E2open Parent Holdings, Inc.

Greetings. Welcome to the E2 Open fourth quarter and fiscal year 2024 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Dusty Buell. You may begin.

Good afternoon, everyone. At this time, I would like to welcome you all to the E2 Open Fiscal Fourth Quarter and Full Year 2024 Earnings Conference Call. I am Dusty Buell, Head of Investor Relations here at E2 Open. Today's call will include recorded comments from our Chief Executive Officer, Andrew Appel, our Chief Commercial Officer, Greg Randolph, and our Chief Financial Officer, Marie Armstrong. Following those comments, we'll open the call for a live Q&A session. 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. Before we begin, I'd like to remind everyone that during today's call, we will be making forward-looking statements regarding future events and financial performance, including guidance for our fiscal first quarter and full year 2025. These forward-looking statements are subject to known and unknown risks and uncertainties. E2Open cautions that these statements are not guarantees of future performance. We encourage you to review our most recent reports, including our 10-K or any applicable amendments, for a complete discussion of these factors and other risks that may affect our future results or the market price of our 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-gap-to-gap measures and certain additional information are included in today's earnings press release, which can be viewed and downloaded from our investor relations website at investors.e2open.com. And with that, we'll begin by turning the call over to our CEO, Andrew Appel.

Thank you, Dusty, and thanks to everyone for joining today's call. I'll begin with some thoughts on the state of the business and our strategy for returning E2Open to strong, sustainable organic growth. I'll then ask Greg to update you on the work he is leading in our commercial organization. And finally, Marie will review our fiscal fourth quarter and full year 24 financial results and provide our fiscal 25 guidance. Then we will open up the call to questions. Overall, our revenue results for the fiscal fourth quarter were solid and in line with expectations we have previously shared with you. And we continue to perform well on profitability and cash flow. I'm pleased to say that the company has shown improved operational execution in a number of key areas, including client engagement and sales conversion. And importantly, we've made progress implementing our plan to reaccelerate organic growth that we previewed on last quarter's call. We are on the right track. And during the quarter, we saw tangible evidence of this in key areas. While we still have work to do over the coming quarters, we have identified the key issues, and I am confident we can address them in a reasonable timeframe. As we move forward, we have many reasons for optimism. Global supply chain volatility is providing a strong tailwind of demand for our highly differentiated supply chain solutions. This provides an attractive market opportunity for E2Open, which we are well positioned to capture. We have the privilege of working with the world's largest and most important companies on activities that are absolutely core of their operations, how they make, move, and sell their products. We are long-term partners to these industry leaders as they transform their supply chains to increase visibility, flexibility, and efficiency. Our mission is clear, to use our platform to deliver enduring value and measurable impact to our clients. To put it simply, Our clients' success determines our success. What enables E2Open to serve our clients with distinction is our broad software capabilities accessible through a single interface, powered by the industry's largest partner network and robust applications spanning the entire supply chain. Uniquely in our industry, our platform links complex channel management to demand and supply planning, and integrates those activities with multi-mode logistics and multi-tier manufacturing. And we do this collaboratively in real time across a diverse set of channels, distributors, retailers, suppliers, logistics service providers, and trade and customs agencies. Industry analysts consistently recognize the strength of our software. In December, E2Open was selected as a leader for the third consecutive time by IDC in the category of multi-enterprise supply chain commerce network providers. And in April, E2Open's cloud-based multi-tenant transportation management solution was again named a leader by Gartner. Our leadership is also apparent from the prominent role our platform plays in powering global supply chains. For years, E2Open's products have been deeply embedded across the Fortune 1000 universe of companies that carry out a large share of global commerce. Here are just a few of the metrics to illustrate this point. Our platform now has 480,000 connected parties and processes 16 billion supply chain transactions annually. Our logistics ecosystem handles 21 percent of all ocean freight bookings. Our global trade solution provides trade compliance and import-export capabilities in 230 global jurisdictions and performs 67 billion annual restricted party screenings. Our channel applications manage $14 billion of incentive payments a year for more than a million connected channel partners and resellers. And our supplier collaboration software enables 155 million annual orders and 59 million annual shipments across multiple tiers of our customers' extended supply networks. Given the scale of E2Open's impact, it is clear why our platform is so well regarded. But as a CEO who is passionate about client relationships, I believe the highest recognition is when a major global company selects us to provide mission-critical software. In the fourth quarter, we once again closed several large subscription deals with major companies in diverse areas such as consumer goods manufacturing, retail, electronic component distribution, and healthcare. These wins often, if not always, in highly competitive situations validate the strength and the uniqueness of our portfolio and the dedication of our people. They show that the world's leading companies continue to trust E2Open to lead complex supply chain projects and deliver unmatched operational impact and value. And they demonstrate that when we go to market with distinctive solutions backed by a client-centric impact and selling approach, we make it very difficult for a customer not to select E2Open. For my entire career, I've made client centricity a top priority, and I've brought the same approach to E2Open. Just last week, I took part in E2Open's annual Connect Europe event in Amsterdam, along with 175 of our most important clients and partners. During the three-day event, I attended customer-led sessions that highlighted the pivotal role of E2Open software in addressing complex supply chain needs at some of the world's leading companies. I had the privilege of meeting with seven or eight of our larger clients and implementations in progress, and I was pleased to come back with a view that we're doing distinctive work, that we're talking about impact and value, and that we're on track to deliver some terrific solutions and extend those relationships. In fact, in conversations I have had with dozens of clients since becoming E2Open's interim CEO seven months ago, What stands out most is the unique and distinctive value our products deliver. In large part, this is what convinced me to accept the permanent CEO role in March of this year. For example, multiple customers of our planning solution have achieved a 30% reduction in inventory-related working capital costs. A major consumer goods client has used our global trade application to increase its utilization of free trade agreements by 600%. While a global parcel carrier uses this application to fully automate customs filings in 22 countries on a single interface. A leading transportation company using our logistics applications has reduced in-process shipment times by more than a third. And an iconic technology supplier using our supply solution has reduced expedite costs when fulfilling customer orders by 11%. Clearly, E2Open is a highly valued partner to companies that use our products. Communicating this distinctive value clearly and delivering it consistently in everything we do are the themes that I will personally drive as CEO. Meanwhile, we will continue to invest in our long-term product vision. Just last week, we announced our first major product launch of fiscal 25, which is a new supplier network discovery capability within our supply family of applications. In addition, each quarter, we roll out new features across our platform, which we have done for six years. Following a predictable time table of delivering innovations is highly valued by our clients. Our global trade management solution is a prime example of this. E2Open's global trade solution combines a best-in-class application with the industry's most complete proprietary trade content database. And our worldwide staff of over 200 personnel monitors trade rules across 230 global trade jurisdictions and updates our global knowledge repository for any changes. This combination of an application and data is a major differentiator for E2Open. And in the volatile arena of global trade, real-time data empowers our customers to take full advantage of free trade agreements and duty savings programs and stay compliant with ever stricter rules around forced labor, sanctions, and dual use controls. Finally, I want to emphasize the importance of returning E2Open to best-in-class retention levels. We ended fiscal 24 with gross retention of approximately 90 percent and net retention of approximately 99 percent, which are down from a year ago. However, our in-depth analysis of the higher churn we experienced in fiscal 24, which I have personally led, has shown that much of this is very controllable with tried and true management processes that we are quickly putting in place. Just in the last quarter, we have made progress in stabilizing churn and now have significantly improved visibility into its trajectory moving forward. More broadly, the key to consistently high retention is instilling a client-centric mindset across our entire company. We will do this in a variety of ways. We will exceed our clients' expectations on implementations. We will deliver unique and measurable value. We will build client relationships for the long term, and we will work closely with leading systems integrators and value-added partners. With this approach, we can deliver transformational impact to our clients on every project, large or small. By putting clients first, every E2Open engagement can result in a delighted, referenceable client willing to advocate for E2Open, which will then help us win future business. In conclusion, while our growth acceleration plan touches many elements of our business, it is very achievable and has already generated positive results and momentum. We plan to build on our progress throughout fiscal 25 with clients at the core of everything we do. Delivering client value with differentiated and distinctive solutions has been the cornerstone of the successful growth efforts that I've led at other major companies, and I am confident that this approach will return E2 open to the double-digit organic growth rates that the company enjoyed just a few years ago. While we still have work to do, we are moving in the right direction, and the changes we have made to our business are laying the groundwork for success that will ultimately benefit our employees, our customers, and our shareholders. I'll now ask Bragg to provide an update on our go-to-market activities.