EX-99.1 2 d608786dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

E2open Announces Second Quarter of Fiscal Year 2014 results

Second quarter non-GAAP subscriptions and support revenue increases 30% year-over-year

Foster City, CA (October 10, 2013) – E2open, Inc. (NASDAQ: EOPN), a leading provider of strategic, cloud-based software solutions for collaborative planning and execution across global trading networks, today announced financial results for the quarter ended August 31, 2013.

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.”

Second Quarter Financial Highlights:

 

  •   GAAP Revenue: Total GAAP revenue was $18.0 million for the second quarter of fiscal 2014; subscriptions and support revenue was $13.4 million, and professional services revenue was $4.6 million.

 

  •   Non-GAAP Revenue: Non-GAAP revenue for the second quarter of fiscal 2014 includes $0.5 million from the impact of a previous contract amendment that accelerated revenue from future periods to the second quarter of fiscal 2013, and $0.1 million from the impact of a purchase accounting adjustment to deferred revenue in connection with the ICON acquisition in the second quarter of fiscal 2014. 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. Subscriptions and support revenue was $13.6 million, an increase of 30% compared to $10.4 million for the second quarter of fiscal 2013 and an increase of 10% compared to $12.4 million for the first quarter of fiscal 2014. Professional services revenue was $5.0 million, a decrease of 37% compared to $7.9 million for the second quarter of fiscal 2013 and an increase of 34% compared to $3.7 million for the first quarter of fiscal 2014.

 

  •   GAAP Income (Loss) from Operations: GAAP income (loss) from operations was ($5.9) million compared to $4.8 million for the second quarter of fiscal 2013 and ($5.4) million for the first quarter of fiscal 2014.

 

1

  •   Non-GAAP Income (Loss) from Operations: 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.

 

  •   GAAP Net Income (Loss): GAAP net income (loss) was ($5.9) million compared to $4.6 million for the second quarter of fiscal 2013 and ($5.4) million for the first quarter of fiscal 2014. GAAP net income (loss) per share was ($0.23), based on 26.0 million weighted-average shares outstanding, compared to $0.19 per share, based on 24.4 million weighted-average shares outstanding, for the second quarter of fiscal 2013 and ($0.21) per share, based on 25.6 million weighted-average shares outstanding, for the first quarter of fiscal 2014.

 

  •   Non-GAAP Net Income (Loss): Non-GAAP net income (loss) was ($2.8) million compared to $0.5 million for the second quarter of fiscal 2013 and ($4.0) 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.

 

  •   Adjusted EBITDA: Adjusted EBITDA was ($2.3) million compared to $1.1 million for the second quarter of fiscal 2013 and ($3.6) million for the first quarter of fiscal 2014.

 

  •   Cash Flow: Cash flow from operations was ($4.1) million and free cash flow was ($3.9) million after deducting $0.0 million of capital expenditures and adding back acquisition-related expenses of $0.2 million. This compares to cash flow from operations of ($5.6) million and free cash flow of ($6.0) million after deducting $0.4 million of capital expenditures for the second quarter of fiscal 2013.

 

  •   Balance sheet: Cash and investments was $21.6 million, a decrease of $22.4 million compared to $44.0 million at the end of the first quarter of fiscal 2014, owing primarily to the use of cash in the acquisition of ICON.

Second Quarter & Recent Business Highlights:

 

  •   Acquired ICON, a market leader in supply chain planning and collaboration.

 

  •   Added 21 new customers (including 18 from ICON) during the quarter and expanded our relationship with several other customers.

 

  •   Ended the quarter with 101 customers, 37,048 unique registered trading partners, and 117,212 unique registered users on the E2open network.

 

  •   Named as one of the 100 Great Supply Chain Partners for 2013 by SupplyChainBrain in their 11th annual survey.

 

  •   Appointed Michael Linder as Vice President and General Manager for EMEA.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “Non-GAAP Financial Measures.”

 

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Guidance:

As of October 10, 2013, E2open is providing guidance for its third quarter of fiscal 2014 as well as the full fiscal year 2014.

 

  •   Third Quarter Fiscal 2014 Guidance: Total GAAP revenue is expected to be in the range of $17.4 million to $17.9 million. Non-GAAP revenue is expected to be in the range of $18.1 million to $18.6 million, which includes a $0.7 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 $14.3 million to $14.5 million and professional services revenue of $3.8 million to $4.1 million. Non-GAAP loss from operations is expected to be in the range of ($5.5) million to ($5.0) million. Non-GAAP loss per share is expected to be in the range of ($0.21) to ($0.18) based on approximately 27.9 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of ($4.9) million to ($4.4) million.

 

  •   Full Year Fiscal 2014 Guidance: Total GAAP revenue is expected to be in the range of $70.9 million to $71.9 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 $74.2 million. Within total non-GAAP revenue, we expect subscriptions and support revenue of $56.7 million to $57.1 million and professional services revenue of $16.5 million to $17.1 million. Non-GAAP loss from operations is expected to be in the range of ($15.2) million to ($14.2) million. Non-GAAP loss per share is expected to be in the range of ($0.57) to ($0.53) based on approximately 27.7 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of ($13.1) million to ($12.1) 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.

With respect to the Company’s expectations under “Guidance” above, the Company has not reconciled non-GAAP loss from operations or non-GAAP loss per share to GAAP income (loss) from operations and GAAP income (loss) per share because these items are out of the Company’s control and/or cannot be reasonably predicted.

Conference Call Details:

 

  •   What: E2open financial results for the second quarter of fiscal 2014 and outlook for the third quarter of fiscal 2014 and the full year of fiscal 2014

 

  •   When: Thursday, October 10, 2013 at 2PM PT (5PM ET)

 

  •   Dial in: To access the call in the U.S., please dial (877) 407-3982, and for international callers dial (201) 493-6780. Callers may provide confirmation number 10000251 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.

 

  •   Webcast: http://investor.e2open.com/ (live and replay)

 

  •   Replay: A replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the telephone replay in the U.S., please dial (877) 870-5176, and for international callers dial (858) 384-5517 and enter access code 10000251.

 

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About E2open

E2open is a leading provider of cloud-based, on-demand software solutions enabling enterprises to procure, manufacture, sell, and distribute products more efficiently through collaborative planning and execution across global trading networks. Enterprises use E2open solutions to gain visibility into and control over their trading networks through the real-time information, integrated business processes, and advanced analytics that E2open provides. E2open customers include Celestica, Cisco, HGST, IBM, Lenovo, L’Oréal, LSI, Motorola Solutions, Seagate, and Vodafone. E2open is headquartered in Foster City, California with operations worldwide.

“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements about expected GAAP revenue, non-GAAP revenue, non-GAAP income (loss) from operations, non-GAAP income (loss) per share, and adjusted EBITDA for the third quarter of fiscal 2014 and the full fiscal year, and free cash flow and new and upsell bookings for the full fiscal year. These forward-looking statements include the statements that relate to ICON expanding our market opportunity substantially, the significant progress we are making with our partner-enablement efforts, and E2open being uniquely positioned in our market which is still in the early stages of growth. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results could differ materially from the results expressed or implied by the forward-looking statements we make.

The risks and uncertainties referred to above include, but are not limited to, risks associated with the Company’s growth strategy; the Company’s plans for future products; the Company’s operating results; the Company’s ability to anticipate future market demands and future needs of its customers; the Company’s customer concentration; the Company’s ability to effectively manage its growth; the Company’s expectations regarding its use of proceeds from its initial public offering; the Company’s expectations regarding expenses, sales and operations; anticipated trends and challenges in the markets in which the Company operates; the Company’s competition; the Company’s ability to successfully enter new markets and manage its international expansion; the Company’s ability to integrate the ICON acquisition; and the Company’s intellectual property.

Further information on these and other factors that could affect the Company’s financial results is included in the filings made with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K and the Company’s quarterly report on Form 10-Q. These documents are available on the SEC Filings section of the Investor Relations section of the Company’s website at: investor.e2open.com.

E2open, Inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

 

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Non-GAAP Financial Measures

Our reported results include certain non-GAAP financial measures, including bookings, non-GAAP revenue, non-GAAP income (loss) from operations, non-GAAP net income (loss), weighted-average shares outstanding, non-GAAP net income (loss) per share, adjusted EBITDA, and free cash flow. Bookings represent the full value of customer orders or contracts signed during a reporting period. Non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude expenses related to stock-based compensation expense, amortization of acquired intangibles, acquisition-related expenses, and noncash income taxes, as they are often excluded by other companies to help investors understand the operational performance of their business and, in the case of stock-based compensation, can be difficult to predict. In addition, stock-based compensation expense varies from period to period and company to company due to such things as differing valuation methodologies and changes in stock price. Non-GAAP revenue, non-GAAP income (loss) from operations and non-GAAP net income (loss) also exclude the impact of certain accelerated revenue recognized in connection with a contract amendment in the second quarter of fiscal 2013 and the impact of a purchase accounting adjustment to deferred revenue acquired in the second quarter of fiscal 2014. Adjusted EBITDA is defined as net income (loss), adjusted for accelerated revenue from a contract amendment, the impact of a purchase accounting adjustment to deferred revenue, depreciation and amortization, stock-based compensation expense, interest and other expense, net, provision for income taxes, amortization of acquired intangibles, and acquisition-related expenses. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures, which consist of purchases of property, equipment and software, and excluding acquisition-related expenses. Reconciliation tables are provided in this press release. Management believes that the use of non-GAAP financial measures provides consistency and comparability with our past financial performance, facilitates period to period comparisons of results of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. Non-GAAP results are presented for supplemental informational purposes only for understanding our operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

ICR

Greg Kleiner, 650-645-6675

Investor Relations

investor.relations@e2open.com

 

5

E2open, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     August 31,
2013		     May 31,
2013		     August 31,
2012		     August 31,
2013		     August 31,
2012		  

Revenue

           

Subscriptions and support

    $ 13,433      $ 12,292      $ 11,131      $ 25,725      $ 20,945   

Professional services and other

      4,579        3,307        11,760        7,886        17,419   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

      18,012        15,599        22,891        33,611        38,364   

Cost of revenue

           

Subscriptions and support (1)

      2,645        2,528        1,998        5,173        4,037   

Professional services and other (1)

      4,486        4,057        3,664        8,543        7,317   

Amortization of acquired intangibles

      58        —          —          58        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost of revenue

      7,189        6,585        5,662        13,774        11,354   

Gross profit

           

Subscriptions and support

      10,788        9,764        9,133        20,552        16,908   

Professional services and other

      93        (750 )      8,096        (657 )      10,102   

Amortization of acquired intangibles

      (58 )      —          —          (58 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross profit

      10,823        9,014        17,229        19,837        27,010   

Gross margin

           

Subscriptions and support

      80 %      79 %      82 %      80 %      81 % 

Professional services and other

      2 %      -23 %      69 %      -8 %      58 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross margin

      60 %      58 %      75 %      59 %      70 % 

Operating expenses

           

Research and development (1)

      4,533        4,073        3,557        8,606        7,649   

Sales and marketing (1)

      8,752        7,899        6,628        16,651        12,775   

General and administrative (1)

      2,641        2,448        2,277        5,089        4,059   

Acquisition-related expenses

      791        —          —          791        —     

Amortization of acquired intangibles

      25        —          —          25        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      16,742        14,420        12,462        31,162        24,483   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

      (5,919 )      (5,406 )      4,767        (11,325 )      2,527   

Interest and other expense, net

      31        51        (169 )      82        (264 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income taxes

      (5,888 )      (5,355 )      4,598        (11,243 )      2,263   

Income tax provision

      (35 )      (39 )      (32 )      (74 )      (75 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

    $ (5,923 )    $ (5,394 )    $ 4,566      $ (11,317 )    $ 2,188   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) per share:

           

Basic

    $ (0.23 )    $ (0.21 )    $ 0.33      $ (0.44 )    $ 0.21   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ (0.23 )    $ (0.21 )    $ 0.19      $ (0.44 )    $ 0.09   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares used to compute net income (loss) per share:

           

Basic

      26,018        25,615        13,875        25,822        10,606   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

      26,018        25,615        24,421        25,822        24,106   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(1)    Includes stock-based compensation as follows:

           

Cost of revenue

           

Subscriptions and support

    $ 82      $ 63      $ 40      $ 145      $ 74   

Professional services and other

      415        169        102        584        189   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost of revenue

      497        232        142        729        263   

Operating expenses

           

Research and development

      148        68        25        216        78   

Sales and marketing

      617        290        137        907        282   

General and administrative

      456        255        178        711        338   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      1,221        613        340        1,834        698   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total stock-based compensation

    $ 1,718      $ 845      $ 482      $ 2,563      $ 961   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

6

E2open, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

     August 31, 2013     February 28, 2013  
     (Unaudited)        

Assets

     

Current assets:

     

Cash and cash equivalents

    $ 12,949      $ 20,262   

Short-term investments

      3,735        15,289   

Accounts receivable, net

      11,345        20,670   

Prepaid expenses and other current assets

      3,134        2,212   
  

 

 

    

 

 

  

Total current assets

      31,163        58,433   

Long-term investments

      4,871        11,692   

Property and equipment, net

      3,228        2,438   

Intangible assets

      12,817        —     

Goodwill

      25,708        —     

Other assets

      1,089        905   
  

 

 

    

 

 

  

Total assets

    $ 78,876      $ 73,468   
  

 

 

    

 

 

  

Liabilities and Stockholders’ Equity

     

Current liabilities:

     

Accounts payable and accrued liabilities

    $ 12,600      $ 10,769   

Deferred revenue

      29,879        39,789   

Acquisition payable to seller

      5,309        —     

Current portion of notes payable and capital lease obligations

      2,180        849   
  

 

 

    

 

 

  

Total current liabilities

      49,968        51,407   

Deferred revenue

      1,930        1,898   

Notes payable and capital lease obligations, net of current portion

      1,889        562   

Deferred tax liabilities

      3,689        —     

Other noncurrent liabilities

      1,052        508   
  

 

 

    

 

 

  

Total liabilities

      58,528        54,375   

Stockholders’ equity:

     

Common stock

      26        25   

Additional paid-in capital

      372,876        360,280   

Accumulated other comprehensive loss

      (42 )      (17 ) 

Accumulated deficit

      (352,512 )      (341,195 ) 
  

 

 

    

 

 

  

Total stockholders’ equity

      20,348        19,093   
  

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 78,876      $ 73,468   
  

 

 

    

 

 

  

 

7

E2open, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     August 31,
2013		     May 31,
2013		     August 31,
2012		     August 31,
2013		     August 31,
2012		  

Cash flows from operating activities:

           

Net income (loss)

    $ (5,923 )    $ (5,394 )    $ 4,566      $ (11,317 )    $ 2,188   

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

           

Stock-based compensation

      1,718        845        482        2,563        961   

Depreciation and amortization

      579        404        386        983        795   

Other

      199        (23 )      210        176        68   

Changes in operating assets and liabilities:

           

Accounts receivable, net

      3,802        6,797        (4,134 )      10,599        312   

Prepaid expenses and other current assets

      (665 )      (74 )      3        (739 )      (549 ) 

Accounts payable and accrued liabilities

      2,401        (1,523 )      (100 )      878        (547 ) 

Deferred revenue

      (6,443 )      (4,589 )      (6,966 )      (11,032 )      (9,614 ) 

Other

      245        261        (31 )      506        (21 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash used in operating activities

      (4,087 )      (3,296 )      (5,584 )      (7,383 )      (6,407 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from investing activities:

           

Capital expenditures

      (58 )      (39 )      (393 )      (97 )      (1,047 ) 

Purchase of marketable securities, net

      19,963        (1,412 )      (14,336 )      18,551        (14,336 ) 

Payment for acquisition

      (11,489 )      —          —          (11,489 )      —     

Other assets

      97        (24 )      54        73        28   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) investing activities

      8,513        (1,475 )      (14,675 )      7,038        (15,355 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from financing activities:

           

Proceeds from bank credit facilities

      536        —          9,090        536        30,300   

Repayments of bank credit facilities

      (653 )      —          (19,950 )      (653 )      (39,950 ) 

Repayment of notes payable and capital lease obligations

      (436 )      (458 )      (1,494 )      (894 )      (1,745 ) 

Proceeds from exercise of common stock options

      505        673        128        1,178        160   

Proceeds from exercise of warrants

      —          —          —          —          700   

Repayment of debt assumed from acquired company

      (7,126 )      —          —          (7,126 )      —     

Payment of fractional shares from reverse stock split

      —          —          (3 )      —          (3 ) 

Proceeds from initial public offering , net

      —          —          52,313        —          52,313   

Payment of deferred offering costs

      —          —          (432 )      —          (729 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) financing activities

      (7,174 )      215        39,652        (6,959 )      41,046   

Effect of exchange rate changes

      (12 )      3        (6 )      (9 )      (24 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in cash and cash equivalents

      (2,760 )      (4,553 )      19,387        (7,313 )      19,260   

Cash and cash equivalents at beginning of period

      15,709        20,262        10,092        20,262        10,219   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 12,949      $ 15,709      $ 29,479      $ 12,949      $ 29,479   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental cash flow information:

           

Cash paid during the period for:

           

Interest

    $ 60      $ 16      $ 107      $ 76      $ 179   

Income taxes

    $ 32      $ 45      $ 5      $ 77      $ 62   

Noncash financing and investing activities:

           

Property, software and equipment acquired under notes payable and capital leases

    $ 1,322      $ 355      $ 41      $ 1,677      $ 41   

Prepaid software, maintenance and services acquired under notes payable and capital leases

    $ 1,099      $ 973      $ 920      $ 2,072      $ 920   

Issuance of common stock for acquisition

    $ 8,849      $ —        $ —        $ 8,849      $ —     

Automatic conversion of preferred stock to common stock in connection with the IPO

    $ —        $ —        $ 84,191      $ —        $ 84,191   

 

8

E2open, Inc.

GAAP to Non-GAAP Reconciliation Tables

(in thousands, except per share amounts)

(Unaudited)

 

`    Three Months Ended     Six Months Ended  
     August 31,
2013		     May 31,
2013		     August 31,
2012		     August 31,
2013		     August 31,
2012		  

Non-GAAP Revenue

           

GAAP Revenue

           

Subscriptions and support

    $ 13,433      $ 12,292      $ 11,131      $ 25,725      $ 20,945   

Professional services and other

      4,579        3,307        11,760        7,886        17,419   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      18,012        15,599        22,891        33,611        38,364   

Add (Less): accelerated revenue from contract amendment

           

Subscriptions and support

      79        79        (708 )      158        (708 ) 

Professional services and other

      429        429        (3,823 )      858        (3,823 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      508        508        (4,531 )      1,016        (4,531 ) 

Add: deferred revenue purchase accounting adjustment

           

Subscriptions and support

      64        —          —          64        —     

Professional services and other

      —          —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      64        —          —          64        —     

Non-GAAP Revenue

           

Subscriptions and support

      13,576        12,371        10,423        25,947        20,237   

Professional services and other

      5,008        3,736        7,937        8,744        13,596   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 18,584      $ 16,107      $ 18,360      $ 34,691      $ 33,833   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP Gross Profit

           

GAAP Gross Profit

           

Subscriptions and support

    $ 10,788      $ 9,764      $ 9,133      $ 20,552      $ 16,908   

Professional services and other

      93        (750 )      8,096        (657 )      10,102   

Amortization of acquired intangibles

      (58 )      —          —          (58 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      10,823        9,014        17,229        19,837        27,010   

Add (Less): accelerated revenue from contract amendment

           

Subscriptions and support

      79        79        (708 )      158        (708 ) 

Professional services and other

      429        429        (3,823 )      858        (3,823 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      508        508        (4,531 )      1,016        (4,531 ) 

Add: deferred revenue purchase accounting adjustment

           

Subscriptions and support

      64        —          —          64        —     

Professional services and other

      —          —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      64        —          —          64        —     

Add: stock-based compensation expense

           

Subscriptions and support

      82        63        40        145        74   

Professional services and other

      415        169        102        584        189   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      497        232        142        729        263   

Add: amortization of acquired intangibles

           

Subscriptions and support

      —          —          —          —          —     

Professional services and other

      —          —          —          —          —     

Amortization of acquired intangibles

      58        —          —          58        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      58        —          —          58        —     

Non-GAAP Gross Profit

           

Subscriptions and support

      11,013        9,906        8,465        20,919        16,274   

Professional services and other

      937        (152 )      4,375        785        6,468   

Amortization of acquired intangibles

      —          —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 11,950      $ 9,754      $ 12,840      $ 21,704      $ 22,742   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP Gross Margin

           

Subscriptions and support

      81 %      80 %      81 %      81 %      80 % 

Professional services and other

      19 %      -4 %      55 %      9 %      48 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      64 %      61 %      70 %      63 %      67 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

9

E2open, Inc.

GAAP to Non-GAAP Reconciliation Tables

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     August 31,
2013		     May 31,
2013		     August 31,
2012		     August 31,
2013		     August 31,
2012		  

Non-GAAP Loss from Operations

           

GAAP income (loss) from operations

    $ (5,919 )    $ (5,406 )    $ 4,767      $ (11,325 )    $ 2,527   

Add (Less): accelerated revenue from contract amendment

      508        508        (4,531 )      1,016        (4,531 ) 

Add: deferred revenue purchase accounting adjustment

      64        —          —          64        —     

Add: stock-based compensation expense

      1,718        845        482        2,563        961   

Add: amortization of acquired intangibles

      83        —          —          83        —     

Add: acquisition-related expenses

      791        —          —          791        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP income (loss) from operations

    $ (2,755 )    $ (4,053 )    $ 718      $ (6,808 )    $ (1,043 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP Net Loss Per Share

           

Numerator:

           

GAAP net income (loss)

    $ (5,923 )    $ (5,394 )    $ 4,566      $ (11,317 )    $ 2,188   

Add (Less): accelerated revenue from contract amendment

      508        508        (4,531 )      1,016        (4,531 ) 

Add: deferred revenue purchase accounting adjustment

      64        —          —          64        —     

Add: stock-based compensation

      1,718        845        482        2,563        961   

Add: income tax provision

      35        39        32        74        75   

Add: amortization of acquired intangibles

      83        —          —          83        —     

Add: acquisition-related expenses

      791        —          —          791        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP income (loss) before income taxes

      (2,724 )      (4,002 )      549        (6,726 )      (1,307 ) 

Cash paid for income taxes

      (32 )      (45 )      (5 )      (77 )      (62 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income (loss)

    $ (2,756 )    $ (4,047 )    $ 544      $ (6,803 )    $ (1,369 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Denominator:

           

Reconciliation between GAAP and non-GAAP weighted average shares used to compute diluted net loss per share:

           

Weighted average number of shares used to compute GAAP net loss per share (diluted)

      26,018        25,615        24,421        25,822        24,106   

Effect of potentially dilutive common stock equivalents (1)

      1,510        1,599        —          1,560        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP weighted average shares used to compute non-GAAP net loss per share

      27,528        27,214        24,421        27,382        24,106   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

GAAP net income (loss) per share (diluted)

    $ (0.23 )    $ (0.21 )    $ 0.19      $ (0.44 )    $ 0.09   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income (loss) per share

    $ (0.10 )    $ (0.15 )    $ 0.02      $ (0.25 )    $ (0.06 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

           

GAAP net income (loss)

    $ (5,923 )    $ (5,394 )    $ 4,566      $ (11,317 )    $ 2,188   

Add (Less): accelerated revenue from contract amendment

      508        508        (4,531 )      1,016        (4,531 ) 

Add: deferred revenue purchase accounting adjustment

      64        —          —          64        —     

Add: depreciation and amortization

      496        404        386        900        795   

Add: amortization of acquired intangibles

      83        —          —          83        —     

Add (Less): interest and other expense, net

      (31 )      (51 )      169        (82 )      264   

Add: income tax provision

      35        39        32        74        75   

Add: acquisition-related expenses

      791        —          —          791        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA

      (3,977 )      (4,494 )      622        (8,471 )      (1,209 ) 

Add: stock-based compensation expense

      1,718        845        482        2,563        961   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ (2,259 )    $ (3,649 )    $ 1,104      $ (5,908 )    $ (248 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Free Cash Flow

           

Net cash provided by (used in) operating activities

    $ (4,087 )    $ (3,296 )    $ (5,584 )    $ (7,383 )    $ (6,407 ) 

Capital expenditures

      (58 )      (39 )      (393 )      (97 )      (1,047 ) 

Acquisition-related expenses

      206        —          —          206        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Free cash flow

    $ (3,939 )    $ (3,335 )    $ (5,977 )    $ (7,274 )    $ (7,454 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) These securities are anti-dilutive on a GAAP basis as a result of our net loss, but are included for non-GAAP net loss per share.

 

10