Shares of E2open Parent Holdings experienced a significant surge in pre-market trading on Wednesday, rallying 15% to $4.40 per share. The robust performance followed the company's release of third-quarter financial results, which surpassed revenue expectations and instilled confidence in its future prospects.
During the quarter ending on November 30th, the connected supply chain software-as-a-service platform reported a decrease in revenue from $164.9 million to $157.5 million compared to the same period last year. However, this figure exceeded analysts' projected revenue of $154.3 million as collated by FactSet.
E2open Parent Holdings recorded a loss of $667.6 million, equivalent to $2.20 per share, for the three months ending November 30th. In contrast, the company had reported a net income of $4.8 million or 2 cents per share in the corresponding quarter of the previous year. Adjusted earnings per share for the latest quarter amounted to 4 cents.
Although challenges remain in transforming their go-to-market and client engagement model, Chief Financial Officer Marje Armstrong expressed confidence in the company's improved third-quarter execution. Despite uncertainties in some end-markets, the positive results underscore E2open Parent Holdings' promising trajectory.