Attached files

file filename
8-K - FORM 8-K - E2open Incd800978d8k.htm

Exhibit 99.1

E2open Announces Second Quarter of Fiscal Year 2015 Results

Second quarter non-GAAP subscriptions and support revenue of $17.1 million, a 26% increase year-over-year

Foster City, CA (October 8, 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 August 31, 2014.

“Our new business activity remained strong in the second quarter, as our broad portfolio of solutions continues to resonate with new and existing customers,” said Mark Woodward, E2open’s President and CEO. “While we are disappointed with the recent acquisition-related customer losses, we continue to believe that we are uniquely suited to capitalize on the large and growing market opportunity in front of us.”

Second Quarter Financial Highlights:

 

    GAAP Revenue: Total GAAP revenue was $20.0 million for the second quarter of fiscal 2015; subscriptions and support revenue was $16.7 million and professional services revenue was $3.2 million.

 

    Non-GAAP Revenue: Total non-GAAP revenue for the second quarter of fiscal 2015 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 $0.3 million from the impact of purchase accounting adjustments to deferred revenue in connection with the acquisition of Icon in the second quarter of fiscal 2014 and Serus in the second quarter of fiscal 2015. Total non-GAAP revenue was $20.8 million, an increase of 12% compared to $18.6 million for the second quarter of fiscal 2014 and an increase of 6% compared to $19.6 million for the first quarter of fiscal 2015. Subscriptions and support revenue was $17.1 million, an increase of 26% compared to $13.6 million for the second quarter of fiscal 2014 and an increase of 4% compared to $16.5 million for the first quarter of fiscal 2015. Professional services revenue was $3.7 million, a decrease of 26% compared to $5.0 million for the second quarter of fiscal 2014 and an increase of 17% compared to $3.2 million for the first quarter of fiscal 2015.

 

    GAAP Loss from Operations: GAAP loss from operations was ($9.2) million compared to ($5.9) million for the second quarter of fiscal 2014 and ($7.4) million for the first quarter of fiscal 2015.

 

    Non-GAAP Loss from Operations: Non-GAAP loss from operations was ($3.3) million compared to ($2.8) million for the second quarter of fiscal 2014 and ($4.1) million for the first quarter of fiscal 2015.

 

    GAAP Net Loss: GAAP net loss was ($9.3) million compared to ($5.9) million for the second quarter of fiscal 2014 and ($7.3) million for the first quarter of fiscal 2015. GAAP net loss per share was ($0.32), based on 29.1 million weighted-average shares outstanding, compared to ($0.23) per share, based on 26.0 million weighted-average shares outstanding, for the second quarter of fiscal 2014 and ($0.25) per share, based on 28.8 million weighted-average shares outstanding, for the first quarter of fiscal 2015.

 

    Non-GAAP Net Loss: Non-GAAP net loss was ($3.3) million compared to ($2.8) million for the second quarter of fiscal 2014 and ($4.3) million for the first quarter of fiscal 2015. Non-GAAP net loss per share was ($0.11), based on 30.9 million weighted-average shares outstanding, compared to ($0.10), based on 27.5 million weighted-average shares outstanding, for the second quarter of fiscal 2014 and ($0.14), based on 30.5 million weighted-average shares outstanding, for the first quarter of fiscal 2015.

 

    Adjusted EBITDA: Adjusted EBITDA was ($2.7) million compared to ($2.3) million for the second quarter of fiscal 2014 and ($3.6) million for the first quarter of fiscal 2015.


    Cash Flow: Cash flow from operations was ($6.8) million and free cash flow was ($6.6) million after deducting $0.1 million of capital expenditures and adding back payments for acquisition-related expenses of $0.3 million. This compares to cash flow from operations of ($4.1) million and free cash flow of ($3.9) million after deducting $0.0 million of capital expenditures and adding back payment for acquisition-related expenses of $0.2 million for the second quarter of fiscal 2014.

 

    Balance Sheet: Cash and investments was $36.1 million, a decrease of $25.8 million compared to $61.9 million at the end of the first quarter of fiscal 2015, owing primarily to the use of cash in the acquisition of Serus.

Second Quarter & Recent Business Highlights:

 

    Acquired Serus Corporation, a leading provider of cloud-based manufacturing and supply chain visibility and intelligence solutions to semiconductor and other high tech companies.

 

    Named the winner of a Gold Stevie® Award in the Best New Product or Service of the Year - Software - Supply Chain Management Solution category.

 

    Announced an executive transition – Rob Schoenthaler, Chief Customer Officer, assumed responsibility for the sales organization.

 

    Added 7 new customers during the quarter and expanded our relationship with several existing customers.

 

    Ended the quarter with 125 enterprise customers, 40,545 unique registered trading partners, and 136,647 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.”

Guidance:

As of October 8, 2014, E2open is providing guidance for its third 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 $80.8 million to $83.3 million, including a $2.2 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 purchase accounting adjustments to deferred revenue related to acquisitions. Excluding the aforementioned contract amendment and the purchase accounting adjustments to deferred revenue, total non-GAAP revenue is expected to be in the range of $83.0 million to $85.5 million. Non-GAAP loss from operations is expected to be in the range of ($18.4) million to ($17.4) million. Non-GAAP loss per share is expected to be in the range of ($0.61) to ($0.58) based on approximately 31.1 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of ($16.0) million to ($15.0) million. Free cash flow is expected to be in the range of ($15.5) million to ($14.5) million. New and upsell subscriptions and support bookings are expected to be in the range of $91.5 million to $96.5 million, representing growth of approximately 29% to 36% compared to fiscal 2014.

 

    Third Quarter Fiscal 2015 Guidance: Total GAAP revenue is expected to be in the range of $19.5 million to $20.3 million. Total non-GAAP revenue is expected to be in the range of $20.1 million to $20.9 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 purchase accounting adjustments to deferred revenue related to acquisitions. Non-GAAP loss from operations is expected to be in the range of ($6.0) million to ($5.2) million. Non-GAAP loss per share is expected to be in the range of ($0.20) to ($0.17) based on approximately 31.5 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of ($5.4) million to ($4.6) million.

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 loss from operations and GAAP loss per share because these items cannot be reasonably predicted.


Conference Call Details:

 

    What: E2open financial results for the second quarter of fiscal 2015 and outlook for the third quarter of fiscal 2015 and the full year of fiscal 2015

 

    When: Wednesday, October 8, 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 13590612 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 13590612.

About E2open

E2open (NASDAQ: EOPN) is the 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 Avnet, Celestica, Cisco, HP, IBM, Lenovo, L’Oreal, Motorola Solutions, Seagate, and Vodafone. E2open is headquartered in Foster City, California with operations worldwide. For more information, visit www.e2open.com.

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

This press release contains forward-looking statements about expected total GAAP revenue, the effect of the acceleration of revenue in connection with a contract amendment, the impact of purchase accounting adjustments to deferred revenue related to acquisitions, total non-GAAP revenue, non-GAAP loss from operations, non-GAAP loss per share, weighted-average shares outstanding, and adjusted EBITDA for the third quarter of fiscal 2015 and the full fiscal year, and free cash flow and new and upsell subscriptions and support 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 acquisitions; 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.

Non-GAAP Financial Measures

Our reported results include certain non-GAAP financial measures, including total non-GAAP revenue, non-GAAP loss from operations, non-GAAP net loss, weighted-average shares outstanding, non-GAAP net loss per share, adjusted EBITDA, and free cash flow. Non-GAAP loss from operations and non-GAAP net loss exclude expenses related to stock-based compensation expense, amortization of acquired intangibles, acquisition-related expenses, and non-cash 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 loss from operations and non-GAAP net 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 purchase accounting adjustments to deferred revenue related to acquisitions. Adjusted EBITDA is defined as net income (loss), adjusted for accelerated revenue from a contract amendment, the impact of purchase accounting adjustments to deferred revenue related to acquisitions, depreciation and amortization, stock-based compensation expense, interest and other income (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, adjusted for payment of 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


E2open, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(dollars in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     August 31,
2014
    May 31,
2014
    August 31,
2013
    August 31,
2014
    August 31,
2013
 

Revenue

          

Subscriptions and support

   $ 16,733      $ 16,306      $ 13,433      $ 33,039      $ 25,725   

Professional services and other

     3,248        2,725        4,579        5,973        7,886   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     19,981        19,031        18,012        39,012        33,611   

Cost of revenue

          

Subscriptions and support (1)

     3,390        3,120        2,645        6,510        5,173   

Professional services and other (1)

     4,132        3,851        4,486        7,983        8,543   

Amortization of acquired intangibles

     722        350        58        1,072        58   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     8,244        7,321        7,189        15,565        13,774   

Gross profit (loss)

          

Subscriptions and support

     13,343        13,186        10,788        26,529        20,552   

Professional services and other

     (884     (1,126     93        (2,010     (657

Amortization of acquired intangibles

     (722     (350     (58     (1,072     (58
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross profit

     11,737        11,710        10,823        23,447        19,837   

Gross margin (loss)

          

Subscriptions and support

     75     79     80     77     80

Professional services and other

     (27 %)      (41 %)      2     (34 %)      (8 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross margin

     59     62     60     60     59

Operating expenses

          

Research and development (1)

     5,435        5,224        4,533        10,659        8,606   

Sales and marketing (1)

     10,463        10,442        8,752        20,905        16,651   

General and administrative (1)

     3,706        2,898        2,641        6,604        5,089   

Acquisition-related expenses

     708        208        791        916        791   

Amortization of acquired intangibles

     672        294        25        966        25   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     20,984        19,066        16,742        40,050        31,162   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (9,247     (7,356     (5,919     (16,603     (11,325

Interest and other expense, net

     45        (33     31        12        82   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (9,202     (7,389     (5,888     (16,591     (11,243

Benefit from (provision for) income taxes

     (147     71        (35     (76     (74
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (9,349   $ (7,318   $ (5,923   $ (16,667   $ (11,317
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share:

          

Basic and diluted

   $ (0.32   $ (0.25   $ (0.23   $ (0.58   $ (0.44
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used to compute net loss per share:

          

Basic and diluted

     29,108        28,836        26,018        28,972        25,822   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(1)    Includes stock-based compensation as follows:

          

Cost of revenue

          

Subscriptions and support

   $ 157      $ 104      $ 82      $ 261      $ 145   

Professional services and other

     727        438        415        1,165        584   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     884        542        497        1,426        729   

Operating expenses

          

Research and development

     216        159        148        375        216   

Sales and marketing

     1,055        672        617        1,727        907   

General and administrative

     873        413        456        1,286        711   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     2,144        1,244        1,221        3,388        1,834   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stock-based compensation

   $ 3,028      $ 1,786      $ 1,718      $ 4,814      $ 2,563   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


E2open, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

 

     August 31, 2014     February 28, 2014  
     (Unaudited )   

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 12,920      $ 42,723   

Short-term investments

     17,437        14,374   

Accounts receivable, net

     11,807        21,995   

Prepaid expenses and other current assets

     8,461        4,380   
  

 

 

   

 

 

 

Total current assets

     50,625        83,472   

Long-term investments

     5,779        8,541   

Goodwill

     35,992        22,556   

Intangible assets, net

     24,856        11,395   

Property and equipment, net

     3,737        3,431   

Other assets

     1,255        1,316   
  

 

 

   

 

 

 

Total assets

   $ 122,244      $ 130,711   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable and accrued liabilities

   $ 12,353      $ 12,366   

Deferred revenue

     34,223        43,672   

Acquisition-related obligations

     13,988        5,473   

Current portion of notes payable and capital lease obligations

     3,443        2,995   
  

 

 

   

 

 

 

Total current liabilities

     64,007        64,506   

Deferred revenue

     1,525        1,587   

Notes payable and capital lease obligations, net of current portion

     2,610        2,599   

Other noncurrent liabilities

     1,800        2,195   
  

 

 

   

 

 

 

Total liabilities

     69,942        70,887   

Stockholders’ equity:

    

Common stock

     29        29   

Additional paid-in capital

     435,155        426,031   

Accumulated other comprehensive income

     52        31   

Accumulated deficit

     (382,934     (366,267
  

 

 

   

 

 

 

Total stockholders’ equity

     52,302        59,824   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 122,244      $ 130,711   
  

 

 

   

 

 

 


E2open, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     August 31,
2014
    May 31,
2014
    August 31,
2013
    August 31,
2014
    August 31,
2013
 

Cash flows from operating activities:

          

Net loss

   $ (9,349   $ (7,318   $ (5,923   $ (16,667   $ (11,317

Adjustments to reconcile net loss to net cash used in operating activities:

          

Stock-based compensation

     3,028        1,786        1,718        4,814        2,563   

Depreciation and amortization

     2,028        1,215        579        3,243        983   

Other

     222        67        199        289        176   

Changes in operating assets and liabilities:

          

Accounts receivable, net

     4,350        6,685        3,802        11,035        10,599   

Prepaid expenses and other current assets

     716        955        (665     1,671        (739

Accounts payable and accrued liabilities

     445        (350     2,401        95        878   

Deferred revenue

     (7,784     (5,183     (6,443     (12,967     (11,032

Other

     (495     (167     245        (662     506   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in operating activities

     (6,839     (2,310     (4,087     (9,149     (7,383
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

          

Capital expenditures

     (118     (71     (58     (189     (97

Sale (purchase) of marketable securities, net

     7,243        (7,750     19,963        (507     18,551   

Payments for acquisitions, net of cash acquired

     (12,323     —          (11,489     (12,323     (11,489

Additions to cash held in escrow, net

     (5,421     —          —          (5,421     —     

Other assets

     (27     (1     97        (28     73   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (10,646     (7,822     8,513        (18,468     7,038   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

          

Proceeds from bank credit facilities

     1,887        2,284        536        4,171        536   

Repayment of bank credit facilities

     (1,887     (2,284     (653     (4,171     (653

Repayment of notes payable and capital lease obligations

     (1,071     (948     (436     (2,019     (894

Payment of stock offering costs

     —          (305     —          (305     —     

Proceeds from exercise of common stock options

     345        89        505        434        1,178   

Repayment of debt assumed from acquired company

     (143     —          (7,126     (143     (7,126

Other

     (5     (52     —          (57     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (874     (1,216     (7,174     (2,090     (6,959

Effect of exchange rate changes

     (70     (26     (12     (96     (9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (18,429     (11,374     (2,760     (29,803     (7,313

Cash and cash equivalents at beginning of period

     31,349        42,723        15,709        42,723        20,262   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 12,920      $ 31,349      $ 12,949      $ 12,920      $ 12,949   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental cash flow information:

          

Cash paid during the period for:

          

Interest

   $ 82      $ 94      $ 60      $ 176      $ 76   

Income taxes

   $ 33      $ 123      $ 32      $ 156      $ 77   

Noncash financing and investing activities:

          

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

   $ 559      $ 312      $ 1,322      $ 871      $ 1,677   

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

   $ 901      $ 426      $ 1,099      $ 1,327      $ 2,072   

Issuance of common stock for acquisitions

   $ 3,966      $ —        $ 8,849      $ 3,966      $ 8,849   


E2open, Inc. and Subsidiaries

GAAP to Non-GAAP Reconciliation Tables

(dollars in thousands)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     August 31,
2014
    May 31,
2014
    August 31,
2013
    August 31,
2014
    August 31,
2013
 

Non-GAAP Revenue

          

GAAP Revenue

          

Subscriptions and support

   $ 16,733      $ 16,306      $ 13,433      $ 33,039      $ 25,725   

Professional services and other

     3,248        2,725        4,579        5,973        7,886   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     19,981        19,031        18,012        39,012        33,611   

Add: accelerated revenue from contract amendment

          

Subscriptions and support

     79        79        79        158        158   

Professional services and other

     429        429        429        858        858   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     508        508        508        1,016        1,016   

Add: deferred revenue purchase accounting adjustment

          

Subscriptions and support

     240        79        64        319        64   

Professional services and other

     25        —          —          25        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     265        79        64        344        64   

Non-GAAP Revenue

          

Subscriptions and support

     17,052        16,464        13,576        33,516        25,947   

Professional services and other

     3,702        3,154        5,008        6,856        8,744   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 20,754      $ 19,618      $ 18,584      $ 40,372      $ 34,691   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Gross Profit (Loss)

          

GAAP Gross Profit (Loss)

          

Subscriptions and support

   $ 13,343      $ 13,186      $ 10,788      $ 26,529      $ 20,552   

Professional services and other

     (884     (1,126     93        (2,010     (657

Amortization of acquired intangibles

     (722     (350     (58     (1,072     (58
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     11,737        11,710        10,823        23,447        19,837   

Add: accelerated revenue from contract amendment

          

Subscriptions and support

     79        79        79        158        158   

Professional services and other

     429        429        429        858        858   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     508        508        508        1,016        1,016   

Add: deferred revenue purchase accounting adjustment

          

Subscriptions and support

     240        79        64        319        64   

Professional services and other

     25        —          —          25        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     265        79        64        344        64   

Add: stock-based compensation expense

          

Subscriptions and support

     157        104        82        261        145   

Professional services and other

     727        438        415        1,165        584   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     884        542        497        1,426        729   

Add: amortization of acquired intangibles

          

Subscriptions and support

     —          —          —          —          —     

Professional services and other

     —          —          —          —          —     

Amortization of acquired intangibles

     722        350        58        1,072        58   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     722        350        58        1,072        58   

Non-GAAP Gross Profit (Loss)

          

Subscriptions and support

     13,819        13,448        11,013        27,267        20,919   

Professional services and other

     297        (259     937        38        785   

Amortization of acquired intangibles

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 14,116      $ 13,189      $ 11,950      $ 27,305      $ 21,704   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Gross Margin (Loss)

          

Subscriptions and support

     81     82     81     81     81

Professional services and other

     8     (8 %)      19     1     9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     68     67     64     68     63
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


E2open, Inc. and Subsidiaries

GAAP to Non-GAAP Reconciliation Tables

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     August 31,
2014
    May 31,
2014
    August 31,
2013
    August 31,
2014
    August 31,
2013
 

Non-GAAP Loss from Operations

          

GAAP loss from operations

   $ (9,247   $ (7,356   $ (5,919   $ (16,603   $ (11,325

Add: accelerated revenue from contract amendment

     508        508        508        1,016        1,016   

Add: deferred revenue purchase accounting adjustment

     265        79        64        344        64   

Add: stock-based compensation expense

     3,028        1,786        1,718        4,814        2,563   

Add: amortization of acquired intangibles

     1,394        644        83        2,038        83   

Add: acquisition-related expenses

     708        208        791        916        791   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP loss from operations

   $ (3,344   $ (4,131   $ (2,755   $ (7,475   $ (6,808
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Net Loss Per Share

          

Numerator:

          

GAAP net loss

   $ (9,349   $ (7,318   $ (5,923   $ (16,667   $ (11,317

Add: accelerated revenue from contract amendment

     508        508        508        1,016        1,016   

Add: deferred revenue purchase accounting adjustment

     265        79        64        344        64   

Add: stock-based compensation

     3,028        1,786        1,718        4,814        2,563   

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

     147        (71     35        76        74   

Add: amortization of acquired intangibles

     1,394        644        83        2,038        83   

Add: acquisition-related expenses

     708        208        791        916        791   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP loss before income taxes

     (3,299     (4,164     (2,724     (7,463     (6,726

Cash paid for income taxes

     (33     (123     (32     (156     (77
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

   $ (3,332   $ (4,287   $ (2,756   $ (7,619   $ (6,803
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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)

     29,108        28,836        26,018        28,972        25,822   

Effect of potentially dilutive common stock equivalents (1)

     1,780        1,636        1,510        1,798        1,560   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     30,889        30,472        27,528        30,771        27,382   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net loss per share (diluted)

   $ (0.32   $ (0.25   $ (0.23   $ (0.58   $ (0.44
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss per share

   $ (0.11   $ (0.14   $ (0.10   $ (0.25   $ (0.25
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

          

GAAP net loss

   $ (9,349   $ (7,318   $ (5,923   $ (16,667   $ (11,317

Add: depreciation and amortization

     634        571        496        1,205        900   

Add: amortization of acquired intangibles

     1,394        644        83        2,038        83   

Add (Less): interest and other expense, net

     (45     33        (31     (12     (82

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

     147        (71     35        76        74   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     (7,219     (6,141     (5,340     (13,360     (10,342

Add: accelerated revenue from contract amendment

     508        508        508        1,016        1,016   

Add: deferred revenue purchase accounting adjustment

     265        79        64        344        64   

Add: stock-based compensation expense

     3,028        1,786        1,718        4,814        2,563   

Add: acquisition-related expenses

     708        208        791        916        791   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (2,710   $ (3,560   $ (2,259   $ (6,270   $ (5,908
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free Cash Flow

          

Net cash used in operating activities

   $ (6,839   $ (2,310   $ (4,087   $ (9,149   $ (7,383

Less: capital expenditures

     (118     (71     (58     (189     (97

Add: acquisition-related expenses

     327        73        206        400        206   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

   $ (6,630   $ (2,308   $ (3,939   $ (8,938   $ (7,274
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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.