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

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Our market opportunity and competitive position remain unchanged. We just need to execute much better. We’ve already made the changes that we feel necessary. To get our bookings back on track, we made the changes in sales leadership; we’ve also restructured North American finance organization. Might make it leaner and flatter; we’ve modified or still forecasting process; and dedicate more resources to our partner managerial organization. We’re still planning to invest in the area, to continue to ensure leadership position through our technology development effort; it will also we dedicated more resources to further penetrating our large and growing in stall face. I thank you all for your patience during this process, I will now be happy to take any questions.

Operator
Thank you we will now be conducting a question and answer session. If you like to ask a question please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. Press *2 to remove your question from the queue. Professional speaker and equipment maybe necessary. To text use your handset, for the sake of star keys.
Our first question comes from Bavan Suri with William Blare. Please proceed with your question.

Bavan Suri – William Blare
Hey guys, can you hear me okay?

Mark Woodward
Yes Bavan.

Bavan Suri
So I guess I will just dive into the clearly the topic De Jour here on the bookings front. If you look at the five deals, new customers you signed this quarter, were the deal sizes your typical size or were they smaller giving you sort of that concern or given part of the reason for the bookings decline or downgrade on the bookings growth number.

Mark Woodward
I’d say it was mixed. If you look at — if you kind of average them all together, it’s probably a bit lower than what we have seen in the past, but not dramatically. I mean it wasn’t significantly different.

Bavan Suri
And so you’ve added typically — you typically add say two, three, four customers, you’ve added one extra and if the deal size is around that different, and sort of the upsell seems to be going along, it is just the Q4 net new that concerns you or is it the Q4 upsell that concerns you? And then just a follow-on too; there was sort of a forecast was added. Then did you lose a customer or this is just a continuation of one of the ones that was acquired?

Mark Woodward
Yes, so working backwards, we lost one that was a serious Cirrus customer, it was literally about $5,000 a year. So we were –

Unidentified Company Representative
5,000 a quarter just to be clear.

Mark Woodward
20,000 a year. Yes, so that was really not a big deal. I mean — and we are trying to actually cull some of those customers off where there’s no way we make money on some of these little tiny customers like that. Now I am looking back to the bookings data for this past quarter and I’d say that I guess on the whole three of them were probably smaller than average, one was larger. And I think part of this is a result of some of these deals where we are starting with pilots that tend to be smaller and then get larger. So average deal size do move around a bit from quarter-to-quarter. But again I didn’t have this going for the quarter that deal sizes are getting smaller and I don’t think we are seeing a trend where that’s going to happen.

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