E2open Parent Holdings, Inc.

Welcome to the E2 Open fourth quarter fiscal year 2025 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, Russell Johnson, Head of Investor Relations. You may begin.

Good afternoon, everyone, and welcome to the E2 Open 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. Following these 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 2026. These forward-looking statements are subject to known and unknown risks and uncertainties. Be to open 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. 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. 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. 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%. 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. 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 show 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, 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. 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 results. 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. 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 improved 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. Improving gross and net retention is the direct result of better execution that multiple teams across the company have worked very hard to deliver. As we move into FY26, I'm very excited about how we have positioned our business from a client and product perspective. 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. I firmly believe that E2Open can only succeed when our clients succeed. And rising client satisfaction is another critically important green shoot in our business. 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 partners, which in FY25 reached over a half a million enterprises, the highest number in our company's history. Our technology received high marks from industry analysts, As of FY25, E2 Open 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, E2 Open 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 transformations. 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. 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 a 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 and intend to stay that way, for example, through significant advancements to our data environments and multiple applications of client-centric and guided AI journeys. 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. 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. 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, Ratchet Lohani, is doing to develop our technology base and ensure our products provide maximum value to our world-class clients. In fact, a very compelling example of how E2 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. E2 opens a 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. It is already proving to be an invaluable asset for clients seeking to navigate the new tariff landscape. 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 effective dates. 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, E2O Open'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 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 landed costs. 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 companies. Before I turn the call over to Greg, I want to add that the strategic review that we initiated last year is still ongoing. As with prior quarters, we will not take questions or comment further on the review today. With that, I'd like to now ask my friend Greg Randolph to provide our commercial update. Over to you, Greg.