E2open Parent Holdings Inc (NYSE:ETWO) stock plunges 18.87% (As on October 10, 11:22:30 AM UTC-4, Source: Google Finance) after the company reported second quarter revenue that fell short of expectations and provided disappointing full-year guidance. GAAP subscription revenue for the second quarter of 2025 was $131.6 million, a decrease of 2.3% from the year-ago comparable period and 86.5% of total revenue. The company closed new logo and cross-sell business with large, well-known global companies in diverse market segments including consumer goods manufacturing and distribution, high-technology manufacturing, and retail. These clients selected e2open solutions to automate and connect client transportation operations, provide enhanced visibility over component supply and inventory, enable seamless global trade compliance, and reduce the total landed cost of goods, all of which will help drive cost savings and growth for the respective companies. Among the customer go-lives in the quarter is a notable supply solution with a long-standing communications and information technology client that enables consolidation of and visibility to critical business data from multiple source systems. The company has introduced innovations including the launch of Appointment Scheduling API, and showcased at Connect a range of pragmatic applied AI across the platform: universal forecasting engine in Connected Planning, business risk monitor in Supply, expanded next-generation capabilities in Connected Logistics, and AI-powered advancements in Global Trade.

ETWO in the second quarter of FY 25 has reported the adjusted earnings per share of 5 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 13 cents. The company had reported the adjusted revenue down of 4 percent to $152.2 million in the second quarter of FY 25, missing the analysts’ estimates for revenue of $154.81 million.

Looking ahead, E2open lowered its fiscal 2025 revenue outlook to a range of $607 million to $617 million, well below the $632.4 million analysts were expecting. The new guidance reflects a negative 3.6% organic growth rate at the midpoint. The company cited delays in closing certain large, complex deals due to extended client decision timelines as a factor impacting results. E2open said it is taking a more conservative view of full-year performance given these challenges. FY 25 Non-GAAP gross profit margin for fiscal 2025 is expected to be in the range of 68% to 70% and Adjusted EBITDA for fiscal 2025 is expected to be at the low end of the previously provided range of $215 million to $225 million with an implied adjusted EBITDA margin of approximately 35%.