EX-99.1 2 d714085dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

E2open Announces Fourth Quarter of Fiscal Year 2014 results

Fourth quarter non-GAAP subscription revenue of $16.5 million increases 41% year-over-year

FY2014 non-GAAP subscription revenue of $57.1 million increases 32% year-over-year

FY2014 new and upsell subscriptions and support bookings increase 79% year-over-year

Foster City, CA (April 24, 2014) – 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 February 28, 2014.

Mark Woodward, E2open’s President and CEO, said, “We finished the year with the highest year-over-year growth rate in subscription revenue in 12 quarters. In addition, the subscriptions and support portion of our new and upsell bookings grew by 79% year-over-year, providing further evidence that our growth initiatives are bearing fruit.”

Fourth Quarter Financial Highlights:

 

  •   GAAP Revenue: Total GAAP revenue was $19.4 million for the fourth quarter of fiscal 2014; subscriptions and support revenue was $16.3 million and professional services revenue was $3.1 million.

 

  •   Non-GAAP Revenue: Non-GAAP revenue for the fourth quarter of fiscal 2014 included $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 $20.0 million, an increase of 10% compared to $18.1 million for the fourth quarter of fiscal 2013 and an increase of 5% compared to $18.9 million for the third quarter of fiscal 2014. Subscriptions and support revenue was $16.5 million, an increase of 41% compared to $11.7 million for the fourth quarter of fiscal 2013 and an increase of 13% compared to $14.7 million for the third quarter of fiscal 2014. Professional services revenue was $3.5 million, a decrease of 46% compared to $6.4 million for the fourth quarter of fiscal 2013 and a decrease of 19% compared to $4.3 million for the third quarter of fiscal 2014.

 

  •   GAAP Loss from Operations: GAAP loss operations was ($6.4) million compared to ($2.6) million for the fourth quarter of fiscal 2013 and ($7.1) million for the third quarter of fiscal 2014.

 

  •   Non-GAAP Loss from Operations: Non-GAAP loss from operations was ($3.6) million compared to ($1.4) million for the fourth quarter of fiscal 2013 and ($3.9) million for the third quarter of fiscal 2014.

 

  •   GAAP Net Loss: GAAP net loss was ($6.4) million compared to ($2.8) million for the fourth quarter of fiscal 2013 and ($7.4) million for the third quarter of fiscal 2014. GAAP net loss per share was ($0.23), based on 27.5 million weighted-average shares outstanding, compared to ($0.11) per share, based on 25.2 million weighted-average shares outstanding for the fourth quarter of fiscal 2013, and ($0.28) per share based on 26.5 million weighted-average shares outstanding for the third quarter of fiscal 2014.

 

 

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  •   Non-GAAP Net Loss: Non-GAAP net loss was ($3.9) million compared to ($1.5) million for the fourth quarter of fiscal 2013 and ($4.4) million for the third quarter of fiscal 2014. Non-GAAP net loss per share was ($0.13), based on 29.3 million weighted-average shares outstanding, compared to ($0.06), based on 27.2 million weighted-average shares outstanding for the fourth quarter of fiscal 2013 and ($0.16) based on 28.1 million weighted-average shares outstanding for the third quarter of fiscal 2014.

 

  •   Adjusted EBITDA: Adjusted EBITDA was ($3.0) million compared to ($1.0) million for the fourth quarter of fiscal 2013 and ($3.3) million for the third quarter of fiscal 2014.

 

  •   Cash Flow: Cash flow from operations was $3.7 million and free cash flow was $4.0 million after deducting $0.0 million of capital expenditures and adding back acquisition-related expenses of $0.4 million. This compares to cash flow from operations of $4.1 million and free cash flow of $4.1 million after deducting $0.0 million of capital expenditures for the fourth quarter of fiscal 2013.

 

  •   Balance sheet: Cash and investments was $65.6 million, an increase of $52.8 million compared to $12.8 million at the end of the third quarter of fiscal 2014.

Fiscal Year 2014 Financial Highlights:

 

  •   GAAP Revenue: Total GAAP revenue was $71.2 million for fiscal 2014; subscriptions and support revenue was $56.4 million and professional services revenue was $14.8 million.

 

  •   Non-GAAP Revenue: Non-GAAP revenue for fiscal 2014 included $2.0 million from the impact of a previous contract amendment that accelerated revenue from future periods to the second quarter of fiscal 2013, and $0.3 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 $73.6 million, an increase of 3% compared to $71.4 million for fiscal 2013. Subscriptions and support revenue was $57.1 million, an increase of 32% compared to $43.2 million for fiscal 2013. Professional services revenue was $16.5 million, a decrease of 41% compared to $28.2 million for fiscal 2013.

 

  •   GAAP Loss from Operations: GAAP loss from operations was ($24.8) million compared to ($0.0) million for fiscal 2013.

 

  •   Non-GAAP Loss from Operations: Non-GAAP loss from operations was ($14.3) million compared to ($1.3) million for fiscal 2013.

 

  •   GAAP Net Loss: GAAP net loss was ($25.1) million compared to ($0.7) million for fiscal 2013. GAAP net loss per share was ($0.95), based on 26.4 million weighted-average shares outstanding, compared to ($0.04) per share, based on 17.5 million weighted-average shares outstanding for fiscal 2013.

 

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  •   Non-GAAP Net Loss: Non-GAAP net loss was ($15.1) million compared to ($1.9) million for fiscal 2013. Non-GAAP net loss per share was ($0.54), based on 28.1 million weighted-average shares outstanding, compared to ($0.07), based on 25.4 million weighted-average shares outstanding for fiscal 2013.

 

  •   Adjusted EBITDA: Adjusted EBITDA was ($12.2) million compared to $0.3 million for fiscal 2013.

 

  •   Cash Flow: Cash flow from operations was ($11.7) million and free cash flow was ($10.8) million after deducting $0.2 million of capital expenditures and adding back acquisition-related expenses of $1.1 million. This compares to cash flow from operations of ($1.0) million and free cash flow of ($2.1) million after deducting $1.1 million of capital expenditures for fiscal 2013.

Fourth Quarter & Recent Business Highlights:

 

  •   Released E2 Planning & Response version 11.2, bringing improved “what-if” scenario and simulation capabilities, network planning visualization and analytics, and certified SAP adapters to the cloud.

 

  •   Announced that E2open customer Avnet Technology Solutions was recognized in the “Customer Value Leadership” category for a new supply chain system it developed in part on E2open’s solutions.

 

  •   Announced that E2open customer Radisys has been recognized with a 2014 Manufacturing Leadership Award in the “Enterprise Technology Leadership” category.

 

  •   Announced that three E2open executives were recognized by Supply & Demand Chain Executive magazine as 2014 Pros to Know, a listing of top supply and demand chain industry professionals.

 

  •   Added three new customers during the quarter and expanded our relationship with several other customers.

 

  •   Ended the quarter with 106 customers, 38,548 unique registered trading partners, and 125,960 unique registered users on the E2open network.

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 April 24, 2014, E2open is providing guidance for its first quarter of fiscal 2015 as well as the full fiscal year 2015.

 

  •   Full Year Fiscal 2015 Guidance: Total GAAP revenue is expected to be in the range of $84.9 million to $87.4 million, including a $1.6 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. 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 $86.5 million to $89.0 million. fiscal 2015 revenue guidance contemplates the anticipated loss of approximately $2.5 million in subscription revenue in Fiscal 2015 from a pending contract amendment. Non-GAAP loss from operations is expected to be in the range of ($14.0) million to ($13.0) million. Non-GAAP loss per share is expected to be in the range of ($0.47) to ($0.43) based on approximately 31.3 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of ($12.0) million to ($11.0) million. Free cash flow is expected to be in the range of ($10.0) million to ($9.0) million. New and upsell subscriptions and support bookings are expected to be in the range of $89.0 million to $94.0 million, representing growth of approximately 26% to 33% compared to fiscal 2014.

 

  •   First Quarter Fiscal 2015 Guidance: Total GAAP revenue is expected to be in the range of $18.4 million to $19.2 million. Non-GAAP revenue is expected to be in the range of $19.0 million to $19.8 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. Non-GAAP loss from operations is expected to be in the range of ($4.8) million to ($4.4) million. Non-GAAP loss per share is expected to be in the range of ($0.16) to ($0.15) based on approximately 31.1 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of ($4.2) million to ($3.8) million.

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

Conference Call Details:

 

  •   What: E2open financial results for the fourth quarter of fiscal 2014 and outlook for the first quarter of fiscal 2015 and the full year of fiscal 2015

 

  •   When: Thursday, April 24, 2014 at 2PM PT (5PM ET)

 

  •   Dial in: To access the call in the U.S., please dial (877) 407-3982, and for international callers, please dial (201) 493-6780. Callers may provide confirmation number 13577834 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, please dial (858) 384-5517 and enter access code 13577834.

 

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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, HP, 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 first quarter of fiscal 2015 and the full fiscal year, and free cash flow and new and upsell bookings for the full fiscal year. 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 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; 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: http://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 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. 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, benefit from (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

 

6

E2open, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(dollars in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Year Ended  
     February 28,     November 30,     February 28,     February 28,     February 28,  
     2014     2013     2013     2014     2013  

Revenue

           

Subscriptions and support

    $ 16,313      $ 14,400      $ 11,633      $ 56,438      $ 43,793   

Professional services and other

      3,057        3,860        5,978      $ 14,803      $ 31,145   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

      19,370        18,260        17,611        71,241        74,938   

Cost of revenue

           

Subscriptions and support (1)

      3,039        2,769        2,063        10,981        8,275   

Professional services and other (1)

      4,144        4,309        4,029        16,996        15,037   

Amortization of acquired intangibles

      350        408        —          816        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost of revenue

      7,533        7,486        6,092        28,793        23,312   

Gross profit

           

Subscriptions and support

      13,274        11,631        9,570        45,457        35,518   

Professional services and other

      (1,087 )      (449 )      1,949        (2,193 )      16,108   

Amortization of acquired intangibles

      (350 )      (408 )      —          (816 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross profit

      11,837        10,774        11,519        42,448        51,626   

Gross margin

           

Subscriptions and support

      79 %      78 %      82 %      79 %      81 % 

Professional services and other

      (36 %)      (12 %)      33 %      (15 %)      52 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross margin

      61 %      59 %      65 %      60 %      69 % 

Operating expenses

           

Research and development (1)

      4,786        5,099        3,729        18,491        14,999   

Sales and marketing (1)

      9,904        9,683        8,054        36,238        28,222   

General and administrative (1)

      3,158        2,413        2,304        10,660        8,413   

Acquisition-related expenses

      51        340        —          1,182        —     

Amortization of acquired intangibles

      294        369        —          688        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      18,193        17,904        14,087        67,259        51,634   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Loss from operations

      (6,356 )      (7,130 )      (2,568 )      (24,811 )      (8 ) 

Interest and other expense, net

      (383 )      (461 )      (120 )      (762 )      (437 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Loss before income taxes

      (6,739 )      (7,591 )      (2,688 )      (25,573 )      (445 ) 

Benefit from (provision for) income taxes

      366        209        (127 )      501        (264 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net loss

    $ (6,373 )    $ (7,382 )    $ (2,815 )    $ (25,072 )    $ (709 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net loss per share:

           

Basic and diluted

    $ (0.23 )    $ (0.28 )    $ (0.11 )    $ (0.95 )    $ (0.04 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares used to compute net loss per share:

           

Basic and diluted

      27,497        26,545        25,178        26,415        17,490   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(1)    Includes stock-based compensation as follows:

       

Cost of revenue

           

Subscriptions and support

    $ 106      $ 77      $ 52      $ 328      $ 179   

Professional services and other

      403        326        125      $ 1,313      $ 442   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost of revenue

      509        403        177        1,641        621   

Operating expenses

           

Research and development

      111        133        54        460        184   

Sales and marketing

      569        559        261        2,035        749   

General and administrative

      313        351        182        1,375        691   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      993        1,043        497        3,870        1,624   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total stock-based compensation

    $ 1,502      $ 1,446      $ 674      $ 5,511      $ 2,245   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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E2open, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

 

     February 28, 2014     February 28, 2013  
     (Unaudited)        

Assets

     

Current assets:

     

Cash and cash equivalents

    $ 42,723      $ 20,262   

Short-term investments

      14,374        15,289   

Accounts receivable, net

      21,995        20,670   

Prepaid expenses and other current assets

      4,323        2,212   
  

 

 

    

 

 

  

Total current assets

      83,415        58,433   

Long-term investments

      8,541        11,692   

Goodwill

      22,556        —     

Intangible assets, net

      11,395        —     

Property and equipment, net

      3,431        2,438   

Other assets

      3,844        905   
  

 

 

    

 

 

  

Total assets

    $ 133,182      $ 73,468   
  

 

 

    

 

 

  

Liabilities and Stockholders’ Equity

     

Current liabilities:

     

Accounts payable and accrued liabilities

    $ 12,366      $ 10,769   

Deferred revenue

      43,672        39,789   

Payable to ICON shareholders

      5,473        —     

Current portion of notes payable and capital lease obligations

      2,995        849   
  

 

 

    

 

 

  

Total current liabilities

      64,506        51,407   

Deferred revenue

      1,587        1,898   

Notes payable and capital lease obligations, net of current portion

      2,599        562   

Deferred tax liability

      3,385        —     

Other noncurrent liabilities

      1,281        508   
  

 

 

    

 

 

  

Total liabilities

      73,358        54,375   

Stockholders’ equity:

     

Common stock

      29        25   

Additional paid-in capital

      426,031        360,280   

Accumulated other comprehensive income (loss)

      31        (17 ) 

Accumulated deficit

      (366,267 )      (341,195 ) 
  

 

 

    

 

 

  

Total stockholders’ equity

      59,824        19,093   
  

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 133,182      $ 73,468   
  

 

 

    

 

 

  

 

8

E2open, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

     Three Months Ended     Year Ended  
     February 28,     November 30,     February 28,     February 28,     February 28,  
     2014     2013     2013     2014     2013  

Cash flows from operating activities:

           

Net loss

    $ (6,373 )    $ (7,382 )    $ (2,815 )    $ (25,072 )    $ (709 ) 

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

           

Stock-based compensation

      1,502        1,446        674        5,511        2,245   

Depreciation and amortization

      1,221        1,329        420        3,533        1,616   

Other

      (165 )      (256 )      129        (245 )      374   

Changes in operating assets and liabilities:

           

Accounts receivable, net

      (505 )      (10,145 )      (894 )      (51 )      (4,366 ) 

Prepaid expenses and other current assets

      (583 )      131        521        (2,063 )      1,149   

Accounts payable and accrued liabilities

      120        2,222        558        3,548        2,079   

Deferred revenue

      8,787        4,662        5,456        2,417        (3,372 ) 

Other

      (286 )      (30 )      89        734        27   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) operating activities

      3,718        (8,023 )      4,138        (11,688 )      (957 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from investing activities:

           

Capital expenditures

      (48 )      (68 )      (21 )      (213 )      (1,138 ) 

Sale (purchase) of marketable securities, net

      (22,527 )      8,226        (1,880 )      4,250        (27,023 ) 

Payment for acquisition

      —          —          —          (11,489 )      —     

Other assets

      12        (6 )      3        79        29   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) investing activities

      (22,563 )      8,152        (1,898 )      (7,373 )      (28,132 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from financing activities:

           

Proceeds from bank credit facilities

      2,963        1,982        —          5,481        30,300   

Repayment of bank credit facilities

      (3,426 )      (2,693 )      —          (6,772 )      (39,950 ) 

Repayment of notes payable and capital lease obligations

      (713 )      (639 )      (607 )      (2,246 )      (2,502 ) 

Proceeds from exercise of common stock options

      677        643        553        2,498        723   

Repayment of debt assumed from acquired company

      —          —          —          (7,126 )      —     

Proceeds from exercise of warrants

      —          —          —          —          700   

Payment of fractional shares from reverse stock split

      —          —          —          —          (3 ) 

Proceeds from public offering, net

      50,042        —          —          50,042        52,313   

Payment of deferred public offering costs

      (362 )      (17 )      —          (379 )      (2,410 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) financing activities

      49,181        (724 )      (54 )      41,498        39,171   

Effect of exchange rate changes

      6        27        (8 )      24        (39 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in cash and cash equivalents

      30,342        (568 )      2,178        22,461        10,043   

Cash and cash equivalents at beginning of period

      12,381        12,949        18,084        20,262        10,219   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 42,723      $ 12,381      $ 20,262      $ 42,723      $ 20,262   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental cash flow information:

           

Cash paid during the period for:

           

Interest

    $ 113      $ 67      $ 31      $ 256      $ 239   

Income taxes

    $ —        $ 44      $ 15      $ 121      $ 134   

Noncash financing and investing activities:

           

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

    $ 767      $ 395      $ 589      $ 2,839      $ 662   

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

    $ 747      $ 847      $ 633      $ 3,666      $ 1,615   

Issurance of common stock for acquisition

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

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

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

Vesting of early exercised common stock options

    $ —        $ —        $ 4      $ 7      $ 37   

 

9

E2open, Inc. and Subsidiaries

GAAP to Non-GAAP Reconciliation Tables

(dollars in thousands)

(Unaudited)

 

     Three Months Ended     Year Ended  
     February 28,     November 30,     February 28,     February 28,     February 28,  
     2014     2013     2013     2014     2013  

Non-GAAP Revenue

           

GAAP Revenue

           

Subscriptions and support

    $ 16,313      $ 14,400      $ 11,633      $ 56,438      $ 43,793   

Professional services and other

      3,057        3,860        5,978        14,803        31,145   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      19,370        18,260        17,611        71,241        74,938   

Add (Less): accelerated revenue from contract amendment

           

Subscriptions and support

      78        78        93        314        (552 ) 

Professional services and other

      420        424        420        1,702        (2,979 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      498        502        513        2,016        (3,531 ) 

Add: deferred revenue purchase accounting adjustment

           

Subscriptions and support

      101        178        —          343        —     

Professional services and other

      —          —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      101        178        —          343        —     

Non-GAAP Revenue

           

Subscriptions and support

      16,492        14,656        11,726        57,095        43,241   

Professional services and other

      3,477        4,284        6,398        16,505        28,166   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 19,969      $ 18,940      $ 18,124      $ 73,600      $ 71,407   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP Gross Profit

           

GAAP Gross Profit

           

Subscriptions and support

    $ 13,274      $ 11,631      $ 9,570      $ 45,457      $ 35,518   

Professional services and other

      (1,087 )      (449 )      1,949        (2,193 )      16,108   

Amortization of acquired intangibles

      (350 )      (408 )      —          (816 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      11,837        10,774        11,519        42,448        51,626   

Add (Less): accelerated revenue from contract amendment

           

Subscriptions and support

      78        78        93        314        (552 ) 

Professional services and other

      420        424        420        1,702        (2,979 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      498        502        513        2,016        (3,531 ) 

Add: deferred revenue purchase accounting adjustment

           

Subscriptions and support

      101        178        —          343        —     

Professional services and other

      —          —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      101        178        —          343        —     

Add: stock-based compensation expense

           

Subscriptions and support

      106        77        52        328        179   

Professional services and other

      403        326        125        1,313        442   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      509        403        177        1,641        621   

Add: amortization of acquired intangibles

           

Subscriptions and support

      —          —          —          —          —     

Professional services and other

      —          —          —          —          —     

Amortization of acquired intangibles

      350        408        —          816        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      350        408        —          816        —     

Non-GAAP Gross Profit

           

Subscriptions and support

      13,559        11,964        9,715        46,442        35,145   

Professional services and other

      (264 )      301        2,494        822        13,571   

Amortization of acquired intangibles

      —          —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 13,295      $ 12,265      $ 12,209      $ 47,264      $ 48,716   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP Gross Margin

           

Subscriptions and support

      82 %      82 %      83 %      81 %      81 % 

Professional services and other

      (8 %)      7 %      39 %      5 %      48 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      67 %      65 %      67 %      64 %      68 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

10

E2open, Inc. and Subsidiaries

GAAP to Non-GAAP Reconciliation Tables

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Year Ended  
     February 28,
2014		     November 30,
2013		     February 28,
2013		     February 28,
2014		     February 28,
2013		  

Non-GAAP Loss from Operations

           

GAAP loss from operations

    $ (6,356 )    $ (7,130 )    $ (2,568 )    $ (24,811 )    $ (8 ) 

Add (Less): accelerated revenue from contract amendment

      498        502        513        2,016        (3,531 ) 

Add: deferred revenue purchase accounting adjustment

      101        178        —          343        —     

Add: stock-based compensation expense

      1,502        1,446        674        5,511        2,245   

Add: amortization of acquired intangibles

      644        777        —          1,504        —     

Add: acquisition-related expenses

      51        340        —          1,182        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP loss from operations

    $ (3,560 )    $ (3,887 )    $ (1,381 )    $ (14,255 )    $ (1,294 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP Net Loss Per Share

           

Numerator:

           

GAAP net loss

    $ (6,373 )    $ (7,382 )    $ (2,815 )    $ (25,072 )    $ (709 ) 

Add (Less): accelerated revenue from contract amendment

      498        502        513        2,016        (3,531 ) 

Add: deferred revenue purchase accounting adjustment

      101        178        —          343        —     

Add: stock-based compensation

      1,502        1,446        674        5,511        2,245   

Add (Less): provision for (benefit from) income taxes

      (366 )      (209 )      127        (501 )      264   

Add: amortization of acquired intangibles

      644        777        —          1,504        —     

Add: acquisition-related expenses

      51        340        —          1,182        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP loss before income taxes

      (3,943 )      (4,348 )      (1,501 )      (15,017 )      (1,731 ) 

Cash paid for income taxes

      —          (44 )      (15 )      (121 )      (134 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net loss

    $ (3,943 )    $ (4,392 )    $ (1,516 )    $ (15,138 )    $ (1,865 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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)

      27,497        26,545        25,178        26,415        17,490   

Effect of potentially dilutive common stock equivalents (1)

      1,757        1,509        2,000        1,655        7,937   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      29,254        28,054        27,178        28,070        25,427   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

GAAP net loss per share (diluted)

    $ (0.23 )    $ (0.28 )    $ (0.11 )    $ (0.95 )    $ (0.04 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net loss per share

    $ (0.13 )    $ (0.16 )    $ (0.06 )    $ (0.54 )    $ (0.07 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

           

GAAP net loss

    $ (6,373 )    $ (7,382 )    $ (2,815 )    $ (25,072 )    $ (709 ) 

Add (Less): accelerated revenue from contract amendment

      498        502        513        2,016        (3,531 ) 

Add: deferred revenue purchase accounting adjustment

      101        178        —          343        —     

Add: depreciation and amortization

      577        552        420        2,029        1,616   

Add: amortization of acquired intangibles

      644        777        —          1,504        —     

Add: interest and other expense, net

      383        461        120        762        437   

Add (Less): provision for (benefit from) income taxes

      (366 )      (209 )      127        (501 )      264   

Add: acquisition-related expenses

      51        340        —          1,182        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA

      (4,485 )      (4,781 )      (1,635 )      (17,737 )      (1,923 ) 

Add: stock-based compensation expense

      1,502        1,446        674        5,511        2,245   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ (2,983 )    $ (3,335 )    $ (961 )    $ (12,226 )    $ 322   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Free Cash Flow

           

Net cash provided by (used in) operating activities

    $ 3,718      $ (8,023 )    $ 4,138      $ (11,688 )    $ (957 ) 

Less: capital expenditures

      (48 )      (68 )      (21 )      (213 )      (1,138 ) 

Add: acquisition-related expenses

      357        503        —          1,066        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Free cash flow

    $ 4,027      $ (7,588 )    $ 4,117      $ (10,835 )    $ (2,095 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(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.

 

11

E2open, Inc. and Subsidiaries

Bookings by Source

(dollars in thousands)

(Unaudited)

 

     Year Ended  
     February 29, 2012     February 28, 2013     February 28, 2014  

New and upsell

                

Subscriptions and support

    $ 29,572         41 %    $ 39,576         32 %    $ 70,754         72 % 

Professional services and other

      21,429         30 %      30,712         25 %      11,319         12 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total new and upsell

      51,001         70 %      70,288         56 %      82,073         84 % 

Renewals

      21,614         30 %      54,851         44 %      16,160         16 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total bookings

    $ 72,615         100 %    $ 125,139         100 %    $ 98,233         100 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Year-over-year growth

                

New and upsell

                

Subscriptions and support

         12 %         34 %         79 % 

Professional services and other

         24 %         43 %         (63 %) 
     

 

 

       

 

 

       

 

 

  

Total new and upsell

         17 %         38 %         17 % 

Renewals

         63 %         154 %         (71 %) 
     

 

 

       

 

 

       

 

 

  

Total

         28 %         72 %         (22 %) 
     

 

 

       

 

 

       

 

 

  

 

12