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Exhibit 99.1

E2open Announces Third Quarter of Fiscal Year 2014 results

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

Foster City, CA (January 9, 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 November 30, 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.”

Third Quarter Financial Highlights:

 

    GAAP Revenue: Total GAAP revenue was $18.3 million for the third quarter of fiscal 2014; subscriptions and support revenue was $14.4 million and professional services revenue was $3.9 million.

 

    Non-GAAP Revenue: Non-GAAP revenue for the third 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 $0.2 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 $18.9 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. Subscriptions and support revenue was $14.7 million, an increase of 30% compared to $11.3 million for the third quarter of fiscal 2013 and an increase of 8% compared to $13.6 million for the second quarter of fiscal 2014. Professional services revenue was $4.3 million, a decrease of 48% compared to $8.2 million for the third quarter of fiscal 2013 and a decrease of 14% compared to $5.0 million for the second quarter of fiscal 2014.

 

    GAAP Income (Loss) from Operations: GAAP income (loss) from operations was ($7.1) million compared to $0.0 million for the third quarter of fiscal 2013 and ($5.9) million for the second quarter of fiscal 2014.

 

    Non-GAAP Income (Loss) from Operations: Non-GAAP income (loss) from operations was ($3.9) million compared to $1.1 million for the third quarter of fiscal 2013 and ($2.8) million for the second quarter of fiscal 2014.

 

    GAAP Net Loss: GAAP net loss was ($7.4) million compared to ($0.1) million for the third quarter of fiscal 2013 and ($5.9) million for the second quarter of fiscal 2014. GAAP net loss per share was ($0.28), based on 26.5 million weighted-average shares outstanding, compared to ($0.00) per share, based on 25.0 million weighted-average shares outstanding for the third quarter of fiscal 2013, and ($0.23) per share based on 26.0 million weighted-average shares outstanding, for the second quarter of fiscal 2014.

 

1


    Non-GAAP Net Income (Loss): Non-GAAP net income (loss) was ($4.4) million compared to $1.0 million for the third quarter of fiscal 2013 and ($2.8) million for the second quarter of fiscal 2014. Non-GAAP net loss per share was ($0.16), based on 28.1 million weighted-average shares outstanding, compared to $0.04, based on 26.9 million weighted-average shares outstanding, for the third quarter of fiscal 2013 and ($0.10), based on 27.5 million weighted-average shares outstanding, for the second quarter of fiscal 2014.

 

    Adjusted EBITDA: Adjusted EBITDA was ($3.3) million compared to $1.5 million for the third quarter of fiscal 2013 and ($2.3) million for the second quarter of fiscal 2014.

 

    Cash Flow: Cash flow from operations was ($8.0) million and free cash flow was ($7.6) million after deducting $0.1 million of capital expenditures and adding back acquisition-related expenses of $0.5 million. This compares to cash flow from operations of $1.3 million and free cash flow of $1.2 million after deducting $0.1 million of capital expenditures for the third quarter of fiscal 2013.

 

    Balance sheet: Cash and investments was $12.8 million, a decrease of $8.8 million compared to $21.6 million at the end of the second quarter of fiscal 2014.

Third Quarter & Recent Business Highlights:

 

    Signed a Collaboration and License Agreement with PricewaterhouseCoopers LLP (PWC), the world’s largest professional services firm. The agreement includes supply chain services delivery and joint marketing efforts in the United States.

 

    Achieved Drummond AS2 Certification in a Fall 2013 interoperability test event.

 

    Won, in conjunction with Vodafone, a 2013 European Supply Chain Excellence Award in the Supply Chain Operations category.

 

    Announced that the company is the first, dedicated, cloud-based supply chain Software-as-a-Service (SaaS) vendor to achieve the International Organization for Standardization/International Electrotechnical Commission (ISO/IEC) 27001:2005 Security Certification (ISO 27001).

 

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

 

    Ended the quarter with 104 customers, 37,931 unique registered trading partners, and 122,739 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.”

 

2


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.

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 are out of the Company’s control and/or cannot be reasonably predicted.

Conference Call Details:

 

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

 

    When: Thursday, January 9, 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 13573142 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 13573142.

 

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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 fourth quarter of fiscal 2014 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; 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 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

 

5


E2open, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     November 30,
2013
    August 31,
2013
    November 30,
2012
    November 30,
2013
    November 30,
2012
 

Revenue

          

Subscriptions and support

   $ 14,400      $ 13,433      $ 11,215      $ 40,125      $ 32,160   

Professional services and other

     3,860        4,579        7,748        11,746        25,167   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     18,260        18,012        18,963        51,871        57,327   

Cost of revenue

          

Subscriptions and support (1)

     2,769        2,645        2,175        7,942        6,212   

Professional services and other (1)

     4,309        4,486        3,691        12,852        11,008   

Amortization of acquired intangibles

     408        58        —          466        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     7,486        7,189        5,866        21,260        17,220   

Gross profit

          

Subscriptions and support

     11,631        10,788        9,040        32,183        25,948   

Professional services and other

     (449     93        4,057        (1,106     14,159   

Amortization of acquired intangibles

     (408     (58     —          (466     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross profit

     10,774        10,823        13,097        30,611        40,107   

Gross margin

          

Subscriptions and support

     78     80     81     79     81

Professional services and other

     (12 %)      2     52     (9 %)      56
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross margin

     59     60     69     59     70

Operating expenses

          

Research and development (1)

     5,099        4,533        3,621        13,705        11,270   

Sales and marketing (1)

     9,683        8,752        7,393        26,334        20,168   

General and administrative (1)

     2,413        2,641        2,050        7,502        6,109   

Acquisition-related expenses

     340        791        —          1,131        —     

Amortization of acquired intangibles

     369        25        —          394        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     17,904        16,742        13,064        49,066        37,547   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     (7,130     (5,919     33        (18,455     2,560   

Interest and other expense, net

     (461     31        (53     (379     (317
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (7,591     (5,888     (20     (18,834     2,243   

Benefit from (provision for) income taxes

     209        (35     (62     135        (137
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (7,382   $ (5,923   $ (82   $ (18,699   $ 2,106   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per share:

          

Basic

   $ (0.28   $ (0.23   $ (0.00   $ (0.72   $ 0.13   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.28   $ (0.23   $ (0.00   $ (0.72   $ 0.08   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

          

Basic

     26,545        26,018        25,021        26,061        16,243   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     26,545        26,018        25,021        26,061        25,882   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(1)    Includes stock-based compensation as follows:

          

Cost of revenue

          

Subscriptions and support

   $ 77      $ 82      $ 53      $ 222      $ 127   

Professional services and other

     326        415        128        910        317   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     403        497        181        1,132        444   

Operating expenses

          

Research and development

     133        148        52        349        130   

Sales and marketing

     559        617        206        1,466        488   

General and administrative

     351        456        171        1,062        509   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     1,043        1,221        429        2,877        1,127   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stock-based compensation

   $ 1,446      $ 1,718      $ 610      $ 4,009      $ 1,571   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

6


E2open, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

     November 30, 2013     February 28, 2013  
     (Unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 12,381      $ 20,262   

Short-term investments

     —          15,289   

Accounts receivable, net

     21,490        20,670   

Prepaid expenses and other current assets

     3,189        2,212   
  

 

 

   

 

 

 

Total current assets

     37,060        58,433   

Long -term investments

     384        11,692   

Property and equipment, net

     3,469        2,438   

Intangible assets, net

     12,040        —     

Goodwill

     24,769        —     

Other assets

     1,006        905   
  

 

 

   

 

 

 

Total assets

   $ 78,728      $ 73,468   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable and accrued liabilities

   $ 12,324      $ 10,769   

Deferred revenue

     34,249        39,789   

Acquisition payable to seller

     5,442        —     

Current portion of notes payable and capital lease obligations

     2,927        849   
  

 

 

   

 

 

 

Total current liabilities

     54,942        51,407   

Deferred revenue

     2,222        1,898   

Notes payable and capital lease obligations, net of current portion

     2,142        562   

Deferred tax liabilities

     3,440        —     

Other noncurrent liabilities

     1,022        508   
  

 

 

   

 

 

 

Total liabilities

     63,768        54,375   

Stockholders’ equity:

    

Common stock

     27        25   

Additional paid-in capital

     374,780        360,280   

Accumulated other comprehensive income (loss)

     47        (17

Accumulated deficit

     (359,894     (341,195
  

 

 

   

 

 

 

Total stockholders’ equity

     14,960        19,093   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 78,728      $ 73,468   
  

 

 

   

 

 

 

 

7


E2open, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     November 30,
2013
    August 31,
2013
    November 30,
2012
    November 30,
2013
    November 30,
2012
 

Cash flows from operating activities:

          

Net income (loss)

   $ (7,382   $ (5,923   $ (82   $ (18,699   $ 2,106   

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

          

Stock-based compensation

     1,446        1,718        610        4,009        1,571   

Depreciation and amortization

     1,329        579        401        2,312        1,196   

Other

     (256     199        177        (80     245   

Changes in operating assets and liabilities:

          

Accounts receivable, net

     (10,145     3,802        (3,784     454        (3,472

Prepaid expenses and other current assets

     131        (665     1,177        (608     628   

Accounts payable and accrued liabilities

     2,222        2,401        2,068        3,100        1,521   

Deferred revenue

     4,662        (6,443     786        (6,370     (8,828

Other

     (30     245        (41     476        (62
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (8,023     (4,087     1,312        (15,406     (5,095
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

          

Capital expenditures

     (68     (58     (70     (165     (1,117

Sale (purchase) of marketable securities, net

     8,226        19,963        (10,807     26,777        (25,143

Payment for acquisition

     —          (11,489     —          (11,489     —     

Other assets

     (6     97        (2     67        26   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     8,152        8,513        (10,879     15,190        (26,234
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

          

Proceeds from bank credit facilities

     1,982        536        —          2,518        30,300   

Repayments of bank credit facilities

     (2,693     (653     —          (3,346     (39,950

Repayment of notes payable and capital lease obligations

     (639     (436     (150     (1,533     (1,895

Proceeds from exercise of common stock options

     643        505        10        1,821        170   

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

Proceeds from initial public offering, net

     —          —          —          —          52,313   

Payment of deferred initial public offering costs

     —          —          (1,681     —          (2,410

Other

     (17     —          —          (17     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (724     (7,174     (1,821     (7,683     39,225   

Effect of exchange rate changes

     27        (12     (7     18        (31
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (568     (2,760     (11,395     (7,881     7,865   

Cash and cash equivalents at beginning of period

     12,949        15,709        29,479        20,262        10,219   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 12,381      $ 12,949      $ 18,084      $ 12,381      $ 18,084   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental cash flow information:

          

Cash paid during the period for:

          

Interest

   $ 67      $ 60      $ 29      $ 143      $ 208   

Income taxes

   $ 44      $ 32      $ 57      $ 121      $ 119   

Noncash financing and investing activities:

          

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

   $ 395      $ 1,322      $ 32      $ 2,072      $ 73   

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

   $ 847      $ 1,099      $ 62      $ 2,919      $ 982   

Issurance of common stock for acquisition

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

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

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

 

8


E2open, Inc.

GAAP to Non-GAAP Reconciliation Tables

(in thousands)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     November 30,
2013
    August 31,
2013
    November 30,
2012
    November 30,
2013
    November 30,
2012
 

Non-GAAP Revenue

          

GAAP Revenue

          

Subscriptions and support

   $ 14,400      $ 13,433      $ 11,215      $ 40,125      $ 32,160   

Professional services and other

     3,860        4,579        7,748        11,746        25,167   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     18,260        18,012        18,963        51,871        57,327   

Add (Less): accelerated revenue from contract amendment

          

Subscriptions and support

     78        79        63        236        (645

Professional services and other

     424        429        424        1,282        (3,399
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     502        508        487        1,518        (4,044

Add: deferred revenue purchase accounting adjustment

          

Subscriptions and support

     178        64        —          242        —     

Professional services and other

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     178        64        —          242        —     

Non-GAAP Revenue

          

Subscriptions and support

     14,656        13,576        11,278        40,603        31,515   

Professional services and other

     4,284        5,008        8,172        13,028        21,768   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 18,940      $ 18,584      $ 19,450      $ 53,631      $ 53,283   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Gross Profit

          

GAAP Gross Profit

          

Subscriptions and support

   $ 11,631      $ 10,788      $ 9,040      $ 32,183      $ 25,948   

Professional services and other

     (449     93        4,057        (1,106     14,159   

Amortization of acquired intangibles

     (408     (58     —          (466     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     10,774        10,823        13,097        30,611        40,107   

Add (Less): accelerated revenue from contract amendment

          

Subscriptions and support

     78        79        63        236        (645

Professional services and other

     424        429        424        1,282        (3,399
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     502        508        487        1,518        (4,044

Add: deferred revenue purchase accounting adjustment

          

Subscriptions and support

     178        64        —          242        —     

Professional services and other

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     178        64        —          242        —     

Add: stock-based compensation expense

          

Subscriptions and support

     77        82        53        222        127   

Professional services and other

     326        415        128        910        317   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     403        497        181        1,132        444   

Add: amortization of acquired intangibles

          

Subscriptions and support

     —          —          —          —          —     

Professional services and other

     —          —          —          —          —     

Amortization of acquired intangibles

     408        58        —          466        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     408        58        —          466        —     

Non-GAAP Gross Profit

          

Subscriptions and support

     11,964        11,013        9,156        32,883        25,430   

Professional services and other

     301        937        4,609        1,086        11,077   

Amortization of acquired intangibles

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 12,265      $ 11,950      $ 13,765      $ 33,969      $ 36,507   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Gross Margin

          

Subscriptions and support

     82     81     81     81     81

Professional services and other

     7     19     56     8     51
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     65     64     71     63     69
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

9


E2open, Inc.

GAAP to Non-GAAP Reconciliation Tables

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     November 30,
2013
    August 31,
2013
    November 30,
2012
    November 30,
2013
    November 30,
2012
 

Non-GAAP Income (Loss) from Operations

          

GAAP income (loss) from operations

   $ (7,130   $ (5,919   $ 33      $ (18,455   $ 2,560   

Add (Less): accelerated revenue from contract amendment

     502        508        487        1,518        (4,044

Add: deferred revenue purchase accounting adjustment

     178        64        —          242        —     

Add: stock-based compensation expense

     1,446        1,718        610        4,009        1,571   

Add: amortization of acquired intangibles

     777        83        —          860        —     

Add: acquisition-related expenses

     340        791        —          1,131        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income (loss) from operations

   $ (3,887   $ (2,755   $ 1,130      $ (10,695   $ 87   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Net Income (Loss) Per Share

          

Numerator:

          

GAAP net income (loss)

   $ (7,382   $ (5,923   $ (82   $ (18,699   $ 2,106   

Add (Less): accelerated revenue from contract amendment

     502        508        487        1,518        (4,044

Add: deferred revenue purchase accounting adjustment

     178        64        —          242        —     

Add: stock-based compensation

     1,446        1,718        610        4,009        1,571   

Add: provision for (benefit from) income taxes

     (209     35        62        (135     137   

Add: amortization of acquired intangibles

     777        83        —          860        —     

Add: acquisition-related expenses

     340        791        —          1,131        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income (loss) before income taxes

     (4,348     (2,724     1,077        (11,074     (230

Cash paid for income taxes

     (44     (32     (57     (121     (119
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

   $ (4,392   $ (2,756   $ 1,020      $ (11,195   $ (349
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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)

     26,545        26,018        25,021        26,061        25,882   

Effect of potentially dilutive common stock equivalents (1)

     1,509        1,510        1,855        1,542        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     28,054        27,528        26,876        27,603        25,882   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net income (loss) per share (diluted)

   $ (0.28   $ (0.23   $ (0.00   $ (0.72   $ 0.08   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss) per share

   $ (0.16   $ (0.10   $ 0.04      $ (0.41   $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

          

GAAP net income (loss)

   $ (7,382   $ (5,923   $ (82   $ (18,699   $ 2,106   

Add (Less): accelerated revenue from contract amendment

     502        508        487        1,518        (4,044

Add: deferred revenue purchase accounting adjustment

     178        64        —          242        —     

Add: depreciation and amortization

     552        496        401        1,452        1,196   

Add: amortization of acquired intangibles

     777        83        —          860        —     

Add (Less): interest and other expense, net

     461        (31     53        379        317   

Add: provision for (benefit from) income taxes

     (209     35        62        (135     137   

Add: acquisition-related expenses

     340        791        —          1,131        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     (4,781     (3,977     921        (13,252     (288

Add: stock-based compensation expense

     1,446        1,718        610        4,009        1,571   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (3,335   $ (2,259   $ 1,531      $ (9,243   $ 1,283   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free Cash Flow

          

Net cash provided by (used in) operating activities

   $ (8,023   $ (4,087   $ 1,312      $ (15,406   $ (5,095

Capital expenditures

     (68     (58     (70     (165     (1,117

Acquisition-related expenses

     503        206        —          709        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

   $ (7,588   $ (3,939   $ 1,242      $ (14,862   $ (6,212
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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