Q4 2025 E2open Parent Holdings Inc Earnings Call

Greetings.

Greetings and welcome to the two open fourth quarter fiscal year 2025 earnings call.

Operator: Welcome to the E2open fourth quarter fiscal year 2025 earnings call. At this time, all participants are in a listen-only mode.

At this time all participants are in a listen only mode.

Operator: 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. Please note, this conference is being recorded.

You didn't answer session will follow the formal presentation, but he won't should require operator assistance. During the conference. Please press star zero on your telephone keypad.

Please note this conference is being recorded.

Russell Johnson: I will now turn the conference over to your host, Russell Johnson, Head of Investor Relations. You may begin.

I will now turn the conference over to your host Russell Johnson head of Investor Relations you may begin.

Russell Johnson: Good afternoon, everyone, and welcome to the E2open Fiscal Fourth Quarter and Full Year 2025 Earnings Conference Call. 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.

Good afternoon, everyone and welcome to the H, you opened fiscal fourth quarter and full year 2025 earnings conference call.

Speaker Change: Today's call will include recorded comments from our Chief Executive Officer, Andrew upheld our Chief Commercial Officer, Greg Randall and our Chief Financial Officer Marie Armstrong. Following these comments, we'll open the call for a live Q&A session.

Russell Johnson: Following these comments, we'll open the call for a live Q&A session.

Russell Johnson: A replay and transcript of this call will be available on the company's 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.

Speaker Change: A replay and transcript of this call will be available on the company's Investor Relations website at investors don't eat you opened dotcom infill.

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

Russell Johnson: 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 2026. These forward-looking statements are subject to known and unknown risks and uncertainties. E2open cautions that these statements are not guarantees of future performance.

Speaker Change: 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 2026.

Speaker Change: These forward looking statements are subject to known and unknown risks and uncertainties.

Speaker Change: <unk> cautions that these statements are not guarantees of future performance and 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.

Russell Johnson: 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. And finally, we are not obligating ourselves to revise our results or these forward-looking statements in light of new information or future events.

Speaker Change: And finally, we are not obligating ourselves to revise our results or these forward looking statements in light of new information or future events.

Russell Johnson: Also, during today's call, we'll refer to certain non-GAAP financial measures. Reconciliation 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.

Speaker Change: Also during today's call, we'll refer to certain non-GAAP financial measures.

Speaker Change: Reconciliation 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 dog eat you open dotcom.

Andrew Appel: And with that, we'll begin by turning the call over to our CEO, Andrew Appel. Thank you, Russell, and thanks to everyone for joining today's call. I'll begin with comments on how I see our business positioned as we start the new fiscal year. And then I'll ask Greg to update you on recent commercial highlights. Finally, Marie will review our fiscal fourth quarter and FY25 financial results and provide our FY26 guidance. Then we will open up the call for questions.

Andrew upheld: And with that we'll begin by turning the call over to our CEO Andrew upheld.

Andrew upheld: Thank you Russell and thanks to everyone for joining today's call I'll begin with comments on how I see our business positioned as we start the new fiscal year, and then I'll ask Greg to update you on the recent commercial highlights.

Murray: Finally, Murray will review, our fiscal fourth quarter, and FY 'twenty five financial results and provide our FY 'twenty six guidance.

Murray: And then we will open up the call for questions.

Andrew Appel: When I moved into the permanent CEO role at E2open a bit more than a year ago, my primary focus was on delighting our clients, stabilizing our core business with a particular emphasis on improving retention, enhancing the client experience through better implementations, and laying the groundwork for durable growth. Since then, I am proud to say we've made meaningful progress on all fronts. We've increased retention, grown ARR, delivered a material better implementation experience. seen rising client satisfaction in the form of improved net promoter score. and reduced our customer support backlog of aged support tickets by more than 60%.

Murray: When I moved into the permanent CEO role I need to open a bit more than a year ago.

Murray: My primary focus was on delighting, our clients stabilizing our core business with a particular emphasis on improving retention enhancing the client experience through better implementations and laying the groundwork for durable growth.

Murray: Since that I am proud to say, we've made meaningful progress on all fronts. We've increased retention grown a R. R delivered a material better implementation experience seeing rising client satisfaction in the form of improved net promoter score.

Murray: And reduce our customer support backlog of aged support tickets by more than 60%.

Andrew Appel: Our focus on operational discipline and client value has begun to yield results. These early wins, what I'll refer to as green shoots, are positive signs that our strategy is working. Looking ahead, I firmly believe that we have the right ingredients to grow our business, a unique platform, a client and value driven culture, a world class team, and a clear strategic focus. While we still have work to do, our momentum is real and our commitment to long-term value creation is strong. I want to sincerely thank our employees for their passion and dedication. to strengthening E2open's performance.

Murray: Our focus on operational discipline and client value has begun to yield results. These early wins.

Murray: I'll refer to as Green shoots are positive signs that our strategy is working.

Murray: Looking ahead I firmly believe that we have the right ingredients to grow our business a unique platform a client and value driven culture, a world class team and a clear strategic focus while we still have work to do our momentum is real and our commitment to long term value creation.

Murray: Drunk.

Murray: I sincerely thank all.

Murray: Our employees for their passion and dedication.

Murray: Two strengthening U two openings performance.

Andrew Appel: And I want to thank all of our clients and shareholders for their continued trust in our teams and the path we are pursuing. While our FY25 performance showed that we still have work to do to realize the company's full potential, I am pleased that we have recorded modest sequential growth in subscription revenue over the past three quarters. I'm also encouraged that our Q4 year-over-year subscription growth rate when adjusted for currency impacts came within a half a percentage point of flat growth. This progress is the direct result of our strong focus on client satisfaction, retention, and go-to-market execution during FY25.

Murray: And I want to thank all of our clients and shareholders for their continued trust in our teams and the path we are pursuing.

Murray: Well, our FY 'twenty five performance show that we still have work to do to realize the companys full potential.

Murray: I am pleased that we have recorded modest sequential growth in subscription revenue over the past three quarters.

Murray: I'm also encouraged that our Q4 year over year subscription growth rate when adjusted for currency impacts came within a half a percentage point of flat growth.

Murray: This progress is the direct result of our strong focus on client satisfaction retention and go to market execution during FY 'twenty five.

Andrew Appel: And it shows that our subscription business is stabilizing and moving in the right direction. I also want to highlight our Q4 retention performance. Our rate of churn peaked during Q1 of this fiscal year. However, through the balance of the fiscal year, our disciplined management cadence and cultural shift to delighting clients enabled us to improve our retention. In the fourth quarter, we had a large book of business up for renewal. I am pleased to say that our focus on this critically important aspect of our business served us very well. And in Q4, we achieved the highest renewal percentage of any FY25 quarter.

Murray: And it shows that our subscription business is stabilizing and moving in the right direction.

Murray: I also want to highlight our Q4 retention performance.

Murray: Our rate of churn peaked during Q1 of this fiscal year harvest over the balance of the fiscal year, our disciplined management cadence and cultural shift to delighting clients.

Murray: Enabled us to improve our retention results.

Murray: In the fourth quarter, we had a large book of business up for renewal I am pleased to say that our focus on this critically important aspect of our business served us very well and then Q4, we achieved the highest renewal percentage of any FY 'twenty five quarter.

Andrew Appel: I'll let Greg speak more about bookings in a moment. But I also want to note the progress we made in this area during FY25. as Q4 bookings again improve sequentially and year over year. Thanks to our combined performance on renewals and bookings, we ended the fiscal year with gross and net retention of 91% and 99%. respectively, which represents about a one percentage improvement in each compared to the end of FY24. While these metrics are not yet back to our historically high levels and are still below what we need to drive strong growth, the trends in these metrics is another green shoot in our business.

Murray: Well I'll, let Greg speak more about bookings in a moment.

Murray: But I also want to note the progress we made in this area during FY 'twenty five.

Murray: As Q4 bookings again improved sequentially and year over year.

Murray: Thanks to our combined performance on renewals and bookings we ended the fiscal year with gross and net retention of 91% and 99%, respectively, which represents about a one percentage improvement in each compared to the end of FY 'twenty four.

Murray: While these metrics are not yet back to our historically high levels and are still below what we need to drive strong growth trends in these mattresses another green shoot in our business.

Andrew Appel: Improving gross and net retention is the direct result of better execution that multiple teams across the company have worked very hard to deliver.

Murray: Improving gross and net retention is the direct result of better better execution multiple teams across the company have worked very hard to deliver.

Andrew Appel: As we move into FY26, I'm very excited about how we have positioned our business from a client and product point of view. During FY25, we worked intensively to delight our customers and ensure that they received the maximum value from our software. We also markedly improved the quality and speed of our implementations and significantly enhanced our customer care delivery. The reaction of our clients to these efforts has been very positive, with follow-up benefits to our business performance. In Q4, we were particularly successful at upselling clients upon renewal of their legacy subscription business, a clear sign of happier clients.

Murray: As we move into FY 'twenty six I'm very excited about how we have positioned our business from our client and product perspective during FY 'twenty five we worked intensively to delight, our customers and ensure that they receive the maximum value from our software.

Murray: We also markedly improved the quality and speed of our implementations and significantly enhanced our customer care delivery.

Murray: Reaction of our clients. These efforts has been very positive with follow up benefits through our business performance.

In Q4, we were particularly successful in upselling clients apply renewal of their legacy subscription business, a clear sign of happier clients.

Andrew Appel: I firmly believe that E2open can only succeed when our clients And rising client satisfaction is another critically important green shoot in our business.

Murray: I firmly believe they need to open can only succeed when our clients succeed.

Murray: Rising client satisfaction is another critically important green shoot in our business during Q1 of this year, we launched our.

Andrew Appel: During Q1 of this year, we launched our latest and most comprehensive survey of client sentiment. We expect this rigorous exercise will document and quantify the progress we've made with client satisfaction and loyalty. and provide client-specific feedback on areas that we need to improve to serve them better. On the product front, E2open continues to be recognized for our unique software assets. Our end-to-end platform combines proven field applications with robust execution capabilities and allows our clients to leverage the world's largest network of interconnected supply chain which in FY25 reached over a half a million enterprises. the highest number in our company's history.

Murray: Latest and most comprehensive survey of client sentiment, we expect this rigorous exercise well documented quantify the progress we've made with client satisfaction and loyalty.

Murray: And for a client specific feedback on areas that we need to improve to serve them better.

Murray: On the product fraud E. Two openings continues to be recognized for our unique software assets.

Murray: And then platform combines proven field applications with robust execution capabilities allows our clients to leverage the world's largest network of interconnected supply chain partners.

Murray: Which in FY 'twenty five reached over a half a million enterprises, the highest number in our company's history, our technology received high marks from industry analysts as.

Andrew Appel: Our technology received high marks from industry analysts. As of FY25, E2open was ranked a leader in 11 of the 16 industry quadrants across major functional areas that we compete in. And the recognitions keep coming. In January, E2open was named by IDC as a leader in multiple market segments for worldwide supply chain planning. In awarding this distinction, IDC highlighted the ability of E2open's network-based platform to enable large global companies to successfully carry out digital transformation. And in March, Gardner named E2open's Transportation Management Solution as a leader for the third consecutive year. Gardner's evaluation emphasized the company's overall completeness of vision and our ability to execute.

Murray: As of FY 'twenty five each were open was ranked the leader at 11 of the 16 industry quadrants across major functional areas that we compete in.

And the recognitions keep coming in January E. Two opened was named by IDC as a leader in multiple market segments for worldwide supply chain planning.

Murray: And awarding this distinction IDC highlighted the ability to be two opens network based platform to enable large global companies to successfully carry out digital transformations.

Murray: And in March Gartner named <unk>, two opens transportation management solution as a leader for the third consecutive year.

Murray: Gardeners evaluation emphasized the company's overall completeness of vision and our ability to execute.

Andrew Appel: Of course, to stay in the top ranks of supply chain providers, we must continue to innovate. This is especially true with respect to artificial intelligence. Generative AI is providing us with a unique opportunity to add capabilities to our software that can increase automation, enable better and faster decision-making, and enhance the user experience. Taking advantage of AI to drive product innovation is not merely a source of competitive advantage in our market, it is requirement to stay relevant. E2open was a pioneer in embedding AI and machine learning and advanced decision-making frameworks into supply chain software. And we are continuing to push these boundaries today.

Murray: Of course to stay in the top ranks of supply chain providers, we must continue to innovate.

Murray: This is especially true with respect to artificial intelligence generative AI is providing us with a unique opportunity to add capabilities to our software that can increase automation and enable better and faster decision, making and enhance the user experience.

Murray: Taking advantage of AI to drive product innovation is not merely a source of competitive advantage in our market. It is requirement to stay relevant to open was a pioneer in embedding AI and machine learning and advanced decision, making frameworks into supply chain software.

Murray: And we are continuing to push these boundaries today.

Andrew Appel: and intend to stay that way, for example, through significant advancements to our data environments. and multiple applications of client-centric and guided AI journey. For example, in March, we announced the launch of new AI tools across our global trade technology. that will unlock higher productivity, shorter cycle times and greater compliance assurance for companies in a wide range of industries. This latest technology release includes AI-driven innovations such as automated classification of products, natural language-based summaries of global trade content. Enhanced Counterparty Screening and Due Diligence and Unstructured Processing of Trade Documents. This is just one example of how we are investing in our industry leading products to make them even more valuable for our clients.

Murray: And intend to stay that way for example, through a significant advancements or data environments.

Murray: And multiple applications of client centric and guided AI journeys.

Murray: For example in March we announced the launch of new AI tools across our global trade technology suite that will unlock higher productivity shorter cycle times and greater compliance assurance for companies in a wide range of industries.

Murray: This latest technology release includes AI, driven innovations such as automated classification of products natural language based summaries of global trade content enhanced counterparty screening in due diligence and unstructured processing of trade documents.

Murray: This is just one example of how we are investing in our industry, leading products to make them, even more valuable for our clients.

Andrew Appel: We also have a number of other major enhancements to our platform scheduled for this year. And we are very excited by the work that our new Chief Product and Technology Officer, Rachit Lohani, is doing to develop. are technology-based and ensure our products provide maximum value to our world-class clients.

Murray: We also have a number of other major enhancements to our platform scheduled for this year and we are very excited by the work that our new chief product and Technology Officer Raj It little Honey is doing to develop.

Murray: Our technology base and ensure our products provide maximum value to our world class clients.

Andrew Appel: In fact, a very compelling example of how E2open's products create value for clients is the current situation with tariff. No one knows exactly how recent tariff volatility will play out, but it has the potential to create the supply chain challenges comparable to what global companies experienced during the COVID pandemic. E2open's Global Trade Application Suite provides the first line of tariff-related defense for many of our clients. This solution combines cutting edge trade execution applications with the industry's most complete global trade content database. is already proving to be an invaluable asset for clients seeking to navigate the new tariff landscape.

Murray: In fact, the very compelling example of how a two opens products create value for clients is the current situation with tariff no. One knows exactly how recent tariff volatility will play out but it has the potential to create the supply chain challenges comparable to what global companies experienced during the Covid pandemic.

Murray: Two opens at global trade application suite provides the first line of tariff related defense for many of our clients.

Murray: This solution combines cutting edge trade execution applications with the industry's most complete global trade content database is already proving to be an invaluable asset for clients seeking to navigate the new tariff landscape.

Andrew Appel: In response to the new tariffs, E2open's global team of trade experts has worked literally around the clock to update our global trade content database. with evolving tariff levels for both export and import across all countries that have introduced new rates or retaliatory responses. The process has impacted over 2 million landed cost records that our clients access from our platform in order to determine the total all-in costs of bringing products to a final destination. In addition, our customer facing trade and product teams are working directly with dozens of the largest manufacturing and logistics clients who are using our global trade application to create and file shipment level customs documents that accurately reflect the cargoes crossing the border based on their effectiveness.

Murray: In response to the new tariffs E. Two opens.

Murray: Global team of trade experts has worked literally around the clock to update our global trade content database.

With evolving tariff levels for both export and import across all countries that have introduced new rates a retaliatory responses.

Murray: The process has impacted over 2 million landed cost records that our clients access from our platform in order to determine the total all in cost of bringing products to a final destination.

Murray: In addition, our customer facing trade and product teams are working directly with dozens of the largest manufacturing and logistics clients, who are using our global trade application to create and file shipment level customs documents that accurately reflect the cargos crossing the border based on.

Murray: Our effective days.

Andrew Appel: While other software firms may be able to help clients with narrow aspects of the new tariffs, E2open is the only provider of a holistic global trade solution that combines comprehensive trade data with seamless execution capabilities. And beyond our global trade applications, rapid changes to tariffs and trade flows will have profound impacts across the entire value chain served by E2open's broad family of solutions. From end-to-end planning and supplier collaboration to logistics and transportation. By connecting all of these activities, E2open's platform gives our clients Clear and measurable advantage over their peers. through a much more comprehensive landed cost and much more effective and efficient.

While other software firms may be able to help clients with narrow aspects of the new tariffs into open as the only provider of a holistic global trade solution that combines comprehensive trade data with seamless execution capabilities.

Murray: And beyond our global trade applications rapid changes to tariffs and trade flows will have profound impacts across the entire value chain served by each opens broad family of solutions for.

Murray: From end to end planning and supplier collaboration to logistics and transportation.

Murray: By connecting all of these activities E. Two opens platform it gives our clients clear.

Murray: Clear and measurable advantage over their peers through a much more comprehensive landed cost and much more effective and efficient.

Andrew Appel: flows across their supply chain. As tariffs change, our clients can use our end-to-end platform to quickly evaluate alternative scenarios for inventory levels, sourcing locations, shipping modes and routes, and All in Land and Cause. And not only can they model it, but they can take immediate actions to keep shipments moving and business running. In a world where constant change is the norm, E2open is proud to be a much-needed source of supply chain adaptability and resilience for the world's largest global company.

Murray: Flows across our supply chain.

Murray: As tariffs change our clients can use our end to end platform to quickly evaluate alternative scenarios for inventory levels sourcing locations shipping modes and routes and all in landed costs.

Murray: And not only can they model it but they can take immediate actions to keep shipments moving in business running in a world where constant changes of the norm Ito.

Murray: Key to open is proud to be a much needed source of supply chain adaptability and resilience for the world's largest global companies.

Andrew Appel: Before I turn the call over to Greg, I want to add that the strategic review that we initiated last year is still ongoing.

Speaker Change: Before I turn the call over to Greg I want to add that the strategic review that we initiated last year is still ongoing.

Andrew Appel: As with prior quarters, we will not take questions or comment further on the review today.

Speaker Change: As with prior quarters, we will not take questions or comment further on the review today.

Gregory Randolph: With that, I'd like to now ask my friend Greg Randolph to provide our commercial update. Over to you, Greg. Thank you, Andrew. During the fourth quarter, E2open's commercial organization continued to execute our company's Return to Growth playbook, and I'm very proud of the way our teams maintain their focus and enthusiasm as we closed out the fiscal year. Since I joined E2open a year and a half ago, our mission has been very clear to put in place the structure, the processes, and the capabilities needed by our commercial organization to drive consistent organic growth. Over that period, we've made notable progress on multiple fronts, particularly in areas such as operational cadence, sales training and enablement, and performance management.

Speaker Change: With that I'd like to now ask my friend, Greg Randolph to provide a commercial update.

Speaker Change: Over to you Greg.

Greg Randolph: Thank you Andrew during the fourth quarter. Each opens commercial organization continued to execute our company's return to growth playbook and I'm very proud of the way our teams maintained their focus and enthusiasm as we closed out the fiscal year since.

Greg Randolph: Since I joined <unk> to open a year and a half ago. Our mission has been very clear to put in place the structure the processes and the capabilities needed by our commercial organization to drive consistent organic growth.

Greg Randolph: Over that period, we've made notable progress on multiple fronts, particularly in areas such as operational cadence sales training and enablement and performance management.

Gregory Randolph: And perhaps most importantly, we have realigned our organizational culture to one that values above all else, delighting our clients and building long term mutually beneficial relationships with the companies that use our software. As a result of these and other improvements, E2open's performance has stabilized and started to turn the corner back to growth. And while change is never easy and progress isn't always as fast as we want, we have a solid foundation for moving forward. Our fourth quarter subscription bookings were solid and provide further evidence of positive momentum in our go-to-market strategy. Subscription bookings were up sequentially, as well as year over year, and were the highest quarterly total we've achieved since the end of FY23.

Greg Randolph: And perhaps most importantly, we have realigned our organizational culture to one that values above all else delighting, our clients and building long term mutually beneficial relationships with the companies that use our software.

Greg Randolph: As a result of these and other improvements each opens performance has stabilized and started to turn the corner back to growth.

Greg Randolph: And while change is never easy and progress isn't always as fast as we want we have a solid foundation for moving forward.

Greg Randolph: Our fourth quarter subscription bookings were solid and provide further evidence of positive momentum in our go to market strategy.

Greg Randolph: Subscription bookings were up sequentially as well as year over year and were the highest quarterly total we've achieved since the end of FY2023.

Gregory Randolph: And I'm also pleased that in Q4, we logged our second quarter in a row of strong conversion rates, marking a notable improvement in our deal closure rate in the second half of the fiscal year as compared to the first half. With that said, we are not satisfied with these results. We know that we still have work to do to return to double digit top line growth and to win our fair share of the fast growing, highly attractive supply chain software market. We know what we need to do and are committed to investing in the right areas across the commercial organization to accelerate our progress.

Greg Randolph: And I'm also pleased that in Q4, we logged our second quarter in a row of strong conversion rates market. A notable improvement in our deal closure rate in the second half of the fiscal year as compared to the first half.

Greg Randolph: With that said we are not satisfied with these results. We know that we still have work to do to return to double digit topline growth and to win our fair share of the fast growing highly attractive supply chain software market.

Greg Randolph: We know what we need to do and are committed to investing in the right areas across the commercial organization to accelerate our progress.

Gregory Randolph: Our Q4 wins included many important highlights, several of which I'll describe today. First, a global active health and wellness company that distributes its branded products in over 125 countries selected E2open to expand our strategic partnership for broad-based digital supply chain transformation. This existing user of E2open Transportation Management, Parcel, and Global Trade Management applications will now deploy our solutions for demand planning, supply planning, and multi-echelon inventory optimization. This relationship is a model for how E2open wins by consistently growing our clients' adoption of our end-to-end connected platform so that they can build truly connected supply chains and rapidly scale their business.

Greg Randolph: Our Q4 wins included many important highlights several of which I'll describe today.

Greg Randolph: First our global active health and wellness company the distributed branded products in over 125 countries selected E. Two open to expand our strategic partnership for broad based digital supply chain transformation.

Greg Randolph: This existing user of each open transportation management parcel and global trade management applications will now deploy our solutions for demand planning supply planning and multi echelon inventory optimization.

Greg Randolph: This relationship is a model for how each opened wins by consistently growing our clients adoption of our end to end connected platform. So that they can build truly connected supply chains and rapidly scale their businesses.

Gregory Randolph: In another significant Q4 win, a major Europe-based global freight forwarder, an existing E2open customer since 2023, signed on for a significant expansion of our relationship. The customer is using E2open's transportation management solution as a single integrated platform to connect its large carrier network and multi-region footprint to support future rapid growth. The expanded relationship will allow this highly strategic customer to further optimize operations across multiple modes of transportation, reduce freight and operational costs, and broaden its global rollout of TMS functionality. In another strategically important deal closed in Q4, a major U.S. manufacturer and distributor of branded food and beverage products and long-tenured E2open customer selected us to provide additional software-based logistics and support services in addition to renewing their existing business.

Greg Randolph: And another significant Q4 win a major Europe based global freight forwarder and existing each who opened customer since 2023 signed on for a significant expansion of our relationship.

Greg Randolph: The customers using each who opens transportation management solution as a single integrated platform to connect its large carrier network and multi region footprint to support future rapid growth the.

Greg Randolph: The expanded relationship will allow this highly strategic customer to further optimize operations across multiple modes of transportation reduce freight and operational costs and broaden its global rollout of Tms functionality.

Greg Randolph: And another strategically important deal closed in Q4, a major U S manufacturer and distributor of branded food and beverage products and long tenured. Each you opened customer selected us to provide additional software based logistics and support services. In addition to renewing their existing business.

Gregory Randolph: This expanded relationship demonstrates that E2open has multiple ways to win in our competitive market. and that focusing on client satisfaction and seamless renewals opens many doors to upsell existing clients and monetize our install base. It also shows that the consumer packaged goods industry remains a top opportunity for future E2open growth. Rounding out our wins for the fourth quarter, we book new business with name-brand customers in diverse industry segments including automotive, consumer electronics, high-tech, and retail across a broad array of applications such as logistics, supply collaboration, global trade management, and planning. We did a particularly effective job of upselling existing customers as we processed a large renewal volume in the quarter.

Greg Randolph: This expanded relationship demonstrates that E. Two open has multiple ways to win in our competitive markets.

Greg Randolph: And then focusing on client satisfaction and seamless renewals opens many doors to upsell existing clients and monetize our install base.

Greg Randolph: Also shows that the consumer packaged goods industry remains a top opportunity for future E. Two open growth.

Greg Randolph: Rounding out our wins for the fourth quarter, we booked new business with name brand customers in diverse industry segments, including automotive consumer electronics high Tech and retail across a broad array of applications such as logistics supply collaboration global trade management and planning.

We did a particularly effective job of up selling existing customers as we processed a large renewal volume in the quarter.

Gregory Randolph: Finally, during Q4, we added new logo customers to the long list of users of our Parcel, Global Trade Management, and TMS applications. Looking back on FY25, I'm very proud of the way our commercial teams handled multiple priorities at once, driving new sales, while at the same time, leaning in hard to solve legacy customer satisfaction issues, and improve our renewal performance. While the work we have done to stabilize and strengthen retention during FY25 was absolutely necessary, I'm excited to say that in FY26, our commercial organization should be largely freed up to focus its full attention on expanding our pipeline and winning new opportunities.

Greg Randolph: Finally during Q4, we added new logo customers to the long list of users of our parcel global trade management and Tms applications.

Greg Randolph: Looking back on FY 'twenty five I am very proud of the way our commercial teams handled multiple priorities at once driving new sales while at the same time leaning in hard to solve legacy customer satisfaction issues and improve our renewal performance. While the work we have done to stabilize and strengthen retention during FY 'twenty five.

Greg Randolph: Was absolutely necessary I am excited to say that in FY 'twenty six our commercial organization should be largely freed up to focus its full attention on expanding our pipeline and winning new opportunities.

Gregory Randolph: We are also taking other important steps to make FY26 a year of intensive focus on improving sales productivity. For example, our marketing and sales operations teams have collaborated on a deep dive examination of the key attributes and characteristics of E2open's most successful long-term client relationships and most meaningful recent wins. We are now rolling out what we call Looks Like campaign. These are highly refined and targeted demand generation strategies designed to engage high value accounts that look like our best customers. These campaigns will focus on selling our most successful products into the industries and markets where the data tells us we have the best chance to win.

Greg Randolph: We are also taking other important steps to make FY 'twenty six of Europe intensive focus on improving sales productivity.

Greg Randolph: For example, our marketing and sales operations teams have collaborated on a deep dive examination of the key attributes and characteristics of each who opens most successful long term client relationships and most meaningful recent wins, we are now rolling out what we call looks like campaigns. These are highly refined.

Greg Randolph: And targeted demand generation strategies designed to engage high value accounts that look like our best customers.

Greg Randolph: These campaigns will focus on selling our most successful products into the industries and markets, where the data tells US we have the best chance to win this type of targeted selling based on ideal customer profiles and field driven solution use cases should increase our ability to take advantage of our single largest market opportunity which is mono.

Gregory Randolph: This type of targeted selling based on ideal customer profiles and field-driven solution use cases should increase our ability to take advantage of our single largest market opportunity, which is monetizing our existing install base, as well as to drive more new logo wins. Additionally, our commercial teams are taking the opportunity provided by recent tariff changes to amplify and leverage E2open's thought leadership and technical expertise around global trade management. For example, we have made the import cost calculator embedded in our global trade application available to prospective clients on a trial basis. These companies can load their data into the tool and use it to evaluate multiple scenarios for landed cost estimates based on alternative trade lanes and sourcing destination.

Greg Randolph: I mean, our existing installed base as well as to drive more new logo wins.

Greg Randolph: Additionally, our commercial teams are taking the opportunity provided by recent tariff changes to amplify and leverage E. Two opens thought leadership and technical expertise around global trade management. For example, we have made the import cost calculator embedded in our global trade application available to prospective clients on a trial basis.

Greg Randolph: These companies can load their data into the tool and use it to evaluate multiple scenarios for landed cost estimates based on alternative trade lanes and sourcing destinations.

Gregory Randolph: We are supplementing this activity for potential new customers with educational and outreach efforts around tariff management, such as webinars and white paper. This and other campaigns we have undertaken are designed to capitalize on growing demand for our global trade management application, which is the industry's most powerful and complete tool for streamlining international trade processes and compliance.

Greg Randolph: We are supplementing this activity for potential new customers with educational and outreach efforts around tariff management, such as Webinars and white papers desk and other campaigns. We have undertaken are designed to capitalize on growing demand for our global trade management application, which is the industry's most powerful and complete tool for streaming.

Greg Randolph: Lining international trade processes and compliance.

Gregory Randolph: Before handing off to Marie, I'll close with a few comments around our professional services business. Our professional services business has stabilized sequentially despite declining year over year and Q4 bookings were above the recent revenue run rate. We are continuing to utilize unbilled PS resources to address specific client satisfaction issues, and we'll continue to do so as necessary to benefit our consolidated business. However, unbilled PS activity has stabilized. And I'll reiterate what I said to our entire commercial team during a recent global field kickoff.

Speaker Change: Before handing off to Murray I'll close with a few comments around our professional services business.

Speaker Change: Our professional services business has stabilized sequentially, despite declining year over year and Q4 bookings were above the recent revenue run rate.

Speaker Change: We are continuing to utilize unbilled resources to address specific client satisfaction issues and we'll continue to do so as necessary to benefit our consolidated business. However, unbilled P. S activity has stabilized as well.

Speaker Change: And I'll reiterate what I've said to our entire commercial team during a recent global field kickoff because of our progress focus and the important steps were taken together I am optimistic about our future and excited for FY 'twenty six.

Gregory Randolph: Because of our progress, focus, and the important steps we are taking together, I am optimistic about our future and excited for FY26.

Marje Armstrong: With that, I'll turn the call over to Marie. Thank you, Greg. Today, I will review our fiscal fourth quarter and full year 2025 results and then close with a discussion of our FY26 guidance.

Murray: With that I'll turn the call over to Murray.

Murray: Thank you Greg.

Murray: Today, I will review, our fiscal fourth quarter and full year 2025 results and then close with a discussion of our FY 'twenty six guidance.

Marje Armstrong: First, I would like to recognize and thank our E2open team members around the world for their dedication to our clients and our company this past year and every day. Thank you for all that you do. Now on to our reported results. Subscription revenue in the fiscal 4th quarter 2025 was $133.0 million, above the midpoint of our $131 to $134 million guidance. On a year-over-year basis, subscription revenue declined 1.0%. on a constant currency basis, the year-over-year decline was only 0.5%. which represents another improvement in our subscription growth rate both sequentially and versus the prior year quarter.

Murray: First I would like to recognize and thank our E. Two open team members around the world.

Murray: Their dedication to our clients and our company this past year on every day.

Murray: Thank you for all that you do.

Murray: Now onto our reported results.

Murray: A description revenue in the fiscal fourth quarter 2025 was 133 zero million above the midpoint of our 131 $234 million guidance.

Murray: On a year over year basis subscription revenue declined 1.0%.

Murray: On a constant currency basis, the year over year decline was only 0.5%.

Murray: Which represents another improvement in our subscription growth rate, both sequentially and versus the prior year quarter.

Marje Armstrong: This improving growth performance was driven by our continued progress on retention and bookings in the second half of FY25. For full fiscal year 2025, subscription revenue was $528.0 million, declining 1.6%. FY25 revenue growth was impacted by the slower bookings and elevated churn we experienced in FY24 and Q1 FY25, partially offset by the improvements we have made in both of these areas of our business, starting in Q2 FY25. and continuing through fiscal year end. Professional services and other revenue in the fiscal fourth quarter was $19.7 million. a year-over-year decline of 18.3 percent. The end of certain large service projects in the first half of FY24 had a continuing impact on Q4 PS revenue performance, as did targeted PS related investments in client satisfaction and renewal.

Murray: This improving growth performance was driven by our continued progress on retention and bookings in the second half of FY 'twenty five.

Murray: For full fiscal year 2025 subscription revenue was 528 zero million declining one 6%.

Murray: FY 'twenty five revenue growth was impacted by the slower bookings and elevated churn we experienced in FY 'twenty, four and Q1 FY 'twenty five partially offset by the improvements we have made in both of these areas of our business starting in Q2 FY 'twenty five.

Murray: And continuing to fiscal year end.

Murray: Professional services and other revenue in the fiscal fourth quarter was $19 7 million.

Murray: Year over year decline of 18, 3%.

Murray: The end of certain large service projects in the first half of FY 'twenty four had a continuing impact in Q4 P. S revenue performance as did targeted P S related investments and client satisfaction and renewals.

Marje Armstrong: Professional Services Revenue for Full Fiscal Year 2025 was $79.7 million. a decline of 18.4%. Total revenue for the fiscal fourth quarter was $152.7 million, reflecting a decline of 3.6% over the prior quarter. For full fiscal year 2025, total revenue was $607.7 million, reflecting a growth rate of negative 4.2% over the prior year. Turning to gross profit in the fiscal fourth quarter of 2025, our non-gap gross profit was $104.2 million, a 6.1% decrease year over year. Non-gap gross margin was 68.2% in Q4 versus 70.0% in the prior year quarter. Non-gap gross margin for full fiscal year 2025 was 68.5% compared to 69.4% in the prior year.

Murray: Professional services revenue for full fiscal year, 2025, with $79 7 million.

Murray: A decline of 18, 4%.

Murray: Total revenue for the fiscal fourth quarter was $152 7 million, reflecting a decline of three 6% over the prior year quarter for full fiscal year 2025, total revenue was $607 7 million, reflecting a growth rate of negative four 2% over the prior year.

Turning to gross profit in the fiscal fourth quarter of 2025, our non-GAAP gross profit was $104 2 million or six 1% decrease year over year non-GAAP gross margin was 68, 2% in Q4 versus 70.0% in the prior year quarter.

Murray: non-GAAP gross margin for full fiscal year, 2025 was 68, 5% compared to 69, 4% in the prior year.

Marje Armstrong: For both the quarter and the full year, lower subscription and PS revenue drove the reductions in consolidated margins. In addition, on the PS side, as previously noted, we have invested in on-build work to improve client satisfaction, secure renewals, and strengthen implementation. In our subscription business, we have also invested in our customer care organization in order to provide high-quality customer service. We expect the impact from these investments to normalize as we return to growth. Turning to EBITDA, our fourth quarter adjusted EBITDA was $56.3 million, a 36.9% margin compared to $55.1 million and 34.8% margin in the prior year quarter.

Murray: For both the quarter and the full year lower subscription NTS revenue drove the reduction in consolidated margin. In addition on the PS side. As previously noted we have invested in unbilled work to improve client satisfaction secure renewals and strengthen implementations.

Murray: In our subscription business. We have also invested in our customer care organization in order to provide high quality customer service.

Murray: We expect the impact from these investments to normalize as we returned to growth.

Murray: Turning to EBITDA, our fourth quarter, adjusted EBITDA was $56 3 million.

Murray: 36, 9% margin compared to $55 1 million and 34, 8% margin in the prior year quarter.

Marje Armstrong: Our continued strong adjusted EBITDA margins reflect our ongoing commitment to operational efficiency. Q4 G&A expenses were lower year-over-year due to continued efforts to streamline corporate support functions, control discretionary spend such as external consulting and T&E, and refocus our marketing spend around more productive, client-centric activities. are on the expense benefited from cost efficiencies that we continue to realize by optimizing onshore versus offshore development headcount. For full fiscal year 2025, adjusted EBITDA was $215.5 million, compared to $220.3 million in the prior fiscal year, a decrease of 2.2%. adjusted even a margin for full fiscal 2025 was 35.5% up from 34.7% in the prior year.

Murray: Our continued strong adjusted EBITDA margins reflect our ongoing commitment to operational efficiency.

Q4, G&A expenses were lower year over year due to continued efforts to streamline corporate support functions control discretionary spend such as external consulting and Tami and refocus our marketing spend around more productive client centric activities.

Murray: R&D expense benefited from cost efficiencies that we continue to realize by optimizing onshore versus offshore development head count.

Murray: For full fiscal year 2025, adjusted EBITDA was $215 5 million compared to $223 million in the prior fiscal year.

Murray: Increase of two 2%.

Murray: Adjusted EBITDA margin for full fiscal 2025 was 35, 5%.

Murray: From 34, 7% in the prior year.

Marje Armstrong: The full year margin performance is further evidence of our ability to control costs in our business. Finishing up on profitability, net loss for the fiscal fourth quarter of 2025 was $268.5 million. This net loss includes a non-cash goodwill impairment charge of $245 million. Similar to impairments recorded in previous quarters, the trigger event for this latest impairment was a decline in our share price during the fourth quarter. For the full fiscal 2025, net loss was $725.8 million. The full year net loss figure included a non-cash goodwill impairment charge of $614.1 million, taken in the third and fourth quarters of this fiscal year.

Murray: The full year margin performance is further evidence of our ability to control costs in our business.

Murray: Finishing up on profitability net loss for the fiscal fourth quarter of 2025 was $268 5 million. This net loss includes a noncash goodwill impairment charge of $245 million similar to impairments, we recorded in previous quarters. The trigger event for this latest.

Murray: <unk> was a decline in our share price during the fourth quarter for the full fiscal 2025 net loss was $725 8 million. The full year net loss figure included a noncash goodwill impairment charge of $614 1 million taken in the third and fourth quarters of this fiscal year.

Marje Armstrong: Now turning to FY25 cash flow. Adjusted operating cash flow was $56.7 million in the fourth quarter and $111.4 million for the full fiscal year. We ended the fiscal year with a cash balance of $197.4 million, an increase of $46 million from the third quarter, which is a record sequential cash build for E2open, thanks to process improvements we have made in our accounts receivable collections function. Year over year, our cash balance increased by $63 million, which further highlights the robust cash generation capability of our business.

Murray: Now turning to FY 'twenty five cash flow at <unk>.

Murray: Adjusted operating cash flow was $56 7 million in the fourth quarter and $111 4 million for the full fiscal year.

Murray: We ended the fiscal year with a cash balance of $197 $4 million, an increase of $46 million from the third quarter.

Murray: Which is a record sequential cash build for each open thanks to process improvements we have made in our accounts receivable collection function.

Murray: Year over year, our cash balance increased by $63 million, which further highlights the robust cash generation capability of our business.

Marje Armstrong: This completes my remarks on our fiscal Q4 and full-year FY25 financial results. At this point, I'd like to introduce our FY26 and first quarter financial guidance and provide our thoughts around key drivers of our forecasted performance. We expect FY26 subscription revenue to be in the range of $525 to $535 million, representing a year-over-year growth rate of negative 1.0 to positive 1.0%. In terms of key performance drivers, we expect client retention to improve year-over-year and bookings momentum to build as we move through FY26. Overall, these FY26 trends of improving sales execution and continued retention focus should position the business well to return to positive growth as we move through the fiscal year.

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

Murray: We expect FY 'twenty six subscription revenue to be in the range of $525 million to $535 million, representing a year over year growth rate of negative 1.0 to positive 1%.

Murray: Terms of key performance drivers, we expect client retention to improve year over year and bookings momentum to build as we move through FY 'twenty six.

Murray: Overall, these FY 'twenty six tonnes of improving sales execution and continued retention focus so.

Murray: <unk> positioned the business well to return to positive growth as we move through the fiscal year.

Marje Armstrong: For the first quarter of FY26, we expect subscription revenue in the range of $129 to $132 million, representing a 1.8% decline to a 0.5% increase on a year-over-year basis. For Q1, we expect continued year-over-year improvements in bookings and churn with further momentum from there as we go through the year, as Q1 is typically our highest level of upper renewals and churn. We expect FY26 total revenue to be within the range of $600 to $618 million, representing a year-over-year growth rate of 0.2% at the midpoint. This guidance range is wider than we normally provide at this time of the year in order to incorporate a more conservative view given the current tariff-led economic uncertainty.

Murray: For the first quarter of FY 'twenty six we expect subscription revenue in the range of $129 million to $132 million.

Murray: Representing a one 8% decline to 0.5% increase on a year over year basis.

Murray: For Q1, we expect continued year over year improvement in bookings and churn with further momentum from there as we go through the year as Q1 is typically our highest level of up for renewals and churn.

Murray: We expect FY 'twenty six total revenue to be within the range of $600 million to $618 million, representing a year over year growth rate of 0.2% at the midpoint.

Murray: This guidance range is wider than we normally provide at this time of the year in order to incorporate a more conservative view given the current tariff led economic uncertainty.

Marje Armstrong: Our total revenue forecast includes our professional services business, which stabilized during FY25, and is positioned to build on improved bookings momentum as we move through FY26. Our PF business will continue its current focus on driving client satisfaction. delivering flawless implementations and supporting new subscription sales. However, we also intend to look for opportunities to grow the PS business as we move forward. We expect the FY26 gross profit margin to be within a range of 68 to 68.5%. As we return to growth, we expect to realize upside to our gross margin given the significant operating leverage inherent in our business, particularly relating to our subscription business gross margin, but also to our ability to proactively control services gross margin as needed.

Murray: Our total revenue forecast includes our professional services business, which stabilized during FY 'twenty five and is positioned to build on improved bookings momentum as we move through FY 'twenty six.

Murray: Rps business will continue its current focus on driving client satisfaction.

Murray: Delivering flawless implementations and supporting new subscription sales. However, we also intend to look for opportunities to grow the business as we move forward.

Murray: We expect FY 'twenty six gross profit margin to be within a range of 68 to 68, 5%.

Murray: As we return to growth, we expect to realize upside to our gross margin given the significant operating leverage inherent in our business.

Murray: Particularly relating to a subscription business gross margin, but also to our ability to proactively control services gross margin as needed.

Marje Armstrong: We expect FY26 adjusted EBITDA to be within the range of $200 to $210 million, implying an adjusted EBITDA margin of 33 to 34 percent. Given our revenue guidance and our proven ability to control expenses, as demonstrated by several years of increasing EBITDA margin, we feel very comfortable with our ability to continue generating strong adjusted EBITDA in FY26. That said, accelerating our top line growth is our primary focus for this year and beyond. Our FY26 adjusted EBITDA guidance reflects the fact that we're evaluating a number of targeted, prudent investments in our commercial and product development organizations to support our future growth.

Murray: We expect FY 'twenty adjusted EBITDA to be within the range of $200 million to $210 million.

Murray: Implying an adjusted EBITDA margin of 33% to 34%.

Murray: Given our revenue guidance and our proven ability to control expenses as demonstrated by several years of increasing EBITDA margin, we feel very comfortable with our ability to continue generating strong adjusted EBITDA in FY 'twenty six.

Murray: That said accelerating our top line growth is our primary focus for this year and beyond.

Murray: 26, adjusted EBITDA guidance reflects the fact that we're evaluating a number of targeted prudent investments in our commercial and product development organizations to support our future growth.

Marje Armstrong: with some projects and incremental spend getting underway in Q1. As evidenced by our FY25 performance, cash generation continues to be a top priority for our management team. In FY26, we expect adjusted operating cash flow as percentage of adjusted EBITDA to be roughly in line with FY25, implying that our net leverage ratio should decline from 4.0 times adjusted EBITDA at the end of FY25 to approximately 3.8 times by the end of FY26.

Murray: With some projects and incremental spend getting underway in Q1.

Murray: As evidenced by our FY 'twenty five performance cash generation continues to be a top priority for our management team.

Murray: Slide 26, we expect adjusted operating cash flow as a percentage of adjusted EBITDA to be roughly in line with FY 'twenty five implying that our net leverage ratio should decline from 4.0 times adjusted EBITDA at the end of FY 'twenty five to approximately three eight times by the end of FY 'twenty six.

Marje Armstrong: In conclusion During FY25, we made meaningful progress in positioning E2open for a return to sustainable growth. And we see many reasons to be optimistic about our business in this new fiscal year. We made material improvements in retention in FY25, and subscription bookings gained momentum throughout the fiscal year. As Andrew noted, we see many other green shoots of progress across our company, which are direct results of our renewed commitment to client centricity and value realization. This has enabled us to move very close to an inflection point where our growth turns positive again, which will be a very important milestone.

Murray: In conclusion.

Murray: During FY 'twenty five we made meaningful progress in positioning each open for a return to sustainable growth.

Murray: And we see many reasons to be optimistic about our business in this new fiscal year.

Murray: We made material improvements in retention in FY, 'twenty, five and subscription bookings gained momentum throughout the fiscal year.

Murray: As Andrew noted we've seen many other green shoots of progress across our company, which are a direct result of our renewed commitment to client simplicity and value realization.

Murray: This is enabled us to move very close to an inflection point, where our growth turns positive again, which will be a very important milestone.

Marje Armstrong: This progress, as well as the very high quality of business we win each quarter, gives us confidence as we continue executing our growth plan.

Murray: This progress.

Murray: As well as the very high quality of business, we win each quarter gives us confidence as we continue executing our growth plan.

Operator: That concludes our prepared remarks.

Murray: That concludes our prepared remarks, operator, please open the line and begin the Q&A session.

Operator: Operator, please open the line and begin the Q&A session. 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. That confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Once again, please press star 1 if you have a question or a comment.

Murray: 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 one on your telephone keypad.

Murray: Confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys. One moment. Please while we poll for questions. Once again. Please press star one if you have a question or comment.

Christopher Quintero: The first question comes from Chris Quintero with Morgan Stanley. Hey Andrew, Greg, Marie. Thanks for taking the questions here.

Chris: And the first question comes from Chris <unk> with Morgan Stanley. Please proceed.

Greg Murray: Hey, Andrew Greg Murray, Thanks for taking the questions here.

Christopher Quintero: I wanted to ask on the fiscal year 26 revenue guide, really great to see the implied return back to positive growth there, but kind of a two-part question. On the subscription side, how should we think about the linearity throughout the year? Will it be kind of more steady improvement like we saw in 25, or would there be more improvement in the second half of the year?

Greg Murray: I wanted to ask on the fiscal year 'twenty six revenue guide really great to see the implied but turned back to positive growth there but.

Greg Murray: I'm kind of a two part question on the subscription side, how should we think about the linearity throughout the year really be kind of more steady improvement like we saw in <unk> and 'twenty five or.

Greg Murray: Would there be more improvement in the second half of the year and then the second part of the question is on the PFS side.

Christopher Quintero: And then the second part of the question is on the PS side. Looks like that guide also implies a nice improvement in the year of your growth rate throughout the year, so just curious kind of what gives you the confidence and visibility into that improvement on the PS side.

Greg Murray: Looking at the guide also implies.

Greg Murray: Nice improvement in our year over year growth rate throughout the year. So just curious kind of what gives you the confidence and visibility into the improvement on the other side.

Laurie: Yes. Thank you so much for the question Laurie.

Marje Armstrong: Thank you so much for the questions, Marie. So first, on the subscription revenue guidance side, so if you look at, you know, our FY25, just what we've reported for the last fiscal year, we've shown sort of sequential and year-over-year improvement as we went through the year. So we should expect similarly, you know, similar kind of style going forward. There's a lot more room for us to improve, and we continue to make those improvements. So, you know, you should expect to see our year-over-year growth rates just improve from execution as we go forward. You know, obviously, if you look at the overall guidance, you know, we're not baking in any sort of heroic numbers here.

Laurie: First on the subscription revenue guidance side. So if you look at.

Laurie: Our FY 'twenty five just slightly reported for the last fiscal year.

Laurie: Sean.

Speaker Change: Sequential and year over year improvement.

Speaker Change: As we went through the year, so we should expect similarly.

Speaker Change: Similar kind of style going forward.

Speaker Change: There is a lot more room for us to improve.

Speaker Change: Continuing to make those improvements.

Speaker Change: You should expect to see our year over year growth rates improve.

Speaker Change: As we go forward, obviously as you look at the overall guidance.

Speaker Change: We're not baking in any sort of.

Speaker Change: Charlie.

Marje Armstrong: And, you know, keep in mind the broader macro picture as well. So trying to balance all the different areas here.

Speaker Change: Numbers here.

Speaker Change: Keep in mind, the broader macro picture as well.

Speaker Change: Trying to balance all the different.

Marje Armstrong: When you look at our PS guidance, which is implied in our full year guidance, We've actually taken a more conservative view here. Typically, when you look at our overall total revenue guidance, it's a $15 million range to start the year. This year, the range is $18 million to take into account, again, the broader macro volatility at the midpoint, sort of flat for PS, but quite frankly, for our PS revenue. Now that we've stabilized the business, we've actually seen nice pickup in bookings and backlog, as we mentioned in our prepared remarks. Again, we're trying to be conservative in our guidance, but there's definitely opportunity to build on PS revenue as well as we get through the year.

Speaker Change: Areas here.

Speaker Change: When you look at our <unk> guidance, which is implied in our full year guidance.

Speaker Change: We've actually taken a more conservative view here typically when you look at our overall total revenue guidance.

Speaker Change: It's a $15 million range.

Speaker Change: To start the year this year.

Speaker Change: $18 million to take into account and the broader macro volatility.

Speaker Change: At the midpoint sort of flat for PFS, but quite frankly.

Speaker Change: For Rps.

Speaker Change: Revenue.

Speaker Change: Now that we've stabilized the business.

Speaker Change: We've actually seen a nice pick up into bookings and backlog as we mentioned in our prepared remarks.

So again, we're trying to be conservative in our guidance.

Speaker Change: There is definitely opportunity to build on.

Speaker Change: <unk> revenue as well as we as we get through the year.

Christopher Quintero: Got it. That's very helpful, Marie.

Speaker Change: Got it that's that's very helpful Marie.

Andrew Appel: And then you also mentioned some investments for 26 around the commercial business and making some product developments as well. So just wondering if you could kind of unpack that, you know, what exactly are you making those investments in? Yeah, sure.

Speaker Change: And then you also mentioned some some investments for 26 around the commercial business and making some product development as well. So I'm. Just wondering if you go to kind of unpack that hey, you know what exactly are you, making those investments in.

Speaker Change: Yes sure.

Andrew Appel: Hey, this is Andrew. How are you? To Ron and Andrew, how are you? Good.

Andrew upheld: This is Andrew.

Speaker Change: Yes.

Speaker Change: Good morning, Andrew how are you.

Speaker Change: Good.

Andrew Appel: So we're at the beginning of I think, clarifying our investments in product and our strategy of, you know, expanding our differentiation in the marketplace, but it started with, you know, bring on Ratchet, as I, as you know, from last year. and moving Powell on to a head of strategy role. The two of them have been working for the last three or four months. to begin to put together a preliminary set of investments or initiatives. that will extend our differentiation with our clients. Now, at this point, I think this year, it's not really spending some of the savings we generated from prior periods.

Speaker Change: So we're at the beginning of I think clarifying our investments in product and our <unk>.

Speaker Change: Strategy.

Speaker Change: Expanding our differentiation in the marketplace, but it started with bringing on Roger.

Speaker Change: Over the last year.

Speaker Change: Moving onto our head of strategy role on the two of them have been working through.

Speaker Change: The last three or four months.

Speaker Change: To begin to put together, a preliminary set of investments or initiatives.

Speaker Change: That will extend our differentiation with our clients.

Speaker Change: Now at this point I think this year, it's not really spending some of the savings we generated from prior periods.

Andrew Appel: And I'd say we're in these are the kind of early obvious ones are not significant marginal dollars, but they are a significant chance to make a real difference in the industry and our clients.

Speaker Change: I'd say we're in these are the kind of early obvious ones are not significant marginal dollars, but there are.

Speaker Change: Significant chance to make a real difference in the industry and our clients for example.

Andrew Appel: So for example, You know, there's three or four areas that I thought I would just describe. One is moving very quickly towards a client specific data platform. around clean rooms so that we can consolidate all their data into one location when they're multi-application users. And that's going to create a huge opportunity for AI and LLM models, analytics that they want to do on their supply chain. and linking in any other reporting edges because it's a very flexible platform.

Speaker Change: There's three or four areas that I thought I would just describe one is.

Speaker Change: We're moving quickly towards the client specific data platform.

Speaker Change: Around clean rooms, so that they can we can consolidate all of their data into one location when they're multi application reserves.

Speaker Change: And that's going to create a huge opportunity for AI in all our models.

Speaker Change: Analytics that they want to do on their supply chain.

Speaker Change: Linking in any other reporting edges, because it's very flexible platform.

Andrew Appel: Another one is next generation planning, right? We have a view. that we can make planning a real time experience rather than a scenario based experience. And over time, you can get real time demand and real time supply on a multi echelon supply chain. And planning can become part of the execution lifecycle versus a corporate exercise for scenario modeling, for example. So we're working on connecting those two sides of our platform together.

Speaker Change: The other one is next generation planning right, we have a view.

Speaker Change: That we can make planning of real time experience rather than a scenario based experience and over time. If you can get real time demand in real time supply on a multi echelon supply chain.

Speaker Change: And planning can become part of the execution lifecycle versus corporate exercise for scenario models. For example, so we're working on connecting those two sides of our platform together in real time.

Speaker Change: Yes.

Andrew Appel: A third area is improving implementation speed. Greg and I both are big believers that if we can half the time it takes to get an implementation in, clients get impact twice as fast. It usually takes six months, and it takes three, or nine months, and it takes four and a half. Speed to impact is much higher, and speed to cross-sell is much higher, because in general, a client doesn't buy a second product or a third product unless the two that they have and the one that they have is already working. So that's always a waiting period.

Speaker Change: A third area is improving implementation speed, so Greg and I, both are big believers that.

Speaker Change: If we can have the time it takes to get an implementation in climb.

Speaker Change: Clients impacts.

Speaker Change: <unk>, usually takes six months and it takes three or nine months, let's explore in a half thats just speed the impact is much higher.

Speed to cross sell is much higher because in general client as a buy a second product or a third product wise the tools that they have for the one that they have is already working so that's always a waiting period. So we can cut the implementation side of the house.

Andrew Appel: So we can cut the implementation time in half. will increase speed to impact.

Speaker Change: We'll increase speed to impact.

Andrew Appel: The fourth is a co creation with a client around inter you know, complex logistics management across modes of transport, to enhance our ability to support end to end logistics. Then we did that in cooperation with one of our biggest clients.

Speaker Change: The fourth is a co creation with a client or on <unk>.

Speaker Change: Complex logistics management across modes of transport to enhance our ability to support end to end.

Speaker Change: <unk>.

Speaker Change: And we did that in cooperation with one of our biggest clients and then finally, just as a last example.

Andrew Appel: And then finally, just as the last example. You know, obviously know what's going on with tariffs and global trade. So we are continuing to invest and made some announcements around automation. The next level is to enhance the A.I. and the tools for, you know, accelerating the speed through what is becoming a much more complicated set of calculations for outlandish costs and then building some. That's fine. Super helpful, Andrew. Thank you.

Speaker Change: You, obviously know what's going on with tariffs and global trade. So we are continuing to invest and we've made some announcements around automation.

Speaker Change: The next level is to enhance the AI and the tools for accelerating the speed through.

Speaker Change: What is becoming a much more complicated set of calculations around landed costs are in buildings and optimized.

Andrew upheld: Excellent Super helpful. Andrew Thank you.

Speaker Change: The next question comes from Mark <unk> with loop. Please proceed.

Mark Schappel: Schappel with Loop. Hi, thank you for taking my question. Andrew, starting with you, I appreciate your commentary and your prepared remarks around your global trade capabilities, but I was wondering if you could provide some additional details around some of the customer conversations you're having regarding global trade. For instance, is it opening discussions to get you in the door? And then once you're in the door, is it opening up just a broader discussion around your just digital transformation capabilities for supply change in general? Any further help or any further insight would be appreciated. Yeah, you know, the first thing I'd say about, you know, the uncertainty in the environment and the constant rapid change to tariff rates.

Mark: Alright, Thank you for taking my question.

Mark: And we're starting with you I appreciate your commentary in your prepared remarks around global trade capabilities. So I was wondering if you could provide some additional details around some of the customer conversations you're having regarding global trade for instance is it opening discussions to get you in the door and then once you're in the doors are opening up just a broader.

Mark: Discussion around your just digital transformation capabilities for supply chains in general.

Any further helped further insight would be helpful.

Mark: Yes.

Mark: The first thing I'd say about yes.

Mark: Uncertainty in the environment.

Mark: Constant and rapid change to tariff rates.

Andrew Appel: The first thing it is, is what I've told our own teams. This is kind of a moment of truth, right? Every five to 10 years, you know, your clients look at you and you say, are you there for us when we most need you? And so this is one of those moments where the world has gotten infinitely more complicated when it comes to global trade, and they're expecting us to basically help them navigate these very difficult and complex times. And so that and you know, our teams are working night and day we have hundreds people keeping up with all the changes and thousands plus people serving our clients so that that the impact of that is that clients right now are quote heads down delivering and trying to make sure they can process stuff through customs and so they're not calling us about new features or do things unless it speeds up unless it's an accuracy question or a speed because the the complexity of all the work is increased dramatically.

Mark: The first thing is what I've told our own teams. This is kind of a moment of truth right. Every five to 10 years you know your clients look at you and you say argue there for us when we most.

Mark: And so this is one of those moments where theyre. The world has gotten incrementally more complicated when it comes to global trade and they're expecting us to basically help them navigate these very difficult and complex times.

Mark: And so that and our teams are working night and day, we have hundreds of people keeping up with all the changes.

Mark: 1000, plus people, serving our clients so that that.

Mark: The impact of that as the clients right now are heads down delivering and try to make sure. They can process steps through customs and so they're not calling us about new features or do things unless it speeds and accuracy question RSP questions.

Mark: Hey, guys.

Mark: The complexity of all the work has increased dramatically.

Andrew Appel: And so we have to process more and less time. And so that's what we're really focused on now is how to do it, I guess. And so we're not likely, I think, in this period of uncertainty. to see clients, you know, change who they're using for global trade, right, at least in the next, like, call it two to six months. And so for us, it's a chance to prove we are the market leader that we are. make sure that all of our existing clients are, you know, dealing with the complexities better than any other, you know, software vendor player in the space.

Mark: And so we have to process more in less time and so that's what we're really focused on now is my guess and so we're not likely I think in this period of uncertainty.

Mark: To see clients change, who they are using for global trade at least in the next call it 2% to six months.

Mark: So for us it's a chance to prove we are the market leader that we are.

Mark: Make sure that all of our existing clients are.

Mark: Dealing with the complexity is better than any other.

Mark: Software vendor a player in the space and then that will open up I think a lot of opportunities in the second half of the year a bit of Kinder like how things played out.

Andrew Appel: And then that will open up, I think, a lot of opportunities in the second half of the year, a bit akin to like how things played out, you know, different scenarios with COVID, right. So there was a lockdown period. And there was a whole bunch of supply chain impacts, you know, out of stocks, issues of getting things around the world. And we saw kind of one The Steady State didn't disappear, which, you know, so unless, you know, our president wakes up and changes his whole philosophy overnight, the complexity plays through the supply chain. So kind of job one is I got to get my stuff through customs, got to pay the tariff, I got to have the right cost.

Mark: Scenarios with Covid right. So there was a lockdown period.

Mark: There was a whole bunch of supply chain impacts out of stocks issues of getting things around the world and we saw kind of once.

Mark: The steady state Didnt disappear, which some lessons.

Speaker Change: Our president wakes up and changes this whole philosophy overnight the code.

Mark: <unk> placed through the supply chain.

Mark: So kind of job one is I gotta get myself through costumes got to pay the tariff I got to have the right cost.

Andrew Appel: you know, then it becomes like, well, what does my supply chain actually look like? And how do I optimize when I'm not just solving for like, I got stuff in a port that I got to get through, but I'm going to optimize around, you know, medium term cost of delivery, inventory, all the things that we do great at.

Mark: Yes, then it becomes like what is my supply chain actually worldwide and how do I optimize not just solving for like I got stuff in a port that I got to get through but I'm going to optimize around you know medium term cost of delivery.

Mark: Inventory all the things that we do so so that that is how I think Greg and I look at it as like time to deliver.

Andrew Appel: So so that that is how I think Greg and I look at is like, now's the time to deliver. And then, you know, I think as we evolve into the second half of the year, you're going to see a lot of people asking, like, are we with the right part? Great, thanks.

Mark: And then yes.

Mark: I think as we evolve into the second half of the year, you're going to see a lot of people were asking like are we with the right partner.

Mark: Great. Thanks, and then with respect to the demand environment I was wondering if you could just comment on what youre seeing on the trucking or the freight side of your business.

Gregory Randolph: Then with respect to the demand environment, I was wondering if you just comment on what you're seeing on the trucking or the freight side of Yeah, I mean, hey, hey, Mark, it's Greg. Good to connect with you. We're not seeing, at least near term, any significant movements. It's been pretty stable, you know, both in terms of road transportation, as well as ocean transportation. So there hasn't been a significant shift, at least with our with our clients.

Mark: Yes.

Greg: Yes, Hey, Mark it's Greg good to connect with you.

Greg: We're not seeing at least near term any significant movements, it's been pretty stable both in terms of grown in transportation as well as ocean.

Greg: Transportation, so so there hasnt been a significant shift.

Greg: At least with our with our clients.

Gregory Randolph: Great, thank you.

Greg: Great. Thank you.

Speaker Change: Okay. Once again, if you have any questions or comments. Please indicate so by pressing star one on your Touchtone phone. The next question comes from Andrew <unk> with Bank of America. Please proceed.

Operator: Once again, if you have any questions or comments, please indicate so by pressing star 1 on your touchtone phone.

Andrew Obin: The next question comes from Andrew Obin with Bank of America. Please proceed.

David Ridley: Hi, this is David Ridley laying on for Andrew Obin. First question on on the first quarter subscription revenue guidance. What are the kind of factors that are driving it down sequentially? Yeah, hi, if you look at our last couple of last couple of years, you've seen sort of Q1, you know, sequential dollar based step down. And it's really a factor of, you know, a couple of things. First, when you think about our, you know, churn versus bookings, so within a quarter, churn is generally more front end loaded versus bookings is more back end loaded. And, as mentioned in our prepared remarks, you know, for Q1, there is generally, you know, churn is elevated just because of higher overall renewals, again, Q4 being our largest bookings quarter, generally, that kind of spills over to Q1.

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

Speaker Change: The first question on on the first quarter subscription revenue guidance.

Speaker Change: What are the kind of factors that are driving it down sequentially.

Speaker Change: Yes, hi.

Speaker Change: So if you look at our last couple last couple of years, you've seen sort of Q1.

Speaker Change: Yes sequential dollar based step down and it's really a factor of Cabo.

Speaker Change: A couple of things first when you think about our.

Speaker Change: Churn versus bookings so within a quarter.

Jeff: Sure Jeff.

Jeff: Not really more front end loaded versus bookings is more backend loaded.

Jeff: As mentioned in our.

Jeff: <unk> remarks.

Jeff: For Q1.

Jeff: There is generally.

Jeff: Churn is elevated just because of the <unk>.

Jeff: Overall renewals again Q4 being our.

Jeff: Largest bookings quarter generally that kind of spilled over into Q1, so when we looked at our.

David Ridley: So when we look at our, you know, Q1, from sort of, you know, churn perspective, you know, we expect that to be the highest for the year and then improve from there. With again, Q1 churn still being down year over year, so continued improvements, but just seasonally higher, higher point for the year. Got it.

Jeff: Q1 from sort of.

Jeff: Churn perspective.

Jeff: We expect that to be the highest for.

Jeff: For the year and then improve from there.

Jeff: With again Q1 churn still being down year over year, So continued improvements.

Jeff: So just seasonally higher higher point for the year.

Jeff: Got it and then.

Marje Armstrong: And then. on the On the full year subscription revenue guidance, if I understand you right, your net retention rate is 99 percent, bookings are growing year over year. is sort of put in the midpoint and kind of flat. Would you describe that as conservatism? What are some other potential offsets? Yeah, I mean I think if you, I think it's appropriate to be somewhat conservative in the current environment. You know, if you look at our Q1 guidance, right, the high point implies we already get back to growth, right? So depending on where we land Q1, you know, we expect to return to positive growth and then continue to make incremental improvements in our year-over-year growth rate from there for the full year.

Jeff: On the.

Jeff: On the full year subscription revenue guidance.

Jeff: I understand you right. Your net retention rate is 99% bookings are growing.

Jeff: Year over year.

Jeff:

Jeff: And sort of put in the midpoint of kind of flat.

Speaker Change: Would you describe that as conservatism.

Jeff: What are some other potential offsets to that.

Jeff: Yes, I mean, I think if you I think it's appropriate to be somewhat conservative in the current environment.

Jeff: And if you look at our Q1 guidance right the high point implies.

Jeff: Implies we already get back to growth so depending on where we land in Q1.

Jeff: We expect to return to positive growth and then continue to make incremental improvements in our year over year growth rate from there for the full year.

Marje Armstrong: Got it.

Jeff: Got it and then the investments in product.

Marje Armstrong: And then in the investments in product, is there a similar willingness to invest in Salesforce structure and headcount? Yes, absolutely. So, you know, this is consistent with what we've sort of communicated for the last several quarters where, you know, we've been systematically looking for efficiencies, you know, especially sort of in the back office areas, and then looking for ways to invest in our client facing organizations. So, including commercial, customer care, and then importantly, also, our product organizations. So, those are the areas we're targeting and investing in.

Jeff: Is there a similar a willingness to invest and salesforce structure and head count.

Jeff: Yes, absolutely so.

Jeff: This is consistent with what we've communicated for the last several quarters, where we've been systematically looking for efficiencies.

Jeff: Especially you sort of in the back office areas and then looking for ways to invest in our client facing.

Jeff: Organizations.

Jeff: Including commercial customer care and then importantly also.

Jeff: <unk> organization. So those are the areas we're targeting investment.

Marje Armstrong: All right, thank you very much. Absolutely. Thanks for the question.

Speaker Change: Alright, Thank you very much.

Speaker Change: Absolutely thanks for the questions.

Speaker Change: Okay is there any remaining questions. Please indicate so now by pressing star one.

Operator: If there are any remaining questions, please indicate so now by pressing star 1.

Speaker Change: Yes.

Adam Hotchkiss: Okay, we have a question coming from Adam Hotchkiss with Goldman Sachs. Great.

Speaker Change: Okay. We have a question coming from Adam Hotchkiss with Goldman Sachs. Please proceed.

Adam Hotchkiss: Thanks so much for squeezing me in here. I just wanted to touch on the legacy customer satisfaction piece. You know, I know that gross retention has been at around 90 percent for a little while now, improved a little bit to 91 percent. And I think that's still a couple of points behind where you were back during 2021 and 2022. So how would you characterize what inning you're in now? I know you mentioned the 60 percent reduction in support tickets and some continued unbilled professional services flowing through. But sort of where are we in the process of getting back to normalized churn?

Adam Hotchkiss: Great. Thanks, so much for squeezing me in here.

Adam Hotchkiss: I just wanted to touch on the the legacy customer satisfaction piece.

Adam Hotchkiss: Oh that gross retention, it's been at around 90% for a little while now improved a little bit to 91% and I think that's still a couple of points behind where you were back.

Adam Hotchkiss: Back during 2021 and 2022, so how would you characterize what inning you're in now I know you mentioned, the 60% reduction in support tickets and some continued unbilled professional services flowing through but that's sort of where are we in the process of getting back to normalized.

Adam Hotchkiss: Normalized churn and sort of how much longer should we expect there to be on some of these <unk>.

Andrew Appel: And sort of how much longer should we expect there to be on some of these support ticket reductions and unbilled PS in order to sort of get back to where you were historically? Yeah, I would. I don't know about inning, but I would if you had to, if I had to pick one, I'd say somewhere between the fifth and sixth inning. So, you know, whatever, 55 to two-thirds of the way there, I think. You know, as we look at Um, if we look back at last year, still... frustratingly, 30 to 40% of those. losses were situations where we were informed of them in 23 and 24.

Adam Hotchkiss: Port ticket reductions in Unbilled PFS in order to sort of get back to where you were historically.

Speaker Change: Yeah I would.

Speaker Change: I don't know about <unk>, but I would if you had to if I had to pick one I would say somewhere between the fifth and sixth setting.

Speaker Change: Whatever 55 to two thirds of the way there I think.

As we look at.

Speaker Change: Sure issues.

Speaker Change: If we look back at last year still.

Speaker Change: Australia, 30% to 40% of those losses were situations, where we were informed of them in 2020 four so it's still at the tail end of mistakes made back then not much you can do about it but that is down from you know.

Andrew Appel: So it's still the tail end of mistakes made back then. Not much you can do about it. But that is down from, you know, 50 to 60% last year and, you know, I think heading down to zero probably in FY middle, you know, early middle of FY. And with that, you know, once we basically eliminate what I call sins of the past, then you get to a normalized level of GRR and of, you know. 93 to 95. Okay.

Speaker Change: 50% to 60% last year.

Speaker Change: Thanks.

Speaker Change: Heading down to zero, probably in FY middle early middle of FY 'twenty seven.

Speaker Change: Yes.

Speaker Change: And with that once we basically eliminate the what I'd call sins of the past then you get to a normalized level of G. R. R.

Speaker Change: 93% to 95%.

Speaker Change: If you just take that.

Andrew Appel: Bye. got it so that's really helpful four or five more quarters i'd say but on a continued on a declining basis right because I think the biggest... Lumps are behind us, or will be. Okay, yep, that's really helpful.

Speaker Change: Got it that's really helpful or five more quarters I'd say arnica.

Speaker Change: On a continued on a declining basis right just because.

Speaker Change: Because I think the biggest.

Speaker Change:

Speaker Change: Lumps are behind us or will be behind us.

Speaker Change: For this quarter.

Speaker Change: Okay. Yeah, that's really helpful and Marine would you just remind us I know, there's the potential for volatility in global trade volumes.

Marje Armstrong: And Marie, would you just remind us, I know there's, you know, the potential for volatility in global trade volumes. To what extent E2open has exposure to changes in those volumes within your product? So, to changes in our products, so if you think about our revenue... Sorry, the revenue, yeah. Yeah, revenue, any like revenue exposure to volatility in global trade volume. Yeah, absolutely. So when you look at, you know, our public disclosures as well, our pure sort of volume based, you know, revenue exposure is at 2% now, down from, you know, about 4% two years ago.

Speaker Change: To what extent E. Two open has exposure to changes in those volumes within your product.

Speaker Change: So to changes in our product.

Speaker Change: So sorry, the revenue yeah revenue any like revenue exposure to volatility and anecdotal trade volume.

Speaker Change: Yeah, absolutely so when you look at.

Speaker Change: Our public disclosures as well.

Speaker Change: Pure sort of volume base.

Speaker Change: Revenue exposure is at 2% now down from about 4% two years ago.

Marje Armstrong: But that's, there's a lot of different businesses that, you know, are in that. And as you can imagine, we've spent quite a bit of time making sure that we understand that it's not fully clear, given all the volatilities that, you know, even that part of the business really is, is impacted. But again, that's 2% of our total revenue. We do also have, if you recall, you know, following COVID, we do have, you know, some what we've called previously sort of tiered or volumetric revenue where, depending on the volumes, there's annual potential, you know, step ups or step downs for that contract.

Speaker Change: But that's there's a lot of different businesses that.

Speaker Change: Or in that and as you can imagine we've spent quite a bit of time, making sure that we understand that it's not fully clear given all the volatility.

Speaker Change: In that part of the business really is.

Speaker Change: Is impacted but again, that's 2% of our total revenue.

Speaker Change: You also have if you recall following COVID-19, we do have.

Speaker Change: Some we've called previously sort of tiered our volumetric.

Speaker Change: Revenue were.

Speaker Change: Depending on the volumes there is annual potential step up for a step down for that contract.

Marje Armstrong: We have, our commercial team has done an incredible job converting most of those contracts into fixed price. So different from what we saw, sort of at the end of FY24, you know, surprises there as those tier step functions, you know, that impact now is really minimal. So, you know, when you think about those, you know, volume or volumetric, you know, fluctuations, like including even those, it's probably around 3% or something like that. So of total revenue. Okay, that's really helpful, Culler.

Speaker Change: We have.

Speaker Change: Our commercial team has done an incredible job converting most of those contracts into fixed price. So different from what we saw in sort of at the end of FY 'twenty four.

Speaker Change: Surprises there.

Speaker Change: Its tier a step function.

Speaker Change: That impact now as it's really minimal so when you think about those.

Speaker Change: Just volume or volumetric.

Speaker Change: Fluctuations like including even though it's probably around three.

Speaker Change: 3% or something like that so.

Speaker Change: Revenue.

Speaker Change: Okay. That's really helpful color. Thanks, Mary Thanks, Andrew.

Marje Armstrong: Thanks, Marie. Thanks, Andrew. Absolutely.

Speaker Change: Absolutely.

Operator: Thanks for getting on the call.

Speaker Change: So getting on the call.

Operator: Okay, we have no further questions in the queue.

Speaker Change: Okay. We have no further questions in the queue I would like to turn the call back over to management for any closing remarks.

Andrew Appel: I would like to turn the call back over to management for any closing remarks. Thank you very much.

Speaker Change: Thank you very much.

Andrew Appel: First, I think to hopefully a number of our employees that are listening out, just a big shout out for all your hard work. Thank you for hanging with us. Um, you know, I think, um... You know, this organization has a really bright future, right? We do important things for important companies. Change is hard, and we've been working very hard at improving on all the dimensions that matter, the most important of which, you know, serving clients. We do terrific work for clients and we exceed their expectations. Given our portfolio and the area that we work in.

Speaker Change: First I think the hope.

Speaker Change: Boy a number of our employees that are listening hours big shout out for all your hard work. Thank you for hanging with us.

Speaker Change: Yeah.

Speaker Change: I think.

Speaker Change: Yes.

Speaker Change: Organization, Hasnt really bright future right, we do important things for important companies.

Speaker Change: Change is hard and we've been working very hard.

Speaker Change: Improving on all of the dimensions of matter that most more than of which serving clients with distinction.

Speaker Change: You can do terrific work for clients and we exceed their expectations.

Speaker Change: Given our portfolio in the area that we work in.

Andrew Appel: You know, we have a really bright. really excited about our progress. Nothing is ever fast enough if you're a CEO.

Speaker Change: We have a really bright future and I'm really excited about our progress nothing is ever fast enough of your CEO and it comes with the job. So I wish it was faster, but it couldnt be more prouder of all the people that work for you to open and all of their hard work.

Andrew Appel: job so I wish it was faster but I couldn't be more prouder of all the people that work for E2open and all their hard work. to keep us moving forward despite occasional headwinds. for changes, but. But we're excited about the journey we're on, and I think we're starting to make real progress.

Speaker Change: To keep us moving forward.

Speaker Change: Occasional headwinds.

Speaker Change: Or changes but.

Speaker Change: But.

Speaker Change: We're excited about the journey, we're on and I think we're starting to make real progress.

Andrew Appel: Thank you for the ambassadors for sticking with us and thank you to our employees. fighting hard for us every day. Thank you.

Speaker Change: Thank you for the investors for sticking with us and thank you to our employees for sure. It's very hard for US every day.

Speaker Change: Thank you. This concludes today's conference and you may disconnect your lines at this time thank.

Operator: This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

Speaker Change: Thank you for your participation.