its full fiscal year 2022, which ends February 28, 2022, as follows:
- E2open is increasing its total non-GAAP revenue guidance range to $474 million to $476 million reflecting a 10.2% organic growth rate at the mid-point.
- Adjusted EBITDA is expected to be in the range of $161 million to $163 million.
- 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 third 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, logistics and global trade ecosystems. E2open is changing everything. Demand. Supply. Delivered.TM 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) |
||||||||||||||||||
|
|
Successor |
|
|
Predecessor |
|
Successor |
|
|
Predecessor |
||||||||
|
|
Three Months Ended |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
Nine Months Ended |
||||||||
(In thousands, except per share amounts) |
|
November 30, 2021 |
|
|
November 30, 2020 |
|
November 30, 2021 |
|
|
November 30, 2020 |
||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
||||||||
Subscriptions |
|
$ |
106,969 |
|
|
|
$ |
70,374 |
|
|
$ |
219,728 |
|
|
|
$ |
209,013 |
|
Professional services |
|
|
30,033 |
|
|
|
|
13,707 |
|
|
|
61,680 |
|
|
|
|
40,009 |
|
Total revenue |
|
|
137,002 |
|
|
|
|
84,081 |
|
|
|
281,408 |
|
|
|
|
249,022 |
|
Cost of Revenue |
|
|
|
|
|
|
|
|
|
|
||||||||
Subscriptions |
|
|
30,163 |
|
|
|
|
15,568 |
|
|
|
62,917 |
|
|
|
|
44,566 |
|
Professional services |
|
|
17,587 |
|
|
|
|
11,346 |
|
|
|
38,694 |
|
|
|
|
32,791 |
|
Amortization of acquired intangible assets |
|
|
25,036 |
|
|
|
|
4,945 |
|
|
|
48,885 |
|
|
|
|
15,453 |
|
Total cost of revenue |
|
|
72,786 |
|
|
|
|
31,859 |
|
|
|
150,496 |
|
|
|
|
92,810 |
|
Gross Profit |
|
|
64,216 |
|
|
|
|
52,222 |
|
|
|
130,912 |
|
|
|
|
156,212 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
25,000 |
|
|
|
|
14,225 |
|
|
|
56,909 |
|
|
|
|
43,212 |
|
Sales and marketing |
|
|
18,101 |
|
|
|
|
12,973 |
|
|
|
41,789 |
|
|
|
|
37,275 |
|
General and administrative |
|
|
22,871 |
|
|
|
|
10,412 |
|
|
|
49,989 |
|
|
|
|
30,037 |
|
Acquisition-related expenses |
|
|
33,216 |
|
|
|
|
5,968 |
|
|
|
50,168 |
|
|
|
|
11,354 |
|
Amortization of acquired intangible assets |
|
|
19,470 |
|
|
|
|
8,451 |
|
|
|
26,843 |
|
|
|
|
25,365 |
|
Total operating expenses |
|
|
118,658 |
|
|
|
|
52,029 |
|
|
|
225,698 |
|
|
|
|
147,243 |
|
(Loss) income from operations |
|
|
(54,442 |
) |
|
|
|
193 |
|
|
|
(94,786 |
) |
|
|
|
8,969 |
|
Other expense |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest and other expense, net |
|
|
(10,769 |
) |
|
|
|
(17,575 |
) |
|
|
(22,004 |
) |
|
|
|
(53,255 |
) |
Change in tax receivable agreement liability |
|
|
(1,470 |
) |
|
|
|
— |
|
|
|
(4,606 |
) |
|
|
|
— |
|
Loss from change in fair value of warrant liability |
|
|
(7,232 |
) |
|
|
|
— |
|
|
|
(48,448 |
) |
|
|
|
— |
|
Loss from change in fair value of contingent consideration |
|
|
(1,140 |
) |
|
|
|
— |
|
|
|
(91,180 |
) |
|
|
|
— |
|
Total other expenses |
|
|
(20,611 |
) |
|
|
|
(17,575 |
) |
|
|
(166,238 |
) |
|
|
|
(53,255 |
) |
Loss before income tax expense |
|
|
(75,053 |
) |
|
|
|
(17,382 |
) |
|
|
(261,024 |
) |
|
|
|
(44,286 |
) |
Income tax benefit (expense) |
|
|
10,764 |
|
|
|
|
(9,685 |
) |
|
|
3,392 |
|
|
|
|
(24,073 |
) |
Net loss |
|
|
(64,289 |
) |
|
|
$ |
(27,067 |
) |
|
|
(257,632 |
) |
|
|
$ |
(68,359 |
) |
Less: Net loss attributable to noncontrolling interest |
|
|
(5,072 |
) |
|
|
|
|
|
(35,640 |
) |
|
|
|
||||
Net loss attributable to E2open Parent Holdings, Inc. |
|
$ |
(59,217 |
) |
|
|
|
|
$ |
(221,992 |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to E2open Parent Holdings, Inc. common shareholders per share: |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.19 |
) |
|
|
|
|
$ |
(0.98 |
) |
|
|
|
||||
Diluted |
|
$ |
(0.19 |
) |
|
|
|
|
$ |
(0.98 |
) |
|
|
|
||||
E2OPEN PARENT HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
Successor |
|
|||||
(In thousands, except share amounts) |
|
November 30, 2021 |
|
February 28, 2021 |
|
|||
|
|
(unaudited) |
|
|
|
|||
Assets |
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
56,462 |
|
|
$ |
194,717 |
|
Restricted cash |
|
|
15,047 |
|
|
|
12,825 |
|
Accounts receivable - net of allowance of $3,224 and $908, respectively |
|
|
104,643 |
|
|
|
112,657 |
|
Prepaid expenses and other current assets |
|
|
28,992 |
|
|
|
12,643 |
|
Total current assets |
|
|
205,144 |
|
|
|
332,842 |
|
Long-term investments |
|
|
210 |
|
|
|
224 |
|
Goodwill |
|
|
3,760,136 |
|
|
|
2,628,646 |
|
Intangible assets, net |
|
|
1,226,512 |
|
|
|
824,851 |
|
Property and equipment, net |
|
|
55,778 |
|
|
|
44,198 |
|
Operating lease right-of-use assets |
|
|
26,553 |
|
|
|
— |
|
Other noncurrent assets |
|
|
14,845 |
|
|
|
7,416 |
|
Total assets |
|
$ |
5,289,178 |
|
|
$ |
3,838,177 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|||
Accounts payable and accrued liabilities |
|
$ |
112,298 |
|
|
$ |
70,233 |
|
Incentive program payable |
|
|
15,047 |
|
|
|
12,825 |
|
Deferred revenue |
|
|
147,535 |
|
|
|
89,691 |
|
Acquisition-related obligations |
|
|
2,700 |
|
|
|
2,000 |
|
Current portion of notes payable |
|
|
9,112 |
|
|
|
4,405 |
|
Current portion of operating lease obligations |
|
|
6,626 |
|
|
|
— |
|
Current portion of financing lease obligations |
|
|
2,329 |
|
|
|
4,827 |
|
Total current liabilities |
|
|
295,647 |
|
|
|
183,981 |
|
Long-term deferred revenue |
|
|
1,848 |
|
|
|
482 |
|
Operating lease obligations |
|
|
20,784 |
|
|
|
— |
|
Financing lease obligations |
|
|
2,093 |
|
|
|
6,588 |
|
Notes payable |
|
|
867,523 |
|
|
|
502,800 |
|
Tax receivable agreement liability |
|
|
67,910 |
|
|
|
50,114 |
|
Warrant liability |
|
|
117,220 |
|
|
|
68,772 |
|
Contingent consideration |
|
|
66,988 |
|
|
|
150,808 |
|
Deferred taxes |
|
|
441,340 |
|
|
|
396,217 |
|
Other noncurrent liabilities |
|
|
1,020 |
|
|
|
1,057 |
|
Total liabilities |
|
|
1,882,373 |
|
|
|
1,360,819 |
|
Commitments and Contingencies (Note 23) |
|
|
|
|
|
|||
Stockholders' Equity |
|
|
|
|
|
|||
Class A common stock; $0.0001 par value, 2,500,000,000 shares authorized; 300,415,025 and 187,051,142 issued and 300,238,371 and 187,051,142 outstanding as of November 30, 2021 and February 28, 2021 |
|
|
30 |
|
|
|
19 |
|
Class V common stock; $0.0001 par value; 42,747,890 and 40,000,000 shares authorized; 34,682,435 and 35,636,680 issued and outstanding as of November 30, 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 November 30, 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 November 30, 2021 and February 28, 2021 |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
3,348,606 |
|
|
|
2,071,206 |
|
Accumulated other comprehensive (loss) income |
|
|
(28,277 |
) |
|
|
2,388 |
|
(Accumulated deficit) retained earnings |
|
|
(211,192 |
) |
|
|
10,800 |
|
Treasury stock, at cost: 176,654 shares as of November 30, 2021 |
|
|
(2,473 |
) |
|
|
— |
|
Total E2open Parent Holdings, Inc. equity |
|
|
3,106,694 |
|
|
|
2,084,413 |
|
Noncontrolling interest |
|
|
300,111 |
|
|
|
392,945 |
|
Total stockholders' equity |
|
|
3,406,805 |
|
|
|
2,477,358 |
|
Total liabilities and stockholders' equity |
|
$ |
5,289,178 |
|
|
$ |
3,838,177 |
|
E2OPEN PARENT HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Nine Months Ended |
|
|
Nine Months Ended |
||||
(In thousands) |
|
November 30, 2021 |
|
|
November 30, 2020 |
||||
Cash flows from operating activities |
|
|
|
|
|
||||
Net loss |
|
$ |
(257,632 |
) |
|
|
$ |
(68,359 |
) |
Adjustments to reconcile net loss to net cash from operating activities: |
|
|
|
|
|
||||
Depreciation and amortization |
|
|
91,496 |
|
|
|
|
51,176 |
|
Amortization of deferred commissions |
|
|
861 |
|
|
|
|
3,121 |
|
Amortization of debt issuance costs |
|
|
2,389 |
|
|
|
|
3,236 |
|
Amortization of operating lease right-of-use assets |
|
|
8,290 |
|
|
|
|
— |
|
Share-based and unit-based compensation |
|
|
8,534 |
|
|
|
|
5,953 |
|
Change in tax receivable agreement liability |
|
|
4,606 |
|
|
|
|
— |
|
Loss from change in fair value of warrant liability |
|
|
48,448 |
|
|
|
|
— |
|
Loss from change in fair value of contingent consideration |
|
|
91,180 |
|
|
|
|
— |
|
(Gain) loss on disposal of property and equipment |
|
|
(233 |
) |
|
|
|
35 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
||||
Accounts receivable, net |
|
|
41,847 |
|
|
|
|
79,309 |
|
Prepaid expenses and other current assets |
|
|
(7,586 |
) |
|
|
|
(4,765 |
) |
Other noncurrent assets |
|
|
(4,489 |
) |
|
|
|
(3,048 |
) |
Accounts payable and accrued liabilities |
|
|
5,871 |
|
|
|
|
(4,335 |
) |
Incentive program payable |
|
|
2,222 |
|
|
|
|
12,392 |
|
Deferred revenue |
|
|
19,927 |
|
|
|
|
(67,847 |
) |
Changes in other liabilities |
|
|
(27,549 |
) |
|
|
|
23,186 |
|
Net cash provided by operating activities |
|
|
28,182 |
|
|
|
|
30,054 |
|
Cash flows from investing activities |
|
|
|
|
|
||||
Payments for acquisitions - net of cash acquired |
|
|
(774,232 |
) |
|
|
|
— |
|
Capital expenditures |
|
|
(24,627 |
) |
|
|
|
(12,048 |
) |
Net cash used in investing activities |
|
|
(798,859 |
) |
|
|
|
(12,048 |
) |
Cash flows from financing activities |
|
|
|
|
|
||||
Proceeds from PIPE investment |
|
|
300,000 |
|
|
|
|
— |
|
Offering costs related to issuance of common stock in connection with PIPE investment |
|
|
(7,100 |
) |
|
|
|
— |
|
Proceeds from sale of membership units |
|
|
— |
|
|
|
|
3,384 |
|
Proceeds from warrant exercise |
|
|
1 |
|
|
|
|
— |
|
Proceeds from indebtedness |
|
|
395,000 |
|
|
|
|
15,574 |
|
Repayments of indebtedness |
|
|
(18,860 |
) |
|
|
|
(21,891 |
) |
Repayments of financing lease obligations |
|
|
(6,457 |
) |
|
|
|
(5,145 |
) |
Repurchase of common stock |
|
|
(2,473 |
) |
|
|
|
— |
|
Repurchase of Common Units |
|
|
(16,767 |
) |
|
|
|
— |
|
Payments of debt issuance costs |
|
|
(10,357 |
) |
|
|
|
— |
|
Net cash provided by (used in) financing activities |
|
|
632,987 |
|
|
|
|
(8,078 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
1,657 |
|
|
|
|
101 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(136,033 |
) |
|
|
|
10,029 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
207,542 |
|
|
|
|
48,428 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
71,509 |
|
|
|
$ |
58,457 |
|
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
56,462 |
|
|
|
$ |
17,132 |
|
Restricted cash |
|
|
15,047 |
|
|
|
|
41,325 |
|
Total cash, cash equivalents and restricted cash |
|
$ |
71,509 |
|
|
|
$ |
58,457 |
|
Supplemental Information - Cash Paid for: |
|
|
|
|
|
||||
Interest |
|
$ |
18,461 |
|
|
|
$ |
49,898 |
|
Income taxes |
|
|
2,890 |
|
|
|
|
1,225 |
|
Non-Cash Investing and Financing Activities: |
|
|
|
|
|
||||
Capital expenditures financed under financing lease obligations |
|
$ |
— |
|
|
|
$ |
11,076 |
|
Capital expenditures included in accounts payable and accrued liabilities |
|
|
2,376 |
|
|
|
|
25 |
|
Right-of-use assets obtained in exchange for operating lease obligations |
|
|
25,825 |
|
|
|
|
— |
|
Prepaid software, maintenance and insurance under notes payable |
|
|
— |
|
|
|
|
892 |
|
Conversion of Common Units to Class A Common Stock |
|
|
41,727 |
|
|
|
|
— |
|
Conversion of Series B1 common stock to Class A Common Stock |
|
|
175,000 |
|
|
|
|
— |
|
Business Combination purchase price adjustment |
|
|
2,965 |
|
|
|
|
— |
|
Issuance of common stock for BluJay Acquisition |
|
|
730,854 |
|
|
|
|
— |
|
Deferred taxes related to issuance of common stock for BluJay Acquisition |
36,805 |
— |
|||||||
E2OPEN PARENT HOLDINGS, INC. RECONCILIATION OF NON-GAAP INFORMATION TABLE (Unaudited) |
||||||
Three Months Ended November 30, 2021 |
||||||
(In millions) |
GAAP |
Def Rev Adj + M&A Costs(1) |
Depreciation & Amortization |
Share-Based Compensation |
Other Adjustments(2) |
Non-GAAP (Adjusted) |
REVENUE |
|
|
|
|
|
|
Subscriptions |
107.0 |
10.4 |
- |
- |
- |
117.4 |
Professional services |
30.0 |
- |
- |
- |
- |
30.0 |
Total revenue |
$137.0 |
$10.4 |
- |
- |
- |
$147.4 |
|
|
|
|
|
|
|
COST OF GOODS |
|
|
|
|
|
|
Subscriptions |
30.2 |
- |
(2.5) |
(0.4) |
(0.5) |
26.9 |
Professional services |
17.6 |
- |
(0.2) |
(0.1) |
- |
17.3 |
Amortization of acquired intangible assets |
25.0 |
- |
(25.0) |
- |
- |
- |
Total cost of revenue |
$72.8 |
- |
$(27.8) |
$(0.5) |
$(0.5) |
$44.1 |
|
|
|
|
|
|
|
Gross Profit |
$64.2 |
$10.4 |
$27.8 |
$0.5 |
$0.5 |
$103.4 |
|
|
|
|
|
|
|
OPERATING COSTS |
|
|
|
|
|
|
Research & development |
25.0 |
- |
(2.0) |
(0.7) |
- |
22.3 |
Sales & marketing |
18.1 |
- |
(0.3) |
(0.7) |
(0.1) |
17.1 |
General & administrative |
22.9 |
- |
(1.0) |
(2.1) |
(1.6) |
18.1 |
Acquisition related expenses |
33.2 |
(33.2) |
- |
- |
- |
- |
Amortization of acquired intangible assets |
19.5 |
- |
(19.5) |
- |
- |
- |
Total operating expenses |
$118.7 |
$(33.2) |
$(22.7) |
$(3.5) |
$(1.7) |
$57.5 |
|
|
|
|
|
|
|
EBITDA |
$(14.6) |
$43.6 |
$50.5 |
$4.0 |
$2.2 |
$45.9 |
Nine Months Ended November 30, 2021 |
||||||
(In millions) |
GAAP |
Def Rev Adj + M&A Costs(1) |
Depreciation & Amortization |
Share-Based Compensation |
Other Adjustments(2) |
Non-GAAP (Adjusted) |
REVENUE |
|
|
|
|
|
|
Subscriptions |
219.7 |
47.1 |
- |
- |
- |
266.8 |
Professional services |
61.7 |
- |
- |
- |
- |
61.7 |
Total revenue |
$281.4 |
$47.1 |
- |
- |
- |
$328.5 |
|
|
|
|
|
|
|
COST OF GOODS |
|
|
|
|
|
|
Subscriptions |
62.9 |
- |
(7.2) |
(0.7) |
(1.1) |
53.9 |
Professional services |
38.7 |
- |
(0.8) |
(0.3) |
- |
37.6 |
Amortization of acquired intangible assets |
48.9 |
- |
(48.9) |
- |
- |
- |
Total cost of revenue |
$150.5 |
- |
$(56.9) |
$(1.0) |
$(1.1) |
$91.6 |
|
|
|
|
|
|
|
Gross Profit |
$130.9 |
$47.1 |
$56.9 |
$1.0 |
$1.1 |
$236.9 |
|
|
|
|
|
|
|
OPERATING COSTS |
|
|
|
|
|
|
Research & development |
56.9 |
- |
(5.6) |
(1.5) |
- |
49.8 |
Sales & marketing |
41.8 |
- |
(0.9) |
(1.6) |
(0.2) |
39.1 |
General & administrative |
50.0 |
- |
(1.4) |
(4.8) |
(4.4) |
39.4 |
Acquisition related expenses |
50.2 |
(50.2) |
- |
- |
- |
- |
Amortization of acquired intangible assets |
26.8 |
- |
(26.8) |
- |
- |
- |
Total operating expenses |
$225.7 |
$(50.2) |
$(34.7) |
$(8.0) |
$(4.5) |
$128.3 |
|
|
|
|
|
|
|
EBITDA |
$(147.4) |
$97.3 |
$91.5 |
$9.0 |
$5.6 |
$108.6 |
(1) |
Non-GAAP revenue adds back amortization of the fair value adjustment to deferred revenue resulting from the business combination as required by GAAP, as well as expenses primarily related to 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 the Business Combination and the BluJay acquisition. |
|
(2) |
Primarily includes non-recurring expenses such as systems integrations, legal entity simplification and advisory fees. |
E2OPEN PARENT HOLDINGS, INC. PRO FORMA RECONCILIATION TABLES (Unaudited, In Millions) |
||||
Pro forma revenue reconciliation |
||||
|
Q3 FY2022 |
|
Q3 FY2021 |
|
GAAP Subscription revenue |
$107.0 |
|
$70.4 |
|
Deferred revenue purchase accounting adjustment(1) |
$10.4 |
|
- |
|
Non-GAAP Subscription revenue |
$117.4 |
|
$70.4 |
|
Pre-acquisition revenue(2) |
- |
|
$35.2 |
|
Pro forma Subscription revenue |
$117.4 |
|
$105.6 |
|
YoY Pro forma subscription revenue growth |
11.2% |
|
|
|
|
|
|
|
|
GAAP Professional services revenue |
$30.0 |
|
$13.7 |
|
Non-GAAP Professional services revenue |
$30.0 |
|
$13.7 |
|
Pre-acquisition revenue(2) |
- |
|
$10.2 |
|
Pro forma Professional services revenue |
$30.0 |
|
$23.9 |
|
YoY Pro forma professional services growth |
25.5% |
|
|
|
|
|
|
|
|
Total pro forma revenue |
$147.4 |
|
$129.5 |
|
YoY Total pro forma revenue growth |
13.8% |
|
|
|
Pro forma gross profit reconciliation |
||||
|
Q3 FY2022 |
|
Q3 FY2021(10) |
|
GAAP Gross profit |
$64.2 |
|
$52.2 |
|
Deferred revenue purchase accounting adjustment(1) |
$10.4 |
|
- |
|
Depreciation expenses |
$2.8 |
|
$2.1 |
|
Amortization of intangible assets |
$25.0 |
|
$4.9 |
|
Share - based compensation(3) |
$0.5 |
|
$0.2 |
|
Non-recurring/non-operating costs(4) |
$0.5 |
|
$0.3 |
|
Non-GAAP Gross profit |
$103.4 |
|
$59.7 |
|
Pre-Acquisition gross profit |
- |
|
$29.9 |
|
Pro forma gross profit |
$103.4 |
|
$89.6 |
|
Pro forma gross margin % |
70.1% |
|
69.2% |
|
Pro forma adjusted EBITDA reconciliation |
||||
|
Q3 FY2022 |
|
Q3 FY2021(10) |
|
GAAP Net Loss |
($64.3) |
|
($27.1) |
|
Interest expense, net |
$10.0 |
|
$17.0 |
|
Benefit/(Loss) from income taxes |
($10.8) |
|
$9.7 |
|
Depreciation and amortization |
$50.5 |
|
$17.3 |
|
EBITDA |
($14.6) |
|
$16.9 |
|
Deferred revenue purchase accounting adjustment(1) |
$10.4 |
|
- |
|
Share-based compensation(3) |
$4.0 |
|
$2.4 |
|
Non-recurring/non-operating costs(4) |
$3.0 |
|
$3.0 |
|
Acquisition-related adjustments(5) |
$33.2 |
|
$6.0 |
|
Gain from change in fair value of warrant liability(6) |
$7.2 |
|
- |
|
Gain from change in fair value of contingent consideration(7) |
$1.1 |
|
- |
|
Change in tax receivable agreement liability(8) |
$1.5 |
|
- |
|
Adjusted EBITDA |
$45.9 |
|
$28.3 |
|
Pre-acquisition EBITDA and other(9) |
- |
|
$16.9 |
|
Pro forma adjusted EBITDA |
$45.9 |
|
$45.2 |
|
Pro forma adjusted EBITDA margin |
31.1% |
|
34.9% |
|
YoY Growth |
1.5% |
|
|
|
(1) |
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. |
|
(2) |
Includes Revenue for BluJay Solutions for the pre-acquisition periods. |
|
(3) |
Reflects non-cash, long-term share-based and unit-based compensation expense, primarily related to senior management. |
|
(4) |
Primarily includes foreign currency exchange gain and losses and other non-recurring expenses such as systems integrations, legal entity simplification and advisory fees. |
|
(5) |
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 Business Combination. |
|
(6) |
Represents the fair value adjustment at each balance sheet date of the warrant liability related to the public, private placement and forward purchase warrants. |
|
(7) |
Represents 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. |
|
(8) |
Represents the expense related to the change in the fair value of the tax receivable agreement liability, including interest. |
|
(9) |
Includes Revenue and Adjusted EBITDA for BluJay Solutions for the pre-acquisition periods, as well as an adjustment for deferred commissions for adoption of ASC 606. |
|
(10) |
Certain prior period amounts have been reclassified to conform to the current period presentation. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220112005855/en/
Contacts
Investor Contact
Adam Rogers
E2open
adam.rogers@e2open.com
515-556-1162
Media Contact
5W PR for E2open
e2open@5wpr.com
718-757-6144
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