Investors weren't particularly open to the idea of owning E2open Parent Holdings (ETWO +0.00%) stock on Wednesday. Following the release of its latest set of quarterly results, the specialty tech company saw its stock close down by almost 7% that day. That was a far steeper drop than that of the S&P 500 index, which dipped by less than 1%.
Top- and bottom-line declines
In its fiscal first quarter of 2025, E2open saw its revenue decline on a year-over-year basis. It fell to just over $151 million from 2024's Q1 tally of $160 million. The dynamic was similar with the company's non-GAAP (adjusted) net income; this came in at $13 million, or $0.04 against the year-ago profit of nearly $16 million.
Despite the drops, E2open met the average-analyst estimate for profitability. It fell short on the top line, however, as prognosticators tracking its fortunes were collectively expecting slightly over $155 million.
The company said that it was making progress on its long-term strategy of returning to growth. It experienced several hiccups during the quarter, however, including what it termed "temporary deal closure delays."
NYSE: ETWO
Key Data Points
Sticking with previous guidance
In the earnings release, E2open reiterated its subscription and total-revenue guidance for the entirety of fiscal 2025. It anticipates overall revenue will land between $630 million and $645 million. The consensus-analyst estimate of just over $637 million falls within this range.
That's on the back of the company's foundational-subscription revenue, which at a forecast $532 million to $542 million means essentially flat year-over-year growth.
