Revenue Performance: Total revenue declined 5.6% year-over-year, driven primarily by a drop in subscription revenue to $131.4 million, a decrease of 2.6% year-over-year but within management's guidance range. Professional services revenue also fell significantly by 21.6% to $19.8 million due to resource reallocation towards client satisfaction initiatives.
Profitability Metrics: Gross profit decreased to $102.6 million, leading to a non-GAAP gross margin of 67.8%. E2open reported adjusted EBITDA of $50.7 million, slightly down from the previous year, maintaining a healthy EBITDA margin of 33.6%. This reflects ongoing strict cost management amid a contraction in revenues.
Cash Flow: Adjusted operating cash flow was robust at $39.1 million, with total cash and equivalents reaching approximately $160.2 million, indicating strong liquidity despite revenue challenges and investments in client services.
Retention and Growth Strategies: Despite a challenging quarter, management has demonstrated confidence in future performance, with a clear focus on reducing churn and capturing previously delayed deals.