E2open Parent Holdings Inc Q2 2025 Earnings Call Transcript

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

Question: Chris Quintero - Morgan Stanley - Analyst : Hey, Andrew, Greg and Marje, thanks for taking our questions here. I wanted to double-click on the large deal delays. Just curious how Q2 maybe compared versus Q1. Did things get sequentially worse there in terms of the number of delays, or was it more so you're kind of expecting an improvement that did not end up materializing?

Question: Chris Quintero - Morgan Stanley - Analyst : Got it. That's really helpful. And then, I'm curious to hear what you're seeing with your SAP customer base and pipeline. We've done a lot of work around the ERP upgrade cycle happening right now. And it seems like there's a lot of momentum there and acceleration. So, I think about 80% of your customers are also SAP customers. So, was just wondering if you're seeing any signs of that momentum there starting to translate over into your pipeline. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 09, 2024 / 9:00PM, ETWO.N - Q2 2025 E2open Parent Holdings Inc Earnings Call

Question: Chris Quintero - Morgan Stanley - Analyst : Excellent. Super helpful. Thank you all.

Question: Adam Hodgkinson - Goldman Sachs - Analyst : Great. Thanks so much for taking the questions. I guess to start, what are you seeing and hearing from your systems integrators as a channel for demand? I know a lot has been going on internally with sales focused on customer success. So, I imagine there's more of an opportunity for the SIs to step in here. I guess, what do you have to do on your end to sort of make that happen and spur that process? And where are we on that today? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 09, 2024 / 9:00PM, ETWO.N - Q2 2025 E2open Parent Holdings Inc Earnings Call

Question: Adam Hodgkinson - Goldman Sachs - Analyst : Okay. Understood. That's really helpful. And then, I just wanted to touch on the professional services revenue. I think it looks like you lowered the full year guide by about $17 million, implied by the subscription and the total revenue guide. So I'm just curious, you talked about the pushing out of deals impacting this, and obviously, there's some unbilled work in there. But could you maybe dig into that a little bit more and help us understand what's driving the magnitude of the cut on that?

Question: Taylor McGinnis - UBS - Analyst : Yeah. Hi. Thanks so much for taking my question. So, first one, if I look at the second half implied subscription revenue outlook, it still implies like a bit of an uptick in 4Q. I know you talked about the expectation that you're going to see better retention rates and then also you're going to close some of these like larger deals that are in the pipeline. But can you just talk about how much, I guess, of that uptick is really coming from improving retention versus closing some of these larger deals? And when you think about what's giving you the confidence or comfort in that, is that because maybe some of these have already closed, some of the efforts that you're talking about? Like, is there any nuance in place to further drive retention higher? Maybe it's just getting through tougher renewals? But, can you maybe like talk through some of the things that are giving you guys that comfort?

Question: Taylor McGinnis - UBS - Analyst : Perfect.

Question: Taylor McGinnis - UBS - Analyst : Great. Thanks so much for taking my questions.

Question: Mark Schappel - Loop Capital - Analyst : Hi. Thank you for taking my question. Greg, I want to build on an earlier question on the deal delays. I was wondering if you could just provide additional color around these transactions like whether you're seeing a particular weakness in a certain vertical or a certain product category?

Question: Mark Schappel - Loop Capital - Analyst : Great. That's helpful. And then, one additional follow-up question. Andrew, there's a fair amount of M&A in the space in the supply chain space during the quarter, right? We had K÷rber buying MercuryGate, Blue Yonder closed One Network. Maybe just talk a little bit about your view of the changes to the competitive environment here? And also, whether you think there's an opportunity to pick up business from just potential disruptions at these firms?

Question: Mark Schappel - Loop Capital - Analyst : Great. Thank you.

Question: David Ridley-Lane - Bank of America - Analyst : Hi. This is David Ridley-Lane on for Andrew. What were the strongest areas of new bookings for you among the product portfolio? What's getting better?

Question: David Ridley-Lane - Bank of America - Analyst : Got it. And just want to check that -- understand you're having the difficulties on the large deals, but in terms of getting back to normalized churn rates by the start of fiscal year '26, you're still tracking towards that on that trajectory?

Question: David Ridley-Lane - Bank of America - Analyst : Understood. Thank you very much.