E2open Parent Holdings, Inc.

Good afternoon. My name is Gabriel. Now I'll be your conference operator today. At this time, I'd like to welcome everyone to the E2 Open Fiscal Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. And if you'd like to ask a question during this time, simply press star followed by the one on your telephone keypad. If you'd like to withdraw your question, press the bound key. Thank you. Adam Rogers, Senior Director of Investor Relations. You may begin your conference.

Thank you and good afternoon, everyone. Welcome to the EU Open fiscal fourth quarter and fiscal year 2021 earnings conference call. Today's call has been prerecorded and will include comments from our president and chief executive officer, Michael Farlikas, followed by our chief financial officer, Jared Janik. And then we'll open the call for a live Q&A session. An audio replay of the call can be accessed through May 25th and an archived webcast will also be available on our website. Information to access the replay is listed in today's press release, which is available at e2open.com under the investor relations section. 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 a full fiscal year 2022. These forward-looking statements are subject to known and unknown risks and uncertainties. E2 Open cautions that these statements are not guarantees of future performance. We encourage you to review our most recent reports, including our 10-K, and 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. Also during today's call, we'll refer to certain non-GAAP financial measures. Reconciliations of non-GAAP to GAAP measures and certain additional information are included in today's earnings press release, which can be viewed and downloaded from our Investor Relations website. And with that, we'll begin by turning the call over to our CEO, Michael Farlacus.

Thank you, Adam. And thank you for joining us on our fourth quarter and fiscal 2021 earnings call. This is our first earnings call as a publicly listed company. So I'd like to start our dialogue with a few thoughts about how we will build our relationship with our investors, as well as a few words regarding the ongoing pandemic. As we begin an E2 endeavor at E2 Open, we start with our principles. These principles are meant to be foundational and act as our North Star. In fact, we publish our operating principles in every office, on every badge, and they're also listed on our website. We are public about these principles with the belief that we can more closely move up to them and also hold ourselves accountable to them. So our principles for communicating with public investors are as follows. Be prepared. Build relationships on trust and respect. Be direct and transparent. Learn and operate with intensity. Make and meet commitments reliably. Always add value and own the results. While these tenants are our operating principles, we believe they are equally applicable for our relationship with the investing community. The second item I'd like to address relates to the ongoing pandemic. We are all very grateful and thankful to the frontline workers and medical communities who have stepped in to take care of all of us over the past 14 months during this tragic situation. The speed to which the medical community evaluated this disease to offer life saving remedies and ultimately a vaccine is nothing less than remarkable. I must say, however, that while parts of our world see a very strong light at the end of a very dark tunnel, many parts of our global community are very much in the middle of this awful disease. Our hearts, prayers and thoughts go out to our team members and brethren in Asia, especially those in India, who are feeling the brunt of this disease at this very moment. With that said, we're very pleased to be here today to share the results of our fourth quarter and fiscal year 21. I'd like to thank each of our team members for continuing to perform at the highest level and for our clients who humble us every day with their confidence and support. Without all of our valuable teammates and clients, these results would simply not be possible. During our listing process, we were able to provide guidance and projections for FY21 and FY22. Since we desire to be very clear in articulating the organic growth rates and operational metrics of our business, these projections were, in some cases, based on non-GAAP revenue and adjusted EBITDA. In the spirit of operating principle number three, to be direct and transparent, we will endeavor to give you a direct comparison to these projections while fully complying with SEC guidelines for providing our GAAP financial results. We are pleased to report that we ended fiscal year 21 with a strong fourth quarter that positioned us well for fiscal year 22. We exceeded our FY21 revenue guidance by more than $3 million based on strong performance in our fourth quarter, where we generated $89 million in total non-GAAP revenue. In addition, we also exceeded our FY21 adjusted EBITDA guidance by nearly $5 million. We surpassed our projection to guidance for FY21. We are also raising the low end of our previously announced guidance of non-GAAP revenue for fiscal year 22 to a range of $369 to $371 million, based again on a very strong Q4 and extremely strong start to Q1. We are highly confident we will meet our guidance of 10% organic growth in FY22. The strong growth in the quarter was fueled by broad-based demand across all of our services and global footprint. We saw continued momentum from our supply chain operating platform, which helped us drive our FY21 non-GAAP subscription revenue. These results are a testament to the ever-increasing value and reach of the e-to-open platform. In a few moments, I'll turn the floor over to Jared Janik, our CFO, to walk us through our financials in more detail, including our revenue guidance for FY22. But first, I'd like to provide an update on some of our most important developments during the past quarter. As we became a public company, we articulated four specific growth levers that we will implement in FY22 to further increase our growth rates beyond 10% in FY23. Those were Increase our distribution through building strategic partnerships. Identify new value drivers by leveraging our network and our data. Improve the packaging and pricing of our solutions to increase sales velocity. Build a new logo sales team to augment our current go-to-market strategy focused on existing clients. We are ahead of plan on all four initiatives. We have stood up our new local sales team with the addition of eight quota-carrying reps and the requisite management and pre-sales teams. We previously announced two partnerships. One was done in Bradstreet, and the other was Maersk, and have three more partnerships in our pipeline. We began our data journey with a significant relationship with DMV, where we will combine our efforts and leverage each other's platform and distribution. We have completed our packaging and pricing work and have begun the implementation phase of this program. As we have previously stated, we have high visibility to our 10% growth rate for FY22, which is not predicated on these four initiatives. These four initiatives are meant to expand our growth rate beyond 10% as we enter FY23. We're also proud that Gartner recently placed Eta Open in the leaders quadrant for multi-enterprise supply chain business networks with the highest ability to execute and completeness of vision for the second year in a row. For a bit of background, Eta Open is a hundred percent cloud subscription-based supply chain management software platform. We are a platform company, pure cloud. built upon the largest supply chain network comprising over 220,000 participants. In fact, on a revenue basis, we are the largest pure cloud provider of supply chain software solutions. Our platform combines networks, data, and applications natively in a mission-critical platform that allows the most iconic brands in the world to maximize revenue, reduce costs, and increase agility and resiliency in their supply chains. Our solutions are mission-critical. and we work very hard to maintain long-term relationships with each of our clients. This is demonstrated by an average customer tenure of 14 years for our top 100 clients. These clients represent 77% of our subscription revenue. In aggregate, we serve more than 1,200 customers in over 180 countries across a wide range of end markets, including technology, consumer, food and beverage, pharma, industrial, and transportation. We operate in an attractive industry with strong secular tailwinds and a large and growing addressable market of $45 billion. This TAM is comprised of more than 85% white space, including what we estimate to be more than a billion-dollar opportunity within our own existing client base. Eat Open typically replaces a combination of on-premise, legacy, and homegrown applications, many of which are tied together with manual processes And frankly, spreadsheets. As manufacturers have evolved from companies owning the full production and distribution lifecycle to orchestrators of a mostly outsourced manufacturing, distribution, and selling process, supply chains have grown even more complex, increasing the demand for EatOpen's unique end-to-end multi-enterprise platform. We believe our fully cloud-based platform offers a differentiated solution that provides differentiated value as compared to our clients' current solutions and what is available by other point solution providers. Changing topics for a moment. I'd like to spend two to three minutes to articulate our plans regarding environmental, social, and governance, or ESG. This is an important topic for us and all of our clients. We are fortunate to start our ESG conversation by sharing the dramatic impact our various solutions have to the world's economy and our environments. We play a key and vital role in the ESG journey for many of our clients. Our stated purpose is to improve quality of life by enabling the most cost effective and environmentally sound production and distribution of goods and services. We do this by enabling our clients to use the most economical and lowest impact modes of transportation, by eliminating waste throughout the supply chain, reducing the environmental impact and lowering the cost of goods sold for the world's most well-known brands. As one example, we are currently deploying what we believe is the world's largest end-to-end planning system for an $80 billion company. The ROI for this project is derived from shifting much of their air transportation to ocean transportation. We enable this result by connecting planning and execution together in one end-to-end process. The results are lower cost, and more importantly, a significantly lower environmental impact and reduced carbon footprint. We look forward to sharing Eat Open's first ESG report with you in the next few months. Lastly, we are two weeks from the end of our Q1. I'm pleased to report that we're off to a great start. We've already set a record for Q1 sales on a net and gross basis, and our RPO, remaining performance obligations, are over $550 million. As I wrap up, there is no question that Eat Open provides essential infrastructure to the digital transportation that the world's largest companies are undertaking. Businesses around the world require supply chain ecosystems that connect supply and demand in one connected real-time platform. Our network connects our clients to over 220,000 trading partners across supply, logistics, global trade, and demand ecosystems. We connect data from this network to AI and machine learning applications natively to provide a comprehensive end-to-end supply chain operating platform. We are emerging from a strong FY21, a year that brought both challenges and opportunities that we never could have anticipated. Our business continues to gain momentum, and we are poised to accelerate our organic growth in FY22 and beyond. We can't wait to show you how we realize our potential. With that, I'll turn it over to Jarrett to provide more detail regarding our financial results. Jarrett.