E2open Inc (EOPN)’s Third Quarter Fiscal 2015 Financial Results Conference Call Transcript

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Mark Woodward
I think one of the things that Richard was asking about being more vertically focused I think is one of those things. Also one thing I had mentioned was starting to put a little more focus on our install base although we do a good job of mining the install base. I think there is untapped opportunity there. For example, we spend little to no marketing dollars on actually marketing and selling to the install base. So I think there’s some opportunities there where it’s almost low-hanging fruit but it’s certainly much easier to spell through an existing customer than it is a brand new customer. So I think that in terms of new logos I think we are already doing some things that’s allowing us, that’s helping us accelerate the new logo addition. So we got 12 in the last two quarters but we had 13 in all of last year. So I think we are already doing well and some of the things we are doing around and when I look at the pipeline and I see what’s in the pipeline I feel pretty comfortable around the new logo acquisition. I think it’s just predict and timing those better, managing the sales cycles a little bit better and then maybe put a little more focus on the installed base.

Michael Hang
Okay. And just a follow-up on one of the earlier questions. So when you think about kind of what you are seeing or expecting in Q4 and where maybe some of the revisions may have hit, is that at all biased in a particular area. I mean it’s a new versus upsell or across geography or across vertical, I mean is there any particular area that stands out as the area that perhaps might be a little bit weaker?

Mark Woodward
No. Not as it relates to product or vertical. I think some of the forecasting issues were a little bit more focused on the new versus the upsell. The upsell typically is easier to forecast but there is no specific team of concern. It’s all about execution.

Michael Hang
Okay, great. Thanks guys, appreciate it.

Mark Woodward
Okay.

Operator
Thank you. Our next question comes from the line of Scott Burg with Northland Capital Markets. Please proceed with your question.

Scott Burg, Northland Capital Markets
Hi guys. Couple of quick ones for me I think. First of all, Peter, let’s towards next year. With the $20 million reduction in bookings forecast, is next year a growth year in terms of total revenue?

Peter Baloney
Sure. We are not in a position right now where we are going to be giving any guidance for next year but we do expect growth. One of the things we are focused on as well is profitability and we’ve talked about bringing the adjusted EBITDA breakeven back into next year and Q4. So yes, it should be a growth year and we should be existing in the year where we’re actually breakeven.

Scott Burg
Okay. And just the two questions on that is to get to that breakeven rate. Is it more of a function of pulling additional cost out of your current structure, operating structure or is it a result of revenue growth will offset the existing structure.

Mark Woodward
It will be a balanced approach. As you’ve seen we’ve already taken some actions to restrain the growth and some of the spending and we are taking a lot at some other things on the spending side that we will probably make some adjustments as we walk into next year. And we do expect revenue to grow. So it’s going to be a balanced approach to the business.

Scott Burg
And then I guess as I look at Q4 noting the 400K RIM adjustments will bring professional services revenues down on a Q-over-Q basis. By my estimate that means subscription revenues are also coming down sequentially between the two quarters. Is there a reason why you didn’t have any abnormal additional attrition in the quarter, is that reflective of one of the three customers that was previously announced or just trying to understand the dynamic there?

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