E2open Parent Holdings, Inc. (NYSE:ETWO) Q4 2022 Earnings Conference Call April 27, 2022 5:00 PM ET

Company Participants

Adam Rogers - Senior Director of Investor Relations

Michael Farlekas - President & Chief Executive Officer

Jarett Janik - Chief Financial Officer

Conference Call Participants

David Ridley-Lane - Bank Of America

Taylor McGinnis - UBS

Mark Schappel - Loop Capital

Adam Rogers

Good afternoon, everyone. At this time, I would like to welcome you all to the E2open Fiscal Fourth Quarter and Full Year 2022 Earnings Conference Call. I am Adam Rogers, Head of Investor Relations here at E2open. Today's call will include recorded comments from our Chief Executive Officer, Michael Farlekas; followed by our Chief Financial Officer, Jarett Janik. And then we'll open the call for a live Q&A session. [Operator Instructions]

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 2023. 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 and our 10-Q 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-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 Farlekas.

Michael Farlekas

Thank you, Adam and thank all of you for taking time to join us for our fourth quarter and full fiscal year 2022 earnings call. As we report on our first year as a public company, I'd like to take a moment to thank the entire E2open team for their outstanding efforts to get us to where we are now as well as all of our clients and partners who have supported us on our exciting journey of scaling our business nearly tenfold in seven years.

We are pleased to report that in fiscal 2022, we generated nearly $480 million in total non-GAAP revenue, exceeding our fiscal 2022 revenue guide by more than $4 million. The organic growth rate of our subscription revenue for the year was 9.8%. The overall organic growth rate for the year was 11%. In addition, in fiscal '22, we generated adjusted EBITDA of $163 million, nearly 34% EBITDA margins, up 13% from fiscal 2021. We are a Rule of 40 company. When we became a public company last year, we presented the business with very attractive fundamentals and significant intrinsic value. We said we will grow at 10% organically, we actually achieved 11%. We increased guidance 3x and then exceeded that guidance in every instance. Given we achieved our 10% growth sooner than expected, we are increasing our long-term growth target to 12% plus. We expect to achieve 11.4% organic subscription growth for fiscal 2023, up from 9.8% in fiscal 2022.