E2open, newly public, gives guidance on finances, near earlier targets

Company says revenue for fiscal year will align with what it told investors last fall; recently completed year also in line

(Photo: Jim Allen/FreightWaves at Port Houston)

E2open (NYSE: ETWO), a provider of supply chain management software, has released the first guidance on its finances since it went public via a special purpose acquisition company in February.

The cloud-based software company said it expects its fiscal 2021 revenue to “meet or exceed” the guidance it gave in investor presentations. At that time, the company said its estimate for fiscal 2022 revenue would be $367 million. That fiscal year will end on Feb. 28, 2022.

“For the fiscal year 2022 which began on March 1, 2021, we anticipate approximately 10% organic revenue growth within a range of $367 to $371 million, above the guidance provided in the investor presentation on January 8, 2021, given the Company’s continued business momentum,” E2open said in its statement released Monday.

E2open also said it expects fiscal 2021 revenue, for the year ended Feb. 28, to meet or exceed earlier guidance of $335 million. It said it expects its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be “modestly above” the guidance given to investors. 


The company’s quarterly earnings for the three months that ended at the close of February will be discussed in an investor call set for May 18.

In the investor presentation from October, e2open had projected a 73% gross margin for the company and a 33% adjusted EBITDA margin. It estimated that 83% of its revenue would come from subscriptions, with a 95% gross retention rate and a 107% net retention rate.

Also in that presentation, the company said its long-term organic growth model was 10%-plus for revenue, an adjusted gross profit margin of mid-70%s and an adjusted EBITDA margin of the high 30% level. 

The company said at the time of the investment presentation that it had 2,400-plus employees and 1,000-plus customers. 


E2open went public via a special purpose acquisition company (SPAC) called CC Neuberger Holdings 1. That SPAC was a joint product of the Wall Street firm of Neuberger Berman and CC Capital. It had already gone public as a SPAC before merging E2open into it. 

The value of the deal at the time was listed as $2.57 billion. According to Barchart, the current market capitalization of E2open is $566.4 million.

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