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

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Peter Baloney

Between 20% and 40% is what I have seen.

Mark Woodward
Probably just stay in the 20s. So between 20-40%. I mean 2 out of the five new deals we had, we have partners, we are involved. So that’s probably about typical for the rest of our pipeline.

Richard Davis
Got it. Now there are new strategies that you will use with your new sales management. Is it just blocking and tackling or would you reassign it by industry or geographic, sometimes people.

Mark Woodward
That’s a great question. So one thing we haven’t implemented yet but we are looking at for next year is to get a little more vertically focused in our sales organization because it certainly is helpful. I mean as an example yesterday I was out meeting with a prospect in a vertical that’s kind of a new one for us and one of the big things is they really want to, big part of what we have or use the cell was based on our experience and best practices and people buy from us a lot of the time because of the experience we have and the best practices we recommend.

I think we got a bit away from that and got a little too much on feature function selling as opposed to all of the things we bring to bear and a lot of it is just experience and the breadth of our capability from doing is broad enterprise class supply chain implementations over and over again. So I think part of it is getting back to really sell them that expertise that we have and it’s even, that’s emphasized or we do it with the vertical focus. So we have someone who can speak supply chain lingo that’s very specific to either oil and gas or CPG or high-tech that’s important. So I think we can actually help ourselves out a bit by becoming little more vertically focused with our sales force.

Richard Davis
Got it, thanks.

Operator
Thank you. Our next question comes from the line of Michael Hang with Neeham & Company. Please proceed with your question.

Michael Hang – Neeham & Company
Thanks very much and Happy New Year guys. Just a couple of questions for you. First of all I think in your prepared remarks you had talked about no macro impact that you are concerned about but perhaps you are seeing some length in your sales cycles. So throwing into that a little bit like what are you seeing that’s causing sales cycles to lengthen and is that something that’s controlled on your part and then is there anything you guys are thinking about that ultimately can help increase the velocity of sales cycles which ultimately may be translated to smaller deals but would help out with predictability?

Mark Woodward
Yes, let me clarify that when I talk about lengthening of sales cycles. It was really more around bad forecast. I think it was deals taking longer to close than we had originally anticipated not so much an extension of our sales cycles. I don’t think it’s taking us any longer to close these deals. I think that we were just, we didn’t do a good job of forecasting when some of this was going to happen. Therefore it’s closing later than we had expected really based on poor forecasting as opposed to lengthened sales cycles.

Michael Hang
Okay. And then just kind of, the second part of the question and that helps. As you think about what ultimately might help out the predictability of the business and obviously we have seen some variability quarter to quarter, is there anything that you guys can do to help increase the velocity of sales cycles? I understand there’s some big strategic enterprise stuff but what can you guys do to help with that?

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