E2open Shares Drop 24% as Guidance Falls Short and Revenue Misses Estimates

NEW YORK – E2open Parent Holdings, Inc. experienced a significant drop in shares, falling 24% in after-hours trading on Wednesday. This drop followed the company’s announcement of second-quarter revenue that failed to meet expectations and a disappointing forecast for the full year.

E2open’s second-quarter revenue reached $152.2 million, which is a 4% decrease compared to the same period last year and fell short of the analyst consensus of $154.81 million. The adjusted earnings per share stood at $0.05, aligning with predictions.

In terms of subscription revenue, E2open reported $131.6 million for the quarter, marking a 2.3% decline from the previous year.

Looking ahead, E2open revised its revenue outlook for fiscal 2025, lowering it to between $607 million and $617 million, which is significantly below the anticipated $632.4 million. This revised guidance indicates an expected negative organic growth rate of 3.6% at the midpoint.

CEO Andrew Appel acknowledged the challenges but highlighted the company’s strong market position and competitive solutions, expressing confidence in the blue-chip customer base they have built. He noted, "While we have more work to do to return to sustainable double-digit growth, we enjoy a strong market foundation."

The company attributed its performance challenges to delays in finalizing several large, complex deals, linked to prolonged client decision-making processes. As a result, E2open is adopting a more cautious approach to its full-year outlook in light of these challenges.