E2open replaces Farlekas as CEO following weak earnings report

E2open replaces Farlekas as CEO following weak earnings report



The cloud-based related provide chain platform supplier E2open Mother or father Holdings Inc. is changing its CEO within the wake of slumping revenues proven in its newest quarterly earnings report, the Austin, Texas-based firm mentioned. 

Former e2open chief govt Michael Farlekas has stepped down, changed by Andrew Appel as interim chief govt officer whereas the corporate’s board of administrators launches an exterior seek for a brand new everlasting CEO.

Appel, who has served on e2open’s advisory board for greater than a yr, has expertise within the expertise business in addition to experience in enterprise technique and innovation. He beforehand served as president and chief govt officer at IRI, a supplier of huge information, predictive analytics, and forward-looking insights. Previous to becoming a member of IRI, he served as chief income officer of Accretive Well being, chief working officer of Aon, and was a senior accomplice at McKinsey & Firm.

E2open’s Software program as a Service (SaaS) platform connects greater than 420,000 manufacturing, logistics, channel, and distribution companions as one multi-enterprise community monitoring over 14 billion transactions yearly.

Regardless of that enormous buyer base, the corporate mentioned yesterday that it noticed income droop in its fiscal second quarter 2024, reaching $158.5 million, a lower of 1.4% from the year-ago comparable interval. And that pattern is on monitor to worsen in future months, as E2open adjusted its steering to foretell that its whole income for fiscal 2024 is anticipated to be within the vary of $625 million to $635 million, reflecting a 3.4% yr over yr lower.

“Whereas we delivered subscription income close to the excessive finish of our steering within the second quarter and maintained robust adjusted EBITDA margins, our progress price remained beneath our potential,” Marje Armstrong, chief monetary officer of e2open, mentioned in a launch. “We proceed to reposition the corporate for natural progress and have already taken a lot of steps to enhance our go-to-market efficiency and shopper engagement mannequin in an effort to reaccelerate progress.

“These adjustments will take a number of quarters to indicate their supposed affect and consequently, we now anticipate pressures on our progress price to persist for the rest of fiscal yr 2024. Within the meantime, we’ll keep our give attention to profitability and money circulate technology whereas persevering with to spend money on innovation throughout our platform to supply probably the most complete and succesful end-to-end world provide chain software program ecosystem,” Armstrong mentioned.

 

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