E2open Parent Holdings Inc at Needham Technology & Media Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : All right. We'll get started here. I guess to start off properly, why don't you give an overview of the Company, of E2open, for those that are less familiar with it?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Okay. Easy enough. Let's start with the process of going public. Why not do a traditional IPO? I believe E2open -- you went through the SPAC process, but last time I checked you're a real software company with real revenues and real cash flows. It doesn't --. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2022 / 7:00PM, ETWO.N - E2open Parent Holdings Inc at Needham Technology & Media Conference (Virtual)

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : It just doesn't seem like the traditional kind of speculative company that has gone public during the SPAC craze over the last year-plus.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Okay, fair enough. Let's move to industry and products a little bit, as I was telling you out in the hallway, while most on the call, you probably realize I don't formally cover the company necessarily today. I might be the one and only analyst or one of just a couple of analysts that actually both covered E2open and Amber Road when they were public in their prior form. So I have a generally decent handle, I guess, on the overall business. But first with E2open, there in this -- we'll call it generically the supply chain software market, obviously, right? How should we think about the company's current scale, your overall scale relative to the size of the supply chain market? You mentioned $400 million plus in revenues.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : So my quick math tells me that's about a 1% market share plus or minus. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2022 / 7:00PM, ETWO.N - E2open Parent Holdings Inc at Needham Technology & Media Conference (Virtual)

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : All right. Well, that's a favorable space to be in. I guess on the supply chain theme, global supply chains have been on investors' minds now, a lot over the last two years, for a variety of reasons. How does the current supply chain issues from the -- that are caused from the pandemic, how do they play into demand to your overall platform?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : So staying on the macro theme -- theme with a similar question, the conflict in Eastern Europe right now and inflation are creating --

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Yeah, it is. They're creating new and more dynamic macro pressures than probably what we've seen in a long time, obviously. I assume these also pose an opportunity for the company versus some sort of headwind.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : All right. Continuing on, I guess, the product theme a little bit. E2open merged its demand and supply chain planning platform with Amber Road's global trade management platform. I remember asking this question when Amber Road was getting acquired by you guys. Why do they fit together?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : So I guess a couple of questions in there. One, how integrated are the solutions today, truly, outside of just some generic API extensions? And then the second question on that is, you talked about selling back to your customers. How you think about penetration across all those different products within your existing customer base? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2022 / 7:00PM, ETWO.N - E2open Parent Holdings Inc at Needham Technology & Media Conference (Virtual)

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : So I like large, cross-sell opportunities over time because --.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : It's always easier. And if you make your existing customers happy, it's amazing how quickly they come back and buy stuff. That's a good thing.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Even better. Does -- and I don't know this, but has the company talked about net revenue retention metrics, how that's trended over the last couple, three years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2022 / 7:00PM, ETWO.N - E2open Parent Holdings Inc at Needham Technology & Media Conference (Virtual)

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : What's the -- what do you think the durable NRR growth rate is over the coming four to five years, not that you're obviously guiding to a specific number, but is this high single digit 107%, 108% the right range?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Have you found the cross-sell opportunity is any easier moving from one product to the next? Let's say someone has some of your plant supply chain -- supply planning solutions that go to global trade or vice versa or whatever it is.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Sure. Last question on the product side is do any of your customers have every module today? Your largest customers -- does it -- do they buy everything?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Fair enough. By the way, from a housekeeping perspective, we will take audience questions when we're done here. I've got several more questions, obviously, but if anyone has questions, feel free to ask when we're done. I guess lastly on the overall demand environment, I think if I look at both -- at least the companies I know historically between E2open and Amber Road, they're both more -- they're always domestically focused. Amber Road dealt a lot with at least Asia Pac because obviously a lot of shipping came out of there, but so did E2open. Yet most of their customers were really, kind of, tactically maybe headquartered here even though their operations might have been there. Is that still the profile of the company or have you been able to expand [at all]?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Any pressure on your Western European business from -- whether it's the conflict over there or a slowing -- a macro that seems to be slowing maybe a little bit more quickly than here? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2022 / 7:00PM, ETWO.N - E2open Parent Holdings Inc at Needham Technology & Media Conference (Virtual)

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Okay. From a financial perspective, we're talking about the growth rate of the company, that low double digit range -- if you feel good about that in this environment. But how about from a profitability perspective? You talked about the contributions from Amber Road at about 50%. It looks like you're profitable on a non-GAAP basis. How do you guys think about that balance between the two going forward?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : That $20 million, does that accelerate the growth rate of the business going forward? How do you measure the impact of that?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : My math tells me after about four or five years, those numbers look really good relative to that investment level. So I like the exercise, good luck with it.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Yeah, again, my numbers make that work. I like it.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : I don't know, have you seen this newfangled math they teach in schools these days? I don't know if you get to the same answer as my old school math, so --. Let's talk about competition a little bit. Competitively, I've seen the solutions that you have compete with a variety of different vendors, whether it's a Blue Yonder that's private today or of -- obviously Oracle and SAP have some, we'll call them native solutions in their product. Who do you think really you compete against most frequently when you're out there?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : So if the market is $50 billion or $60 billion, why aren't there more competitors? That's a pretty big market. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2022 / 7:00PM, ETWO.N - E2open Parent Holdings Inc at Needham Technology & Media Conference (Virtual)

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : That also typically means it takes them a long time to get rid of the software. So retention rates tend to be really good once you get built into the process.

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Okay. I guess last question around that -- complex sales, which usually means longer implementations because these are big processes is -- how do you think about the time to value? And have you found ways to, maybe, expedite that a little bit with your customers?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : With that, I am up against the clock for my questions. Happy to answer any from the audience if there are any. Unidentified Analyst So you're got a TMS with BluJay and a (inaudible) with Amber Road. Any major categories that would significantly added to the TAM? Things around data, term data (inaudible) to acquire?

Question: Scott Berg - Needham Technology and Media Ltd. - Analyst : Any other questions? Well, with that, we're going to give people a few more minutes back in their day. Thank you for joining us. And Michael, thank you so much.