E2open Parent Holdings Inc (NYSE:ETWO), the connected supply chain SaaS platform with the largest multi-enterprise network, stock rose 5.99% (As on January 10, 11:32:18 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for third quarter of FY 24. GAAP subscription revenue for the third quarter of 2024 was $132.8 million, a decrease of 1.5% from the year-ago comparable period and 84.3% of total revenue. Subscription revenue decreased 2.2% on a constant currency basis. Non-GAAP gross profit was $109.7 million, down 3.4% and 4.0% on a constant currency basis. Non-GAAP gross margin was 69.6% on an organic basis and 69.7% on a constant currency basis compared to 68.9% from the comparable year-ago period. GAAP Net loss for the third quarter of 2024 was $740.0 million compared to a net income of $5.5 million from the year-ago comparable period. Adjusted EBITDA for the third quarter of 2024 was $55.4 million, a decrease of 1.4% and 1.5% on a constant currency basis from the year-ago comparable period. Adjusted EBITDA margin was 35.1% and 35.4% on a constant currency basis versus 34.1% from the comparable year-ago period. Adjusted operating cash flow on a year-to-date basis, exclusive of non-recurring expenses, was $79.0 million, which represents 47.8% of year-to-date adjusted EBITDA.

ETWO in the third quarter of FY 24 has reported the adjusted earnings per share of 4 cents, which met the analysts’ estimates for the adjusted earnings per share of 4 cents. The company had reported 4.5 percent decline in the adjusted revenue growth to $156.40 million in the third quarter of FY 24, beating the analysts’ estimates for revenue of $154.46 million.

GAAP subscription revenue for fiscal 2024 is expected to be in the range of $533 million to $536 million (versus prior guidance of $530 million to $538 million), reflecting a 0.3% organic growth rate at the mid-point. Total GAAP revenue for fiscal 2024 is expected to be in the range of $628 million to $633 million (versus prior guidance of $625 million to $635 million), reflecting a 3.3% year-over-year decrease at the mid-point. GAAP subscription revenue for the fiscal fourth quarter of 2024 is expected to be in the range of $131 million to $134 million, reflecting a 3.2% year-over-year decrease at the mid-point. Adjusted EBITDA for fiscal 2024 is still 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%.