Q4 2024 E2open Parent Holdings Inc Earnings Call

Operator: Greetings. Welcome to the E2open fourth quarter and fiscal year 2024 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Dusty Buell. You may begin.

Greetings and welcome to the <unk> to open fourth quarter and fiscal year 'twenty 'twenty four earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.

Please note this conference is being recorded.

Now I'll turn the conference over to your host Dusty deal you may begin.

Dusty Buell: Good afternoon, everyone. At this time, I would like to welcome you all to the E2open fiscal fourth quarter and full year 2024 earnings conference call. I am Dusty Buell, Head of Investor Relations here at E2open. Today's call will include recorded comments from our Chief Executive Officer, Andrew Appel, our Chief Commercial Officer, Greg Randolph, and our Chief Financial Officer, Marie Armstrong. Following those comments, we'll open the call for a live Q&A session.

Dusty Buell: Good afternoon, everyone. At this time I would like to welcome you all to the East you open fiscal fourth quarter and full year 2024 earnings conference call I am dusting deal head of Investor Relations here at eight to open.

Dusty Buell: Today's call will include recorded comments from our Chief Executive Officer, Andrew Powell, Our Chief Commercial Officer, Greg Randolph and our Chief Financial Officer Marie Armstrong.

Dusty Buell: Following those comments, we'll open the call for a live Q&A session, a replay and transcript of this call will be available on the company's in.

Dusty Buell: A replay and transcript of this call will be available on the company's Invitation website, the Investor Relations website at investors.e2open.com. Information to access this replay is listed in today's press release, which is also available on our Investor Relations website.

Dusty Buell: Investor Relations website at investors don't eat too open dot com.

Information to access. This replay is listed in today's press release, which is also available on our Investor Relations website.

Dusty Buell: Before we begin, I'd like to remind everyone that during today's call, we will be making forward-looking statements regarding future events and financial performance, including guidance for our fiscal first quarter and full year 2025. These forward-looking statements are subject to known and unknown risks and uncertainties. E2open cautions that these statements are not guarantees of future performance. We encourage you to review our most recent reports, including our 10-K or any applicable amendments, for a complete discussion of these factors and other risks that may affect our future results or the market price of our stocks.

Dusty Buell: Before we begin I'd like to remind everyone that during today's call. It will be making forward looking statements regarding future events and financial performance, including guidance for our fiscal first quarter and full year 2025.

Dusty Buell: These forward looking statements are subject to known and unknown risks and uncertainties.

If you open cautions that these statements are not guarantees of future performance.

Dusty Buell: We encourage you to review our most recent reports, including our 10-K or any applicable amendments for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock.

Dusty Buell: And finally, we are not obligating ourselves to revise our results or these forward-looking statements in light of new information or future events. Also, during today's call, we'll refer to certain non-GAAP financial measures. Reconciliations of non-GAAP to GAAP measures and certain additional information are included in today's earnings press release, which can be viewed and downloaded from our investor relations website at investors.e2open.com. And with that, we'll begin by turning the call over to our CEO, Andrew Appel.

Dusty Buell: And finally, we're not obligating ourselves to revise our results or these forward looking statements in light of new information or future events.

Dusty Buell: Also during todays call well refer to certain non-GAAP financial measures.

Dusty Buell: Conciliation of non-GAAP to GAAP measures and certain additional information are included in today's earnings press release, which can be viewed and downloaded from our investor Relations website at investors don't eat two open dot com and with that we'll begin by turning the call over to our CEO Andrew Paul.

Andrew Appel: Thank you, Dusty, and thanks to everyone for joining today's call. I'll begin with some thoughts on the state of the business and our strategy for returning E2open to strong, sustainable, organic growth. I'll then ask Greg to update you on the work he is leading in our commercial organization. And finally, Marie will review our fiscal fourth quarter and full year 24 financial results and provide our fiscal 25 guidance.

Andrew Appel: Thank you Dusty and thanks to everyone for joining today's call I'll begin with some thoughts on the state of the business and our strategy for returning eat you open to strong sustainable organic growth.

Andrew Appel: I'll then ask Greg to update you on the work he is leading in our commercial organization.

And finally, Murray will review, our fiscal fourth quarter and full year 'twenty for financial results and provide our fiscal 'twenty five guidance.

Andrew Appel: Then we will open up the call to questions. Overall, our revenue results for the fiscal fourth quarter were solid and in line with expectations we have previously shared with you, and we continue to perform well on profitability and cash. I'm pleased to say that the company has shown improved operational execution in a number of key areas, including client engagement and sales conversion. And importantly, we've made progress implementing our plan to reaccelerate organic growth that we previewed on last quarter's call. We are on the right track.

Speaker Change: And then we will open up the call to questions.

Murray: Overall, our revenue results for the fiscal fourth quarter were solid and in line with expectations. We have previously shared with you.

Murray: And we continue to perform well on profitability and cash flow I am pleased to say that the company has shown improved operational execution in a number of key areas, including client engagement and sales conversion and importantly, we've made progress implementing our plan to reaccelerate organic growth that we previewed on last quarter's call.

Murray: We are on the right track.

Andrew Appel: And during the quarter, we saw tangible evidence of this in key areas. While we still have work to do over the coming quarters, we have identified the key issues, and I am confident we can address them in a reasonable time. As we move forward, we have many reasons for optimism. Global supply chain volatility is providing a strong tail end of demand for a highly differentiated supply chain. This provides an attractive market opportunity for E2open, which we are well-positioned to capture.

Murray: And during the quarter, we saw tangible evidence of this in key areas.

Murray: While we still have work to do over the coming quarters, we have identified the key issues and I'm confident we can address them in a reasonable timeframe.

Murray: As we move forward, we have many reasons for optimism.

Murray: Global supply chain volatility is providing a strong tailwind of demand for our highly differentiated supply chain solutions. This provides an attractive market opportunity for E. Two open, which we are well positioned to capture.

Andrew Appel: We have the privilege of working with the world's largest and most important companies on activities that are the absolute core of their operations, how they make move and sell their products. We are long-term partners to these industry leaders as they transform their supply chains to increase visibility, flexibility, and efficiency. Our mission is clear, to use our platform to deliver enduring value and measurable impact to our clients. Put it simply, our client's success determines our success.

Murray: We have the privilege of working with the world's largest and most important companies on activities that are absolutely core to their operations, how they make move and sell their products. We are long term partners to these industry leaders as they transform their supply chains to increase visibility flexibility and efficiency. Our mission is clear to us.

Murray: Our platform to deliver enduring value and measure all the impacts to our clients to put it simply our clients' success determines our success.

Andrew Appel: What enables E2open to serve our clients with distinction is our broad software capabilities accessible through a single interface, powered by the industry's largest partner network and robust applications spanning the entire supply chain. Uniquely in our industry, our platform links complex channel management to demand and supply planning and integrates those activities with multi-mode logistics and multi-tier manufacturing. And we do this collaboratively in real time across a diverse set of channels, distributors, retailers, suppliers, logistics service providers, and trade and customs agencies. Industry analysts consistently recognize the strength of our soft, In December, E2open was selected as a leader for the third consecutive time by IDC in the category of multi-enterprise supply chain commerce network providers. And in April,

Murray: What enables easy to open to serve our clients with distinction as our broad software capabilities accessible through a single interface.

Murray: Howard by the industry's largest partner network and robust application spanning the entire supply chain uniquely in our industry. Our platform links complex channel management to demand and supply planning and integrates those activities with multi mode logistics and multi tier manufacturing.

Murray: And we do this collaboratively in real time across a diverse set of channels distributors retailers suppliers logistics service providers and trade and customs agencies.

Murray: Industry analysts consistently recognized the strength of our software.

Murray: In December <unk> to open was selected as a leader for the third consecutive time by IDC in the category of multi enterprise supply chain Commerce network providers and in April.

Andrew Appel: E2open's cloud-based multi-tenant transportation management solution was again named a leader by Gartner. Our leadership is also apparent from the prominent role our platform plays in powering global supply. For years, E2open's products have been deeply embedded across the Fortune 1000 universe of companies that carry out a large share of global commerce. Here are just a few of the metrics to illustrate this point.

Murray: <unk> cloud based multi tenant transportation management solution was again named a leader by Gartner.

Murray: Our leadership is also apparent from the prominent role our platform plays in power and global supply chains for years. Each opens products had been deeply embedded across the fortune 1000 universe of companies that carry out a large share of global commerce.

Murray: Here are just a few of the metrics to illustrate this point.

Andrew Appel: Our platform now has 480,000 connected parties and processes 16 billion supply chain transactions annually. Our Logistics Ecosystem handles 21% of all ocean freight bookings. Our global trade solution provides trade compliance and import/export capabilities in 230 global jurisdictions and performs 67 billion annual restricted party screenings. Our channel applications manage $14 billion of incentive payments a year for more than a million connected channel partners and researchers.

Murray: Our platform now has 480000 connected parties and process is 16 billion supply chain transactions annually.

Murray: Our logistics ecosystem handles 21% of all Ocean freight bookings are global trade solution provides trade compliance and import export capabilities and 230 global jurisdictions.

Murray: And perform 67 billion annual restricted party screening.

Our channel applications manage $14 billion of incentive payments a year for more than a million connected channel partners and resellers.

Andrew Appel: And our supplier collaboration software enables 155 million annual orders and 59 million annual shipments across multiple tiers of our customers' extended supply network. Given the scale of E2open's impact, it is clear why our platform is so well-regarded. But as a CEO who is passionate about client relationships, I believe the highest recognition is when a major global company selects us to provide mission-critical software. In the fourth quarter, we once again closed several large subscription deals with major companies, in diverse areas such as consumer goods manufacturing, retail, electronic component distribution, and healthcare.

Murray: And our supplier collaboration software enables $155 million annual orders and $59 million annual shipments across multiple tiers of our customers extended supply networks.

Given the scale of EU opens impact it is clear why our platform is so well regarded but as a CEO is passionate about client relationships I believe the highest recognition is when a major global company selected us to provide mission critical software.

Murray: In the fourth quarter, we once again closed several large subscription deals with major companies in diverse areas such as consumer goods manufacturing retail.

Murray: Electronic component distribution and healthcare.

Andrew Appel: These wins often, if not always, in highly competitive situations validate the strength and the uniqueness of our portfolio and the dedication of our people. They show that the world's leading companies continue to trust E2open to lead complex supply chain projects and deliver unmatched operational impact and value. And they demonstrate that when we go to market with distinctive solutions backed by a client-centric impact-oriented selling approach, we make it very difficult for a customer not to.

These wins, often if not always in highly competitive situations validate the strength and uniqueness of our portfolio and the dedication of our people.

Murray: They showed that the world's leading companies continue to trust <unk> to lead the complex supply chain projects and deliver unmatched operational impact and value.

Murray: And they demonstrate that when we go to market with distinctive solutions backed by a client centric impact oriented selling approach.

Murray: Make it very difficult for a customer not to select to open.

Andrew Appel: For my entire career, I've made client centricity a top priority, and I've brought the same approach to E2open. Just last week, I took part in E2open's annual Connect Europe event in Amsterdam, along with 175 of our most important clients and partners.

Murray: For my entire career I've made client centricity at top priority and I brought the same approach to <unk> to open.

Just last week I took part in <unk> annual connect Europe events in Amsterdam, along with 175 of our most important clients and partners.

Andrew Appel: During the three-day event, I attended customer-led sessions that highlighted the pivotal role of E2open software in addressing the complex supply chain needs of some of the world's leading companies. I had the privilege of meeting with seven or eight of our larger clients and their implementations in progress, and I was pleased to come back with the view that we're doing distinctive work, that we're talking about impact and value, and that we're on track to deliver some terrific solutions and extend those relationships.

Murray: During the three day event I attended customer led sessions that highlighted the pivotal role will be to open software and addressing complex supply chain needs in some of the world's leading companies.

Murray: I had the privilege of meeting with seven or eight of our larger clients and implementations in progress and I was pleased to come back with a view that we're doing distinctive work that.

Murray: We're talking about impact and value and that we're on track to deliver some terrific solutions and extend those relationships.

Andrew Appel: In fact, in conversations I've had with dozens of clients since becoming E2open's interim CEO seven months ago, what stands out most is the unique and distinctive value our products deliver. In large part, this is what convinced me to accept the permanent CEO role in March of this year. For example, multiple customers of our planning solution have achieved a 30% reduction in inventory-related working capital costs. Additionally, a major consumer goods client has used our global trade application to increase its utilization of free trade agreements by 600%.

Murray: In fact in conversations I've had with dozens of clients since becoming into opens interim CEO seven months ago. What stands out most is the unique and distinctive value our products deliver.

In large part this is what convinced me to accept the permanent CEO role in March of this year.

Murray: For example, multiple customers of our planning solution have achieved a 30% reduction in inventory related working capital cost.

A major consumer goods client has used our global trade application to increase the utilization of free trade agreements by 600%.

Andrew Appel: A global parcel carrier uses this application to fully automate customs filings in 22 countries on a single interface. Additionally, a leading transportation company using our logistics applications has reduced in-process shipment times by more than a third.

Murray: While our global parcel carrier uses this application to fully automate customs filings in 22 countries on a single interface.

Murray: Our leading transportation company using our logistics applications is reduced and process shipment times by more than a third.

Andrew Appel: And an iconic technology supplier using our supply solution has reduced expedite costs when fulfilling customer orders by 11%. Clearly, E2open is a highly valued partner to companies that use our products. Communicating this distinctive value clearly and delivering it consistently and in everything we do are the themes that I will personally drive as CEO. Meanwhile, we will continue to invest in our long-term product vision. Just last week, we announced our first major product launch, Fiscal 25, which is a new supplier network discovery capability within our supply family of applications.

Murray: And then I got a technology supplier using our supply solution has reduced expedite costs were fulfilling customer orders by 11%.

Murray: Clearly easy to open as a highly valued partner to companies that use our products.

Murray: Communicating this distinctive value clearly and delivering it consistently in everything we do.

Murray: The themes that I will personally drive as CEO.

Murray: Meanwhile, we will continue to invest in our long term product vision.

Murray: Just last week, we announced our first major product launch of fiscal 25, which is a new supplier network discovery capability within our supply family of applications.

Andrew Appel: In addition, each quarter, we roll out new features across our platform, which we have done for six years, following a predictable timetable of delivering innovations highly valued by our clients. Our global trade management solution is a prime example. E2open's global trade solution combines a best-in-class application with the industry's most complete proprietary trade content data, and our worldwide staff of over 200 personnel monitors trade rules across 230 global trade jurisdictions and updates our global knowledge repository for any change.

Murray: In addition, each quarter, we roll out new features across our platform, which we've done for six years.

Murray: Following a predictable time behavioral delivering innovations is highly valued by our clients.

Murray: Our global trade management solution is a prime example of this.

Murray: <unk> Global trade solution combined with best in class application with the industry's most complete proprietary trade content database and our worldwide staff of over 200 personnel monitors trade rules across 230 global trade jurisdictions and updates our global knowledge repository.

Murray: For any changes.

Andrew Appel: This combination of an application and data is a major differentiator for E2open. And in the volatile arena of global trade, real-time data empowers our customers to take full advantage of free trade agreements and duty savings programs and stay compliant with ever stricter rules around forced labor, sanctions, and dual use controls. Finally, I want to emphasize the importance of returning E2open to best-in-class retention. We ended fiscal 24 with gross retention of approximately 90% and net retention of approximately 99%, which is down from a year ago.

Murray: This combination of an application and data.

Murray: As a major differentiator for <unk>.

Murray: And in the volatile arena of global trade.

Murray: Real time data empowers our customers to take full advantage of free trade agreements and duty savings programs and stay compliant with ever stricter rules around forced labor sanctions and dual use controls.

Murray: Finally, I want to emphasize the importance of returning <unk> to open to best in class retention levels.

Murray: We ended fiscal 'twenty four with gross retention of approximately 90%.

Murray: And that retention of approximately 99%, which are down from a year ago.

Andrew Appel: However, our in-depth analysis of the higher churn we experienced in Fiscal 24, which I personally led, has shown that much of this is very controllable with tried and true management processes that we are quickly putting in place. Just in the last quarter, we have made progress in stabilizing churn and now have significantly improved visibility into its trajectory moving forward. More broadly, the key to consistently high retention is instilling a client-centric mindset across our entire company. We will do this in a variety of ways.

Murray: However, our in depth analysis of the higher churn, we experienced in fiscal 'twenty for which I have personally lag.

Murray: As shown that much of this is very controllable with tried and true management processes that we are quickly putting in place.

Murray: Just in the last quarter, we have made progress in stabilizing churn and now have significantly improved visibility into its trajectory moving forward.

Murray: More broadly the key to consistently high retention is instilling a client centric mindset across our entire company.

Murray: We will do this in a variety of ways, we will exceed our clients' expectations on implementations, we will deliver unique and measurable value we.

Andrew Appel: We will exceed our clients' expectations in implementations. We will deliver unique and measurable value. We will build client relationships for the long term, and we will work closely with leading systems integrators and value-added partners. With this approach, we can deliver transformational impact to our clients on every project, large or small. By putting clients first, every E2open engagement can result in a delighted, referenceable client willing to advocate for E2open, which will then help us win future business.

Murray: We will build client relationships for the long term and we will work closely with leading systems integrators and value added partners.

Murray: With this approach we can deliver transformational impact for our clients at every project large or small.

Murray: By putting clients first every E. Two open engagement can result in a delighted.

Murray: Our reference of all client willing to advocate for <unk>, which will then help us win future business.

Andrew Appel: In conclusion, while our growth acceleration plan touches many aspects of our business, it is very achievable and has already generated positive results in momentum. We plan to build on our progress throughout fiscal 25, with clients at the core of everything we do. Delivering client value with differentiated and distinctive solutions has been the cornerstone of the successful growth efforts that I've led at other major companies, and I am confident that this approach will return E2open to the double-digit organic growth rates that the company enjoyed just a few years ago. While we still have work to do, we are moving in the right direction.

Murray: In conclusion, while our growth acceleration plan touches many elements of our business is very achievable.

Murray: And has already generated positive results and momentum.

Murray: We plan to build on our progress throughout fiscal 'twenty five.

Murray: With clients at the core of everything we do.

Murray: Delivering client value with.

Murray: With differentiated and distinctive solutions has been the cornerstone of the successful growth efforts that I've, let at other major companies and I am confident that this approach will returning to open to the double digit organic growth rates that the company enjoyed just a few years ago.

Murray: While we still have work to do we are moving in the right direction and the changes we have made to our business are laying the groundwork for success, we will ultimately benefit our employees.

Andrew Appel: And the changes we have made to our business are laying the groundwork for success that will ultimately benefit our employees, our customers, and our shareholders. I'll now ask Bragg to provide an update on our go-to-market activities.

Murray: Our customers and our shareholders.

Murray: I'll now ask Greg to provide an update on our go to market activities.

Gregory Randolph: Thank you, Andrew. During our fiscal fourth quarter, we continue to execute our organic growth playbook. Our entire commercial organization is now aligned on putting our customers first and building long-term, value-added relationships with them. We also continue to bring in new experienced talent.

Gregory Randolph: Thank you Andrew during our fiscal fourth quarter, we continued to execute our organic growth playbook.

Our commercial organization is now aligned on putting our customers first and building long term value added relationships with them.

Gregory Randolph: We also continue to bring in new experienced talent.

Gregory Randolph: I'm very excited that Steve Baird has joined E2open as North America Sector President, reporting directly to me. Steve has an impressive background leading high-performance sales organizations and delivering ARR growth at software firms such as SAP, Appio, and PTC. He has a proven track record as a transformational sales executive and is a fantastic addition to our commercial leadership team. I'm equally pleased to announce that Mark Nordick has joined E2open as our new SVP of Global Services, reporting directly to me.

Gregory Randolph: I'm very excited that Steve Byrd has joined <unk> to open as North America sector, President reporting directly to me.

Gregory Randolph: Steve has an impressive background, leading in high performance sales organizations and delivering <unk> growth as software firms such as SAP.

<unk> and PTC.

Gregory Randolph: He has a proven track record as a transformational sales executive and is a fantastic addition to our commercial leadership team.

I'm equally pleased to announce that Mark and Nordic has joined <unk> to open as our new SVP of global services reporting directly to me.

Gregory Randolph: Mark will lead our professional services business, bringing over 25 years of experience in leadership roles at Blue Yonder and IBM. He has successfully built and led high-performance global teams in large and mid-sized SaaS and consulting services organizations in multiple regions of the world. I'm confident he is the right leader to make our PS organization a strategic differentiator for E2open. My initial focus at E2open was to quickly put in place key elements of a high-performing sales organization, ranging from new leadership to effective sales enablement, and then establish a disciplined operational cadence to improve near-term sales execution. These efforts are already producing results.

Gregory Randolph: Mark will lead our professional services business, bringing over 25 years of experience in leadership roles at Blue Yonder and IBM.

Gregory Randolph: Mark has successfully built and led high performance global teams in large and mid sized SaaS and consulting services organizations in multiple regions of the world.

Gregory Randolph: I am confident he is the right leader to make our PS organization, a strategic differentiator for you to open.

My initial focus city to open was to quickly put in place key elements of a high performing sales organization ranging from new leadership to effective sales enablement and then establish a disciplined operational cadence to improve near term sales execution.

Gregory Randolph: These efforts are already producing results in.

Gregory Randolph: In Q4, as we did in Q3, we drove in-quarter deal conversion rates at a much higher level than the first half of FY24 and won important deals across multiple product families with new and existing clients. With these basic building blocks in place, we are now pivoting to more targeted changes to our go-to-market model designed to position E2open for higher future growth. A cornerstone of this effort is ensuring that our sales capacity and talent are optimally aligned to our highest growth opportunities. Specifically, we are creating account-focused teams that are solely responsible for maximizing satisfaction and retention within our existing client base. These former will build the long-term client partnerships that are vital for a cross-cell-focused growth strategy.

Gregory Randolph: In Q4, as we did in Q3, we drove in quarter deal conversion rates at a much higher level than the first half of FY 'twenty four and one important deals across multiple product families with new and existing clients.

Gregory Randolph: With these basic building blocks in place we are now pivoting to more targeted changes to our go to market model designed to position <unk> to open for higher future growth.

Gregory Randolph: A cornerstone of this effort is ensuring that our sales capacity and talent are optimally aligned to our highest growth opportunities.

Gregory Randolph: Specifically, we are creating account focus teams that are solely responsible for maximizing satisfaction and retention within our existing client base. These.

Gregory Randolph: These farmer teams will build a long term client partnerships that are vital for our cross sell focus growth strategy.

Gregory Randolph: In parallel, we are forming product-specialized hunter teams. These teams will consist of highly skilled, experienced sellers and will be responsible for driving product-level growth in both new logo and existing client accounts. As we implement this new commercial alignment, our primary measure of success will be acceleration in bookings and returning retention to world-class levels. To this end, we are executing a variety of proactive, tailored measures in three critical areas, namely, cross-selling to our existing client base, leveraging our system integrator partners, and expanding our new logo business.

Gregory Randolph: In parallel we are forming products specialized hunter teams. These teams will consist of highly skilled experienced sellers and will be responsible for driving product level growth in both new logo and existing client accounts.

Gregory Randolph: As we implement this new commercial alignment our primary measure of success will be acceleration in bookings and returning retention to world class levels to this end we are executing a variety of proactive tailored measures in three critical areas, namely cross selling our existing client base.

Gregory Randolph: Regina our system integrator partners and expanding our new logo business.

Gregory Randolph: Given our large existing customer base, cross-selling is a critical growth vector for E2open that we are now pursuing in a far more systematic fashion than in the past. Our product team has led a deep dive into this opportunity, focusing on industry and product-specific areas where we have deep, successful penetration with key clients. We then use these insights to identify and quantify, by size and product line, similar use cases with existing clients that present strong opportunities for cross-sell.

Gregory Randolph: Given our large existing customer base cross selling is a critical growth vector for each you open that we are now pursuing in a far more systematic fashion than in the past.

Gregory Randolph: Our product team has led a deep dive into this opportunity focusing on industry and product specific areas, where we have deep successful penetration with key clients.

Gregory Randolph: We then use these insights to identify and quantify by size and product line similar use cases with existing clients that presents strong opportunities for cross sell.

Gregory Randolph: Based on this work, we now have detailed visibility into $2 billion of cross-sell opportunities with our current client base. And, in addition, we have identified another 500 accounts with very modest solution penetration, low ARR, but significant upside. We are rolling out targeted product-level campaigns to aggressively cross-sell in both areas. We expect this to be a major source of future growth for E2open. To illustrate the power of well-executed cross-cell, I would cite the example of a current client, one of the world's largest contract manufacturers and the user of E2open's supply application.

Gregory Randolph: Based on this work, we now have detailed visibility into $2 billion of cross sell opportunities with our current client base and in addition, we have identified another 500 accounts with very modest solution penetration low <unk>, but significant upside potential.

Gregory Randolph: We are rolling out targeted product level campaigns to aggressively cross sell in both areas. We expect this to be a major source of future growth for each open too.

Gregory Randolph: To illustrate the power of well executed cross sell I would cite. The example of a current client one of the world's largest contract manufacturers and a user of EQ open supply applications.

Gregory Randolph: This client recently selected E2open's Global Logistics Orchestration, or GLO, solution to be the next stage in their supply chain journey. GLO uses real-time visibility into multi-modal shipments to identify unexpected events and provide tools to resolve them by orchestrating corrective action.

Gregory Randolph: This client recently selected <unk> opens global logistics orchestration or yellow solution to be the next stage in their supply chain journey Cielo uses real time visibility into multimodal shipments to identify unexpected events and provide tools to resolve them by orchestrating corrective actions.

Gregory Randolph: We achieved this important cross-sell win by positioning E2open as a long-term partner with industry-leading solutions that met the client's immediate and future needs. To further enhance our growth capabilities, in the fourth quarter, we realigned E2open's marketing function, which has top-of-the-funnel sales pipeline responsibility, to report directly into the commercial organization under my leadership. This move will ensure that we have a consistent inflow of new high-quality prospects. We have also scrubbed our sales pipeline of early-stage deals not meeting stringent criteria for strategic fit and win probability with this result-oriented approach to pipeline management.

Gregory Randolph: We achieved this important cross sell win by positioning E to open as a long term partner with industry, leading solutions that met the clients' immediate and future needs.

Gregory Randolph: To further enhance our growth capabilities in the fourth quarter, we realigned <unk> opens marketing function, which has top of the funnel sales pipeline responsibility.

To report directly into the commercial organization under my leadership.

Gregory Randolph: This move will ensure that we have consistent inflow of new high quality prospects.

Gregory Randolph: We've also scrubbed our sales pipeline of early stage deals not meeting stringent criteria for strategic fit and win probability with this result oriented approach to pipeline management. Our pipeline is now moving in the right direction, but.

Gregory Randolph: Our pipeline is now moving in the right direction, combining a growing high-quality pipeline with the improved conversion rates we've already achieved. We now have the foundation in place to accelerate future growth. Another promising growth vector for E2open is proactive collaboration with systems integrators. Andrew and I have worked together closely to forge strong go-to-market partnerships with select SIs. The goal is to jointly identify clients with supply chain needs that match well with E2open's product offerings and then bring in our sales team to co-sell alongside the SI account. This approach is working well.

Gregory Randolph: By combining a growing high quality pipeline with the improved conversion rates. We've already achieved we now have the foundation in place to accelerate future growth.

Gregory Randolph: Another promising growth vector for E. Two open as proactive collaboration with systems integrators.

Gregory Randolph: Andrew and I have worked together closely to forge strong go to market partnerships with select size. The goal is to jointly identify clients with supply chain needs that match well with EQ opens product offerings, and then bringing our sales teams to co sell alongside the Si account team.

Gregory Randolph: This approach is working well our pipeline of <unk> related projects increased materially in the back half of FY 'twenty four and our services pipeline of our Si partners has grown as well.

Gregory Randolph: Our pipeline of SI-related projects increased materially in the back half of FY24, and the services pipeline of our SI partners has grown as well. This is evidence that our SI strategy can become a major contributor to our future revenue growth. We are also taking targeted steps to grow our new logo business. In recent years, competition for new logo deals has been weighted toward point procurement of planning and transportation solutions. However, customers are recognizing the limitations inherent in standalone disconnected point applications that do not support multi-mode, multi-tier collaboration across increasingly complex supply chains.

Gregory Randolph: This is evidenced that our Si strategy can become a major contributor to our future revenue growth.

Gregory Randolph: We are also taking targeted steps to grow our new logo business.

Gregory Randolph: In recent years competition for new logo deals has been weighted towards point procurement of planning and transportation solutions. However.

Gregory Randolph: However, customers are recognizing the limitations inherent in standalone disconnected point applications that did not support multimode multi tier collaboration across increasingly complex supply chain. This.

Gregory Randolph: This trend plays well to E2open's strengths, and we are running specific sales and marketing plays to capitalize on it. We recently scored our first major success by winning a highly competitive new logo deal in the planning space. The new client, a well-known consumer electronics supplier, evaluated E2open's planning application very highly. But the key to closing the deal was E2open's unique ability to link planning and supply collaboration, a critical element of the client's supply chain vision.

Gregory Randolph: This trend plays well to each you opened strengths and we are running specific sales and marketing place to capitalize on it.

Gregory Randolph: We recently scored our first major success by win in a highly competitive new logo deal in the planning space.

Gregory Randolph: The new client, a well known consumer electronics supplier evaluated E. Two opens planning application very highly.

Gregory Randolph: The key to closing the deal was EQ opens unique ability to link planning and supply collaboration a critical element of the clients supply chain vision.

Gregory Randolph: Finally, I want to provide some commentary around churn. While our large customer retention metrics remain healthy. We have seen elevated churn within our long tail of smaller contracts. We are now implementing a detailed account-by-account plan to stabilize churn and improve retention. This is a top priority in the commercial team's weekly operational cadence, and we are seeing positive signs of progress. For example, over the last two quarters, we had several at-risk renewals where, as a result of proactive engagement with the client, we turned potential downsells into successful upsells, in one case, tripling the ARR value.

Gregory Randolph: Finally, I want to provide some commentary around churn.

Gregory Randolph: While our large customer retention metrics remain healthy we have seen elevated churn within our long tail of smaller contracts. We are now implementing a detailed account by account plan to stabilize churn and improve retention.

Gregory Randolph: The top priority and the commercial teams weekly operational cadence and we are seeing positive signs of progress for.

Gregory Randolph: For example over the last two quarters, we had several at risk renewals, where as a result of proactive engagement with the client return potential down sell into successful Upsells in one case tripling the IRR value.

Gregory Randolph: These success stories show that we can bend the curve on retention by driving a culture of long-term partnerships with our clients and instilling the operational discipline for early engagement on renewals. In summary, I'm very proud of the way that our commercial organization has embraced the growth-oriented, client-centric changes that we have made over the last six months. We have a clear view of what we need to do to return E2open to double-digit growth.

Gregory Randolph: These success stories show that we can bend the curve on retention by driving a culture of long term partnerships with our clients and instilling the operational discipline for early engagement on renewals.

Gregory Randolph: In summary, I am very proud of the way that our commercial organization has embraced the growth oriented client centric changes that we've made over the last six months, we have a clear view of what we need to do to return <unk> to open to double digit growth rates and we expect to drive improved performance as we move.

Gregory Randolph: And we expect to drive improved performance as we move through FY25, laying the foundation for a return to accelerating growth in FY26 and beyond. At this time, I'll turn the call over to Marie for a discussion of our financial results and guidance.

Gregory Randolph: Through FY 'twenty five laying the foundation for a return to accelerating growth in FY 'twenty and.

Gregory Randolph: And beyond at this time I'll turn the call over to Murray for a discussion of our financial results and guidance.

Marje Armstrong: Today, I will review our fiscal fourth quarter and full year 2024 results and then close with a discussion of our FY25 guidance. But first, I want to express my sincere thanks to all E2open employees for the dedication and energy you've shown this fiscal year. While this has clearly been a year of transition, I know that you all share my enthusiasm for the positive changes we're making at E2open. By continuing to move as one, we can realize our company's tremendous potential and also have a fantastic team experience along the way. So, thank you all.

Murray: Thank you Greg.

Today, I will review, our fiscal fourth quarter and full year 2024 results and then close with a discussion of our FY 'twenty five guidance.

But first I want to express my sincere thanks to all <unk> Peninsula.

Murray: A dedication and energy you've shown this fiscal year.

Murray: While this is clearly been a year of transition I know that you all share my enthusiasm for the positive changes, we're making it easy to open.

Murray: Ladies and continuing to move US one we can realize our company has tremendous potential and also had a fantastic team experience along the way.

Speaker Change: So thank you all.

Marje Armstrong: Now turning to results. Subscription revenue in the fiscal fourth quarter of 2024 was $134.4 million, above the high end of our $131 to $134 million guidance, while this represented a 1.8% decline on a year-over-year basis. Subscription revenue increased sequentially for the first time in four quarters. As Andrew noted, we also closed several large subscription deals during Q4, following up on the improved booking quota we had in Q3. This marks two quarters in a row of improved in-quarter deal conversions compared to the first half of FY24 and is a positive sign that the growth-oriented changes we have made at E2open are on track and generating momentum. I would note that this is in line with our expectations.

Speaker Change: Now turning to results.

Speaker Change: Subscription revenue in the fiscal fourth quarter 2024, with $134 4 million above the high end of our $131 million to $134 million guidance.

Speaker Change: Well that's represented one 8% decline on a year over year basis.

Speaker Change: Subscription revenue increased sequentially for the first time in four quarters.

Speaker Change: As Andrew noted we also closed several large subscription deals during Q4 following up on the improved bookings quarter, we had in Q3.

Speaker Change: This marks two quarters in a row of improved in quarter deal conversion as compared to the first half of FY 'twenty four and is a positive sign that the growth oriented changes we have made at each open are on track and generating momentum.

I would note that in line with our expectations Q4 revenue was negatively impacted by elevated churn.

Marje Armstrong: Q4 revenue was negatively impacted by elevated churn. As Greg and Andrew outlined, we have made progress on stabilizing churn, and we're confident in our roadmap to return retention to normal historical levels as we get through this year, for Fall Fiscal Year 2024. Subscription revenue was $536.8 million and grew 0.7%. Four-year growth performance reflected E2open's ongoing transition from an M&A-focused company to one with strong, consistent organic growth. We now have new commercial leadership with relevant experience to undertake a comprehensive growth reacceleration plan in close collaboration with our longstanding product and R&D team. We see this plan as very achievable, given our attractive TAM, large existing customer white space, focused SSI strategy, and significant opportunity for new logo business.

Speaker Change: And Andrew outlined we have made progress in stabilizing churn and we're confident in our roadmap to return retention to normal historical levels as we get through this year.

Speaker Change: For full fiscal year 2020 for.

Speaker Change: Subscription revenue was $536 8 million and grew <unk>, 7%.

Speaker Change: Full year growth performance reflected each opened the ongoing transition from an M&A focused company to one with strong consistent organic growth.

Speaker Change: We now have new commercial leadership with relevant experience to undertake a comprehensive growth re acceleration plan.

Speaker Change: In close collaboration with our long standing product and R&D teams.

Speaker Change: We see this plan is very achievable given our attractive Tam large existing customer white space focus that's nice strategy and significant opportunity for new logo business.

Marje Armstrong: Professional services and other revenue in the fiscal fourth quarter was $24.1 million, reflecting a decline of 18.0 percent. Sequentially, PS revenue was down slightly, but as a reminder, the fourth quarter has fewer workable service hours due to holidays. Our PS business saw improved bookings in Q4, following a good Q3 performance, and the business ended the fiscal year with higher backlog. Overall, the organizational changes we have made to our PS business have led to better sales execution and stronger collaboration with a broader commercial team. These improvements provide a solid foundation for our new PF leader to build on during FY25 and beyond.

Speaker Change: Professional services and other revenue in the fiscal fourth quarter was $24 1 million, reflecting a decline of 87%.

Speaker Change: Sequentially revenue was down slightly but as a reminder, the fourth quarter has fewer workable service towers due to holiday.

Speaker Change: Our <unk> business saw improved bookings in Q4, following a good Q3 performance and.

Speaker Change: And the business ended the fiscal year with higher backlog.

Overall, the organizational changes we have made to our pes business have led to better sales execution and stronger collaboration with a broader commercial team.

Speaker Change: These improvements provide a solid foundation for our new PFS leader to build on during FY 'twenty five and beyond.

Speaker Change: And.

Marje Armstrong: Given the progress we've made, we now believe we have reversed the sharp decline in our services business and that it will return to modest revenue growth in FY25. Total revenue for the fiscal fourth quarter was $158.5 million, reflecting a decline of 4.7% over the prior year quarter. For full fiscal year 2024, total revenue was $634.6 million, reflecting a decline of 2.7% year-over-year. Turning to gross profit, in the fiscal fourth quarter of 2024, our non-GAAP gross profit was $110.9 million, reflecting a 4.9% decline year-over-year. Non-GAAP gross margin was 70.0% in the fourth quarter compared to 70.2% in the prior quarter. Non-GAAP gross margin for full fiscal year 2024 was 69.4% compared to 68.7% for the prior year.

Speaker Change: Given the progress we've made we now believe we have reversed the sharp decline in our services business and then it will return to modest revenue growth in FY 'twenty five.

Speaker Change: Total revenue for the fiscal fourth quarter was $158 5 million, reflecting a decline of four 7% over the prior year quarter.

Speaker Change: For full fiscal year 2024, total revenue was $634 6 million, reflecting a decline of two 7% year over year.

Speaker Change: Turning to gross profit in the fiscal fourth quarter of 2024, our non-GAAP gross profit was higher at $10 9 million, reflecting a four 9% decline year over year non.

Speaker Change: non-GAAP gross margin was 70% in the fourth quarter compared to 72% in the prior year quarter.

Speaker Change: non-GAAP gross margin for full fiscal year, 2024 was 69, 4% compared to 68, 7% for the prior year.

Marje Armstrong: The improvement in full-year gross margin, even in a year where our revenue performance was well below our potential, was driven by a higher mix of subscription versus PS revenue, as well as proactive efforts to drive operational efficiency. Turning to EBITDA, our fourth-quarter EBITDA was $55.1 million on a 34.8% margin compared to $61.2 million on a 36.8% margin in the prior quarter. For full fiscal year 2024, adjusted EBITDA was $220.3 million compared to $217.1 million for the prior fiscal year, an increase of 1.5%. Adjusted EBITDA margin for the full fiscal year 2024 was 34.7%, up from 33.3% in the prior fiscal year.

Speaker Change: The improvement in full year gross margin, even in a year, where our revenue performance was well below our potential was driven by a higher mix of subscription versus PFS revenue as well as proactive effort to drive operational efficiency.

Speaker Change: Turning to EBITDA, our fourth quarter EBITDA was $55 1 million on a 34, 8% margin compared to $61 2 million on 36, 8% margin in the prior year quarter.

Speaker Change: For full fiscal year 2024, adjusted EBITDA was $223 million compared to $217 1 million versus the prior fiscal year, an increase of one 5%.

Speaker Change: Adjusted EBITDA margin for the full fiscal 2024 was 34, 7% up from 33, 3% in the prior fiscal year as we remained focused on our commitment to operational efficiency and profitability.

Marje Armstrong: As we remained focused on our commitment to operational efficiency and profitability. Finishing up on profitability, the net loss for the fiscal fourth quarter of 2024 was $45.5 million, and the full fiscal year 2024 net loss was $1.2 billion. The full year net loss figure included a non-cash goodwill impairment of $1.1 billion that reflected charges we took earlier in the year.

Speaker Change: Finishing up on profitability net loss for the fiscal fourth quarter of 2024 was $45 5 million and full fiscal year 2024, net loss was $1 2 billion.

Full year net loss figure included noncash goodwill impairment of $1 1 billion of debt reflected charges, we took earlier in the year.

Marje Armstrong: Now turning to cash flow, during the fiscal fourth quarter and full 2024 fiscal year, we generated $36.9 million and $116.0 million of adjusted operating cash flow, respectively. We view strong, consistent cash flow as a key performance metric and as an important indicator of our financial strengths, and so we're pleased with our fiscal year cash generation and our rising level of cash conversion. As a result of this year's strong cash performance, we ended FY24 with $134.5 million of cash and cash equivalents. This represents a year-over-year increase of $41.5 million, even with the impact of certain non-recurrent cash costs during the fiscal year.

Speaker Change: Now turning to cash flow during.

During the fiscal fourth quarter and full 2020 for fiscal year, we generated $36 9 million and $116 2 million of adjusted operating cash flow respectively.

We view strong consistent cash flow as a key performance metric.

Speaker Change: Important indicator of our financial strength and so we're pleased with our fiscal your cash generation and a rising level of cash conversion.

Speaker Change: As a result of this strong cash performance, we ended FY 'twenty, four with $134 5 million of cash and cash equivalents.

Speaker Change: This represents a year over year increase of $41 5 million, even with the impact of certain nonrecurring cash cost during the fiscal year.

Marje Armstrong: This completes my remarks on our fiscal Q4 and full-year FY24 financial results. At this point, I'd like to introduce our FY25 and first quarter fiscal guidance and provide our thoughts around key drivers of our forecasted performance. We expect FY25 subscription revenue in the range of $532 to $542 million, representing year-over-year growth of 1% at the high end and a decline of 1% at the low end. In terms of key performance drivers, we expect Booking's momentum to build as we move through FY25, with the revenue impact becoming stronger in the second half of the year.

Speaker Change: This completes my remarks on our fiscal Q4 and full year FY 'twenty for financial results at this point I'd like to introduce our FY 'twenty five in first quarter fiscal guidance and provide our thoughts around key drivers of our forecasted performance.

Speaker Change: We expect FY 'twenty five subscription revenue in the range of 532 $542 million representing year over year growth of 1% at the high end a decline of 1% at the low end.

Speaker Change: Terms of key performance drivers, we expect bookings momentum to build as we move through FY 'twenty five with a remedy impact becoming stronger in the second half of the year.

In addition, given the timing of previous customer retention decisions, we expect churn to remain elevated in early FY 'twenty five but to improve steadily after mid year given all the actions we're taking now.

Marje Armstrong: In addition, given the timing of previous customer retention decisions, we expect churn to remain elevated in early FY25 but to improve steadily after mid-year given all the actions we're taking now. Together, these FY25 trends should position the business well as we exit the fiscal year for higher subscription revenue growth going forward. For the first quarter of FY25, we expect subscription revenue in the range of $130 to $133 million, representing a decline of 3.6% to 1.4% as compared to the prior year fiscal first quarter.

Further these FY 'twenty five trends should position the business well as we exit the fiscal year for higher subscription revenue growth going forward.

Speaker Change: For the first quarter of FY 'twenty five we expect subscription revenue in the range of $130 million to $133 million, representing a decline of three 6% to one 4% as compared to the prior year fiscal first quarter.

Speaker Change: The Q1 growth rate is consistent with the earlier comments around the timing impact of our FY 'twenty five performance drivers.

Marje Armstrong: The Q1 growth rate is consistent with the earlier comments around the timing impacts of our FY25 performance drive. We expect FY25 total revenue to be within the range of $630 to $645 million in FY25, representing year-over-year growth of 2.0% at the high end and a decline of 1.0% at the low end. Our total revenue forecast includes our professional services. We expect our P.S.

Speaker Change: We expect FY 'twenty five total revenue to be within the range of $630 million to $645 million in FY 'twenty five representing year over year growth of 2.0% at the high end and a decline of one <unk> percent at the low end.

Speaker Change: Our total revenue forecast includes our professional services business.

We expect our PS business to build on improved bookings over the last two quarters and higher backlog by generating mid single digit revenue growth in FY 'twenty five back towards the PR businesses prior baseline.

Speaker Change: We expect FY 'twenty five gross profit margin to be within the range of 68% to 70%.

Marje Armstrong: business to build on improved bookings over the last two quarters and higher backlog by generating mid-single-digit revenue growth in FY25 back towards the P.S. business's prior baseline. We expect FY25 gross profit margin to be within a range of 68 to 70%, the midpoint of this range is roughly flat to what we achieved last year.

Speaker Change: The midpoint of this range is roughly flat to what we achieved last year.

Speaker Change: Overall, our gross margin targets for the new fiscal year reflect the strong underlying fundamentals of our core subscription software business.

Speaker Change: Finishing up on profitability, we expect FY 'twenty five adjusted EBITDA to be within the range of $215 million to $225 million.

This represents growth of 2.0% the high end and a decline of two <unk> percent at the low end.

Marje Armstrong: Overall, our gross margin targets for the new fiscal year reflect the strong underlying fundamentals of our core subscription software business. Finishing up on profitability, we expect FY25 adjusted EBITDA to be within the range of $215 to $225 million. This represents growth of 2.0% at the high end and a decline of 2.0% at the low end and implies an adjusted EBITDA margin of 34% to 35% for FY25. This is consistent with last year's performance and reflects our commitment to maintain profitability as we do the work necessary to reaccelerate growth.

Speaker Change: And implies an adjusted EBITDA margin of 34% to 35% for FY 'twenty five.

Speaker Change: This is consistent with last year's performance and reflects our commitment to maintain profitability as we do the work necessary to reaccelerate growth.

Speaker Change: We will continue to focus on driving operational efficiencies.

Speaker Change: In order to free up resources for investment and client focused areas, such as product innovation flawless implementation customer experience and sales productivity.

Speaker Change: Given the importance we place on generating strong cash flow I want to provide some comments around our FY 'twenty five cash generation expectations.

Marje Armstrong: We will continue to focus on driving operational efficiency in order to free up resources for investment in client-focused areas, such as product innovation, flawless implementation, customer experience, and sales productivity. Given the importance we place on generating strong cash flow, I want to provide some comments around our FY25 cash generation expectations. Overall, we expect Adjusted Operating Cash Flow to grow in FY25 as compared to FY24. Here are a couple of cashflow drivers to consider.

Overall, we expect adjusted operating cash flow to grow in FY 'twenty five as compared to FY 'twenty four.

A couple of cash flow drivers to consider.

Speaker Change: We expect capex to be approximately 5% of revenue in FY 'twenty five consistent with prior year.

Speaker Change: We plan to drive working capital improvements and expect FY 'twenty five working capital to be a modest use of cash.

Speaker Change: Cash interest expense net of interest income.

Speaker Change: The impact of our interest rate collar is expected to be in the range of $90 million to $95 million.

Speaker Change: This outlook assumes that software follows the current forward curve that we meet our internal forecast regarding in the estimate of excess cash and that term loan repayments are limited to required amortization of around $2 $7 million per quarter.

Marje Armstrong: We expect CAPEX to be at approximately 5% of revenue in FY25, consistent with the prior year. We plan to drive working capital improvements and expect FY25 working capital to be a modest use of capital. Cash interest expense, net of interest income, and the impact of our interest rate collars is expected to be in the range of $90 to $95 million. This outlook assumes that SOFR follows the current forward curve, that we meet our internal forecasts regarding investment of excess cash, and that term loan repayments are limited to required amortization of around $2.7 million per quarter. Finally, we expect non-recurring cash costs in FY25 to decline significantly as compared to the prior year.

Speaker Change: Finally, we expect nonrecurring cash costs in FY 'twenty five to decline significantly as compared to prior year.

Speaker Change: Based on our guidance for FY 'twenty, five adjusted EBITDA as well as our outlook for cash generation during the fiscal year, we now expect.

Speaker Change: Year end FY 'twenty, five net leverage to be below four times.

Speaker Change: In conclusion.

Speaker Change: FY 'twenty four marked an important inflection point in Ito opens transition from an M&A focused company to one that is positioned to deliver sustainable double digit organic growth.

Speaker Change: While our revenue performance this fiscal year was far below our potential.

Speaker Change: We delivered strong profitability and cash flow again, demonstrating the high quality of <unk>.

Marje Armstrong: Based on our guidance for FY25 Adjusted EBITDA, as well as our outlook for cash generation during the fiscal year, we now expect year-end FY25 net leverage to be below four times. In conclusion, FY24 marked an important inflection point in E2open's transition from an M&A-focused company to one that is positioned to deliver sustainable, double-digit organic growth. While our revenue performance this fiscal year was far below our expectations, we delivered strong profitability and cash flow, again, demonstrating the high quality of our underlying business model.

Speaker Change: Underlying business model.

Speaker Change: Moreover, during FY 'twenty four.

Speaker Change: New experienced leadership into the company.

Speaker Change: Our team in implementing our client centric plan to Reaccelerate growth building on the strength and industry experience of the long tenured talent across the organization.

Speaker Change: We showed clear signs of progress and momentum in the second half of the year.

Speaker Change: And as we make these growth oriented changes to our business.

Speaker Change: Major customers continue to place their trust in each open by selecting that's where large strategically important software engagements.

Speaker Change: We look forward to building on these successes in FY 'twenty five as we lay a strong foundation for <unk> return to double digit growth.

Marje Armstrong: Moreover, during FY24, we brought new, experienced leadership into the company to support our teams in implementing a client-centric plan to re-accelerate growth, building on the strength and industry experience of the long-tenured talent across the organization, who showed clear signs of progress and momentum in the second half of the year. And as we make these growth-oriented changes to our business, major customers continue to place their trust in E2open by selecting us for a large, strategically important software engagement.

Speaker Change: Before closing I want to acknowledge our announcement in March that each open is conducting a strategic review.

Speaker Change: The review is proceeding as planned, but we will not comment further until doing so is appropriate.

Speaker Change: Meanwhile, I can assure you that our entire management team and experienced employee base are keenly focused on serving our customers and executing our growth plan.

Speaker Change: That concludes our prepared remarks I want to thank everyone for joining us today, and we look forward to connecting with you as we proceed through the fiscal year.

Marje Armstrong: We look forward to building on these successes in FY25 as we lay a strong foundation for E2open's return to double-digit growth. Before closing, I want to acknowledge our announcement in March that E2open is conducting a strategic review. The review is proceeding as planned, but we will not comment further until doing so is appropriate. Meanwhile, I can assure you that our entire management team and experienced employee base are keenly focused on serving our customers and executing our growth.

Speaker Change: Operator, please open up the line and begin the Q&A session.

Speaker Change: Thank you.

Speaker Change: This time, we will be conducting a question and answer session.

Speaker Change: We'd like to ask a question. Please press star one on your telephone keypad.

Speaker Change: Confirmation tone will indicate your line is in the question queue.

Speaker Change: You May press star two if you'd like to remove your line from the queue for.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Marje Armstrong: That concludes our prepared remarks. I want to thank everyone for joining us today, and we look forward to connecting with you as we proceed through the fiscal year. Operator, please open up the line and begin the Q&A.

Speaker Change: Please note we will be taking one question and one follow up per analyst.

Speaker Change: One moment, please while we poll for questions.

Speaker Change: Our first question comes from Chris Quintero with Morgan Stanley. Please proceed.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your line from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key.

Chris Quintero: Hey, everyone. Thanks for taking our questions and great to be on the call with you today.

Chris Quintero: I've got two questions, Andrew and Greg you both have been on board for a few months now and clearly at prioritizing and gotten a better hold the churn, but I wanted to ask around the products that keeps you opened has today. So from your perspective, what what product areas are really leaning into and taking gained meaningful market share and on the flip side are there any of that.

Operator: Please note, we will be taking one question and one follow-up per annum. One moment, please, while we poll for questions. Our first question comes from Chris Quintero with Morgan Stanley. Please proceed.

Chris Quintero: You are looking to de emphasize and then second question.

Great to hear about the new tailored measures for higher growth between the three that you outlined where do you expect more of the growth to come from is it the cross selling the Si partners are new logos credit card that would be.

Christopher Quintero: Hey, everyone. Thanks for taking our questions. It's great to be on the call with you today. I've got two questions.

Christopher Quintero: Andrew and Greg, you both have been on board for a few months now and clearly have prioritized and gotten a better hold of the churn. But I want to ask you about the products that E2open has today. So from your perspective, what product areas are you really leaning into and think you can gain meaningful market share in? And, on the flip side, are there any that you are looking to de-emphasize? And then, second question: really great to hear about the new tailored measures for higher growth. Between the three that you outlined, where do you expect more of the growth to come from? Is it cross-selling, the SI partners, or new logos?

Speaker Change: Helpful. Thank you.

Yeah, Hey, Chris Great to hear from you.

Speaker Change: Yes, great questions. So on the first topic, our our product platform.

Speaker Change: I've been at this now for eight months with the company.

Speaker Change: And what I've told my team and the people that are recruiting into the organization.

Speaker Change: Is this is a sales person's dream.

Have the capabilities the breadth of products that we have and the competitiveness with each product category that we take to market.

Speaker Change: We can literally win in each of our five key product families across multiple industries and we have this this vision of being an end to end supply chain provider and we have the product to back it up and so it's an incredibly marketable platform, but we can go toe to toe and we've proven it.

Christopher Quintero: Greg or Clara, that would be really helpful. Thank you.

Gregory Randolph: Yeah, hey Chris. Great to hear from you. Yeah, great questions.

Gregory Randolph: So on the first topic, our product platform, you know, I've been doing this now for eight months with the company, and what I've told my team and the people that I'm recruiting into the organization is that this is a salesperson's dream to have the capabilities, the breadth of products that we have, and the competitiveness with each product category that we take to market. We can literally win in each of our five key product families across multiple industries.

Speaker Change: In my opening remarks that we can go toe to toe with the best point solution providers in the marketplace and win.

Speaker Change: With that.

Quite frankly.

Speaker Change: Every product category has strengths and we're able to drive growth with each of them.

Speaker Change: If you think about if you think about the growth factors.

Speaker Change: First of all.

Speaker Change: With our Si partnerships.

Speaker Change: We've really ramped up over the last six months and establish a deeper relationship with the with those core partners and we're starting to see a significant improvement in momentum around pipeline.

Gregory Randolph: And we have this vision of being an end-to-end supply chain provider, and we have the products to back it up. And so it's an incredibly marketable platform, but we can go toe-to-toe, and I've proven it in my opening remarks that we can go toe-to-toe with the best point solution providers in the marketplace and win. So, quite frankly, every product category has strengths, and we're able to drive growth with each of them. So that is certainly – of all three of them, we're driving improvements and will contribute to growth, but the SI partnerships driving new logos have clearly been the most effective.

Speaker Change: Helping drive significant new logo. So that is certainly of all of the all three of them were <unk>.

Speaker Change: Driving improvements and will contribute to growth, but the Si partnerships driving new logos has clearly been the most the most effective.

Speaker Change: Excellent. Thank you so much.

Speaker Change: The next question comes from Adam Hotchkiss with Goldman Sachs. Please proceed.

Adam R. Hotchkiss: Great. Thanks for taking the questions Andrew Greg I'm curious, how you think about the path to normalized churn for the business you mentioned that 90% with where you exited the year on gross retention and I think it's been 95% historically is it just a function of getting through a full renewal cycle with some of these at risk accounts are being more.

Gregory Randolph: Thank you so much.

Adam R. Hotchkiss: The next question comes from Adam Hotchkiss with Goldman Sachs. Please proceed.

Adam R. Hotchkiss: Great, thanks for taking the questions. Andrew and Greg, I'm curious how you think about the path to normalized churn for the business. You mentioned that 90% was where you exited the year on gross retention, but I think it's been 95% historically.

Andrew: So active or are there more immediate ways. You think you can improve here.

Andrew: That the business was just missing before I'm. Just curious if you think there is anything structural that makes us a bit more challenging based on the.

Adam R. Hotchkiss: Is it just a function of getting through a full renewal cycle with some of these at-risk accounts and being more proactive, or are there more immediate ways you think you can improve here that the business was just missing before? I'm just curious if there's anything structural that makes this a bit more challenging based on the challenges of being in the longer tail of the business, or if this is something that you can fully remediate through execution.

Andrew: The challenges of being in the longer tail of the business or if this is something that you can fully remediate through execution.

Speaker Change: Yes, I think the answer is.

Speaker Change: Pretty straightforward actually I think we are.

Speaker Change: As I said in my answer all right, we need to become a client centric organization become client centric.

Andrew Appel: Yeah, I think the answer is pretty straightforward. Actually, I think we, as I said in my intro, we need to become a client-centric organization, become client-centric, and get ahead of the cycle. Marine talked about, or Greg talked about, that, you know, the retention rates are lower for some of the long-tailed germs and the enterprise germs, but for the enterprise germs, just about, basically, you know, being clients. And there's, I guess I'd say, so there's nothing systemic, there's nothing, I've looked at many, many, many situations. It's, it is about just, you know, managing it more.

Speaker Change: Then and get ahead of it.

Speaker Change: Cycling.

Speaker Change: Murray you talked about.

Speaker Change: Greg talked about it.

The retention rates are lower for some of the voluntary churn really enterprise churn for the enterprise churn its just about.

Speaker Change: Basically.

Speaker Change: Being client centric.

Speaker Change: Yes.

Speaker Change: I guess I would say so theres nothing systemic.

Many many many situations.

Speaker Change: It is about just.

Speaker Change: Managing it more.

Speaker Change: Normally I'd say.

Andrew Appel: Just to add to that, you know, to your question in terms of the long tail, it's a different approach, and Greg has also talked about, you know, really segmenting and the way we are structuring the go-to-market organization, and quite frankly, you know, customer care and all the support functions as well to look at the enterprise versus the long tail in a tailored way that should help us, you know, reduce term for both cohorts in a very effective way.

Speaker Change: This add to your question in terms of the long tail.

Speaker Change: It's a different approach.

Speaker Change: And Greg has also talked about really segmenting and the way we are structuring the go to market organization and quite frankly customer care and all of the support functions as well as you look at the enterprise versus the long tail of Taylor.

Speaker Change: Tailored way that should help us.

Speaker Change: Winter reduced churn for.

Speaker Change: Both cohorts in a very effective way.

Speaker Change: Yeah.

Speaker Change: Okay, that's really useful and then Greg and Murray I'm curious, how you think about.

Investment in sales capacity in achieving some of the changes you mentioned around the go to market teams and the targeted investment is this all just a function of resource reallocation given the guidance here and then Gregg I'd be curious what sales attrition has looked like relative to history. As some of these changes have been implemented and what you've had to do on the talent.

Adam R. Hotchkiss: Okay, that's really useful. And then, Greg and Marie, I'm curious how you think about investment and sales capacity and achieving some of the changes you mentioned around the go-to-market teams and the targeted SI investment. Is this all just a function of resource reallocation given the guidance here? And then, Greg, I'd be curious what sales attrition has looked like relative to history as some of these changes have been implemented and what you've had to do on the talent acquisition and retention side as part of this shift. Thanks. Yeah. Yeah. Thanks, Adam.

Speaker Change: <unk> and retention side as part of this shift thanks.

Gregg: Yes, Thanks Adam.

Speaker Change: We did not have.

Gregg: Essentially a capacity problem in sales, we have a productivity issue and sales.

Gregg: And we lap the number of quota carrying sellers getting a reasonable attainment to drive the necessary productivity level.

Gregory Randolph: We do not have, you know, essentially a capacity problem in sales. We have a productivity issue in sales, and we lack the number of quota-carrying sellers hitting a reasonable attainment to drive the necessary productivity level that will sustain long-term growth. And so that's why we've invested heavily in sales enablement. We've obviously top-graded talent, and we've set very clear performance standards for the sales organization and are measuring those standards on a weekly basis.

Gregg: Sustained long term growth.

So that's why we've invested heavily in sales enablement.

Obviously top graded talent and we've set very clear performance standards for the sales organization.

Gregg: Measuring those standards.

Gregg: Weekly basis.

Gregory Randolph: And so yeah, it's that we do not need to invest in more sales capacity. I think the other piece is that, you know, you heard my opening remarks. We're shifting, reallocating capacity to highly specialized product sellers that focus both on the new logo and cross-sell to bring what I've experienced in the eight months that I've been here is that when we are engaged with the right salespeople, positioning the products with value, you heard Andrew in his remarks talk about quantifiable business value. When we're positioning those capabilities, we get a lot of attention and tend to win a lot more than not Okay, all really helpful. Thanks, everyone.

Gregg: And and so yes, we do not need to invest in more sales capacity I think the other piece is that.

Gregg: You heard my opening remarks, we're shifting reallocating capacity to highly specialized products sellers that focus both on new logo and cross sells to bring what I've experienced in the eight months that I've been here is that when we are engaged with the right salespeople positioning the products.

Gregg: With value.

Gregg: Andrew and his remarks talk about the quantifiable business value.

We were positioning those capabilities, we get a lot of attention and tend to win a lot more than that or not and so that's where we're focused.

Speaker Change: Okay, all really helpful. Thanks, everyone.

Speaker Change: The next question is from Taylor Mcguinness with UBS. Please proceed.

Taylor Anne McGinnis: The next question is from Taylor McGinnis with UBS. Please proceed.

Taylor Anne McGinnis: Yeah, hi. Thanks so much for taking my question.

Yeah, Hi, thanks, so much for taking my question maybe first one is just on the productivity piece. So could you maybe just given all the changes that you guys have made recently can you give us an idea of what sales productivity has trended more recently and I would imagine it's going to take some time to ramp the sales force. So when do you.

Taylor Anne McGinnis: Maybe the first one is just on the sales productivity piece. So could you maybe just, given all the changes that you guys have made recently, can you give us an idea of how sales productivity has trended more recently? And I would imagine it's going to take, you know, some time to ramp up the sales force. So when do you expect to see, you know, more stability in productivity and a potential uptick that could materialize?

Speaker Change: Back to CE.

Speaker Change: Stability productivity and like a potential uptick that could materialize.

Speaker Change: Yeah.

Speaker Change: Yeah, Hey, Taylor. Thanks for the question, Yes, I think look I implemented and operating model.

Gregory Randolph: Yeah, hey, Taylor. Thanks for the question. Yeah, I think, you know, look, I implemented an operating model that I did at the two previous companies that was, you know, very execution focused, that was data-driven. And so we've got tremendous visibility into the metrics that we're measuring the business. And so, if you look at the two key components that I'm driving super hard right now, number one is in-quarter conversion. And we've seen measurable improvements in both Q3 and Q4 in our in-quarter conversion rates. The second component is the pipeline, and my philosophy has always been quality over quantity first.

As of two previous companies that was very execution focused.

Taylor Anne McGinnis: With data is data driven and so we've got tremendous visibility into.

Speaker Change: The metrics that we're measuring the business and so if you look at the two key components that I'm driving Super hard right now number one is as in quarter conversion and we have seen measurable improvements in both Q3 and Q4 in our in quarter conversion rate.

Speaker Change: The second component is pipeline and.

Speaker Change: My philosophy has always been quality over quantity first clear.

Speaker Change: Clearly pipeline sufficiency is important but it should be first of all measured on the quality of the pipeline. So we went through a significant.

Speaker Change: Pipeline scrubbing process.

Speaker Change: And we saw pipeline declined to a certain extent and we've been able to.

Gregory Randolph: Clearly, pipeline sufficiency is important, but it should be, first of all, measured by the quality of the pipeline. So we went through a significant pipeline scrubbing process, and we saw pipeline quality decline to a certain extent. And we've been able to, through the initiatives that we rolled out in partnership with marketing, accelerate our pipeline. So we're seeing momentum in pipeline again, but it's highly inspected pipeline. So the notion is that our conversion rates will continue to improve.

Speaker Change: The initiatives that we rolled out in partnership with marketing.

Speaker Change: Celebrate our pipelines so we're seeing momentum in pipeline again, but it's highly inspected pipeline. So the notion is that our conversion rates will continue to improve.

Speaker Change: Great. Thanks, and then my second question is just and maybe this will be partly tied to what you just said, but if I look at the <unk> subscription Rev Guide it implies a sequential decline after a sequential increase in <unk> and on the back of some of the improvements that you guys talked about the can you just maybe touch on what's driving.

Taylor Anne McGinnis: And then my second question is, and maybe this will be partly tied to what you just said, but if I look at the 1Q subscription rev guide, it implies a sequential decline after a sequential increase in 4Q and on the back of some of the improvements that you guys talked about. So can you just maybe touch on what's driving that, whether that's the weakness of the macro, some of the sales productivity, or softness.

Speaker Change: Whether that weakness in the macro some of the sales productivity softness and then as a follow up if we look at the full year RASM guide. So it implies an acceleration throughout the year. So can you just provide some color on the level of <unk> churn that's embedded in that guide. Thanks.

Speaker Change: Yes.

Speaker Change: Thanks for the question so yes.

Taylor Anne McGinnis: And then as a follow-up, if we look at the full year rev guide, it implies an acceleration throughout the year. So can you just provide some color on the level of NRR churn that's embedded in that guide? Thanks. Yes, Taylor. Thank you.

Speaker Change: As Andrew and Greg already mentioned during the prepared remarks, our Q1 churn remains elevated due to the.

Speaker Change: Customer decisions made over a year ago, and that's really what's impacting Q1.

Speaker Change: But again, let's discuss at last year, we understand the issues.

Marje Armstrong: Yes, Taylor, thanks for the question. So, you know, as Andrew and Greg already mentioned during the prepared remarks, our Q1 term remains elevated due to the customer decisions made over a year ago, and that's really what's impacting Q1. But again, as discussed at length here, we understand the issues, and we put in place very, very clear management practices to reduce them, that it's just taking more than a quarter just given how long these decisions are made in advance. And that's really what you're seeing in terms of the guidance. And, you know, when you think about it.

Speaker Change: We put in place very very clear management practices to reduce it.

Speaker Change: That is just taking more than more than a quarter just given how long. These decisions are made in advance.

Thats really what youre seeing a strength of the guidance and when you think about.

Speaker Change: The progress in executing on our growth acceleration plan.

Speaker Change: We are building blocks to it and.

Speaker Change: Depending on the different metrics that were bending it takes some time to gain traction and specifically to show up in revenue, but when you look at really are.

Marje Armstrong: You know, just the progress in executing our growth reacceleration plan is building blocks to it. And, you know, depending on the different metrics that we're bending, it takes some time to gain traction and specifically show up in revenue. But when you look at, you know, really our, you know, as we talked about the conversion rates in the quarter, conversion rates, pipeline growth, you know, overall improved execution, and really, you know, even some of the turn accounts that we've already impacted, you know, for near term, that's really what's giving us the confidence in the trajectory and really what's underlying the guidance.

Speaker Change: Talked about the conversion rates and product conversion rate pipeline growth.

Speaker Change: Overall improved execution and really even some of the chartered accounts that have already impacted.

Speaker Change: For near term, that's really what's giving us the.

Speaker Change: Confidence in the trajectory.

Speaker Change: And really what's underlying the guidance.

Speaker Change: Great. Thank you so much.

Speaker Change: Absolutely.

Speaker Change: Up next we have Mark Schappell with loop capital markets Mark. Please proceed.

Mark Schappell: Alright, Thank you for taking my question.

Mark Schappell: I appreciate the update and the color on the sales organization.

Mark William Schappel: Up next, we have Mark Schappel with Loop Capital Markets. Mark, please proceed.

Mark Schappell: On that front sales turnover has been an issue with the company over the past.

Mark William Schappel: Hi, thank you for taking my question. Greg, I appreciate the update and the color on the sales organization. On that front, you know, sales turnover has been an issue at the company over the past, you know, 12 to 18 months. Could you just address the pace of sales turnover that you've seen over the last quarter? And maybe you could just discuss some plans you have with respect to keeping the churn low in the coming year?

12 to 18 months could you just address the pace of sales turnover that you've seen over the last the last quarter.

Maybe just discuss some plans you have.

Mark Schappell: With respect to it.

Mark Schappell: Keeping the term low in the coming year.

Speaker Change: Yeah, Hey, Mark Thanks for the question.

Speaker Change: We've not seen.

Speaker Change: Retention issue that should be attrition issues over the last eight months since I've been here in fact, we've re hired several people that left to greener pastures and.

Gregory Randolph: Yeah, hey Mark. Thanks for the question. We've not seen retention issues, excuse me, attrition issues over the last eight months since I've been here. In fact, we've rehired several people that left for greener pastures, and it's been really encouraging to see some of those folks come back into the organization from the darling kind of hip modern point solution providers come back to the organization because they see the opportunity and they see what's happening in the market.

It's been really encouraging to see some of those folks come from the Darling kind of.

Modern point solution providers come back to to the organization.

Speaker Change: <unk>, because they see the opportunity and they see what's happening in the market. So.

Speaker Change: We are like any effectively managed sales organization.

Gregory Randolph: So now we are, like any effectively managed sales organization, we have set very high performance standards. And so we are improving our overall quality of the sales organization through top grading. But we have not seen any attrition outside of the normal industry standards.

Speaker Change: Have set very high performance standards.

Speaker Change: So we are.

Speaker Change: Improving our overall quality of the sales organization through a top rating.

Speaker Change: But we have not seen any.

Speaker Change: Attrition outside of the normal industry standards.

Gregory Randolph: And then building on an earlier question, Andrew, with respect to the various product groups, which product categories or groups did you see the most interest from customers during the quarter? Was it TMS or global trade?

Speaker Change: Great. Thanks, and then building on an earlier question, Andrew with respect to the various product groups what product categories. Your groups did you see the most interest from customers during the quarter or was it like Tms or global trade.

Andrew Appel: Yeah, so I would say when we look at the portfolio of our products... Whether it be on sale or return, I don't really see a material variation between them.

Speaker Change: They have something.

Speaker Change: Yes.

Andrew: I'd say when we look at like the portfolio of our products.

Andrew: Whether it be <unk> or <unk>.

Andrew: We really see a material variation across the products.

Andrew Appel: So, they're all... you know, equally in demand. We've looked at it very carefully. I think we take a client approach, not a product approach, or I will. That's where we're headed and heading. In that capacity, we continue to see a lot of demand for a lot of the solutions that we have.

Andrew: They're all.

Andrew: Equally in demand.

Andrew: Very carefully I think we take.

Andrew: Our client approach.

Andrew: Not a product approach or IRA that's where we're headed.

Andrew: Yeah.

Andrew: In that capacity, we continue to see a lot of demand for.

Andrew: For a lot of the solutions that.

Operator: Once again, if you have a question or a comment, please press star 1. The next question comes from Chad Bennett with Craig Hallam. Please proceed.

Andrew: We have.

Speaker Change: Okay. Thank you.

Speaker Change: Once again, if you have a question or comment please press star one and the next question comes from Chad Bennett with Craig Hallum. Please proceed.

Chad Michael Bennett: Great, thanks for taking my question. I'm just curious, I think you had a bullet point in your press release about the growth of the E2open network, and I'm just curious about, I don't think I've heard in the last couple quarters, how you're thinking about, you know, potentially monetizing that network and what the opportunity could be there. Yeah, I think.

Chad Michael Bennett: Great. Thanks for taking my question I'm just curious.

Chad Michael Bennett: You had a bullet point in your press release about the growth in the E. Two open network and.

Chad Michael Bennett: Just curious and I don't think I've heard in the last couple of quarters of how youre thinking about potentially.

Chad Michael Bennett: Potentially monetizing that network and what the opportunity could be there.

Andrew Appel: Yeah, I think I will. I'll answer it a little broader than you asked, which is that I am a believer that when you have distinctive content or capabilities, that you have to live in a, we live in a very open, cooperative, cooperation, competition-based world, so you can't expect every client to want to access your distinctive content through your solution. And so Paola and I talk all the time about the fact that as we move forward.

Speaker Change: Yes, I think.

I'll answer it a little broader than that.

Speaker Change: I am a believer that when you have distinctive.

Speaker Change: Capabilities.

Speaker Change: You have to live in and we live in a very open cooperative coop replace co application base world's Mechanicsburg every client to ask are distinctive content through your solution.

Speaker Change: And so Paul why don't I talk all the time about the fact that it's as we move forward.

Andrew Appel: You know, where we have distinctive content, e.g., the network, e.g. Our global trade business, which we're going to be open to. You know, having it be sold by us through our front end or having it be sold by somebody else through their front end as long as we get the value resident in the content. And I think that the crop multichannel strategy is not dissimilar to the SI strategy in the sense that, you know, we partner with strategics to help them grow their business and help us grow our business.

Speaker Change: Where we have distinctive contents easier to network.

Speaker Change: Our global trade business.

Speaker Change: We're going to be open to.

Paul: Yeah no.

Paul: Having it be sold by us through our front end or having a resold somebody else is there for that as long as we get the value.

Paul: Residents of the content.

Paul: And I think that crop multichannel strategy is not dissimilar to the ESI strategy in this asset.

We partner with strategics to help them grow their business and help us grow our business and that if there are situations, where they can leverage our cost.

Andrew Appel: And that if there are situations where they can leverage our content to grow their business as long as we're properly compensated for the content, which is the bulk of the value. That really does it, matter whether it's through the front end of Harmony or the front end of whatever.

Paul: Their business as long as we are properly compensated for the content, which is the bulk of the value.

Speaker Change: It really doesn't.

Speaker Change: Matt or whether it's Friday.

Speaker Change: How many or what.

Speaker Change: However.

Speaker Change: Sure.

Speaker Change: Got it and then maybe just.

Chad Michael Bennett: Got it. And then maybe just, I think maybe a different way of asking the prior question is just Maybe from a cross-sell, up-sell standpoint, not necessarily just a point product demand standpoint, are there a couple of the products, two or three of the products or suites that, you know, maybe early in the pipeline rebuild, you're seeing are naturally, you know, or should be cross-sold or up-sold more frequently, and you're seeing early demand for two or three products that fit together?

Speaker Change: Maybe a different way of asking the prior question.

Speaker Change: Is just on.

Speaker Change: Maybe from a cross sell up sell standpoint, not necessarily just a point product demand standpoint.

Are there are there are a couple of products two or three of the products or suites that maybe.

Speaker Change: It may be early in the pipeline rebuild youre seeing are naturally.

Speaker Change: Or should be cross sold or up sold more frequently than youre seeing early demand for two or three products that that fit together.

Gregory Randolph: Yeah, yeah, thanks for the question, Chad. Look, our supplier, multi-tier supplier collaboration capabilities, as you know, are very distinctive in the market. And what we've noticed, you know, when I joined the company, there was somewhat of a hesitation by the field sales force to go compete head-to-head on standalone planning deals. And what we realized when we started positioning the combination of planning and execution from a multi-tier perspective was that it was super clear that the market responded really well.

Speaker Change: Yeah, Yeah. Thanks for the question.

Speaker Change: Jeff.

Speaker Change: Our supplier multi tier supplier collaboration capabilities as you know a very very.

Speaker Change: Three distinctive in the market.

Speaker Change: What we've noticed when I joined the company.

Speaker Change: There was somewhat of a hesitation for the field sales force to go compete head to head on a stand alone planning deals.

Speaker Change: And what we realized when we started positioning the combination of planning and execution from a multi tier perspective that it was super clear the market responded really well so we've made a huge focus.

Gregory Randolph: So, we've made a huge focus on taking that to market. I think the other piece is, as you think about, you know, just from a logistics perspective, we have the global trade capability and our transportation management system. We're seeing a unique opportunity to cross-sell, if a TMS customer doesn't have global trade, obviously taking global trade to market and talking to the global trade customer that doesn't have a TMS.

Speaker Change: On taking that to market I think the other pieces.

Speaker Change: As you think about just from a logistics perspective, we have the global trade capability.

Speaker Change: In our transportation management system, we're seeing a unique opportunity to cross sell.

Speaker Change: Tms customer doesn't have global trade, obviously taken global trade to market and Conversely, the global trade customer that doesn't have a tms taking those combination solutions to market.

Gregory Randolph: Yeah, just to add to what you said, you know, we talked about the sort of $2 billion white space analysis that You know, we undertook as a company, really led by a product team, in close cooperation with our commercial and finance. And, you know, that kind of ties back to what Andrew said, which is we have a clear plan by industry, by product now, in terms of how to reactivate the cross-sell motion and really utilize our wide product portfolio instead of just focusing on a few products as well and sort of have a path to grow from all the products, you know, especially making it very, very detailed through this $2 billion white space analysis that we now have and are really operationalizing and holding people accountable for in turn.

Speaker Change: Got it.

Speaker Change: We talked about the sort of $2 billion wisely analysis that.

Speaker Change: We undertook as a company really led by our product team close cooperation with our commercial and finance.

Speaker Change: And that kind of ties back to what Andrew said, which is we have a clear plan by industry by <unk>.

Speaker Change: Product now in terms of how to reactivate the cross sell motion and really utilize our wide product portfolio.

Speaker Change: Instead of just focusing on a few products as well and sort of how that.

Speaker Change: Our path to.

Speaker Change: Growth from all the products.

Speaker Change: Specially making it very very detailed through this $2 billion a white space.

Speaker Change: Base analysis that we now have and are really operationalize, Inc, and holding people accountable or entirely.

Chad Michael Bennett: Got it. Great color. Thank you.

Speaker Change: Got it great color. Thank you.

Speaker Change: Yes.

Sandra Obin: Up next is Sandra Obin with Bank of America. Please proceed.

Speaker Change: Up next to Andrew <unk> with Bank of America. Please proceed.

David Emerson Ridley: Hi, this is David Ridley Lane on behalf of Andrew. You know, before the Blue Jay acquisition, E2open's gross retention was 95%. Is that the right goal for the company as it is today?

Speaker Change: This is David Ridley Lane on for Andrew.

Speaker Change: Before the Bluejay acquisition to open this gross retention was 95% is that right.

<unk> for the company.

Speaker Change: As it is today.

Marje Armstrong: I'll just start, and maybe Andrew can add some color on his vision, but I would say that we don't provide specific guidance, obviously, on our retention metrics or anything like that. But we have stated we're committed to getting back to double-digit top-line growth. That will be by reducing churn as well as getting bookings back to our potential and where we were previously and above. But I would say that we have very detailed working plans, again, by cohort, by product, on how to think about churn and retention, and the goal is to get it well below where we historically were.

Speaker Change: I would just start and maybe Andrew can add some color on it.

Speaker Change: But.

Speaker Change: I would say that the.

Andrew: We don't provide specific guidance, obviously on our retention metrics are.

Andrew: Or anything like that that we have.

Speaker Change: Stated were committed to getting back to double digit top line growth.

Speaker Change: That will be by reducing churn as well as getting bookings backfill.

<unk> and where we were previously and above.

Speaker Change: But I would say that we have very detailed working plan again FICO of our byproduct how to think about churn and retention.

Speaker Change: Yes.

Speaker Change: And the goal is to get it.

Speaker Change: To get it's still well below where we historically were.

Marje Armstrong: And the overall client-centric, no churn mindset is really what Andrew has brought to the table and is operationalizing throughout the organization. And I think it's really felt, and accountability is building all around, and it's a very, very important driver for our growth going forward.

Speaker Change: And the overall client centric.

No churn mindset has really led.

Speaker Change: I would say Andrew has brought to the table and operationalize them throughout the organization and I think it really felt in the Accountabilities building all around it's a very very important driver for our growth going forward.

Andrew Appel: Yeah. Yeah, I mean, look, the only thing I would add is that I've spent a lot of time looking at sharing that. You know, my mindset is, you know, no client should ever want a churn. And the only logical reason they do is they either get bought or they disappear.

Speaker Change: Yeah, Yeah, I mean look the only thing I would add.

Speaker Change: Having spent a lot of time looking at sure.

Speaker Change: Yes.

Speaker Change: <unk> said as you know no clients should ever want a chair and airline logical.

Speaker Change: The reason they do is they either get bought or they disappear.

Andrew Appel: Now the rest is under our own control, that's all. So what that means in terms of a number, you know, you know, I don't know. I just said, you know, I've seen it. I worked. I led a company for nine years. And, you know, basically, that's when we lost our, They disappeared; they were bought.

Speaker Change: And the rest is under our control that's all.

Speaker Change: So.

Speaker Change: So what that means in terms of a number.

Speaker Change: Yes.

Speaker Change: I don't know I suspect.

Speaker Change: I've seen it.

Speaker Change: Ladder company for nine years.

Speaker Change: Basically that's what we lost clients.

Speaker Change: It does appear there are bought.

Speaker Change: What sort of level.

David Emerson Ridley: And then, as a very quick follow-up, I guess you know given your commentary on churn continuing to be elevated in the first half and then improving in the second. Are you expecting whole year churn to be about similar to last year because you were kind of seeing churn get worse as you went through fiscal 24?

Speaker Change: Got it.

Speaker Change: And then as a.

Speaker Change: Very quick follow up I guess.

Speaker Change: Given your commentary on churn continuing to be elevated in the first half.

Speaker Change: Or and then improving in the second.

Speaker Change: Are you expecting full year churn to be about.

Speaker Change: Similar with last year.

Speaker Change: Because you were kind of seeing churn get worse as you went through fiscal 'twenty four.

Marje Armstrong: Thank you for the question. You know, we don't specifically report churn or guide to it, but I would say, directionally, how to think about it is that, you know, we plan to lower churn year over year when you're looking at this year.

Speaker Change: Thank you for the question.

Speaker Change: We don't specifically report churn or guide to it but I would say directionally how to think about it is that we.

Speaker Change: Plan to lower churn.

Again, when you're looking at this year.

Operator: Thank you. We have reached the end of the question and answer session. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Speaker Change: Okay. Thank you very much.

Speaker Change: Thank you we have reached the end of the question and answer session. This concludes today's conference and you may disconnect. Your lines at this time.

Speaker Change: Thank you for your participation.

Speaker Change: Okay.