E2open Parent Holdings Inc (NYSE:ETWO) stock plunges 47.14% (As on October 11, 11:12:38 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the second quarter of FY 24. GAAP subscription revenue for the second quarter of 2024 was $134.7 million, an increase of 2.4% from the year-ago comparable period and 85.0% of total revenue. Subscription revenue growth was 1.9% on a constant currency basis. Non-GAAP gross profit was $109.5 million, up 2.5% and 2.0% on a constant currency basis. Non-GAAP gross margin was 69.1% on an organic and a constant currency basis compared to 66.5% from the year-ago comparable period. Net loss for the second quarter of 2024 was $38.6 million compared to a net loss of $409.6 million from the year-ago comparable period. Adjusted EBITDA for the second quarter of 2024 was $56.1 million, an increase of 16.1% and 15.4% on a constant currency basis from the year-ago comparable period. Adjusted EBITDA margin was 35.4% on an organic and a constant currency basis versus 30.1% from the comparable year-ago period. Adjusted operating cash flow on a year-to-date basis, exclusive of non-recurring expenses, was $45.1 million, which represents 41.0% of year-to-date adjusted EBITDA.

ETWO in the second quarter of FY 24 has reported the adjusted earnings per share of 4 cents, missing the analysts’ estimates for the adjusted earnings per share of 5 cents. The company had reported 1.87 percent decline in the adjusted revenue to $158.2 million in the second quarter of FY 24, missing the analysts’ estimates for revenue of $159.66 million.

E2open anticipates full-year 2024 subscription revenue to be in a range between $530 million and $538 million and total revenue to be between $625 million and $635 million. The company expects third-quarter subscription revenue to be between $130 million and $133 million. Non-GAAP gross profit margin for fiscal 2024 is expected to be in the range of 68% to 70%. Adjusted EBITDA for fiscal 2024 is expected to be in the range of $215 million to $220 million, reflecting an implied adjusted EBITDA margin in the range of 34% to 35%.

On the other hand, the company continued to expand the logistics ecosystem of e2open’s industry-leading global network through partnerships with Traffic Tech, Emerge, and Flock Freight. Connecting these transportation partners to e2open’s global carrier network provides shippers with broader options to improve service levels and optimize transportation costs.