Investors weren't particularly open to the idea of owning E2open Parent Holdings (ETWO -7.97%) 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 Q1 2024's 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.
