E2open Inc. (NASDAQ:EOPN)

Third Quarter Fiscal 2014 Results

• Total non-GAAP revenue was $18.9 million, a decrease of 3% compared to $19.5 million for the third quarter of fiscal 2013 and an increase of 2% compared to $18.6 million for the second quarter of fiscal 2014.
• Non-GAAP net loss per share was ($0.16), compared to $0.04 for the third quarter of fiscal 2013.

Mark Woodward, E2open's President and CEO, said, "The strong growth in our non-GAAP subscriptions and support revenue continued in the third quarter. In addition, we have made further progress with both our partner enablement efforts and the integration of ICON-SCM (ICON). Our market leading collaborative planning and execution products are driving significant value for our customers across a variety of industries."

Guidance

As of January 9, 2014, E2open is providing guidance for its fourth quarter of fiscal 2014 as well as the full fiscal year 2014.

• Fourth Quarter Fiscal 2014 Guidance: Total GAAP revenue is expected to be in the range of $19.0 million to $19.8 million. Non-GAAP revenue is expected to be in the range of $19.6 million to $20.4 million, which includes a $0.6 million impact to revenue, due to the aforementioned acceleration of revenue in the second quarter of fiscal 2013 in connection with a contract amendment and the impact of a purchase accounting adjustment to deferred revenue acquired in the second quarter of fiscal 2014. Within total non-GAAP revenue, we expect subscriptions and support revenue of $16.1 million to $16.4 million and professional services revenue of $3.5 million to $4.0 million. Non-GAAP loss from operations is expected to be in the range of ($4.0) million to ($3.5) million. Non-GAAP loss per share is expected to be in the range of ($0.15) to ($0.13) based on approximately 28.3 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of ($3.5) million to ($3.0) million.
• Full Year Fiscal 2014 Guidance: Total GAAP revenue is expected to be in the range of $70.9 million to $71.7 million, including a $2.4 million impact to revenue, due to the aforementioned acceleration of revenue in the second quarter of fiscal 2013 in connection with a contract amendment and the impact of a purchase accounting adjustment to deferred revenue acquired in the second quarter of fiscal 2014. Excluding the aforementioned contract amendment and the purchase accounting adjustment to deferred revenue, total non-GAAP revenue is expected to be in the range of $73.2 million to $74.0 million. Within total non-GAAP revenue, we expect subscriptions and support revenue of $56.7 million to $57.0 million and professional services revenue of $16.5 million to $17.0 million. Non-GAAP loss from operations is expected to be in the range of ($14.7) million to ($14.2) million. Non-GAAP loss per share is expected to be in the range of ($0.55) to ($0.53) based on approximately 27.8 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of ($12.7) million to ($12.2) million. Free cash flow is expected to be in the range of ($12.6) million to ($11.6) million. New and upsell bookings are expected to be roughly $91.5 million, representing growth of approximately 30% compared to fiscal 2013.

Second Quarter 2014 Results

• Total non-GAAP revenue was $18.6 million, an increase of 1% compared to $18.4 million for the second quarter of fiscal 2013 and an increase of 15% compared to $16.1 million for the first quarter of fiscal 2014.
• Non-GAAP income (loss) from operations was ($2.8) million compared to $0.7 million for the second quarter of fiscal 2013 and ($4.1) million for the first quarter of fiscal 2014.
• Non-GAAP net loss per share was ($0.10), based on 27.5 million weighted-average shares outstanding, compared to $0.02, based on 24.4 million weighted-average shares outstanding, for the second quarter of fiscal 2013 and ($0.15), based on 27.2 million weighted-average shares outstanding, for the first quarter of fiscal 2014.

Mark Woodward, E2open’s President and CEO, said, “We showed strong growth once again in our non-GAAP subscriptions and support revenue during the second quarter. We were also pleased to have completed the acquisition of ICON-SCM (ICON), a market leader in supply chain planning and collaboration, which expands our market opportunity substantially. In addition, we continue to make significant progress with our partner enablement efforts. We remain uniquely positioned in the collaborative planning and execution market, which is still in the early stages of its growth.”