10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-39272

E2open Parent Holdings, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	86-1874570
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
9600 Great Hills Trail, Suite 300E Austin, TX	78759
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (866) 432-6736

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per share	ETWO	New York Stock Exchange
Warrants to purchase one share of Class A Common Stock  at an exercise price of $11.50	ETWO-WT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 302,254,586 shares of common stock, $0.0001 par value per share, issued and outstanding as of October 5, 2022.

Table of Contents

		Page
Glossary		3
Forward-Looking Statements		4
PART I.		5
Item 1.	Financial Statements (Unaudited)	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Loss	7
	Condensed Consolidated Statements of Stockholders’ Equity	8
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Unaudited Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	53
PART II.	Other Information	53
Item 1.	Legal Proceedings	53
Item 1A.	Risk Factors	53
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 6.	Exhibits	54
Signatures		55

2

Glossary of Terms

Abbreviation	Term
ASC	Accounting Standards Codification
BluJay	BluJay TopCo Limited, a private limited liability company registered in England and Wales which owns BluJay Solutions, a cloud-based logistics execution platform company
BluJay Sellers	BluJay and its subsidiaries
CC Capital	CC NB Sponsor 1 Holdings LLC
Class A Common Stock	Class A common stock, par value $0.0001 per share
Class V Common Stock	Class V common stock, par value $0.0001 per share
Common Units	common units representing limited liability company interests of E2open Holdings, LLC, which are non-voting, economic interests in E2open Holdings, LLC. Every economic common unit is tied to one voting share of Class V Common Stock of E2open Parent Holdings, Inc.
Forward Purchase Agreement	agreement dated as of April 28, 2020, by and between CCNB1 and Neuberger Berman Opportunistic Capital Solutions Master Fund LP
Forward Purchase Warrants	5,000,000 redeemable warrants purchased pursuant to the Forward Purchase Agreement
Insight Partners	entities affiliated with Insight Venture Management, LLC, including funds under management; controlling unitholder of E2open Holdings, LLC
Investor Rights Agreement	agreement amended and restated on September 1, 2021 providing Insight Partners, CC Capital, Francisco Partners and Temasek the right to nominate members to the board of directors, requires parties to vote in favor of director nominees recommended by the board of directors, requires the registration of securities within 30 days of September 1, 2021 and limited the transfer of beneficially owned shares of common stock prior to February 28, 2022.
LIBOR	London Interbank Offered Rate
Logistyx	Logistyx Technologies, LLC, a private limited liability company headquartered in Chicago, Illinois, which connects top retailers, manufacturers and logistics providers to more than 550 in-network carriers with strategic parcel shipping and omni-channel fulfillment technology.
nm	not meaningful
NYSE	New York Stock Exchange
PIPE	private investment in public equity; financing from institutional investors
Purchase Agreement	Share Purchase Deed entered into on May 27, 2021 with BluJay
RCU	restricted common units representing Series 1 and Series 2 of E2open Holdings, LLC
SCM	omni-channel and supply chain management
SEC	U.S. Securities and Exchange Commission
Temasek	Temasek Holdings (Private) Limited
U.S. GAAP	generally accepted accounting principles in the United States
VWAP	daily per share volume-weighted average price of the Class A Common Stock on the NYSE as displayed on the Bloomberg page under the heading Bloomberg VWAP

3

Forward-Looking Statements

This Quarterly Report on Form 10-Q (Quarterly Report) contains “forward-looking statements” within the meaning of the federal securities law. These forward-looking statements give E2open Parent Holdings, Inc.'s (we, our, us, Company or E2open) current expectations and include projections of results of operations or financial condition or forecasts of future events. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target" and similar expressions are used to identify forward-looking statements. Without limiting the generality of the forgoing, forward-looking statements contained in this document include our expectations regarding our future growth, operational and financial performance and business prospects and opportunities.

These forward-looking statements are based on information available as of the date of this Quarterly Report and management’s then current expectations, forecasts and assumptions, and involve a number of judgments, known and unknown risks and uncertainties and other factors, many of which are outside our control and our directors, officers and affiliates. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date. We do not undertake any obligation to update, add or to otherwise correct any forward-looking statements contained herein to reflect events or circumstances after the date they were made, whether as a result of new information, future events, inaccuracies that become apparent after the date hereof or otherwise, except as may be required under applicable securities laws.

As a result of a number of known and unknown risks and uncertainties, our results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include:

•volatile, negative or uncertain economic and political conditions, including the invasion of Ukraine by Russia, the related sanctions and other measures that have been and continue to be imposed in response to the conflict, as well as the current inflationary environment and the effects of these conditions on our clients' businesses and levels of business activity;

•risks associated with our past and prospective acquisitions (including the BluJay and Logistyx acquisitions), including the failure to successfully integrate operations, personnel, systems and products of the acquired companies, adverse tax consequences of acquisitions, greater than expected liabilities of the acquired companies, charges to earnings from acquisitions, the ability of the combined company to grow and manage profitability, maintain relationships with clients and suppliers and retain its management and key employees, and the ability to recognize the anticipated benefits of the acquisition;

•the inability to develop and maintain effective internal controls over financial reporting;

•the inability to attract new clients or upsell/cross sell existing clients or the failure to renew existing client subscriptions on term favorable to us;

•risks associated with our extensive and expanding international operations, including the risks created by geopolitical instability;

•the inability to develop and market new and enhanced solutions;

•the failure of the market for cloud-based SCM solutions to develop as quickly as we expect or failure to compete successfully in a fragmented and competitive SCM market;

•the inability to adequately protect key intellectual property rights or proprietary technology;

•the diversion of management’s attention and consumption of resources as a result of potential acquisitions of other companies;

•failure to maintain adequate operational and financial resources or raise additional capital or generate sufficient cash flows;

•cyber-attacks and security vulnerabilities; and

•certain other factors discussed elsewhere in this Quarterly Report.

For a further discussion of these and other factors that could impact our future results and performance, see Part I, Item 1A., Risk Factors in our Annual Report on Form 10-K for the fiscal year ended February 28, 2022, filed with the SEC on April 29, 2022 (2022 Form 10-K).

4

PART I—Financial Information

Item 1. Financial Statements.

E2open Parent Holdings, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)	August 31, 2022			February 28, 2022
	(Unaudited)
Assets
Cash and cash equivalents	$	98,056		$	155,481
Restricted cash		17,404			19,073
Accounts receivable - net of allowance of $5,308 and $3,055 as of August 31, 2022 and     February 28, 2022, respectively		154,772			155,341
Prepaid expenses and other current assets		30,527			26,243
Total current assets		300,759			356,138
Long-term investments		185			208
Goodwill		3,292,660			3,756,871
Intangible assets, net		1,136,109			1,181,390
Property and equipment, net		76,913			65,937
Operating lease right-of-use assets		24,839			28,102
Other noncurrent assets		20,771			16,809
Total assets	$	4,852,236		$	5,405,455
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities	$	115,465		$	131,246
Incentive program payable		17,404			19,073
Deferred revenue		177,068			190,992
Payable to Logistyx sellers		57,625			—
Current portion of notes payable		10,978			89,097
Current portion of operating lease obligations		8,106			7,652
Current portion of financing lease obligations		2,117			2,307
Total current liabilities		388,763			440,367
Long-term deferred revenue		2,650			1,141
Operating lease obligations		19,960			21,202
Financing lease obligations		74			1,950
Notes payable		1,046,397			863,577
Tax receivable agreement liability		60,429			66,590
Warrant liability		46,525			67,139
Contingent consideration		34,108			45,568
Deferred taxes		257,733			413,038
Other noncurrent liabilities		779			712
Total liabilities		1,857,418			1,921,284
Commitments and Contingencies (Note 27)
Stockholders' Equity
Class A common stock; $0.0001 par value, 2,500,000,000 shares authorized;     302,199,373 and 301,536,621 issued and 302,022,719 and 301,359,967 outstanding as of     August 31, 2022 and February 28, 2022, respectively		31			31
Class V common stock; $0.0001 par value; 42,747,890 shares authorized; 33,192,007     and 33,560,839 issued and outstanding as of August 31, 2022 and February 28, 2022,     respectively		—			—
Series B-1 common stock; $0.0001 par value; 9,000,000 shares authorized; 94 shares     issued and outstanding		—			—
Series B-2 common stock; $0.0001 par value; 4,000,000 shares authorized; 3,372,184 issued     and outstanding		—			—
Additional paid-in capital		3,370,315			3,362,219
Accumulated other comprehensive loss		(91,681	)		(19,019	)
Accumulated deficit		(535,020	)		(154,976	)
Treasury stock, at cost: 176,654 shares		(2,473	)		(2,473	)
Total E2open Parent Holdings, Inc. equity		2,741,172			3,185,782
Noncontrolling interest		253,646			298,389
Total stockholders' equity		2,994,818			3,484,171
Total liabilities and stockholders' equity	$	4,852,236		$	5,405,455

See notes to condensed consolidated financial statements.

5

E2open Parent Holdings, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended August 31,						Six Months Ended August 31,
(In thousands, except per share amounts)	2022			2021			2022			2021
Revenue
Subscriptions	$	131,621		$	61,725		$	261,168		$	112,759
Professional services and other		29,055			16,354			59,889			31,647
Total revenue		160,676			78,079			321,057			144,406
Cost of Revenue
Subscriptions		36,302			16,246			69,436			32,754
Professional services and other		22,383			10,967			43,029			21,107
Amortization of acquired intangible assets		24,566			12,338			49,467			23,849
Total cost of revenue		83,251			39,551			161,932			77,710
Gross Profit		77,425			38,528			159,125			66,696
Operating Expenses
Research and development		25,587			16,208			48,149			31,909
Sales and marketing		22,745			11,174			46,900			23,688
General and administrative		23,355			13,401			43,701			27,118
Acquisition-related expenses		5,580			7,174			12,344			16,952
Amortization of acquired intangible assets		21,023			3,543			42,558			7,373
Goodwill impairment		514,816			—			514,816			—
Total operating expenses		613,106			51,500			708,468			107,040
Loss from operations		(535,681	)		(12,972	)		(549,343	)		(40,344	)
Other income (expense)
Interest and other expense, net		(18,049	)		(6,332	)		(33,462	)		(11,235	)
Change in tax receivable agreement liability		8,062			(637	)		6,392			(3,136	)
Gain (loss) from change in fair value of warrant liability		15,159			18,727			20,614			(41,216	)
Gain (loss) from change in fair value of contingent     consideration		7,260			(16,780	)		11,460			(90,040	)
Total other income (expense)		12,432			(5,022	)		5,004			(145,627	)
Loss before income tax provision		(523,249	)		(17,994	)		(544,339	)		(185,971	)
Income tax benefit (expense)		113,664			(5,994	)		122,133			(7,372	)
Net loss		(409,585	)		(23,988	)		(422,206	)		(193,343	)
Less: Net loss attributable to noncontrolling interest		(40,897	)		(3,471	)		(42,162	)		(30,568	)
Net loss attributable to E2open Parent Holdings, Inc.	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Weighted average common shares outstanding:
Basic		301,898			195,148			301,635			191,099
Diluted		301,898			195,148			301,635			191,099
Net loss attributable to E2open Parent Holdings,     Inc. common shareholders per share:
Basic	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)
Diluted	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)

See notes to condensed consolidated financial statements.

6

E2open Parent Holdings, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

	Three Months Ended August 31,						Six Months Ended August 31,
(In thousands)	2022			2021			2022			2021
Net loss	$	(409,585	)	$	(23,988	)	$	(422,206	)	$	(193,343	)
Other comprehensive loss, net:
Net foreign currency translation loss, net of     tax of $27,654 as of August 31, 2022		(41,755	)		(6,523	)		(72,455	)		(5,048	)
Net deferred losses on cash flow hedges		(207	)		—			(207	)		—
Total other comprehensive loss, net		(41,962	)		(6,523	)		(72,662	)		(5,048	)
Comprehensive loss		(451,547	)		(30,511	)		(494,868	)		(198,391	)
Less: Comprehensive loss attributable to noncontrolling     interest		(45,076	)		(4,505	)		(49,418	)		(31,366	)
Comprehensive loss attributable to E2open Parent     Holdings, Inc.	$	(406,471	)	$	(26,006	)	$	(445,450	)	$	(167,025	)

See notes to condensed consolidated financial statements.

7

E2open Parent Holdings, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(In thousands)	Common Stock		Additional Paid-In Capital			Accumulated Other Comprehensive Income			Retained Earnings (Accumulated Deficit)			Treasury Stock			Total E2open Equity			Noncontrolling Interest			Total Equity
Balance, February 28, 2021	$	19	$	2,071,206		$	2,388		$	10,800		$	—		$	2,084,413		$	392,945		$	2,477,358
Share-based compensation		—		2,043			—			—			—			2,043			—			2,043
Other comprehensive income		—		—			1,475			—			—			1,475			—			1,475
Net loss		—		—			—			(142,258	)		—			(142,258	)		(27,097	)		(169,355	)
Balance, May 31, 2021		19		2,073,249			3,863			(131,458	)		—			1,945,673			365,848			2,311,521
Share-based compensation		—		2,509			—			—			—			2,509			—			2,509
Business Combination     purchase price     adjustment		—		1,666			—			—			—			1,666			1,299			2,965
Conversion of Common     Units to common     stock		—		27,228			—			—			—			27,228			(43,995	)		(16,767	)
Conversion of Series B-1     shares to common     stock		1		174,999			—			—			(2,473	)		172,527			—			172,527
Impact of Common Unit     conversions on Tax     Receivable Agreement		—		(7,512	)		—			—			—			(7,512	)		—			(7,512	)
Other comprehensive loss		—		—			(6,523	)		—			—			(6,523	)		—			(6,523	)
Net loss		—		—			—			(20,517	)		—			(20,517	)		(3,471	)		(23,988	)
Balance, August 31, 2021	$	20	$	2,272,139		$	(2,660	)	$	(151,975	)	$	(2,473	)	$	2,115,051		$	319,681		$	2,434,732

(In thousands)	Common Stock		Additional Paid-In Capital			Accumulated Other Comprehensive Loss			Accumulated Deficit			Treasury Stock			Total E2open Equity			Noncontrolling Interest			Total Equity
Balance, February 28, 2022	$	31	$	3,362,219		$	(19,019	)	$	(154,976	)	$	(2,473	)	$	3,185,782		$	298,389		$	3,484,171
Share-based compensation		—		3,188			—			—			—			3,188			—			3,188
Conversion of Common     Units to common     stock		—		195			—			—			—			195			(195	)		—
Vesting of restricted stock     awards, net of shares     withheld for taxes		—		(1,330	)		—			—			—			(1,330	)		—			(1,330	)
Other comprehensive loss		—		—			(30,700	)		—			—			(30,700	)		—			(30,700	)
Net loss		—		—			—			(11,356	)		—			(11,356	)		(1,265	)		(12,621	)
Balance, May 31, 2022		31		3,364,272			(49,719	)		(166,332	)		(2,473	)		3,145,779			296,929			3,442,708
Share-based compensation		—		5,154			—			—			—			5,154			—			5,154
Conversion of Common     Units to common     stock		—		989			—			—			—			989			(2,386	)		(1,397	)
Vesting of restricted stock     awards, net of shares     withheld for taxes		—		76			—			—			—			76			—			76
Impact of Common Unit     conversions on Tax     Receivable Agreement		—		(176	)		—			—			—			(176	)		—			(176	)
Other comprehensive loss		—		—			(41,962	)		—			—			(41,962	)		—			(41,962	)
Net loss		—		—			—			(368,688	)		—			(368,688	)		(40,897	)		(409,585	)
Balance, August 31, 2022	$	31	$	3,370,315		$	(91,681	)	$	(535,020	)	$	(2,473	)	$	2,741,172		$	253,646		$	2,994,818

See notes to condensed consolidated financial statements.

8

E2open Parent Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended August 31,
(In thousands)	2022			2021
Cash flows from operating activities
Net loss	$	(422,206	)	$	(193,343	)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization		107,380			41,000
Amortization of deferred commissions		1,838			410
Provision for credit losses		266			303
Amortization of debt issuance costs		2,487			1,334
Amortization of operating lease right-of-use assets		3,960			3,742
Share-based compensation		8,342			4,552
Deferred income taxes		(133,632	)		4,450
Right-of-use assets impairment charge		2,376			—
Goodwill impairment charge		514,816			—
Change in tax receivable agreement liability		(6,392	)		3,136
(Gain) loss from change in fair value of warrant liability		(20,614	)		41,216
(Gain) loss from change in fair value of contingent consideration		(11,460	)		90,040
Loss (gain) on disposal of property and equipment		162			(236	)
Changes in operating assets and liabilities:
Accounts receivable		5,610			44,785
Prepaid expenses and other current assets		257			(6,401	)
Other noncurrent assets		(2,493	)		(3,232	)
Accounts payable and accrued liabilities		(15,726	)		(1,453	)
Incentive program payable		(1,669	)		(2,272	)
Deferred revenue		(23,162	)		20,083
Changes in other liabilities		(7,976	)		(6,630	)
Net cash provided by operating activities		2,164			41,484
Cash flows from investing activities
Payments for acquisitions - net of cash acquired		(124,168	)		—
Capital expenditures		(31,557	)		(17,372	)
Minority investment in private firm		(3,000	)		—
Net cash used in investing activities		(158,725	)		(17,372	)
Cash flows from financing activities
Proceeds from PIPE investment		—			280,000
Proceeds from indebtedness		190,000			—
Repayments of indebtedness		(85,857	)		(1,582	)
Repayments of financing lease obligations		(2,213	)		(5,902	)
Repurchase of common stock		—			(2,473	)
Repurchase of Common Units		(1,397	)		(16,767	)
Payments of debt issuance costs		(4,766	)		—
Net cash provided by financing activities		95,767			253,276
Effect of exchange rate changes on cash and cash equivalents		1,700			(1,244	)
Net (decrease) increase in cash, cash equivalents and restricted cash		(59,094	)		276,144
Cash, cash equivalents and restricted cash at beginning of period		174,554			207,542
Cash, cash equivalents and restricted cash at end of period	$	115,460		$	483,686
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	98,056		$	473,133
Restricted cash		17,404			10,553
Total cash, cash equivalents and restricted cash	$	115,460		$	483,686

See notes to condensed consolidated financial statements.

9

E2open Parent Holdings, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

1. Organization and Basis of Presentation

Organization and Description of Business

CC Neuberger Principal Holdings I (CCNB1) was a blank check company incorporated in the Cayman Islands on January 14, 2020 for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. CCNB1’s sponsor was CC Neuberger Principal Holdings I Sponsor LLC, a Delaware limited liability company (Sponsor). CCNB1 became a public company on April 28, 2020 through an initial public offering (IPO).

On February 4, 2021 (Closing Date), CCNB1 and E2open Holdings, LLC and its operating subsidiaries (E2open Holdings) completed a business combination (Business Combination) contemplated by the definitive Business Combination Agreement entered into on October 14, 2020 (Business Combination Agreement). In connection with the finalization of the Business Combination, CCNB1 changed its name to “E2open Parent Holdings, Inc.” (E2open) and changed its jurisdiction of incorporation from the Cayman Islands to the State of Delaware (Domestication).

Immediately following the Domestication, various entities merged with and into E2open, with E2open as the surviving company. Additionally, E2open Holdings became a subsidiary of E2open with the equity interests of E2open Holdings held by E2open and existing owners of E2open Holdings. The existing owners of E2open Holdings are considered noncontrolling interests in the condensed consolidated financial statements.

We are headquartered in Austin, Texas. We are a leading provider of cloud-based, end-to-end omni-channel and supply chain management software. Our software combines networks, data and applications to provide a deeply embedded, mission-critical platform that allows clients to optimize their supply chain by accelerating growth, reducing costs, increasing visibility and driving improved resiliency. Given the business-critical nature of our solutions, we maintain deep, long-term relationships with our clients across a wide range of end-markets, including technology, consumer, industrial and transportation, among others.

Basis of Presentation

These unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. Investments in other companies are carried at cost. See Note 10, Investments for additional information. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended August 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending February 28, 2023. For further information, refer to the consolidated financial statements and notes thereto included in our 2022 Form 10-K.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. Such management estimates include allowance for credit losses, goodwill and other long-lived assets, estimates of standalone selling price of performance obligations for revenue contracts with multiple performance obligations, share-based compensation, valuation allowances for deferred tax assets and uncertain tax positions, tax receivable agreement liability, warrants, contingent consideration and the accounting for business combinations. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates.

Reclassifications

During the second quarter of fiscal 2023, we began reporting deferred income taxes as a separate line as part of operating activities in the Condensed Consolidated Statements of Cash Flows. As a result, we reclassed $4.5 million from the change in other liabilities to deferred income taxes for the six months ended August 31, 2021.

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Seasonality

Our quarterly operating results have fluctuated in the past and are expected to fluctuate in the future due to a variety of factors, many of which are outside of our control, including seasonality in our business as a result of client budget cycles and customary European vacation schedules, with higher sales typically in the third and fourth fiscal quarters. As a result, our past results may not be indicative of our future performance and comparing our operating results on a period-to-period basis may not be meaningful.

2. Accounting Standards

Recent Accounting Guidance Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting to simplify the accounting for contract modifications made to replace LIBOR or other reference rates that are expected to be discontinued because of the reference rate reform. The guidance provides optional expediates and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criterion are met. The optional expedients and exceptions can be applied to contract modifications made until December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in ASU 2021-01 are elective and apply to our debt instruments that may be modified as a result of the reference rate reform. We are continuing to evaluate these standards, as well as the timing of the transition of various rates in our debt instruments affected by reference rate reform.

3. Acquisitions

Logistyx Acquisition

On March 2, 2022, E2open, LLC acquired all of the issued and outstanding membership interests of Logistyx for a purchase price of $185 million, with an estimated fair value of $183.4 million, including $90 million paid in cash at closing (Logistyx Acquisition). An additional $95 million, subject to standard working capital adjustments and other contractual provisions, was paid in two installments on May 31, 2022 and September 1, 2022. We had the option to finance the remaining payments, at our discretion, through cash or a combination of cash and Class A Common Stock. The May 31, 2022 payment of $37.4 million was paid in cash. The final payment for the Logistyx Acquisition of $57.6 million was due on August 29, 2022; however, the parties agreed to extend the payment to September 1, 2022 due to the finalization of the working capital adjustments and other contractual provisions. See Note 29, Subsequent Events for additional information.

The Logistyx Acquisition was accounted for as a business combination under ASC 805, Business Combinations.

The following summarizes the consideration paid for the Logistyx Acquisition.

($ in thousands)	Fair Value
Cash consideration to Logistyx at fair value	$	153,090
Cash repayment of debt		29,777
Cash paid for seller transaction costs		489
Estimated consideration paid for the Logistyx Acquisition	$	183,356

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We recorded the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their fair values as of March 2, 2022. The preliminary purchase price allocation is as follows:

($ in thousands)	Preliminary Purchase Price Allocation			Adjustments (3)			Updated Preliminary Purchase Price Allocation
Cash and cash equivalents	$	1,563		$	—		$	1,563
Account receivable, net		5,332			—			5,332
Other current assets		3,335			—			3,335
Property and equipment, net		144			—			144
Intangible assets		67,200			(400	)		66,800
Goodwill (1)		125,896			400			126,296
Non-current assets		619			—			619
Accounts payable		(5,897	)		—			(5,897	)
Current liabilities		(3,931	)		—			(3,931	)
Deferred revenue (2)		(10,747	)		—			(10,747	)
Non-current liabilities		(158	)		—			(158	)
Total assets acquired and liabilities assumed	$	183,356		$	—		$	183,356

(1)Goodwill represents the excess of the purchase price over the estimated fair value of the identifiable net assets acquired in the Logistyx Acquisition. Goodwill associated with the Logistyx Acquisition is deductible for tax purposes at the U.S. entity level.

(2)The deferred revenue was recorded under ASC 606 in accordance with ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers; therefore, a reduction in deferred revenues related to the estimated fair values of the acquired deferred revenues was not required.

(3)The adjustments primarily relate to the change in fair value of the intangible assets due to a change in the deferred revenue.

The fair value of the intangible assets is as follows:

($ in thousands)	Useful Lives	Fair Value
Trade name	1	$	500
Developed technology (1)	6.4		33,500
Client relationships (2)	13		32,000
Backlog (3)	2.5		800
Total intangible assets		$	66,800

(1)The developed technology represents technology developed by Logistyx and acquired by E2open, which was valued using the multi-period excess earnings method, a form of the income approach considering technology migration.

(2)The client relationships represent the existing client relationships of Logistyx and acquired by E2open that was estimated by applying the with-and-without methodology, a form of the income approach.

(3)The backlog represents the present value of future cash flows from contracts with clients where service has not been performed and billing has not occurred.

The preliminary allocation of the purchase price is based on preliminary valuations performed to determine the fair value of the net assets as of March 2, 2022. This allocation is subject to revision as the assessment is based on preliminary information subject to refinement.

We incurred $3.6 million ($0.7 million as of February 28, 2022) of expenses directly related to the Logistyx Acquisition through August 31, 2022 which are included in acquisition-related expense in the Condensed Consolidated Statements of Operations. Included in these expenses were $1.6 million acquisition-related advisory fees which were incurred on March 2, 2022. At the closing of the Logistyx Acquisition, we paid $0.5 million of acquisition-related advisory fees and other expenses related to the Logistyx Acquisition on behalf of Logistyx. These expenses were part of the purchase price consideration and not recognized as expense in our or Logistyx's Condensed Consolidated Statements of Operations.

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BluJay Acquisition

On May 27, 2021, we entered into a Purchase Agreement with the BluJay Sellers to acquire all of the outstanding equity of BluJay. On September 1, 2021 (Acquisition Date), we completed the acquisition of BluJay (BluJay Acquisition). The BluJay Acquisition was accounted for as a business combination under ASC 805, Business Combinations.

The cash consideration in the BluJay Acquisition was provided by $380.0 million in proceeds from the issuance of an incremental term loan, $300.0 million in PIPE financing from institutional investors for the purchase of an aggregate of 28,909,022 shares of our Class A Common Stock and cash on hand.

The following summarizes the consideration paid for the BluJay Acquisition.

($ in thousands)	Fair Value
Equity consideration paid to BluJay (1)	$	730,854
Cash consideration to BluJay		350,658
Preference share consideration paid to BluJay (2)		86,190
Cash repayment of debt		334,483
Cash paid for seller transaction costs		26,686
Estimated consideration paid for the BluJay Acquisition	$	1,528,871

(1)Equity consideration paid to BluJay equity holders consisted of the following:

(In thousands, except per share data)	Consideration
Common shares subject to sales restriction		72,383
Fair value per share	$	10.097
Equity consideration paid to BluJay	$	730,854

(2)Represents the liability and dividends owed related to the BluJay preference shares at the date of the acquisition.

We recorded the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their fair values as of the Acquisition Date and adjusted certain items as noted below. The final purchase price allocation is as follows:

($ in thousands)	Preliminary Purchase Price Allocation			Adjustments (4)			Final Purchase Price Allocation
Cash and cash equivalents	$	23,773		$	—		$	23,773
Account receivable, net		33,834			(12	)		33,822
Other current assets		10,352			865			11,217
Property and equipment, net		6,503			—			6,503
Operating lease right-of-use assets		9,018			—			9,018
Intangible assets		484,800			—			484,800
Goodwill (1)		1,152,084			(2,218	)		1,149,866
Non-current assets		2,200			(2,016	)		184
Accounts payable		(11,773	)		143			(11,630	)
Current liabilities (2)		(33,530	)		10,652			(22,878	)
Deferred revenue (3)		(39,283	)		—			(39,283	)
Deferred taxes		(101,936	)		(7,414	)		(109,350	)
Non-current liabilities		(7,171	)		—			(7,171	)
Total assets acquired and liabilities assumed	$	1,528,871		$	—		$	1,528,871

(1)Goodwill represents the excess of the purchase price over the estimated fair value of the identifiable net assets acquired in the BluJay Acquisition. Goodwill associated with the BluJay Acquisition is not deductible for tax purposes.

(2)Current liabilities include a $2.7 million deferred acquisition liability that was acquired related to a prior acquisition by BluJay. The deferred acquisition liability was a fixed amount that was determined at the closing of the acquisition and payable after a certain period of time. The deferred acquisition liability was paid in December 2021.

(3)The deferred revenue was recorded under ASC 606 in accordance with ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers; therefore, a reduction in deferred revenues related to the estimated fair values of the acquired deferred revenues was not required.

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(4)The adjustments primarily relate to the jurisdictional netting of income taxes, impact of a tax rate change on the deferred balance and the reinstatement of income tax receivables along with the true-up of accrued liabilities.

The fair value of the intangible assets is as follows:

($ in thousands)	Useful Lives	Fair Value
Trade name	1	$	3,800
Developed technology (1)	5.9		301,000
Client relationships (2)	3		180,000
Total intangible assets		$	484,800

(1)The developed technology represents technology developed by BluJay and acquired by E2open, which was valued using the multi-period excess earnings method, a form of the income approach considering technology migration.

(2)The client relationships represent the existing client relationships of BluJay and acquired by E2open that was estimated by applying the with-and-without methodology, a form of the income approach.

We incurred $33.7 million of expenses directly related to the BluJay Acquisition during the year ended February 28, 2022, which are included in acquisition-related expense in the Condensed Consolidated Statements of Operations. Included in these expenses were $13.4 million acquisition-related advisory fees which were incurred on the Acquisition Date. In addition, we paid $10.4 million of debt issuance costs associated with the $380.0 million incremental term loan on the Acquisition Date which were capitalized and recorded as a reduction of the outstanding debt balances. At the closing of the BluJay Acquisition, we paid $7.1 million in fees related to the $300.0 million PIPE financing which were recorded as a reduction to the proceeds from the issuance of Class A Common Stock in the Condensed Consolidated Statements of Stockholders' Equity. Additionally, we paid $26.7 million of acquisition-related advisory fees and other expenses related to the BluJay Acquisition on behalf of BluJay. These expenses were part of the purchase price consideration and not recognized as expense in our or BluJay's Condensed Consolidated Statements of Operations.

Additionally, the Investor Rights Agreement was amended and restated to add certain of BluJay's existing stockholders as parties, including certain affiliates of Francisco Partners and Temasek, as well as include a six-month lock-up period from September 1, 2021 through February 28, 2022 for certain equity holders of E2open and BluJay. The Investor Rights Agreement also provides Francisco Partners and Temasek the right to nominate one member each to our board of directors. Mr. Deep Shah, nominated by Francisco Partners, and Mr. Martin Fichtner, nominated by Temasek, became new directors on September 1, 2021.

Unaudited Pro Forma Operating Results

The following unaudited pro forma combined financial information presents the results of operations as if the BluJay and Logistyx acquisitions happened as of March 1, 2021. The unaudited pro forma results may not necessarily reflect actual results of operations that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma results reflect the step-up amortization adjustments for the fair value of intangible assets acquired, the elimination of historical interest expense incurred by BluJay and Logistyx on its debt and the incurrence of interest expense related to the issuance of debt in connection with the BluJay and Logistyx acquisitions, transaction expenses, nonrecurring post-combination compensation expense and the related adjustment to the income tax provision.

	Three Months Ended			Six Months Ended
($ in millions)	August 31, 2021			August 31, 2021
Total revenue	$	136.4		$	260.0
Net loss		(45.7	)		(257.7	)
Less: Net loss attributable to noncontrolling interest		(5.3	)		(29.1	)
Net loss attributable to E2open Parent Holdings, Inc.	$	(40.4	)	$	(228.6	)

4. Liquidity and Capital Resources

We measure liquidity in terms of our ability to fund the cash requirements of our business operations, including working capital, capital expenditure needs, contractual obligations and other commitments, with cash flows from operations and other sources of funding. Current working capital needs relate mainly to employee compensation and benefits, as well as interest, debt repayments, capital expenditures and operating expenses. Our ability to expand and grow our business will depend on many factors, including working capital needs and the evolution of operating cash flows.

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We had $98.1 million in cash and cash equivalents as of August 31, 2022. We believe our existing cash and cash equivalents, cash provided by operating activities, and, if necessary, the borrowing capacity of up to $155.0 million available under our 2021 Revolving Credit Facility (see Note 13, Notes Payable) will be sufficient to meet our working capital, debt repayment and capital expenditure requirements for at least the next twelve months.

In the future, we may enter into arrangements to acquire or invest in complementary businesses. To facilitate these acquisitions or investments, we may seek additional equity or debt financing.

5. Accounts Receivable

Accounts receivable, net consisted of the following:

($ in thousands)	August 31, 2022			February 28, 2022
Accounts receivable	$	134,644		$	143,799
Unbilled receivables		25,436			14,597
Less: Allowance for credit losses		(5,308	)		(3,055	)
Accounts receivable, net	$	154,772		$	155,341

Unbilled receivables represent revenue recognized for performance obligations that have been satisfied but for which amounts have not been billed, which we also refer to as contract assets.

The allowance for credit losses was comprised of the following:

($ in thousands)	Amount
Balance, February 28, 2021	$	(908	)
BluJay Acquisition		(1,779	)
Additions		(1,917	)
Write-offs		1,549
Balance, February 28, 2022		(3,055	)
Logistyx Acquisition		(267	)
Additions		(2,436	)
Write-offs		450
Balance, August 31, 2022	$	(5,308	)

6. Prepaid and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

($ in thousands)	August 31, 2022		February 28, 2022
Prepaid software and hardware license and maintenance fees	$	12,023	$	6,022
Income and other taxes receivable		5,279		4,544
Prepaid insurance		4,267		3,401
Deferred commissions		3,666		2,867
Prepaid marketing		1,407		1,124
Security deposits		1,483		1,044
Other prepaid expenses and other current assets		2,402		7,241
Total prepaid expenses and other current assets	$	30,527	$	26,243

Amortization of software licenses held under financing leases is included in cost of revenue and operating expenses. Prepaid maintenance, services and insurance are expensed over the term of the underlying agreements.

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7. Goodwill

During the fourth quarter of each fiscal year, we assess our goodwill for potential impairment. This impairment testing is applied more frequently if we become aware of events or circumstances since the last impairment testing that might call into question whether the current balances are fairly recorded. During the second quarter of fiscal 2023, the market price of our Class A common stock and market capitalization declined significantly. This decline resulted in us determining that a triggering event occurred and an interim goodwill impairment assessment was performed.

We performed a qualitative "Step 0" goodwill impairment assessment during the second quarter of fiscal 2023 which indicated that a quantitative "Step 1" impairment analysis needed to be performed as well. The fair value of E2open was determined using a discounted cash flow method, guideline public company method and guideline transaction method using an income -based and market-based approach.

We calculated the fair value of E2open under three different methods: discounted cash flow method, guideline public company method and guideline transaction method. The discounted cash flow method is based on the present value of estimated future cash flows which were based on management's estimates of revenue growth rates and net operating income margins, taking into consideration market and industry conditions. The discount rate used was based on the weighted-average cost of capital adjusted for the risk, size premium and business-specific characteristics related to the business's ability to execute on the projected cash flows. Under the guideline public company method, the fair value was based on forward-looking earnings multiples derived from comparable publicly traded companies with similar market position and size. The unobservable inputs used to measure the fair value included projected revenue growth rates, the weighted average cost of capital, the normalized working capital level, capital expenditures assumptions, profitability projections, control premium, the determination of appropriate market comparison companies and terminal growth rates. Under the guideline transaction method, the fair value was based on pricing multiples derived from recently sold companies with similar characteristics to ours. The three approaches generated similar results and indicated that the fair value of E2open's equity and goodwill was less than its carrying amount. Therefore, in the second quarter of fiscal 2023, we recognized an impairment charge of $514.8 million to goodwill.

The following table presents the changes in goodwill:

($ in thousands)	Amount
Balance, February 28, 2021	$	2,628,646
Business Combination purchase price adjustment (1)		407
BluJay Acquisition (2)		1,155,321
Currency translation adjustment		(27,503	)
Balance, February 28, 2022		3,756,871
BluJay Acquisition adjustment (2)		(5,455	)
Logistyx Acquisition (3)		126,296
Impairment charge		(514,816	)
Currency translation adjustment		(70,236	)
Balance, August 31, 2022	$	3,292,660

(1)Consists of the post-closing adjustment of consideration and associated tax adjustments required as part of the merger transaction pursuant to Section 3.5 of the Business Combination Agreement. On July 6, 2021, we issued additional Class A Common Stock and Common Units valued at $3.0 million in total pro rata to the various parties who received consideration in February 2021 at the closing of the Business Combination in the form of shares of Class A Common Stock, Common Units and cash. Additional tax adjustments were required during the third quarter of fiscal year 2022.

(2)Represents the goodwill acquired in the BluJay Acquisition as of September 1, 2021 and subsequent purchase price adjustments. See Note 3, Acquisitions for additional information.

(3)Represents the goodwill acquired in the Logistyx Acquisition as of March 2, 2022 and subsequent purchase price adjustments. See Note 3, Acquisitions for additional information.

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8. Intangible Assets, Net

Intangible assets, net consisted of the following:

	August 31, 2022
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortized			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	110,000	$	—		$	110,000
Definite-lived:
Client relationships	13.8		498,644		(80,778	)		417,866
Technology	7.3		685,517		(120,291	)		565,226
Content library	10.0		50,000		(7,872	)		42,128
Trade name	1.0		3,710		(3,461	)		249
Backlog	2.5		800		(160	)		640
Total definite-lived			1,238,671		(212,562	)		1,026,109
Total intangible assets		$	1,348,671	$	(212,562	)	$	1,136,109

	February 28, 2022
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortized			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	109,998	$	—		$	109,998
Definite-lived:
Client relationships	13.6		476,584		(45,467	)		431,117
Technology	7.3		666,160		(72,414	)		593,746
Content library	10.0		50,000		(5,372	)		44,628
Trade name	1.0		3,705		(1,804	)		1,901
Total definite-lived			1,196,449		(125,057	)		1,071,392
Total intangible assets		$	1,306,447	$	(125,057	)	$	1,181,390

The e2open trade name is indefinite-lived. Acquired trade names are definite-lived as over time we rebrand acquired products and services as e2open.

During the three months ended August 31, 2022, gross client relationships and technology were reduced by $0.3 million and $0.1 million, respectively, due to the Logistyx purchase price adjustments.

Amortization of intangible assets is recorded in cost of revenue and operating expenses in the Condensed Consolidated Statements of Operations. We recorded amortization expense related to intangible assets of $45.6 million and $15.9 million for the three months ended August 31, 2022 and 2021, respectively. We recorded amortization expense related to intangible assets of $92.1 million and $31.2 million for the six months ended August 31, 2022 and 2021, respectively.

9. Property and Equipment, Net

Property and equipment, net consisted of the following:

($ in thousands)	August 31, 2022			February 28, 2022
Computer equipment	$	46,667		$	33,228
Software		54,667			43,821
Furniture and fixtures		3,437			3,509
Leasehold improvements		10,599			9,067
Gross property and equipment		115,370			89,625
Less accumulated depreciation and amortization		(38,457	)		(23,688	)
Property and equipment, net	$	76,913		$	65,937

Computer equipment and software include assets held under financing leases. Amortization of assets held under financing leases is included in depreciation expense. See Note 25, Leases for additional information regarding our financing leases.

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Depreciation expense was $8.5 million and $4.9 million for the three months ended August 31, 2022 and 2021, respectively. Depreciation expense was $15.4 million and $9.8 million for the six months ended August 31, 2022 and 2021, respectively.

We had capitalized software costs of $28.2 million and $20.9 million as of August 31, 2022 and February 28, 2022, respectively. We recognized $1.4 million and $0.6 million of amortized capitalized software development costs for the three months ended August 31, 2022 and 2021, respectively, and $2.2 million and $1.2 million for the six months ended August 31, 2022 and 2021, respectively.

10. Investments

On February 4, 2022, we made a minority investment of $2.5 million in a private firm focused on supply chain financing. We made the required second investment of $2.5 million on May 5, 2022 along with $0.5 million of transaction fees.

This minority investment does not have a readily determinable fair value; therefore, we elected the measurement alternative for our minority investment. The investment is measured at cost, less impairment and adjusted for qualifying observable price changes and recorded in other noncurrent assets in the Condensed Consolidated Balance Sheets.

We regularly evaluate the carrying value of our investment for impairment and whether any events or circumstances are identified that would significantly harm the fair value of the investment. In the event a decline in fair value is less than the investment’s carrying value, we will record an impairment charge in other income (expense) in the Condensed Consolidated Statements of Operations. We have not recorded any impairment charges related to this minority investment.

11. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:

($ in thousands)	August 31, 2022		February 28, 2022
Accrued compensation	$	33,988	$	63,101
Accrued severance and retention		3,600		1,909
Trade accounts payable		39,409		33,158
Accrued professional services		4,003		5,440
Restructuring liability		280		778
Taxes payable		12,463		2,702
Interest payable		5,818		2,398
Client deposits		2,284		2,214
Other		13,620		19,546
Total accounts payable and accrued liabilities	$	115,465	$	131,246

In the 2022 Form 10-K, $0.8 million of accrued expenses related to accrued severance and retention were reflected in accrued compensation. These amounts have been reclassified to accrued severance and retention to correspond to the current year presentation. See Note 18, Severance and Exit Costs for additional information.

12. Tax Receivable Agreement

E2open Holdings entered into a Tax Receivable Agreement with selling equity holders of E2open Holdings that requires us to pay 85% of the tax savings that are realized because of increases in the tax basis in E2open Holdings' assets. This increase is either from the sale or exchange of the Common Units for shares of Class A Common Stock and cash, as well as from tax benefits attributable to payments under the Tax Receivable Agreement. We will retain the benefit of the remaining 15% of these cash savings. The Tax Receivable Agreement will continue until all such tax benefits have been utilized or expired unless E2open Holdings exercises its right to terminate the Tax Receivable Agreement for an amount representing the present value of anticipated future tax benefits under the Tax Receivable Agreement or certain other accelerated events occur.

Quarterly tax distributions will be paid to the holders of Common Units on a pro rata basis based upon an agreed upon formula related to the taxable income of E2open Holdings allocable to holders of Common Units. Generally, these tax distributions will be computed based on the Company’s estimate of taxable income of E2open Holdings allocable to each holder of Common Units (based on certain assumptions), multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate prescribed for a U.S. corporation organized under the laws of the State of Delaware, taking into account all jurisdictions in which the Company is required to file income tax returns together with the relevant apportionment information and the character of E2open Holdings’ income, subject to various adjustments.

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Significant inputs and assumptions were used to preliminarily estimate the future expected payments including the timing of the realization of the tax benefits, a tax rate of 24.1% and an imputed interest rate of 7% based on our cost of debt plus an incremental premium. Changes in any of these or other factors are expected to impact the timing and amount of gross payments. The fair value of these obligations will be accreted to the amount of the gross expected obligation. In addition, if E2open Holdings were to exercise its right to terminate the Tax Receivable Agreement or certain other acceleration events occur, E2open Holdings will be required to make immediate cash payments. Such cash payments will be equal to the present value of the assumed future realized tax benefits based on a set of assumptions and using an agreed upon discount rate, as defined in the Tax Receivable Agreement. The early termination payment may be made significantly in advance of the actual realization, if any, of those future tax benefits. Such payments will be calculated based on certain assumptions, including that E2open Holdings has sufficient taxable income to utilize the full amount of any tax benefits subject to the Tax Receivable Agreement over the period specified therein. The payments that E2open Holdings will be required to make will generally reduce the amount of the overall cash flow that might have otherwise been available, but we expect the cash tax savings we will realize from the utilization of the related tax benefits will exceed the amount of any required payments.

Pursuant to ASC 805, Business Combination and relevant tax law, we have calculated the fair value of the tax receivable agreement payments related to the transaction at the acquisition date and identified the timing of the utilization of the tax attributes. Under ASC 805, the Tax Receivable Agreement liability, as of the acquisition date, will be revalued at the end of each reporting period with the gain or loss as well as the associated interest reflected in the change in tax receivable agreement liability in the Condensed Consolidated Statements of Operations in the period in which the event occurred. Interest will accrue on the tax receivable agreement liability at a rate of LIBOR plus 100 basis points. In addition, under ASC 450, Contingencies transactions with partnership unit holders after the acquisition date will result in additional Tax Receivable Agreement liabilities that are recorded on a gross undiscounted basis.

The Tax Receivable Agreement liability was $60.4 million and $66.6 million as of August 31, 2022 and February 28, 2022, respectively. The discount rate used for the ASC 805 calculation was 9.5% and 8.2% as of August 31, 2022 and February 28, 2022, respectively, based on our cost of debt plus an incremental premium. During the three months ended August 31, 2022 and 2021, a gain of $8.1 million and a loss of $0.6 million, respectively, was recorded as a change in the tax receivable agreement liability related to the ASC 805 discounted liability. During the six months ended August 31, 2022 and 2021, a gain of $6.4 million and a loss of $3.1 million, respectively, was recorded as a change in the tax receivable agreement liability related to the ASC 805 discounted liability. During the six months ended August 31, 2022 and 2021, the Tax Receivable Agreement liability under ASC 450 increased by $0.2 million and $10.1 million.

13. Notes Payable

Notes payable outstanding were as follows:

($ in thousands)	August 31, 2022			February 28, 2022
2021 Term Loan	$	1,083,681		$	899,163
2021 Revolving Credit Facility		—			80,000
Other notes payable		17			47
Total notes payable		1,083,698			979,210
Less unamortized debt issuance costs		(26,323	)		(26,536	)
Total notes payable, net		1,057,375			952,674
Less current portion		(10,978	)		(89,097	)
Notes payable, less current portion, net	$	1,046,397		$	863,577

2021 Term Loan and Revolving Credit Facility

On February 4, 2021, E2open, LLC, our subsidiary, entered into a credit agreement (Credit Agreement) that provided for $525.0 million in term loans (2021 Term Loan) and $75.0 million in commitments for revolving credit loans (2021 Revolving Credit Facility) with a $15.0 million letter of credit sublimit. On September 1, 2021, the 2021 Credit Agreement was amended to include a $380.0 million incremental term loan, an increase in the letter of credit sublimit from $15.0 million to $30.0 million and an increase in the 2021 Revolving Credit Facility from $75.0 million to $155.0 million. On April 6, 2022, the 2021 Credit Agreement was amended to include a $190.0 million incremental term loan.

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The 2021 Revolving Credit Facility will mature on February 4, 2026. E2open, LLC can request increases in the revolving commitments and additional term loan facilities, in minimum amounts of $2.0 million for each facility. Principal payments are due on the Credit Agreement the last day of each February, May, August and November commencing August 2021. The Credit Agreement was payable in quarterly installments of $1.3 million beginning in August 2021; however, the payments were increased to $2.3 million with the addition of the incremental term loan beginning in November 2021. The payment increased to $2.7 million with the addition of the $190.0 million incremental term loan beginning in May 2022. The Credit Agreement is payable in full on February 4, 2028.

The proceeds from the $190.0 incremental term loan were used to repay the $80.0 million outstanding balance under the 2021 Revolving Credit Facility incurred to finance the initial payment for the Logistyx Acquisition. The additional cash was used to pay the $37.4 million payment due to Logistyx in May 2022 and for general corporate purposes.

The Credit Agreement is guaranteed by E2open Intermediate, LLC, our subsidiary, and certain wholly owned subsidiaries of E2open, LLC, as guarantors, and is supported by a security interest in substantially all of the guarantors’ personal property and assets. The Credit Agreement contains certain customary events of default, representations and warranties as well as affirmative and negative covenants.

As of August 31, 2022 and February 28, 2022, the 2021 Term Loan had a variable interest rate of 5.86% and 4.00%, respectively. There were no outstanding borrowings, no letters of credit and $155.0 million available borrowing capacity under the 2021 Revolving Credit Facility as of August 31, 2022. There were $80.0 million borrowings outstanding at an interest rate of 5.25%, no letters of credit and $75.0 million available borrowing capacity under the 2021 Revolving Credit Facility as of February 28, 2022. We were in compliance with the First Lien Leverage Ratio for the Credit Agreement as of August 31, 2022 and February 28, 2022.

See Note 29, Subsequent Events for information regarding borrowings under our 2021 Revolving Credit Facility.

14. Contingent Consideration

Business Combination

The contingent consideration liability is due to the issuance of Series B-1 and B-2 common stock and Series 1 restricted common units (RCUs) and Series 2 RCUs of E2open Holdings as part of the Business Combination. These shares and units were issued on a proportional basis to each holder of Class A shares in CCNB1 and Common Units of E2open Holdings. These restricted shares and Common Units are treated as a contingent consideration liability under ASC 805 and valued at fair market value. The contingent consideration liability was recorded at fair value on the acquisition date and will be remeasured at each reporting date and adjusted if necessary. Any gain or loss recognized from the remeasurement will be recorded in gain (loss) from the change in fair value of contingent consideration on the Condensed Consolidated Statements of Operations as a nonoperating income (expense) as the change in fair value is not part of our core operating activities.

The contingent consideration liability was $34.1 million and $45.6 million as of August 31, 2022 and February 28, 2022, respectively. The fair value remeasurements resulted in a gain of $7.3 million and loss of $13.0 million for the three months ended August 31, 2022 and 2021, respectively. The fair value remeasurements resulted in a gain of $11.5 million and loss of $76.4 million for the six months ended August 31, 2022 and 2021, respectively.

The 8,120,367 shares of Series B-1 common stock, including the Sponsor Side Letter shares noted below, automatically convert into our Class A Common Stock on a one-to-one basis upon the occurrence of the first day on which the 5-day VWAP of our Class A Common Stock is equal to at least $13.50 per share; provided, however, that the reference to $13.50 per share shall be decreased by the aggregate per share amount of dividends actually paid in respect of a share of Class A Common Stock following the closing of the Business Combination.

As of June 8, 2021, the 5-day VWAP of our Class A Common Stock exceeded $13.50 per share which was the triggering event for the Series B-1 common stock to automatically convert into our Class A Common Stock on a one-to-one basis. As such, 8,120,273 shares of Series B-1 common stock converted into 8,120,273 shares of Class A Common Stock. There were 94 shares of Series B-1 common stock pending conversion as of August 31, 2022.

There were 3,372,184 shares of Series B-2 common stock outstanding as of August 31, 2022 and February 28, 2022. The Series B-2 common stock will automatically convert into our Class A Common Stock on a one-to-one basis upon the occurrence of the first day on which the 20-day VWAP is equal to at least $15.00 per share; provided, however, that the reference to $15.00 per share shall be decreased by the aggregate per share amount of dividends actually paid in respect of a share of Class A Common Stock following the closing of the Business Combination.

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Similar to the Series B-1 common stock, the 4,379,557 shares of Series 1 RCUs vest and become Common Units of E2open Holdings at such time as the 5-day VWAP of the Class A Common Stock is at least $13.50 per share; however, the $13.50 per share threshold will be decreased by the aggregate amount of dividends per share paid following the closing of the Business Combination.

As of June 8, 2021, the 5-day VWAP of our Class A Common Stock exceeded $13.50 per share which was the triggering event for the Series 1 RCUs to vest and become Common Units of E2open Holdings. As such, 4,379,557 Series 1 RCUs became 4,379,557 Common Units of E2open Holdings along with entitling the holders of the newly vested common units to 4,379,557 shares of Class V Common Stock. Catch-Up Payments were not required as a result of the Series 1 RCU vesting.

There were 2,627,724 shares of Series 2 RCUs outstanding as of August 31, 2022 and February 28, 2022. Similar to the Series B-2 common stock, the Series 2 RCUs will vest (a) at such time as the 20-day VWAP of the Class A Common Stock is at least $15.00 per share; however, the $15.00 per share threshold will be decreased by the aggregate amount of dividends per share paid following the closing of the Business Combination; (b) upon the consummation of a qualifying change of control of us or the Sponsor and (c) upon the qualifying liquidation defined in the limited liability company agreement.

Upon the conversion of an RCU, the holder of such RCU will be entitled to receive a payment equal to the amount of ordinary distributions paid on an E2open Holdings unit from the Closing Date through (but not including) the date such RCU converts into an E2open Holdings unit. If any of the RCUs do not vest on or before the 10-year anniversary of the Closing Date, such units will be canceled for no consideration, and will not be entitled to receive any Catch-Up Payments.

We have not paid any dividends to date and do not expect to in the future.

Sponsor Side Letter

In connection with the execution of the Business Combination Agreement, the Sponsor, certain investors and CCNB1’s Independent Directors entered into the Sponsor Side Letter Agreement with CCNB1. Under the Sponsor Side Letter Agreement, 2,500,000 Class B ordinary shares of CCNB1 held by the Sponsor and CCNB1’s Independent Directors automatically converted into 2,500,000 shares of Series B-1 Common Stock, which, collectively, are referred to as the Restricted Sponsor Shares. The vesting conditions of the shares of Series B-1 Common Stock mirror the Series 1 RCUs.

These restricted shares were treated as a contingent consideration liability under ASC 805 and valued at fair market value. The contingent consideration liability was recorded at fair value on the acquisition date and remeasured at each reporting date and adjusted if necessary. Any gain or loss recognized from the remeasurements was recorded in gain (loss) from the change in fair value of contingent consideration on the Condensed Consolidated Statements of Operations as a nonoperating income (expense) as the change in fair value was not part of our core operating activities.

As of June 8, 2021, the 5-day VWAP of our Class A Common Stock exceeded $13.50 per share which was the triggering event for the Series B-1 common stock to automatically convert into our Class A Common Stock on a one-to-one basis. The fair value remeasurements through June 8, 2021 resulted in a loss of $3.8 million and $13.7 million for the three and six months ended August 31, 2021.

15. Financial Instruments

We recognize derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and provide qualitative and quantitative disclosures about such derivatives. We have international operations that expose us to potentially adverse movements in foreign currency exchange rates. To reduce our exposure to foreign currency rate changes on forecasted operating expenses, we enter into hedges in the form of foreign currency forward contracts related changes in the U.S. dollar/foreign currency relationship. We do not use foreign currency forward contracts for speculative or trading purposes. Our derivative contracts are governed by an International Swaps and Derivatives Association master agreement that generally include standard netting arrangements.

We are exposed to credit loss in the event of non-performance by counterparties to our derivative contracts. We actively monitor our exposure to credit risk, enter into foreign exchange forward contracts with high credit quality financial institutions and mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. We have not experienced any instances of non-performance by any counterparties.

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The assets or liabilities associated with the forward contracts are recorded at fair value in prepaid expenses and other current assets, other noncurrent assets, accounts payable and accrued liabilities or other noncurrent liabilities in the Condensed Consolidated Balance Sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. The cash flow impact upon settlement of the derivate contracts will be included in net cash from operating activities in the Condensed Consolidated Statements of Cash Flows.

Cash Flow Hedging Activities

Our foreign exchange forward contracts are designed and qualify as cash flow hedges. The contracts currently hedge the U.S. dollar/Indian Rupee relationship with the duration of these forward contracts ranging from one-month to 24-months at inception. These contracts cover a portion of our spend in Indian Rupee. We have not hedged our exposure to revenue or expenses in other currencies.

To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes in future cash flows on the hedged transactions. The related gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (loss) in stockholders' equity and reclassified into operating expenses when the hedge is settled. As of August 31, 2022, our foreign exchange forward contracts have durations of approximately 24 months or less.

Our exposure to the market gains or losses will vary over time as a function of currency exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments.

The following table represents the Condensed Consolidated Balance Sheets location and amount of derivative instrument fair values:

($ in thousands)	August 31, 2022
Accounts payable and accrued liabilities	$	(125	)
Other noncurrent liabilities		(82	)

We report our foreign exchange forward contract assets and liabilities on a net basis in the Condensed Consolidated Balance Sheets when a master-netting arrangement exists between us and the counterparty to the contract. A standard master netting agreement exists between us and the counterparty to the foreign exchange forward contract entered into in August 2022. The agreement allows for multiple transaction payment netting and none of the netting arrangements involve collateral. As of August 31, 2022, all of the foreign exchange forward contracts are in a liability position.

See Note 22, Other Comprehensive Loss for additional information regarding our cash flow hedges.

16. Fair Value Measurement

Our financial instruments include cash and cash equivalents; investments; accounts receivable, net; accounts payable; acquisition-related obligations; notes payable; and financing lease obligations. Accounts receivable, net; accounts payable; and acquisition-related obligations are stated at their carrying value, which approximates fair value, due to their short maturity. We measure our cash equivalents and investments at fair value, based on an exchange or exit price which represents the amount that would be received for an asset sale or an exit price, or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants. We estimate the fair value for notes payable and financing lease obligations by discounting the future cash flows of the related note and lease payments. As of August 31, 2022 and February 28, 2022, the fair value of the cash and cash equivalents, restricted cash, notes payable and financing lease obligations approximates their recorded values.

The following tables set forth details about our investments:

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
August 31, 2022
Asset-backed securities	$	162	$	23	$	—	$	185
February 28, 2022
Asset-backed securities	$	162	$	46	$	—	$	208

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Observable inputs are based on market data obtained from independent sources. Unobservable inputs reflect our assessment of the assumptions market participants would use to value certain financial instruments. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

Our assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy are summarized as follows:

	August 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Asset-backed securities	$	—	$	185	$	—	$	185
Total investments		—		185		—		185
Total assets	$	—	$	185	$	—	$	185
Liabilities:
Forward currency contracts	$	—	$	207	$	—	$	207
Tax receivable agreement liability		—		—		43,876		43,876
Warrant liability		18,078		—		28,447		46,525
Contingent consideration		—		—		34,108		34,108
Total liabilities	$	18,078	$	207	$	106,431	$	124,716

	February 28, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market	$	4	$	—	$	—	$	4
Total cash equivalents		4		—		—		4
Investments:
Asset-backed securities		—		208		—		208
Total investments		—		208		—		208
Total assets	$	4	$	208	$	—	$	212
Liabilities:
Tax receivable agreement liability	$	—	$	—	$	50,268	$	50,268
Warrant liability		27,324		—		39,815		67,139
Contingent consideration		—		—		45,568		45,568
Total liabilities	$	27,324	$	—	$	135,651	$	162,975

Contingent Consideration

The following table provides a reconciliation of the beginning and ending balances of acquisition related accrued earn-outs and contingent consideration using significant unobservable inputs (Level 3) from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	45,568		$	152,808
Conversion to Class A Common Stock		—			(175,000	)
Cash payments		—			(2,000	)
(Gain) loss from fair value of contingent consideration		(11,460	)		69,760
End of period	$	34,108		$	45,568

The change in the fair value of the earn-out is recorded in acquisition-related expenses while the change in the fair value of the contingent consideration is recorded in gain (loss) from change in fair value of contingent consideration in the Condensed Consolidated Statements of Operations.

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Tax Receivable Agreement

Our tax receivable agreement liability is measured under both ASC 805 at fair value on a recurring basis using significant unobservable inputs (Level 3) and ASC 450 at book value. The following table provides a reconciliation of the portion of the tax receivable agreement liability measured at fair value under Level 3 from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	50,268		$	50,114
Loss from fair value of tax receivable agreement liability		(6,392	)		154
End of period	$	43,876		$	50,268

The change in the fair value of the tax receivable agreement liability is recorded in change in tax receivable agreement liability in the Condensed Consolidated Statements of Operations.

Warrants

Our warrant liability is measured at fair value on a recurring basis using active market quoted prices (Level 1) and significant unobservable inputs (Level 3). The following table provides a reconciliation of the warrant liability from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	67,139		$	68,772
Gain from fair value of warrant liability		(20,614	)		(1,633	)
End of period	$	46,525		$	67,139

The change in the fair value of the warrant liability is recorded in gain (loss) from change in fair value of warrant liability in the Condensed Consolidated Statements of Operations.

The fair values of our Level 1 financial instruments, which are traded in active markets, are based on quoted market prices for identical instruments. The fair values of our Level 2 financial instruments are based on quoted market prices for comparable instruments or model-driven valuations using observable market data or inputs corroborated by observable market data.

Our earn-out liabilities and contingent consideration are valued using a Monte Carlo simulation model. The assumptions used in preparing these models include estimates such as volatility, contractual terms, discount rates, dividend yield and risk-free interest rates. These valuation models use unobservable market input, and therefore the liabilities are classified as Level 3.

Our public warrants are valued using active market quoted prices, which are Level 1 inputs. The private placement warrants are valued using a binomial pricing model when the warrants are subject to the make-whole table, or otherwise are valued using a Black-Scholes pricing model. The Forward Purchase Warrants are valued utilizing observable market prices for public shares and warrants, relative to the present value of contractual cash proceeds. The assumptions used in preparing these models include estimates such as volatility, contractual terms, discount rates, dividend yield, expiration dates and risk-free interest rates. These valuation models use unobservable market input, and therefore the liability is classified as both Level 1 and Level 3.

17. Revenue

We primarily generate revenue from the sale of subscriptions and professional services. We recognize revenue when the client contract and associated performance obligations have been identified, transaction price has been determined and allocated to the performance obligations in the contract, and performance obligations have been satisfied. We recognize revenue net of any taxes collected from clients, which are subsequently remitted to governmental authorities. Other revenue is recognized when the service is delivered to the client.

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Total Revenue by Geographic Locations

Revenue by geographic regions consisted of the following:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Americas	$	135,797	$	74,902	$	270,632	$	138,220
Europe		18,985		1,298		38,929		2,622
Asia Pacific		5,894		1,879		11,496		3,564
Total revenue	$	160,676	$	78,079	$	321,057	$	144,406

Revenues by geography are determined based on the region of our contracting entity, which may be different than the region of the client. Americas revenue attributed to the United States was 83% and 96% during the three and six months ended August 31, 2022 and 2021, respectively. No other country represented more than 10% of total revenue during these periods.

During the three months ended August 31, 2022 and 2021, we recorded a $0.1 million and $14.2 million reduction to revenue to amortize the deferred revenue fair value adjustment that resulted from the purchase price allocation in the Business Combination, respectively. During the six months ended August 31, 2022 and 2021, we recorded a $0.2 million and $36.7 million reduction to revenue to amortize the deferred revenue fair value adjustment, respectively. With the early adoption of ASU 2021-08, a fair value adjustment to deferred revenue is no longer required; therefore, an adjustment to deferred revenue was not made for the BluJay or Logistyx acquisitions.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied. It includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods and does not include contracts where the client is not committed. The client is not considered committed when they are able to terminate for convenience without payment of a substantive penalty under the contract. Additionally, as a practical expedient of ASC 606, Revenue from Contracts with Customers, we have not disclosed the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. As of August 31, 2022 and February 28, 2022, approximately $732.9 million and $767.9 million of revenue was expected to be recognized from remaining performance obligations, respectively. These amounts are expected to be recognized within the next five years.

Contract Assets and Liabilities

Contract assets primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. Contract assets were $25.4 million and $14.6 million as of August 31, 2022 and February 28, 2022, respectively. Contract liabilities consist of deferred revenue which includes billings in excess of revenue recognized related to subscription contracts and professional services. Deferred revenue is recognized as revenue when we perform under the contract. Deferred revenue was $179.7 million and $192.1 million as of August 31, 2022 and February 28, 2022, respectively. Revenue recognized during the three and six months ended August 31, 2022, included in deferred revenue on the Condensed Consolidated Balance Sheets as of February 28, 2022, was $38.4 million and $96.3 million, respectively.

As of February 4, 2021, a fair value adjustment of $60.7 million was recorded to reduce our deferred revenue to its fair value as part of the Business Combination. As deferred revenue is recognized, any fair value adjustment related to the deferred revenue is also recognized as a reduction to revenue. As of August 31, 2022 and February 28, 2022, the fair value adjustment to reduce deferred revenue as part of the Business Combination was $0.2 million and $0.5 million, respectively. With the early adoption of ASU 2021-08, a fair value adjustment to deferred revenue is no longer required; therefore, an adjustment to deferred revenue was not made for the BluJay and Logistyx acquisitions.

Sales Commissions

With the adoption of ASC 606 and ASC 340-40, Contracts with Customers as of March 1, 2019, we began deferring and amortizing sales commissions that are incremental and directly related to obtaining client contracts.

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Amortization expense of $1.0 million and $0.2 million was recorded in sales and marketing expense in the Condensed Consolidated Statements of Operations for the three months ended August 31, 2022 and 2021, respectively. Amortization expense of $1.8 million and $0.4 million was recorded in sales and marketing expense for the six months ended August 31, 2022 and 2021, respectively. Certain sales commissions that would have an amortization period of less than one year are expensed as incurred in sales and marketing expense. As of August 31, 2022 and February 28, 2022, we had a total of $13.3 million and $12.2 million of capitalized sales commissions included in prepaid expenses and other current assets and other noncurrent assets in the Condensed Consolidated Balance Sheets, respectively.

18. Severance and Exit Costs

In connection with acquisitions, we conduct pre and post-acquisition related operational reviews to reallocate resources to strategic areas of the business. The operational reviews resulted in workforce reductions, lease obligations related to properties that were vacated and other expenses. Severance and exit costs included in acquisition-related expenses in the Condensed Consolidated Statements of Operations were as follows:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Severance	$	1,868	$	614	$	3,690	$	654
Lease exits		126		494		235		816
Total severance and exit costs	$	1,994	$	1,108	$	3,925	$	1,470

In addition, during the second quarter of fiscal 2023, we accrued $0.8 million in severance expense related an executive who left the company. The expense is recorded in general and administrative expense in the Condensed Consolidated Statements of Operations and in the Condensed Consolidated Balance Sheets in accounts payable and accrued liabilities in the accrued severance and retention liability. The severance payment will be paid during the third quarter of fiscal 2023.

Included in accounts payable and accrued liabilities as of August 31, 2022 and February 28, 2022 was a restructuring liability balance, primarily consisting of lease related obligations, of $0.3 million and $0.8 million, respectively, and a restructuring severance liability of $3.6 million and $1.9 million, respectively, which also includes the executive severance accrual noted above. We expect these amounts to be substantially paid within the next 12 months.

The following table reflects the changes in the severance and exit cost accruals from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	2,687		$	1,988
Payments		(3,061	)		(7,302	)
Impairment of right-of-use assets		(421	)		(580	)
Expenses		4,675			8,581
End of period	$	3,880		$	2,687

In the 2022 Form 10-K, $0.8 million of accrued expenses related to accrued severance and retention were reflected in accrued compensation. This amount has been reclassified to accrued severance and retention to correspond to the current year presentation.

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19. Warrants

As of August 31, 2022 and February 28, 2022, there were an aggregate of 29,079,872 warrants outstanding, which include the public warrants, private placement warrants and Forward Purchase Warrants. Each warrant entitles its holders to purchase one share of Class A Common Stock at an exercise price of $11.50 per share. The private placement warrants became exercisable with the Domestication. The Forward Purchase Warrants became exercisable upon effectiveness of our Form S-1 which was initially filed on March 5, 2021 and deemed effective on March 29, 2021. The public warrants became exercisable on April 28, 2021. The public warrants, private placement warrants and Forward Purchase Warrants expire five years after the Closing Date, or earlier upon redemption or liquidation. Once the warrants became exercisable, we have the option to redeem the outstanding warrants when various conditions are met, such as specific stock prices, as detailed in the specific warrant agreements. However, the 10,280,000 private placement warrants are nonredeemable so long as they are held by our Sponsor or its permitted transferees. The warrants are recorded as a liability in warrant liability on the Condensed Consolidated Balance Sheets with a balance of $46.5 million and $67.1 million as of August 31, 2022 and February 28, 2022, respectively. During the three months ended August 31, 2022 and 2021, a gain of $15.2 million and $18.7 million was recognized in gain (loss) from change in fair value of the warrant liability in the Condensed Consolidated Statements of Operations, respectively. During the six months ended August 31, 2022 and 2021, a gain of $20.6 million and loss of $41.2 million was recognized in gain (loss) from change in fair value of the warrant liability, respectively.

20. Stockholders’ Equity

Class A Common Stock

We are authorized to issue 2,500,000,000 Class A common stock with a par value of $0.0001 per share. Holders of our Class A Common Stock are entitled to one vote for each share. As of August 31, 2022 and February 28, 2022, there were 302,199,373 and 301,536,621 shares of Class A Common Stock issued, respectively, and 302,022,719 and 301,359,967 shares of Class A Common Stock outstanding, respectively.

Class V Common Stock

We were authorized to issue 40,000,000 Class V common stock with a par value of $0.0001 per share. As of August 19, 2021, the number of shares authorized for issuance was increased to 42,747,890 Class V common stock with a par value of $0.0001. These shares have no economic value but entitle the holder to one vote per share. As of August 31, 2022 and February 28, 2022, there were 33,192,007 and 33,560,839 shares of Class V Common Stock issued and outstanding, respectively, and 9,555,883 and 9,187,051 shares of Class V Common Stock held in treasury, respectively.

The holders of Common Units participate in net income or loss allocations and distributions of E2open Holdings. They are also entitled to Class V common stock on a one for one basis to their Common Units which in essence allows each holder one vote per Common Unit.

The following table reflects the changes in our outstanding stock:

	Class A		Class V			Series B-1		Series B-2
Balance, February 28, 2022		301,359,967		33,560,839			94		3,372,184
Conversion of Common Units (1)		149,941		(368,832	)		—		—
Vesting of restricted awards, net of shares     withheld for taxes (2)		512,811		—			—		—
Balance, August 31, 2022		302,022,719		33,192,007			94		3,372,184

(1)Class A Common Stock issued for the conversion of Common Units settled in stock. During the six months ended August 31, 2022, we paid $1.4 million in cash for the repurchase of 218,891 Common Units that were converted into cash instead of stock at our option. Class V Common Stock are retired on a one-for-one basis when Common Units are converted into Class A Common Stock or settled in cash.

(2)The Class A Common Stock withheld for taxes revert back to the 2021 Incentive Plan, as defined below, and are used for future grants.

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Share Repurchase Program

On January 20, 2022, the board of directors approved a $100.0 million share repurchase program (2022 Share Repurchase Program). Stock repurchases may be made from time to time in the open market, in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. The 2022 Share Repurchase Program is subject to market conditions and other factors, and does not obligate us to repurchase any dollar amount or number of our Class A Common Stock and the program may be extended, modified, suspended or discontinued at any time, without prior notice.

We will record all share repurchases based on the trade date. Shares of our Class A Common Stock repurchased under the 2022 Share Repurchase Program are typically recorded as treasury stock, at cost, but may from time to time be retired.

No shares of Class A Common Stock have been repurchased to date.

21. Noncontrolling Interests

Noncontrolling interest represents the portion of E2open Holdings that we control and consolidate but do not own. As of August 31, 2022 and February 28, 2022, the noncontrolling interests represent a 9.9% and 10.0% ownership in E2open Holdings, respectively.

Generally, Common Units participate in net income or loss allocations and distributions and entitle their holder to the right, subject to the terms set forth in the limited liability agreement, to require E2open Holdings to redeem all or a portion of the Common Units held by such participant. At our option, we may satisfy this redemption with cash or by exchanging Class V Common Stock for Class A Common Stock on a one-for-one basis.

During the three months ended August 31, 2022, 124,941 Common Units were converted into Class A Common Stock with a value of $1.0 million based off the 5-day VWAP. During the six months ended August 31, 2022, 149,941 Common Units were converted into Class A Common Stock with a value of $1.2 million based off the 5-day VWAP. A total of 218,891 Common Units were settled in cash of $1.4 million during the three and six months ended August 31, 2021. This activity resulted in a decrease to noncontrolling interests of $2.4 million and $2.6 million during the three and six months ended August 31, 2022, respectively.

As of August 31, 2022 and February 28, 2022, there were a total of 33.2 million and 33.6 million Common Units held by participants of E2open Holdings, respectively.

We follow the guidance issued by the FASB regarding the classification and measurement of redeemable securities. Accordingly, we have determined that the Common Units meet the requirements to be classified as permanent equity.

22. Other Comprehensive Loss

We did not reclass any items to the Condensed Consolidated Statements of Operations from accumulated other comprehensive loss during the three and six months ended August 31, 2022 and 2021.

Accumulated other comprehensive loss in the equity section of our Condensed Consolidated Balance Sheets includes:

($ in thousands)	Foreign Currency Translation Adjustment			Unrealized Holding Gains (Losses) on Derivatives			Total
Balance, February 28, 2022	$	(19,019	)	$	—		$	(19,019	)
Other comprehensive loss		(100,109	)		(207	)		(100,316	)
Tax effects		27,654						27,654
Other comprehensive loss		(72,455	)		(207	)		(72,662	)
Balance, August 31, 2022	$	(91,474	)	$	(207	)	$	(91,681	)

Accumulated foreign currency translation adjustments are reclassified to net income (loss) when realized upon sale or upon complete, or substantially complete, liquidation of the investment in the foreign entity.

See Note 15, Financial Instruments for additional information related to our derivative instruments.

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23. Earnings Per Share

Basic earnings per share is calculated as net loss divided by the average number of shares of common stock outstanding. Diluted earnings per share assumes, when dilutive, the issuance of the net incremental shares from options and restricted shares. The following is a reconciliation of the denominators of the basic and diluted per share computations for net loss:

	Three Months Ended August 31,						Six Months Ended August 31,
(in thousands, except per share data)	2022			2021			2022			2021
Net loss per share:
Numerator - basic:
Net loss per share:	$	(409,585	)	$	(23,988	)	$	(422,206	)	$	(193,343	)
Less: Net loss attributable to noncontrolling interests		(40,897	)		(3,471	)		(42,162	)		(30,568	)
Net loss attributable to E2open Parent Holdings, Inc.     - basic	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Numerator - diluted:
Net loss attributable to E2open Parent Holdings, Inc.     - basic	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Add: Net loss and tax effect attributable to noncontrolling     interests		—			—			—			—
Net loss attributable to E2open Parent Holdings, Inc.     - diluted	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Denominator - basic:
Weighted average shares outstanding - basic		301,898			195,148			301,635			191,099
Net loss per share - basic	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)
Denominator - diluted:
Weighted average shares outstanding - basic		301,898			195,148			301,635			191,099
Weighted average effect of dilutive securities:
Shares related to Common Units		—			—			—			—
Weighted average shares outstanding - diluted		301,898			195,148			301,635			191,099
Diluted net loss per common share	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)

Potential common shares issuable to employee or directors upon exercise or conversion of shares under our share-based compensation plans and upon exercise of warrants are excluded from the computation of diluted earnings per common share when the effect would be anti-dilutive. All potential common shares are anti-dilutive in periods of net loss available to common stockholders.

The following table summarizes the weighted-average potential common shares excluded from diluted loss per common share as their effect would be anti-dilutive:

	Three Months Ended August 31,				Six Months Ended August 31,
	2022		2021		2022		2021
Shares related to Series B-1 common stock		94		86		94		43
Shares related to Series B-2 common stock		3,372,184		3,372,184		3,372,184		3,372,184
Shares related to restricted common units Series 2		2,627,724		2,627,724		2,627,724		2,627,724
Shares related to warrants (1)		29,079,872		29,079,972		29,079,872		29,079,972
Shares related to Common Units		33,364,002		38,670,936		33,461,877		37,153,808
Shares related to options		4,833,446		2,583,320		3,562,837		2,583,320
Share related to performance based restricted stock		2,267,887		1,009,995		2,038,782		560,375
Shares related to time based restricted stock		3,262,797		1,048,641		2,454,587		581,431
Units/Shares excluded from the dilution computation		78,808,006		78,392,858		76,597,957		75,958,857

(1)The warrants include the public warrants, private placement warrants and Forward Purchase Warrants.

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24. Share-Based Compensation

2021 Incentive Plan

The E2open Parent Holdings, Inc. 2021 Omnibus Incentive Plan (2021 Incentive Plan) became effective on the Closing Date with the approval of CCNB1’s shareholders and board of directors. The 2021 Incentive Plan allows us to make equity and equity-based incentive awards to officers, employees, directors and consultants. There were 15,000,000 shares of Class A Common Stock reserved for issuance under the 2021 Incentive Plan as of February 28, 2022. The "evergreen" provision of the 2021 Incentive Plan provides for an annual automatic increase to the number of shares of Class A Common Stock available under the plan. As of March 1, 2022, an additional 4,849,684 shares were reserved for issuance under the "evergreen " provision. Shares issued under the 2021 Incentive Plan can be granted as stock options, restricted stock awards, restricted stock units, performance stock awards, cash awards and other equity-based awards. No award may vest earlier than the first anniversary of the date of grant, expect under limited conditions.

Our board of directors have approved the grant of options and RSUs under the 2021 Incentive Plan.

The fiscal year 2022 options were performance based and measured based on obtaining an organic growth target over a one-year period with a quarter of the options vesting at the end of the performance period and the remaining options vesting equally over the following three years. The fiscal year 2023 options are performance based and measured based on obtaining an organic growth, adjusted EBITDA and net booking targets over a one-year period with a quarter of the options vesting at the end of the performance period and the remaining options vesting equally over the following three years. Our executive officers and senior management are granted these performance based options. The performance target is set at 100% at the grant date, and the probability of meeting the performance target is remeasured each quarter over the performance period and adjusted if needed. The performance target for the options granted during May 2021 was finalized in April 2022 above 100% and adjusted accordingly. As of August 31, 2022, there were 4,259,741 unvested performance based options.

The RSUs are either performance based or time based. The fiscal year 2022 performance based RSUs were measured based on obtaining an organic growth target over a one-year period with a quarter of the RSUs vesting at the end of the performance period and the remaining RSU's vesting equally over the following three years. The fiscal year 2023 performance based RSUs are measured based on obtaining an organic growth, adjusted EBITDA and net bookings target over a one-year period with a quarter of the RSUs vesting at the end of the performance period and the remaining RSU's vesting equally over the following three years. The performance target is set at 100% at the date of grant, and the probability of meeting the performance target is remeasured each quarter over the performance period and adjusted if needed. The performance target for the performance based RSUs granted during May 2021 was finalized in April 2022 above 100% and adjusted accordingly. The time based RSUs for executive officers, senior management and employees vest ratably over a three-year period while the time based RSUs for non-employee directors of our board of directors have a one-year vesting period. As of August 31, 2022, there were 2,186,081 performance based RSUs and 3,069,013 time based RSUs that were vested or expected to vest with a total intrinsic value of $35.3 million. Performance based RSUs of 74,089 have vested but have not been released as of August 31, 2022. Time based RSUs of 45,513 have vested but have not been released as of August 31, 2022.

As of August 31, 2022, there were 9,806,788 shares of Class A Common Stock available for grant under the 2021 Incentive Plan.

As previously disclosed in our 2022 Form 10-K in Item 9B., Other Information, our former Chief Financial Officer entered into a Transition Agreement in which all of his outstanding stock awards accelerated vesting to August 31, 2022. Additionally, the exercise period for his options was extended from 90 days to one year with exercises permitted through August 31, 2023.

Activity under the 2021 Incentive Plan related to options was as follows:

	Number of Shares (in thousands)			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)
Balance, February 28, 2022		2,524		$	9.83		9.0
Granted		3,275			7.76
Forfeited/Expired		(966	)		9.85
Balance, August 31, 2022		4,833		$	8.42		8.9
Vested and exercisable as of August 31, 2022		573		$	9.82		5.4

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	Number of Shares (in thousands)		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)
Balance, February 28, 2021		—	$	—		—
Granted		2,583		9.86
Balance, August 31, 2021		2,583	$	9.86		9.5

As of August 31, 2022, there was $8.2 million of unrecognized compensation cost related to unvested options. The aggregate intrinsic value of outstanding stock option awards and the vested and exercisable stock option awards was zero as of August 31, 2022 since our Class A Common Stock price was less than the exercise price of the stock option awards.

Activity under the 2021 Incentive Plan related to RSUs was as follows:

	Number of Units (in thousands)			Weighted Average Grant Date Fair Value Per Unit		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2022		2,103		$	12.47		2.7
Granted		3,925			8.06
Added by performance factor		300			12.87
Released		(665	)		12.16
Canceled and forfeited		(408	)		10.50
Balance, August 31, 2022		5,255		$	9.32		2.7

	Number of Units (in thousands)			Weighted Average Grant Date Fair Value Per Unit		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2021		—		$	—		—
Granted		2,105			12.84
Forfeited		(47	)		12.87
Balance, August 31, 2021		2,058		$	12.84		3.1

As of August 31, 2022, there was $37.1 million of unrecognized compensation cost related to unvested RSUs. The aggregate intrinsic value of the RSUs was $35.3 million as of August 31, 2022 which is the outstanding RSUs valued at the closing price of our Class A Common Stock on August 31, 2022.

See Note 29, Subsequent Events for information regarding time based RSUs granted during the third quarter of fiscal 2023.

The estimated grant-date fair values of the options granted during the six months ended August 31, 2022 were calculated using the Black-Scholes option-pricing valuation model, based on the following assumptions:

Expected term (in years)	6.25
Expected equity price volatility	44.17%
Risk-free interest rate	2.91%
Expected dividend yield	0%

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The table below sets forth the functional classification in the Condensed Consolidated Statements of Operations of our equity-based compensation expense:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Cost of revenue	$	90	$	257	$	311	$	457
Research and development		764		374		1,243		697
Sales and marketing		909		478		1,659		760
General and administrative		3,391		1,400		5,129		2,638
Total share-based compensation	$	5,154	$	2,509	$	8,342	$	4,552

25. Leases

We account for leases in accordance with ASC 842, Leases, which requires lessees to recognize lease liabilities and ROU assets on the balance sheet for most operating leases. We made the accounting policy election not to apply the recognition provisions of ASC 842 to short-term leases which are leases with a lease term of 12 months or less. Instead, we recognize the lease payments for short-term leases on a straight-line basis over the lease term. We currently do not have any short-term leases.

Operating lease liabilities reflect our obligation to make future lease payments for real estate locations. Lease terms are comprised of contractual terms. Payments are discounted using the rate we would pay to borrow amounts equal to the lease payments over the lease term (our incremental borrowing rate). We do not separate lease and non-lease components for contracts in which we are the lessee. ROU assets are measured based on lease liabilities adjusted for incentives and timing differences between operating lease expense and payments, recognized on a straight-line basis over the lease term. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Common area maintenance and other executory costs are the main components of variable lease payments. Operating and variable lease expenses are recorded in general and administrative expense in the Condensed Consolidated Statements of Operations.

Real Estate Leases

We lease our primary office space under non-cancelable operating leases with various expiration dates through June 2030. Many of our leases have an option to be extended from two to five years, and several of the leases give us the right to cancel early with proper notification. Additionally, we have three subleases of our office leases as of August 31, 2022.

Several of the operating lease agreements require us to provide security deposits. As of August 31, 2022, and February 28, 2022, lease deposits were $3.8 million and $3.6 million, respectively. The deposits are generally refundable at the expiration of the lease, assuming all obligations under the lease agreement have been met. Deposits are included in prepaid and other current assets and other noncurrent assets in the Condensed Consolidated Balance Sheets.

During the second quarter of fiscal 2023, we incurred a $2.4 million impairment on our operating lease right-of-use assets and leasehold improvements due to vacating four locations with the intent to sublease them. The impairment was recorded in general and administrative expense in the Condensed Consolidated Statements of Operations.

Vehicle Leases

We lease vehicles under non-cancelable operating lease arrangements which have various expiration dates through July 2026. We do not have the right to purchase the vehicles at the end of the lease term.

Equipment Leases

We purchase certain equipment under non-cancelable financing lease arrangements which are primarily related to software and computer equipment and which have various expiration dates through October 2023. We have the right to purchase the software and computer equipment anytime during the lease or upon lease completion.

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Balance Sheet Presentation

The following tables presents the amounts and classifications of our estimated ROU assets, net and lease liabilities:

($ in thousands)	Balance Sheet Location	August 31, 2022		February 28, 2022
Operating lease right-of-use assets	Operating lease right-of-use assets	$	24,839	$	28,102
Finance lease right-of-use asset	Property and equipment, net		2,746		3,719
Total right-of-use assets		$	27,585	$	31,821

($ in thousands)	Balance Sheet Location	August 31, 2022		February 28, 2022
Operating lease liability - current	Current portion of operating lease obligations	$	8,106	$	7,652
Operating lease liability	Operating lease obligations		19,960		21,202
Finance lease liability - current	Current portion of finance lease obligations		2,117		2,307
Finance lease liability	Finance lease obligations		74		1,950
Total lease liabilities		$	30,257	$	33,111

Lease Cost and Cash Flows

The following table summarizes our total lease cost:

	Three Months Ended August 31,						Six Months Ended August 31,
($ in thousands)	2022			2021			2022			2021
Finance lease cost:
Amortization of right-of-use asset	$	567		$	398		$	1,178		$	1,591
Interest on lease liability		56			287			126			417
Finance lease cost		623			685			1,304			2,008
Operating lease cost:
Operating lease cost		1,894			1,143			3,266			2,492
Variable lease cost		1,204			1,178			3,300			1,979
Sublease income		(208	)		(359	)		(436	)		(533	)
Operating net lease cost		2,890			1,962			6,130			3,938
Total net lease cost	$	3,513		$	2,647		$	7,434		$	5,946

We currently do not have any short-term leases.

Supplemental cash flow information related to leases was as follows:

	Six Months Ended August 31,
($ in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	5,067	$	3,197

The following table presents the weighted-average remaining lease terms and discount rates of our leases:

	Six Months Ended August 31,
	2022			2021
Weighted-average remaining lease term (in years):
Finance lease		0.90			1.98
Operating lease		4.08			5.20
Weighted-average discount rate:
Finance lease		9.20	%		9.20	%
Operating lease		4.68	%		4.43	%

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Lease Liability Maturity Analysis

The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities as of August 31, 2022:

($ in thousands)	Operating Leases			Finance Leases
September 2022 - February 2023	$	4,728		$	228
2024		8,810			2,105
2025		6,970			—
2026		4,641			—
2027		3,293			—
Thereafter		2,798			—
Total		31,240			2,333
Less: Present value discount		(3,174	)		(142	)
Lease liabilities	$	28,066		$	2,191

26. Income Taxes

We calculate the provision for income taxes during interim periods by applying an estimate of the forecasted annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding discrete items) for the reporting period. Our provision for income taxes was a benefit of $113.7 million, or 21.7%, for the three months ended August 31, 2022 compared to an expense of $6.0 million, or 33.3%, for the three months ended August 31, 2021. Our provision for income taxes for the six months ended August 31, 2022 was a benefit of $122.1 million, or 22.4%, compared to an expense of $7.4 million, or 4.0%, for the six months ended August 31, 2021.

The loss before income taxes of $523.2 million and $544.3 million for the three and six months ended August 31, 2022, respectfully, resulted in a $113.7 million and $122.1 million income tax benefit, respectively. These benefits primarily resulted from the goodwill impairment taken in the second fiscal quarter of 2023. Additionally, the increase in the tax benefit was due to changes in book losses in certain jurisdictions for which no benefit can be recognized, changes in the impact of book income and losses of affiliates on the carrying amount of our partnership investment and changes in the mark-to-market gains and losses on certain contingent liabilities.

As of August 31, 2022 and February 28, 2022, total gross unrecognized tax benefits were $2.6 million. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of August 31, 2022 and February 28, 2022, the total amount of gross interest and penalties accrued was less than $0.1 million which is classified as other noncurrent liabilities in the Condensed Consolidated Balance Sheets.

Inflation Reduction Act of 2022

On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (IRA), which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. The alternative minimum tax and excise tax are effective in taxable years beginning after December 31, 2022. The alternative minimum tax would not be applicable in our next fiscal year since it is based on a three-year average annual adjusted financial statement income in excess of $1 billion. We will evaluate any impact related to the excise tax on net stock repurchases based on our relative activity.

27. Commitments and Contingencies

From time to time, we are subject to contingencies that arise in the ordinary course of business. We record an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We do not currently believe the resolution of any such contingencies will have a material adverse effect upon our Condensed Consolidated Balance Sheets, Statements of Operations or Statements of Cash Flows.

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28. Supplemental Cash Flow Information

Supplemental cash flow information and non-cash investing and financing activities are as follows:

	Six Months Ended August 31,
(In thousands)	2022		2021
Supplemental cash flow information - Cash paid for:
Interest	$	23,241	$	10,504
Income taxes		2,584		824
Non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued liabilities		4,521		1,435
Right-of-use assets obtained in exchange for operating lease obligations		2,762		23,008
Shares withheld for taxes on vesting of restricted stock		1,254		—
Conversion of Common Units to Class A Common Stock		1,185		27,228
Conversion of Series B1 common stock to Class A Common Stock		—		175,000
Business Combination purchase price adjustment		—		2,965

29. Subsequent Events

On August 15, 2022, E2open, LLC and the sellers of Logistyx agreed to extend the final payment to September 1, 2022 allowing both parties to finalize working capital adjustments and other contractual provisions. On September 1, 2022, E2open, LLC made a cash payment of $54.0 million to Logistyx for the final payment for the Logistyx Acquisition which reflected a working capital adjustment of $3.6 million. The Logistyx sellers have disputed the working capital adjustment pursuant to the terms of the Membership Interest Purchase Agreement and the parties are in the process of negotiating in good faith to come to a resolution.

During September 2022, we borrowed an aggregate of $25.0 million under our 2021 Revolving Credit Facility at a weighted average interest rate of 5.64%. All the funds will be used for general operating activities.

During fiscal 2023, our board approved a company-wide share-based compensation program under our 2021 Incentive Plan. Under the program, approximately 3,800 employees will be eligible to receive an annual stock award subject to board approval as part of their annual compensation package. As part of the fiscal 2023 annual compensation package, our board approved a grant on October 1, 2022 of 1,653,982 time based RSUs to the employees who did not receive an equity grant in May 2022. For those employees based in China, 182,513 cash-settled RSUs were granted. The time based and cash-settled RSUs will vest ratably over a three-year period.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This item contains a discussion of our business, including a general overview of our business, results of operations, liquidity and capital resources as well as quantitative and qualitative disclosures about market risk.

The following discussion should be read in conjunction with Part II, Item 7., Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2022 Form 10-K and the unaudited condensed financial statements and related notes beginning on page 5. This Item 2 contains “forward looking” statements that involve risks and uncertainties. See Forward-Looking Statements at the beginning of this Quarterly Report.

Overview

We are a leading provider of cloud-based, end-to-end SCM software. Our platform spans many key strategic and operational areas including omni-channel, demand sensing, supply planning, global trade management, transportation and logistics and manufacturing and supply management. Our software combines networks, data and applications to provide a deeply embedded, mission-critical platform that allows clients to optimize their channel and supply chains by accelerating growth, reducing costs, increasing visibility and driving improved resiliency. Given the mission-critical nature of our solutions, we maintain long-term relationships with our clients, which is reflected by our high gross retention and long client tenure. In aggregate, we serve clients in all major countries in the world across a wide range of end-markets, including consumer goods, food and beverage, manufacturing, retail, technology and transportation, among others.

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Recent Events

On March 2, 2022, E2open, LLC acquired Logistyx Technologies, LLC (Logistyx) for a purchase price of $185 million, with an estimated fair value of $183.4 million, including $90 million paid in cash at closing. An additional $95 million was paid in two installments on May 31, 2022 and August 29, 2022. We had the option to finance the remaining payments, at our discretion, through cash or a combination of cash and Class A Common Stock. The May 31, 2022 payment of $37.4 million was paid in cash. The final payment for the Logistyx Acquisition of $57.6 million was due on August 29, 2022; however, the parties agreed to extend the payment to September 1, 2022 due to the finalization of the working capital adjustments and other contractual provisions. On September 1, 2022, E2open, LLC made a cash payment of $54.0 million to Logistyx for the final payment for the Logistyx Acquisition which reflected a working capital adjustment of $3.6 million. The Logistyx sellers have disputed the working capital adjustment pursuant to the terms of the Membership Interest Purchase Agreement and the parties are in the process of negotiating in good faith to come to a resolution.

During the second quarter of fiscal 2023, the market price of our Class A Common Stock and market capitalization declined significantly. This decline resulted in us determining that a triggering event occurred and an interim goodwill impairment assessment was performed. We calculated the fair value of E2open based on the present value of estimated future cash flows and a market approach where we evaluated the fair value based on forward-looking earnings multiples derived from comparable publicly traded companies with similar market position and size. The two approaches generated similar results and indicated that the fair value of E2open's equity and goodwill was less than its carrying amount. Therefore, in the second quarter of fiscal 2023, we recognized an impairment charge of $514.8 million to goodwill. See Note 7, Goodwill to the Notes to the Unaudited Condensed Consolidated Financial Statements.

Results of Operations

The following table is our Condensed Consolidated Statements of Operations for the periods indicated:

	Three Months Ended August 31,						Six Months Ended August 31,
($ in thousands)	2022			2021			2022			2021
Revenue	$	160,676		$	78,079		$	321,057		$	144,406
Cost of revenue		(83,251	)		(39,551	)		(161,932	)		(77,710	)
Total gross profit		77,425			38,528			159,125			66,696
Operating Expenses
Research and development		25,587			16,208			48,149			31,909
Sales and marketing		22,745			11,174			46,900			23,688
General and administrative		23,355			13,401			43,701			27,118
Acquisition-related expenses		5,580			7,174			12,344			16,952
Amortization of acquired intangible assets		21,023			3,543			42,558			7,373
Goodwill impairment		514,816			—			514,816			—
Total operating expenses		613,106			51,500			708,468			107,040
Loss from operations		(535,681	)		(12,972	)		(549,343	)		(40,344	)
Interest and other expense, net		(18,049	)		(6,332	)		(33,462	)		(11,235	)
Change in tax receivable agreement liability		8,062			(637	)		6,392			(3,136	)
Gain (loss) from change in fair value of warrant liability		15,159			18,727			20,614			(41,216	)
Gain (loss) from change in fair value of contingent     consideration		7,260			(16,780	)		11,460			(90,040	)
Total other income (expenses)		12,432			(5,022	)		5,004			(145,627	)
Loss before income tax provision		(523,249	)		(17,994	)		(544,339	)		(185,971	)
Income tax benefit (expense)		113,664			(5,994	)		122,133			(7,372	)
Net loss		(409,585	)		(23,988	)		(422,206	)		(193,343	)
Less: Net loss attributable to noncontrolling interest		(40,897	)		(3,471	)		(42,162	)		(30,568	)
Net loss attributable to E2open Parent Holdings, Inc.	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Net loss attributable to E2open Parent Holdings, Inc.     Class A common stockholders per share:
Basic	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)
Diluted	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)
Weighted-average common shares outstanding:
Basic		301,898			195,148			301,635			191,099
Diluted		301,898			195,148			301,635			191,099

36

In the discussion of our results of operations, we may quantitatively disclose the impact of our acquired products and services to the extent they remain ascertainable. Revenue and expense contributions from our acquisitions for the respective period comparisons generally were not separately identifiable due to our strategy of rapid integration of these businesses into our existing operations.

Three Months Ended August 31, 2022 compared to Three Months Ended August 31, 2021

Revenue

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Revenue:
Subscriptions	$	131,621		$	61,725		$	69,896	nm
Professional services and other		29,055			16,354			12,701		78	%
Total revenue	$	160,676		$	78,079		$	82,597	nm
Percentage of revenue:
Subscriptions		82	%		79	%
Professional services and other		18	%		21	%
Total		100	%		100	%

Subscriptions revenue was $131.6 million for the three months ended August 31, 2022, a $69.9 million increase compared to subscriptions revenue of $61.7 million for the three months ended August 31, 2021. The increase in subscriptions revenue was primarily due to the BluJay Acquisition, Logistyx Acquisition and new organic subscription sales predominantly driven by increases in products utilized across our current client portfolio, as well as the $14.2 million amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination in the second quarter of fiscal 2022. With the early adoption of ASU 2021-08, a fair value adjustment to deferred revenue for the BluJay and Logistyx acquisitions was not recorded; therefore, amortization of the fair value adjustment to deferred revenue similar to the Business Combination adjustment did not occur for the BluJay and Logistyx acquisitions.

Professional services revenue was $29.1 million for the three months ended August 31, 2022, a $12.7 million, or 78%, increase compared to $16.4 million for the three months ended August 31, 2021. The increase was primarily related to the BluJay Acquisition and Logistyx Acquisition.

Our subscriptions revenue as a percentage of total revenue increased to 82% for the second quarter of fiscal year 2023 compared to 79% for the second quarter of fiscal 2022. The second quarter of fiscal 2022 included $14.2 million amortization related to the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination, reducing subscription revenue as a percentage of total revenue for that period.

Cost of Revenue, Gross Profit and Gross Margin

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Cost of revenue:
Subscriptions	$	36,302		$	16,246		$	20,056	nm
Professional services and other		22,383			10,967			11,416	nm
Amortization of acquired intangible assets		24,566			12,338			12,228		99	%
Total cost of revenue	$	83,251		$	39,551		$	43,700	nm
Gross profit:
Subscriptions	$	70,753		$	33,141		$	37,612	nm
Professional services and other		6,672			5,387			1,285		24	%
Total gross profit	$	77,425		$	38,528		$	38,897	nm
Gross margin:
Subscriptions		54	%		54	%
Professional services and other		23	%		33	%
Total gross margin		48	%		49	%

37

Cost of subscriptions was $36.3 million for the three months ended August 31, 2022, a $20.1 million increase compared to $16.2 million for the three months ended August 31, 2021. This increase was primarily driven by $14.6 million related to the BluJay and Logistyx acquisitions and an increase in personnel costs for items such as salaries and incentive compensation. Additionally, there was an increase of $5.3 million for software and hosting costs.

Cost of professional services revenue was $22.4 million for the three months ended August 31, 2022, an $11.4 million increase compared to $11.0 million for the three months ended August 31, 2021. The BluJay Acquisition in fiscal year 2022, Logistyx Acquisition in fiscal year 2023, increased personnel costs such as salaries and incentive compensation and our investment in strategic system integrator partnerships accounted for $10.6 million of the increase in cost of professional services revenue.

Amortization of acquired intangible assets was $24.6 million for the three months ended August 31, 2022, a $12.2 million increase compared to $12.3 million for the three months ended August 31, 2021, driven primarily by the BluJay Acquisition in September 2021 and the Logistyx Acquisition in March 2022.

Our subscriptions gross margin was consistent for the second quarter of fiscal 2023 and 2022 at 54% primarily due to the $14.2 million amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination in fiscal 2022 offset by the additional revenue from the BluJay and Logistyx acquisitions in fiscal 2023. With the early adoption of ASU 2021-08, the BluJay and Logistyx deferred revenue was recorded under ASC 606 and not at fair value at the acquisition date; therefore, amortization of the fair value adjustment to deferred revenue similar to the Business Combination adjustment did not occur for the BluJay or Logistyx acquisitions.

Our professional services gross margin was down for the second quarter of fiscal 2023 at 23% compared to 33% in the second quarter of fiscal 2022 primarily due to a significant increase in our investment in strategic system integrator partnerships.

Research and Development

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Research and development	$	25,587		$	16,208		$	9,379		58	%
Percentage of revenue		16	%		21	%

Research and development expenses were $25.6 million for the three months ended August 31, 2022, a $9.4 million, or 58%, increase compared to $16.2 million in the prior year. The increase was primarily due to $8.7 million related to the BluJay and Logistyx acquisitions as well as major strategic partnership initiatives around product development efforts during fiscal year 2023, which resulted in net increased personnel costs such as salaries and incentive compensation and consulting expenses as compared to the prior year period.

Sales and Marketing

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Sales and marketing	$	22,745		$	11,174		$	11,571	nm
Percentage of revenue		14	%		14	%

Sales and marketing expenses were $22.7 million for the three months ended August 31, 2022, an $11.6 million increase compared to $11.2 million in the prior year. The increase was primarily driven by a $10.4 million increase due to the BluJay Acquisition in fiscal 2022 and Logistyx Acquisition in fiscal 2023 as well as additional expenses associated with corporate branding and hiring additional marketing resources.

General and Administrative

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
General and administrative	$	23,355		$	13,401		$	9,954		74	%
Percentage of revenue		15	%		17	%

38

General and administrative expenses were $23.4 million for the three months ended August 31, 2022, a $10.0 million, or 74%, increase compared to $13.4 million in the prior year. The increase of $4.5 million was primarily attributable to the BluJay and Logistyx acquisitions. Additionally, there was an increase of $2.0 million for share-based compensation. During the second quarter of fiscal 2023, we incurred a $2.4 million impairment on our operating lease right-of-use assets and leasehold improvements due to vacating locations with the intent to sublease them.

Other Operating Expenses

	Three Months Ended August 31,
($ in thousands)	2022		2021		$ Change			% Change
Acquisition and other related expenses	$	5,580	$	7,174	$	(1,594	)		-22	%
Amortization of acquired intangible assets		21,023		3,543		17,480		nm
Total other operating expenses	$	26,603	$	10,717	$	15,886		nm

Acquisition and other related expenses were $5.6 million for the three months ended August 31, 2022, a $1.6 million, or 22%, decrease compared to $7.2 million for the three months ended August 31, 2021. The decrease was mainly related to legal and consulting expenses associated with the BluJay Acquisition in fiscal 2022.

Amortization of acquired intangible assets were $21.0 million for the three months ended August 31, 2022, a $17.5 million increase, compared to $3.5 million for the three months ended August 31, 2021. The increase was a result of the BluJay Acquisition in September 2021 and Logistyx Acquisition in March 2022.

Goodwill Impairment

During the second quarter of fiscal 2023, the market price of our Class A Common Stock and market capitalization declined significantly. This decline resulted in us determining that a triggering event occurred and an interim goodwill impairment assessment was performed. The result of the impairment assessment was the realization of a $514.8 million impairment charge. We did not have an impairment charge in the prior year.

Interest and Other Expense, Net

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change			% Change
Interest and other expense, net	$	(18,049	)	$	(6,332	)	$	(11,717	)	nm

Interest and other expense, net was $18.0 million for the three months ended August 31, 2022, a $11.7 million increase compared to $6.3 million in the prior year. The increase was primarily driven by the additional term loans used for the BluJay Acquisition in September 2021 and Logistyx Acquisition in March 2022, as well as higher interest rates in fiscal year 2023.

Change in Tax Receivable Agreement

	Three Months Ended August 31,
($ in thousands)	2022		2021			$ Change		% Change
Change in tax receivable agreement liability	$	8,062	$	(637	)	$	8,699	nm

During the three months ended August 31, 2022, we recorded a gain of $8.1 million related to the change in the fair value of the tax receivable agreement liability, including interest, compared to a $0.6 million expense during the three months ended August 31, 2021. Pursuant to ASC 805, Business Combination and relevant tax law, we calculated the fair value of the tax receivable agreement payments and identified the timing of the utilization of the tax attributes. The tax receivable agreement liability, related to exchanges as of the Business Combination date, is revalued at the end of each reporting period with the gain or loss as well as the associated interest reflected in change in tax receivable agreement liability in the Condensed Consolidated Statements of Operations in the period in which the event occurred.

In addition, under ASC 450, transactions with partnership unit holders after the acquisition date will result in additional Tax Receivable Agreement liabilities that are recorded on a gross undiscounted basis. During the three months ended August 31, 2022 and 2021, the Tax Receivable Agreement liability under ASC 450 increased by $0.2 million and $10.1 million, respectively.

39

Gain (Loss) from Change in Fair Value of Warrant Liability

	Three Months Ended August 31,
($ in thousands)	2022		2021		$ Change			% Change
Gain from change in fair value of warrant     liability	$	15,159	$	18,727	$	(3,568	)		-19	%

We recorded a gain of $15.2 million during the three months ended August 31, 2022, a $3.6 million, or 19%, decrease compared to a gain of $18.7 million in the prior year for the change in fair value on the revaluation of our warrant liability associated with our public, private placement and forward purchase warrants. We are required to revalue the warrants at the end of each reporting period and reflect in the Condensed Consolidated Statements of Operations a gain or loss from the change in fair value of the warrant liability in the period in which the change occurred.

Gain (Loss) from Change in Fair Value of Contingent Consideration

	Three Months Ended August 31,
($ in thousands)	2022		2021			$ Change		% Change
Gain (loss) from change in fair value of     contingent consideration	$	7,260	$	(16,780	)	$	24,040	nm

We recorded a gain of $7.3 million during the three months ended August 31, 2022, a $24.0 million increase compared to a loss of $16.8 million in the prior year for the change in fair value on the revaluation of our contingent consideration associated with our restricted B-2 common stock and Series 2 RCUs. We are required to revalue the contingent consideration at the end of each reporting period or upon conversion and reflect in the Condensed Consolidated Statements of Operations a gain or loss from the change in fair value of the contingent consideration in the period in which the change occurred.

Provision for Income Taxes

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change			% Change
Loss before income taxes	$	(523,249	)	$	(17,994	)	$	(505,255	)	nm
Income tax benefit (expense)		113,664			(5,994	)		119,658		nm

Loss before income taxes was $523.2 million for the three months ended August 31, 2022, a $505.3 million increase compared to $18.0 million for the three months ended August 31, 2021. The increase in the loss was primarily related to the $514.8 impairment on goodwill taken in the second quarter of fiscal 2023. The remaining increase was related to $46.8 million of higher operating expenses, $11.7 million of higher interest expense, $17.5 million increase in the amortization of the intangible assets and a $3.6 lower gain on the change in the fair value adjustments for the warrant liability when compared to the prior year. These expenses were partially offset by a $38.9 million higher gross profit due to the BluJay and Logistyx acquisitions along with a decrease in the amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination of $14.1 million. Additionally, there was a $24.0 million increase in the gain associated with the fair value adjustments for the contingent consideration liability related to the restricted Series B-2 common stock and Series 2 RCUs when compared to the prior year.

Income tax benefit was $113.7 million, or 21.7%, for the three months ended August 31, 2022 compared to an income tax expense of $6.0 million, or 33.3%, for the three months ended August 31, 2021. The change in our effective tax rate between periods is primarily due to the reduction of our deferred tax liability as a result of the goodwill impairment and year-over-year changes in book losses in certain jurisdictions for which no benefit can be recognized, changes in the impact of book income and losses of affiliates on the carrying amount of our partnership investment and changes in the mark-to-market gains and losses on certain contingent liabilities.

40

Six Months Ended August 31, 2022 compared to Six Months Ended August 31, 2021

Revenue

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Revenue:
Subscriptions	$	261,168		$	112,759		$	148,409	nm
Professional services and other		59,889			31,647			28,242		89	%
Total revenue	$	321,057		$	144,406		$	176,651	nm
Percentage of revenue:
Subscriptions		81	%		78	%
Professional services and other		19	%		22	%
Total		100	%		100	%

Subscriptions revenue was $261.2 million for the six months ended August 31, 2022, a $148.4 million increase compared to subscriptions revenue of $112.8 million for the six months ended August 31, 2021. The increase in subscriptions revenue was primarily due to the BluJay Acquisition, Logistyx Acquisition and new organic subscription sales predominantly driven by increases in products utilized across our current client portfolio, as well as the $36.7 million amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination in the first half of fiscal 2022. With the early adoption of ASU 2021-08, a fair value adjustment to deferred revenue for the BluJay and Logistyx acquisitions was not recorded; therefore, amortization of the fair value adjustment to deferred revenue similar to the Business Combination adjustment did not occur for the BluJay and Logistyx acquisitions.

Professional services revenue was $59.9 million for the six months ended August 31, 2022, a $28.2 million, or 89%, increase compared to $31.6 million for the six months ended August 31, 2021. The increase was primarily related to the BluJay Acquisition and Logistyx Acquisition.

Our subscriptions revenue as a percentage of total revenue increased to 81% for the first half of fiscal year 2023 compared to 78% for the first half of fiscal 2022. The first half of fiscal 2022 included $36.7 million amortization related to the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination, reducing subscription revenue as a percentage of total revenue for that period.

Cost of Revenue, Gross Profit and Gross Margin

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Cost of revenue:
Subscriptions	$	69,436		$	32,754		$	36,682	nm
Professional services and other		43,029			21,107			21,922	nm
Amortization of acquired intangible assets		49,467			23,849			25,618	nm
Total cost of revenue	$	161,932		$	77,710		$	84,222	nm
Gross profit:
Subscriptions	$	142,265		$	56,156		$	86,109	nm
Professional services and other		16,860			10,540			6,320		60	%
Total gross profit	$	159,125		$	66,696		$	92,429	nm
Gross margin:
Subscriptions		54	%		50	%
Professional services and other		28	%		33	%
Total gross margin		50	%		46	%

Cost of subscriptions was $69.4 million for the six months ended August 31, 2022, a $36.7 million increase compared to $32.8 million for the six months ended August 31, 2021. This increase was primarily driven by $26.5 million related to the BluJay and Logistyx acquisitions and an increase in personnel costs for items such as salaries and incentive compensation. Additionally, there was an increase of $10.0 million for software and hosting costs.

41

Cost of professional services revenue was $43.0 million for the six months ended August 31, 2022, a $21.9 million increase compared to $21.1 million for the six months ended August 31, 2021. The BluJay Acquisition in fiscal year 2022, Logistyx Acquisition in fiscal year 2023, increased personnel costs such as salaries and incentive compensation and our investment in strategic system integrator partnerships accounted for $20.8 million of the increase in cost of professional services revenue.

Amortization of acquired intangible assets was $49.5 million for the six months ended August 31, 2022, a $25.6 million increase compared to $23.8 million for the six months ended August 31, 2021, driven primarily by the BluJay Acquisition in September 2021 and the Logistyx Acquisition in March 2022.

Our subscriptions gross margin was 54% in the first half of fiscal 2023 as compared to 50% for the first half of fiscal 2022 primarily due to the amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination offset by the additional revenue from the BluJay and Logistyx acquisitions in fiscal 2023. With the early adoption of ASU 2021-08, the BluJay and Logistyx deferred revenue was recorded under ASC 606 and not at fair value at the acquisition date; therefore, amortization of the fair value adjustment to deferred revenue similar to the Business Combination adjustment did not occur for the BluJay or Logistyx acquisitions.

Our professional services gross margin was down to 28% for first half of fiscal 2023 compared to 33% in the first half of fiscal 2022 primarily due to a significant increase in our investment in strategic system integrator partnerships.

Research and Development

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Research and development	$	48,149		$	31,909		$	16,240		51	%
Percentage of revenue		15	%		22	%

Research and development expenses were $48.1 million for the six months ended August 31, 2022, a $16.2 million, or 51%, increase compared to $31.9 million in the prior year. The increase was primarily due to $15.3 million related to the BluJay and Logistyx acquisitions as well as major strategic partnership initiatives around product development efforts during fiscal year 2023, which resulted in net increased personnel costs such as salaries and incentive compensation and consulting expenses as compared to the prior year period.

Sales and Marketing

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Sales and marketing	$	46,900		$	23,688		$	23,212		98	%
Percentage of revenue		15	%		16	%

Sales and marketing expenses were $46.9 million for the six months ended August 31, 2022, a $23.2 million increase compared to $23.7 million in the prior year. The increase was primarily driven by a $20.7 million increase due to the BluJay Acquisition in fiscal 2022 and Logistyx Acquisition in fiscal 2023 as well as additional expenses associated with corporate branding and hiring additional marketing resources. Additionally, there was an increase of $1.5 million for travel and entertainment.

General and Administrative

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
General and administrative	$	43,701		$	27,118		$	16,583		61	%
Percentage of revenue		14	%		19	%

General and administrative expenses were $43.7 million for the six months ended August 31, 2022, a $16.6 million increase compared to $27.1 million in the prior year. The increase of $9.9 million was primarily attributable to the BluJay and Logistyx acquisitions. Additionally, there was an increase of $2.5 million for share-based compensation. During the second quarter of fiscal 2023, we incurred a $2.4 million impairment on our operating lease right-of-use assets and leasehold improvements due to us vacating locations with the intent to sublease them.

42

Other Operating Expenses

	Six Months Ended August 31,
($ in thousands)	2022		2021		$ Change			% Change
Acquisition and other related expenses	$	12,344	$	16,952	$	(4,608	)		-27	%
Amortization of acquired intangible assets		42,558		7,373		35,185		nm
Total other operating expenses	$	54,902	$	24,325	$	30,577		nm

Acquisition and other related expenses were $12.3 million for the six months ended August 31, 2022, a $4.6 million, or 27%, decrease compared to $17.0 million for the six months ended August 31, 2021. The decrease was mainly related to legal and consulting expenses associated with the BluJay Acquisition in fiscal 2022.

Amortization of acquired intangible assets were $42.6 million for the six months ended August 31, 2022, a $35.2 million increase, compared to $7.4 million for the six months ended August 31, 2021. The increase was a result of the BluJay Acquisition in September 2021 and Logistyx Acquisition in March 2022.

Goodwill Impairment

As indicated above, the market price of our Class A Common Stock and market capitalization declined significantly during the second fiscal quarter of 2023. This decline resulted in us determining that a triggering event occurred and an interim goodwill impairment assessment was performed. The result of the impairment assessment was the realization of a $514.8 million impairment charge. We did not have an impairment charge in the prior year.

Interest and Other Expense, Net

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change			% Change
Interest and other expense, net	$	(33,462	)	$	(11,235	)	$	(22,227	)	nm

Interest and other expense, net was $33.5 million for the six months ended August 31, 2022, a $22.2 million increase compared to $11.2 million in the prior year. The increase was primarily driven by the additional term loans used for the BluJay Acquisition in September 2021 and Logistyx Acquisition, as well as higher interest rates in fiscal year 2023.

Change in Tax Receivable Agreement

	Six Months Ended August 31,
($ in thousands)	2022		2021			$ Change		% Change
Change in tax receivable agreement liability	$	6,392	$	(3,136	)	$	9,528	nm

During the six months ended August 31, 2022, we recorded a gain of $6.4 million related to the change in the fair value of the tax receivable agreement liability, including interest, compared to a $3.1 million expense during the six months ended August 31, 2021. Pursuant to ASC 805, Business Combination and relevant tax law, we calculated the fair value of the tax receivable agreement payments and identified the timing of the utilization of the tax attributes. The tax receivable agreement liability, related to exchanges as of the Business Combination date, is revalued at the end of each reporting period with the gain or loss as well as the associated interest reflected in change in tax receivable agreement liability in the Condensed Consolidated Statements of Operations in the period in which the event occurred.

In addition, under ASC 450, transactions with partnership unit holders after the acquisition date will result in additional Tax Receivable Agreement liabilities that are recorded on a gross undiscounted basis. During the six months ended August 31, 2022 and 2021, the Tax Receivable Agreement liability under ASC 450 increased by $0.2 million and $10.1 million, respectively.

Gain (Loss) from Change in Fair Value of Warrant Liability

	Six Months Ended August 31,
($ in thousands)	2022		2021			$ Change		% Change
Gain (loss) from change in fair value of     warrant liability	$	20,614	$	(41,216	)	$	61,830	nm

43

We recorded a gain of $20.6 million during the six months ended August 31, 2022, a $61.8 million increase compared to a loss of $41.2 million in the prior year for the change in fair value on the revaluation of our warrant liability associated with our public, private placement and forward purchase warrants. We are required to revalue the warrants at the end of each reporting period and reflect in the Condensed Consolidated Statements of Operations a gain or loss from the change in fair value of the warrant liability in the period in which the change occurred.

Gain (Loss) from Change in Fair Value of Contingent Consideration

	Six Months Ended August 31,
($ in thousands)	2022		2021			$ Change		% Change
Gain (loss) from change in fair value of     contingent consideration	$	11,460	$	(90,040	)	$	101,500	nm

We recorded a gain of $11.5 million during the six months ended August 31, 2022, a $101.5 million increase compared to a loss of $90.0 million in the prior year for the change in fair value on the revaluation of our contingent consideration associated with our restricted B-2 common stock and Series 2 RCUs. We are required to revalue the contingent consideration at the end of each reporting period or upon conversion and reflect in the Condensed Consolidated Statements of Operations a gain or loss from the change in fair value of the contingent consideration in the period in which the change occurred.

Provision for Income Taxes

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change			% Change
Loss before income taxes	$	(544,339	)	$	(185,971	)	$	(358,368	)	nm
Income tax benefit (expense)		122,133			(7,372	)		129,505		nm

Loss before income taxes was $544.3 million for the six months ended August 31, 2022, a $358.4 million increase compared to $186.0 million for the six months ended August 31, 2021. This increase in the loss was primarily related to the $514.8 million impairment on goodwill taken in the second quarter of fiscal 2023. The remaining increase was related to $86.6 million of higher operating expenses, $22.2 million of higher interest expense and a $35.2 million increase in the amortization of the intangible assets when compared to the prior year. These expenses were partially offset by a $92.4 million higher gross profit due to the BluJay and Logistyx acquisitions along with a decrease in the amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination of $36.5 million. Additionally, there was a $61.8 million gain on the change in the fair value adjustments for the warrant liability and a $101.5 million gain associated with the fair value adjustments for the contingent consideration liability related to the restricted Series B-2 common stock and Series 2 RCUs when compared to the prior year.

Income tax benefit was $122.1 million, or 22.4%, for the six months ended August 31, 2022 compared to an income tax expense of $7.4 million, or 4.0%, for the six months ended August 31, 2021. The change in our effective tax rate between periods is primarily due to the reduction in our deferred tax liability as a result of the goodwill impairment and year-over-year changes in book losses in certain jurisdictions for which no benefit can be recognized, changes in the impact of book income and losses of affiliates on the carrying amount of our partnership investment and changes in the mark-to-market gains and losses on certain contingent liabilities.

Non-GAAP Financial Measures

This document includes Non-GAAP revenue, Non-GAAP subscriptions revenue, Non-GAAP gross profit, Non-GAAP gross margin, EBITDA and Adjusted EBITDA, which are non-GAAP performance measures that we use to supplement our results presented in accordance with U.S. GAAP. We believe these non-GAAP measures are useful in evaluating our operating performance, as they are similar to measures reported by our public competitors and are regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance and prospects. These non-GAAP measures are not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

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We calculate and define Non-GAAP revenue and Non-GAAP subscriptions revenue as revenue excluding the impact of the deferred revenue fair value adjustment related to the purchase price allocation in the Business Combination. We calculate and define Non-GAAP gross profit as gross profit excluding amortization of the deferred revenue fair value adjustment, depreciation and amortization, share-based compensation and certain other non-cash and non-recurring items. We define and calculate EBITDA as net income or losses excluding interest income or expense, income tax expense or benefit, depreciation and amortization and Adjusted EBITDA as further adjusted for the following items: amortization of the deferred revenue fair value adjustment, goodwill impairment charge, right-of-use assets charge, transaction-related costs, changes in the tax receivable agreement liability, (gain) loss from changes in the fair value of the warrant liability and contingent consideration, share-based compensation and certain other non-cash and non-recurring items as described in the reconciliation below. We also report Non-GAAP gross profit and Adjusted EBITDA as a percentage of Non-GAAP revenue as additional measures to evaluate financial performance.

We include these non-GAAP financial measures because they are used by management to evaluate our core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. These non-GAAP measures exclude certain expenses that are required in accordance with U.S. GAAP because they are non-recurring (for example, in the case of transaction-related costs, goodwill impairment charge, right-of-use assets charge and amortization of the deferred revenue fair value adjustment), non-cash (for example, in the case of depreciation, amortization, changes in the tax receivable agreement liability, (gain) loss from changes in the fair value of the warrant liability and contingent consideration, share-based compensation and amortization of the deferred revenue fair value adjustment) or are not related to our underlying business performance (for example, in the case of interest income and expense). There are limitations to non-GAAP financial measures because they exclude charges and credits that are required to be included in the U.S. GAAP financial presentation. The items excluded from U.S. GAAP financial measures such as net income or loss to arrive at non-GAAP financial measures are significant components for understanding and assessing our financial performance. As a result, non-GAAP financial measures should be considered together with, and not alternatives to, financial measures prepared in accordance with U.S. GAAP.

The table below presents our Non-GAAP revenue reconciled to our reported revenue, the closest U.S. GAAP measure, for the periods indicated:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Subscriptions revenue	$	131,621	$	61,725	$	261,168	$	112,759
Business Combination adjustment (1)		—		14,203		—		36,705
Non-GAAP subscriptions revenue		131,621		75,928		261,168		149,464
Professional services and other revenue		29,055		16,354		59,889		31,647
Non-GAAP revenue	$	160,676	$	92,282	$	321,057	$	181,111

(1)Includes the amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination. As of February 28, 2022, the remaining balance of the deferred revenue purchase price adjustment was $0.5 million which results in an immaterial quarterly amortized amount reported in the Condensed Consolidated Statements of Operations; therefore, an amount will not be presented for fiscal 2023.

The table below presents our Non-GAAP gross profit reconciled to our reported gross profit, the closest U.S. GAAP measure, for the periods indicated:

	Three Months Ended August 31,						Six Months Ended August 31,
($ in thousands)	2022			2021			2022			2021
Gross profit
Reported gross profit	$	77,425		$	38,528		$	159,125		$	66,696
Business Combination adjustment (1)		—			14,203			—			36,705
Depreciation and amortization		28,638			14,943			57,059			29,052
Non-recurring/non-operating costs (2)		702			242			1,602			584
Share-based compensation (3)		90			210			320			530
Non-GAAP gross profit	$	106,855		$	68,126		$	218,106		$	133,567
Gross margin		48.2	%		49.3	%		49.6	%		46.2	%
Non-GAAP gross margin		66.5	%		73.8	%		67.9	%		73.7	%

(1)Includes the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination. As of February 28, 2022, the remaining balance of the deferred revenue purchase price adjustment was $0.5 million which results in an immaterial quarterly amortized amount reported in the Condensed Consolidated Statements of Operations; therefore, an amount will not be presented for fiscal 2023.

(2)Primarily includes other non-recurring expenses such as systems integrations and consulting and advisory fees.

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(3)Reflects non-cash, long-term share-based compensation expense, primarily related to senior management.

The table below presents our Adjusted EBITDA reconciled to our net loss, the closest U.S. GAAP measure, for the periods indicated:

	Three Months Ended August 31,						Six Months Ended August 31,
($ in thousands)	2022			2021			2022			2021
Net loss	$	(409,585	)	$	(23,988	)	$	(422,206	)	$	(193,343	)
Adjustments:
Interest expense, net		17,320			6,043			32,902			12,180
Income tax (benefit) expense		(113,664	)		5,994			(122,133	)		7,372
Depreciation and amortization		54,083			20,795			107,380			41,000
EBITDA		(451,846	)		8,844			(404,057	)		(132,791	)
EBITDA Margin		-281.2	%		11.3	%		-125.9	%		-92.0	%
Business Combination adjustment (1)		—			14,203			—			36,705
Goodwill impairment charge (2)		514,816			—			514,816			—
Right-of-use assets impairment charge (3)		2,376			—			2,376			—
Acquisition-related adjustments (4)		5,580			7,174			12,344			16,952
Change in tax receivable agreement liability (5)		(8,062	)		637			(6,392	)		3,136
(Gain) loss from change in fair value of warrant     liability (6)		(15,159	)		(18,727	)		(20,614	)		41,216
(Gain) loss from change in fair value of contingent     consideration (7)		(7,260	)		16,780			(11,460	)		90,040
Non-recurring/non-operating costs (8)		2,748			2,052			4,374			2,499
Share-based compensation (9)		5,154			2,537			8,360			4,934
Adjusted EBITDA	$	48,347		$	33,500		$	99,747		$	62,691
Adjusted EBITDA Margin		30.1	%		36.3	%		31.1	%		34.6	%

(1)Includes the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination. As of February 28, 2022, the remaining balance of the deferred revenue purchase price adjustment was $0.5 million which results in an immaterial quarterly amortized amount reported in the Condensed Consolidated Statements of Operations; therefore, an amount will not be presented for fiscal 2023.

(2)Represents the goodwill impairment taken in the second quarter of fiscal 2023.

(3)Represents the impairment on our operating lease right-of-use assets and leasehold improvements due to vacating certain facilities.

(4)Primarily includes advisory, consulting, accounting and legal expenses and severance incurred in connection with mergers and acquisitions activities including costs related to the Business Combination, BluJay Acquisition and Logistyx Acquisition.

(5)Represents the fair value adjustment at each balance sheet date for the Tax Receivable Agreement along with the associated interest.

(6)Represents the fair value adjustment at each balance sheet date of the warrant liability related to the public, private placement and forward purchase warrants.

(7)Represents the fair value adjustment at each balance sheet date of the contingent consideration liability related to the restricted Series B-1 and B-2 common stock, Sponsor Side Letter and Series 1 and 2 RCUs. The Series B-1 common stock, Sponsor Side Letter and Series 1 RCUs were automatically converted into our Class A Common Stock on a one-to-one basis as of June 8, 2021.

(8)Primarily includes non-recurring expenses such as systems integrations, legal entity rationalization and consulting and advisory fees. In addition, the second quarter of fiscal 2023 includes $0.8 million for executive severance.

(9)Reflects non-cash, long-term share-based compensation expense, primarily related to senior management. For the three months ended August 31, 2022 and 2021, share-based compensation included less than $0.1 million and less than $0.1 million expense, respectively, attributable to certain unit-based awards in connection with the Amber Road, Inc. acquisition in 2019. For the six months ended August 31, 2022 and 2021, share-based compensation included less than $0.1 million and $0.4 million expense, respectively, attributable to certain unit-based awards in connection with the Amber Road, Inc. acquisition

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Three Months Ended August 31, 2022 compared to Three Months Ended August 31, 2021

Non-GAAP Subscriptions Revenue

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Non-GAAP subscriptions revenue	$	131,621		$	75,928		$	55,693		73	%
Percentage of Non-GAAP revenue		82	%		82	%

Non-GAAP subscriptions revenue was $131.6 million for the three months ended August 31, 2022, a $55.7 million, or 73%, increase compared to $75.9 million for the three months ended August 31, 2021. The increase in Non-GAAP subscriptions revenue relates to the BluJay and Logistyx acquisitions and new organic subscription sales predominately driven by increases in products utilized across our client portfolio.

Non-GAAP Revenue

	Three Months Ended August 31,
($ in thousands)	2022		2021		$ Change		% Change
Non-GAAP revenue	$	160,676	$	92,282	$	68,394		74	%

Non-GAAP revenue was $160.7 million for the three months ended August 31, 2022, a $68.4 million increase compared to $92.3 million for the three months ended August 31, 2021. The increase in Non-GAAP revenue was mainly due to the $55.7 million increase in our subscriptions revenue related to the BluJay and Logistyx acquisitions and new organic sales driven by increases in products utilized across our current client portfolio. Additionally, $12.7 million of the increase was due to an increase in our professional services revenue primarily related to the BluJay and Logistyx acquisitions.

Gross Profit

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Gross profit	$	77,425		$	38,528		$	38,897	nm
Gross margin		48.2	%		49.3	%

Gross profit was $77.4 million for the three months ended August 31, 2022, a $38.9 million increase compared to $38.5 million for three months ended August 31, 2021. The increase in gross profit was primarily due to the BluJay and Logistyx acquisitions as well as the decrease in the amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination of $36.7 million. Gross margin was 48% for the second quarter of fiscal 2023 compared to 49% for the second quarter of fiscal 2022.

Non-GAAP Gross Profit

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Non-GAAP gross profit	$	106,855		$	68,126		$	38,729		57	%
Non-GAAP gross margin		66.5	%		73.8	%

Non-GAAP gross profit was $106.9 million for the three months ended August 31, 2022, a $38.7 million, or 57%, increase compared to $68.1 million for the three months ended August 31, 2021. The increase in adjusted gross profit was primarily due to the BluJay and Logistyx acquisitions. The Non-GAAP gross margin decreased in the second quarter of fiscal 2023 to 67% compared to 74% in the second quarter of fiscal 2022 due to a significant increase in our investment in strategic system integrator partnerships as well as increased hosting and labor costs.

EBITDA

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change			% Change
EBITDA	$	(451,846	)	$	8,844		$	(460,690	)	nm
EBITDA margin		-281.2	%		11.3	%

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EBITDA was a loss of $451.8 million for the three months ended August 31, 2022, a $460.7 million decrease compared to $8.8 million for three months ended August 31, 2021. EBITDA margins decreased to a negative 281% for the second quarter of fiscal 2023 compared to 11% in the prior year. The decrease in EBITDA and EBITDA margin was primarily related to the $514.8 million goodwill impairment taken in the second quarter of fiscal 2023 and a $3.6 million smaller gain on the change in fair value of the warrant liability in fiscal 2023 as compared to fiscal 2022. These changes were partially offset by a decrease of $14.2 million in the amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination. Additionally, there was a $24.0 million higher gain associated with the fair value adjustment for the contingent consideration liability related to the restricted Series B-2 common stock when compared to the second quarter of fiscal 2022.

Adjusted EBITDA

	Three Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Adjusted EBITDA	$	48,347		$	33,500		$	14,847		44	%
Adjusted EBITDA margin		30.1	%		36.3	%

Adjusted EBITDA was $48.3 million for the three months ended August 31, 2022, a $14.8 million, or 44%, increase compared to $33.5 million for the three months ended August 31, 2021. Adjusted EBITDA margin was 30% for the second quarter of fiscal 2023 compared to 36% for the second quarter of fiscal 2022 primarily due to lower gross margin driven by a significant increase in our investment in strategic system integrator partnerships as well as increased hosting and labor costs.

Six Months Ended August 31, 2022 compared to Six Months Ended August 31, 2021

Non-GAAP Subscriptions Revenue

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Non-GAAP subscriptions revenue	$	261,168		$	149,464		$	111,704		75	%
Percentage of Non-GAAP revenue		81	%		83	%

Non-GAAP subscriptions revenue was $261.2 million for the six months ended August 31, 2022, a $111.7 million, or 75%, increase compared to $149.5 million for the six months ended August 31, 2021. The increase in Non-GAAP subscriptions revenue relates to the BluJay and Logistyx acquisitions and new organic subscription sales predominately driven by increases in products utilized across our client portfolio.

Non-GAAP Revenue

	Six Months Ended August 31,
($ in thousands)	2022		2021		$ Change		% Change
Non-GAAP revenue	$	321,057	$	181,111	$	139,946		77	%

Non-GAAP revenue was $321.1 million for the six months ended August 31, 2022, a $139.9 million, or 77%, increase compared to $181.1 million for the six months ended August 31, 2021. The increase in Non-GAAP revenue was mainly due to the $111.7 million increase in our subscriptions revenue related to the BluJay and Logistyx acquisitions and new organic sales driven by increases in products utilized across our current client portfolio. Additionally, $28.2 million of the increase was due to an increase in our professional services revenue primarily related to the BluJay and Logistyx acquisitions.

Gross Profit

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Gross profit	$	159,125		$	66,696		$	92,429	nm
Gross margin		49.6	%		46.2	%

Gross profit was $159.1 million for the six months ended August 31, 2022, a $92.4 million increase compared to $66.7 million for six months ended August 31, 2021. The increase in gross profit was primarily due to the BluJay and Logistyx acquisitions as well as the decrease in the amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination of $36.7 million. Gross margin was 50% for the first half of fiscal 2023 compared to 46% for the first half of fiscal 2022.

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Non-GAAP Gross Profit

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Non-GAAP gross profit	$	218,106		$	133,567		$	84,539		63	%
Non-GAAP gross margin		67.9	%		73.7	%

Non-GAAP gross profit was $218.1 million for the six months ended August 31, 2022, an $84.5 million, or 63%, increase compared to $133.6 million for the six months ended August 31, 2021. The increase in adjusted gross profit was primarily due to the BluJay and Logistyx acquisitions. The Non-GAAP gross margin decreased in the first half of fiscal 2023 to 68% compared to 74% in the first half of fiscal 2022 due to a significant increase in our investment in strategic system integrator partnerships as well as increased hosting and labor costs.

EBITDA

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change			% Change
EBITDA	$	(404,057	)	$	(132,791	)	$	(271,266	)	nm
EBITDA margin		-125.9	%		-92.0	%

EBITDA was a loss of $404.1 million for the six months ended August 31, 2022, a $271.3 million increase compared to a loss of $132.8 million for six months ended August 31, 2021. EBITDA margins were a negative 126% for the first half of fiscal 2023 compared to a negative 92% in the prior year. The decrease in EBITDA and EBITDA margin was primarily related to the $514.8 million goodwill impairment taken in the second quarter of fiscal 2023. This expense was partially offset by a decrease of $36.5 million in the amortization of the fair value adjustment to deferred revenue related to the purchase price allocation in the Business Combination. Additionally, there was a $3.8 million decrease in acquisition related expenses, higher revenues in fiscal 2023, a $61.8 million higher gain for the fair value adjustment for the warrant liability and a $101.5 million higher gain associated with the fair value adjustment for the contingent consideration liability related to the restricted Series B-2 common stock when compared to the second quarter of fiscal 2022.

Adjusted EBITDA

	Six Months Ended August 31,
($ in thousands)	2022			2021			$ Change		% Change
Adjusted EBITDA	$	99,747		$	62,691		$	37,056		59	%
Adjusted EBITDA margin		31.1	%		34.6	%

Adjusted EBITDA was $99.7 million for the six months ended August 31, 2022, a $37.1 million, or 59%, increase compared to $62.7 million for the six months ended August 31, 2021. Adjusted EBITDA margin was 31% for the first half of fiscal 2023 compared to 35% for the first half of fiscal 2022 primarily due to a lower gross margin driven by a significant increase in our investment in strategic system integrator partnerships as well as increased hosting and labor costs.

Liquidity and Capital Resources

We measure liquidity in terms of our ability to fund the cash requirements of our business operations, including working capital, capital expenditure needs, contractual obligations and other commitments, with cash flows from operations and other sources of funding. Current working capital needs relate mainly to employee compensation and benefits, as well as interest and debt. Our ability to expand and grow our business will depend on many factors, including working capital needs and the evolution of our operating cash flows.

We had $98.1 million in cash and cash equivalents and $155.0 million of unused borrowing capacity under our 2021 Revolving Credit Facility as of August 31, 2022. See Note 13, Notes Payable to the Notes to the Unaudited Condensed Consolidated Financial Statements. We believe our existing cash and cash equivalents, cash provided by operating activities and, if necessary, the borrowing capacity under our 2021 Revolving Credit Facility will be sufficient to meet our working capital, debt repayment, capital expenditure requirements and share repurchases for at least the next twelve months.

In the future, we may enter into arrangements to acquire or invest in complementary businesses. To facilitate these acquisitions or investments, we may seek additional equity or debt financing.

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Share Repurchase Program

On January 20, 2022, our board of directors approved the 2022 Share Repurchase Program. Share repurchases may be made from time to time in the open market, in privately negotiated transactions, pursuant to other Rule 10b5-1 trading plans or other available means. The 2022 Share Repurchase Program is subject to market conditions and other factors, and does not obligate us to repurchase any dollar amount or number of Class A Common Stock and the program may be extended, modified, suspended or discontinued at any time, without prior notice. We plan to fund this program with cash on hand.

No shares of Class A Common Stock have been repurchased to date.

Debt

2021 Term Loan and Revolving Credit Facility

On February 4, 2021, E2open, LLC, our subsidiary, entered into the Credit Agreement which provided for the 2021 Term Loan in the amount of $525.0 million and the 2021 Revolving Credit Facility for $75.0 million. On September 1, 2021, the Credit Agreement was amended to include a $380.0 million incremental term loan, an increase in the letter of credit sublimit from $15.0 million to $30.0 million and an increase in the 2021 Revolving Credit Facility from $75.0 million to $155.0 million. On April 6, 2022, the Credit Agreement was amended to include a $190.0 million incremental term loan.

The 2021 Revolving Credit Facility will mature on February 4, 2026. E2open, LLC can request increases in the revolving commitments and additional term loan facilities, in minimum amounts of $2.0 million for each facility. Principal payments are due on the Credit Agreement the last day of each February, May, August and November commencing August 2021. The Credit Agreement was payable in quarterly installments of $1.3 million beginning in August 2021; however, the payments were increased to $2.3 million with the addition of the incremental term loan beginning in November 2021. The payment increased to $2.7 million with the addition of the $190.0 million incremental term loan beginning in May 2022. The Credit Agreement is payable in full on February 4, 2028.

The 2021 Term Loan has a variable interest rate which was 5.86% and 4.00% as of August 31, 2022 and February 28, 2022, respectively. As of August 31, 2022 and February 28, 2022, the 2021 Term Loan had a principal balance outstanding of $1,083.7 million and $899.2 million, respectively. There were no outstanding borrowings, no letters of credit and $155.0 million available borrowing capacity under the 2021 Revolving Credit Facility as of August 31, 2022. There were $80.0 million of borrowings outstanding at an interest rate of 5.25%, no outstanding letters of credit and $75.0 million available borrowing capacity under the 2021 Revolving Credit Facility as of February 28, 2022.

During September 2022, we borrowed an aggregate of $25.0 million under our 2021 Revolving Credit Facility at a weighted average interest rate of 5.64%. All the funds will be used for general operating activities.

Cash Flows

The following table presents net cash from operating, investing and financing activities:

	Six Months Ended August 31,
($ in thousands)	2022			2021
Net cash provided by operating activities	$	2,164		$	41,484
Net cash used in investing activities		(158,725	)		(17,372	)
Net cash provided by financing activities		95,767			253,276
Effect of exchange rate changes on cash and cash equivalents		1,700			(1,244	)
Net (decrease) increase in cash, cash equivalents and restricted cash		(59,094	)		276,144
Cash, cash equivalents and restricted cash at beginning of period		174,554			207,542
Cash, cash equivalents and restricted cash at end of period	$	115,460		$	483,686

Six Months Ended August 31, 2022 compared to Six Months Ended August 31, 2021

As of August 31, 2022, our consolidated cash, cash equivalents and restricted cash was $115.5 million, a $59.1 million decrease from our balance of $174.6 million as of February 28, 2022.

Net cash provided by operating activities for the six months ended August 31, 2022 was $2.2 million compared to $41.5 million for the six months ended August 31, 2021. The $39.3 million decrease in cash was primarily driven by the use of $90.0 million of cash for working capital items such as the decrease in cash provided by accounts receivable, the increase in cash for accounts payable and accrued liabilities and the recognition of deferred revenue in the first half of fiscal 2023 compared to the first half of fiscal 2022. This decrease in cash was partially offset by the additional gross profits contributed by BluJay and Logistyx as well as organic growth.

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Net cash used in investing activities was $158.7 million and $17.4 million for the six months ended August 31, 2022 and 2021, respectively. During fiscal year 2023, net cash of $124.2 million was used for the Logistyx Acquisition. Additionally, we made a $3.0 million minority investment in a private firm during the first quarter of fiscal 2023. During the six months of fiscal 2023 and 2022, $31.6 million and $17.4 million were used for the acquisition of property and software related to our data centers, respectively.

Net cash provided by financing activities for the six months ended August 31, 2022 was $95.8 million compared to $253.3 million for six months ended August 31, 2021. The increase in cash provided by financing activities was mainly due to the $190.0 million incremental term loan that was used to repay the $80.0 million outstanding revolver balance and first deferred payment for the Logistyx Acquisition. Additionally, we paid $4.8 million in debt issuance costs related to the $190.0 million term loan during fiscal 2023 and repaid $5.5 million on the 2021 Term Loan.

Tax Receivable Agreement

Concurrently with the completion of the Business Combination, we entered into the Tax Receivable Agreement with certain selling equity holders of E2open Holdings that requires us to pay 85% of the tax savings that are realized because of increases in the tax basis of E2open Holdings' assets. This increase is either from the sale of Common Units or exchange of Common Units for shares of Class A Common Stock and cash, as well as tax benefits attributable to payments under the Tax Receivable Agreement, We will retain the benefit of the remaining 15% of these cash savings. The term of the Tax Receivable Agreement will continue until all such tax benefits have been utilized or expired unless we exercise our right to terminate the Tax Receivable Agreement for an amount representing the present value of anticipated future tax benefits under the Tax Receivable Agreement or certain other acceleration events occur.

Amounts payable under the Tax Receivable Agreement will be contingent upon, among other things, our generation of taxable income over the term of the Tax Receivable Agreement. If we do not generate sufficient taxable income in the aggregate over the term of the Tax Receivable Agreement to utilize the tax benefits subject to the Tax Receivable Agreement, we would not be required to make the related payments under the Tax Receivable Agreement. Although the amount of any payments required to be made under the Tax Receivable Agreement may be significant, the timing of these payments will vary and will generally be limited to one payment per member per year.

The liability related to the Tax Receivable Agreement was $60.4 million and $66.6 million as of August 31, 2022 and February 28, 2022, respectively, assuming (1) a constant corporate tax rate of 24.1%, (2) no dispositions of corporate subsidiaries, (3) no material changes in tax law and (4) we do not elect an early termination of the Tax Receivable Agreement. However, due to the uncertainty of various factors, including: (a) the timing and value of future exchanges, (b) the amount and timing of our future taxable income, (c) changes in our tax rate, (d) no future dispositions of any corporate stock, (e) changes in the tax law and (f) changes in the discount rate, the likely tax savings we will realize and the resulting amounts we are likely to pay to the selling equity holders of E2open Holdings pursuant to the Tax Receivable Agreement are uncertain. Additionally, interest will accrue on the portion of the Tax Receivable Agreement liability recorded under ASC 805 at a rate of LIBOR plus 100 basis points. The portion of the Tax Receivable Agreement liability under ASC 450 is recorded on a gross undiscounted basis.

The liability recorded on the balance sheet does not include an estimate of the amount of payments to be made if certain sellers exchanged their remaining interests in E2open Holdings for our common stock, as this amount is not readily determinable and is dependent on several future variables, including timing of future exchanges, stock price at date of exchange, tax attributes of the individual parties to the exchange and changes in future applicable federal and state tax rates.

In addition, if we exercise our right to terminate the Tax Receivable Agreement or certain other acceleration events occur, we will be required to make immediate cash payments. Such cash payments will be equal to the present value of the assumed future realized tax benefits based on a set of assumptions and using an agreed upon discount rate, as defined in the Tax Receivable Agreement. The early termination payment may be made significantly in advance of the actual realization, if any, of those future tax benefits. Such payments will be calculated based on certain assumptions, including that we have sufficient taxable income to utilize the full amount of any tax benefits subject to the Tax Receivable Agreement over the period specified therein. The payments that we would be required to make will generally reduce the amount of the overall cash flow that might have otherwise been available to us, but we expect the cash tax savings we will realize from the utilization of the related tax benefits will exceed the amount of any required payments.

We are entitled to receive quarterly tax distributions from E2open Holdings, subject to limitations imposed by applicable law and contractual restrictions. The cash received from such tax distributions will first be used to satisfy any tax liability and then make any payments required under the Tax Receivable Agreement. We expect that such tax distributions will be sufficient to fund both our tax liability and the required payments under the Tax Receivable Agreement.

51

Contingent Consideration

The contingent consideration liability was $34.1 million and $45.6 million as of August 31, 2022 and February 28, 2022, respectively. The fair value remeasurements resulted in a gain of $7.3 million and loss of 16.8 million for the three months ended August 31, 2022 and 2021, respectively. The fair value remeasurements resulted in a gain of $11.5 million and a loss of $90.0 million for the six months ended August 31, 2022 and 2021, respectively. The contingent liability represents the Series B-1 common stock, Series B-2 common stock, Series 1 RCUs and Series 2 RCUs.

As of June 8, 2021, the Series B-1 common stock and Series 1 RCUs were no longer reflected as a contingent consideration liability as the 5-day VWAP of our Class A Common Stock exceeded $13.50 per share. This triggering event resulted in the 8,120,273 Series B-1 common stock converting into Class A Common Stock and 4,379,557 Series 1 RCUs becoming 4,379,557 Common Units of E2open Holdings along with entitling the holders of the newly vested common units to 4,379,557 shares of Class V Common Stock.

Logistyx Acquisition

On March 2, 2022, E2open, LLC acquired Logistyx Technologies, LLC for a purchase price of $185 million, and at an estimated fair value of $183.4 million, including $90 million paid in cash at closing. An additional $95 million was paid in two installments on May 31, 2022 and September 1, 2022. We had the option to finance the remaining payments, at our discretion, through cash or a combination of cash and Class A Common Stock. The May 31, 2022 payment of $37.4 million was paid with cash. The final payment for the Logistyx Acquisition of $57.6 million was due on August 29, 2022; however, the parties agreed to extend the payment to September 1, 2022 due to the finalization of the working capital adjustments and other contractual provisions. On September 1, 2022, E2open, LLC made a cash payment of $54.0 million to Logistyx for the final payment for the Logistyx Acquisition which reflected a working capital adjustment of $3.6 million.

Leases

We account for leases in accordance with ASC 842, Leases, which requires lessees to recognize lease liabilities and ROU assets on the balance sheet for contracts that provide lessees with the right to control the use of identified assets for periods of greater than 12 months.

Our non-cancelable operating leases for our office spaces and vehicles have various expiration dates through June 2030. Under these leases, our undiscounted future cash flows utilized in the calculation of the lease liabilities as of August 31, 2022 were: $4.7 million for September 1, 2022 through February 28, 2023, $8.8 million for fiscal 2024, $7.0 million for fiscal 2025, $4.6 million for fiscal 2026, $3.3 million for fiscal 2027 and $2.8 million thereafter. These numbers include interest of $3.2 million.

Our non-cancelable financing lease arrangements relate to software and computer equipment and have various expiration dates through October 2023. We have the right to purchase the software and computer equipment anytime during the lease or upon lease completion. Under these leases, our undiscounted future cash flows utilized in the calculation of the lease liabilities as of August 31, 2022 were: $0.2 million for September 1, 2022 through February 28, 2023 and $2.1 million for fiscal 2024. These numbers include interest of $0.1 million.

Critical Accounting Policies and Estimates

Our condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. Preparation of the financial statements requires management to make judgments, estimates and assumptions that impact the reported amount of revenue and expenses, assets and liabilities and the disclosure of contingent assets and liabilities. We consider an accounting judgment, estimate or assumption to be critical when (1) the estimate or assumption is complex in nature or requires a high degree of judgment and (2) the use of different judgments, estimates and assumptions could have a material impact on our condensed consolidated financial statements. Our significant accounting policies are described in Note 2, Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements in our 2022 Form 10-K.

There have been no changes to our critical accounting policies and estimates during the three and six months ended August 31, 2022 from those previously disclosed in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2022 Annual Report.

Recent Accounting Pronouncements

Recently issued and adopted accounting pronouncement are described in Note 2, Accounting Standards to the Notes to the Condensed Consolidated Financial Statements.

52

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes in the market risks during the three and six months ended August 31, 2022 from those previously disclosed in Part II, Item 7A., Quantitative and Qualitative Disclosures About Market Risk of our 2022 Form 10-K.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

We have disclosure controls and procedures in place to ensure that information required to be disclosed in our reports filed or submitted under the Securities and Exchange Act of 1934, as amended (Exchange Act) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. These controls and procedures are accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by the Quarterly Report. In designing and evaluating these disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating and implementing possible controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There have not been any changes in our internal controls over financial reporting during the quarter ended August 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We review our disclosure controls and procedures, which may include internal controls over financial reporting, on an ongoing basis. From time to time, management makes changes to enhance the effectiveness of these controls and ensure that they continue to meet the needs of our business over time.

PART II—Other Information

Item 1. Legal Proceedings.

From time to time, we are subject to contingencies that arise in the ordinary course of business. We record an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We do not currently believe the resolution of any such contingencies will have a material adverse effect upon our Condensed Consolidated Balance Sheets, Statements of Operations or Statements of Cash Flows.

Item 1A. Risk Factors.

There have been no material changes in our risk factors during the three and six months ended August 31, 2022 from those previously disclosed in Part I, Item 1A., Risk Factors of our 2022 Form 10-K. You should carefully consider the risk factors discussed in our 2022 Form 10-K, which could materially affect our business, financial condition or future results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition or future results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On January 20, 2022, the board of directors approved a $100.0 million share repurchase program (2022 Share Repurchase Program). Stock repurchases may be made from time to time in the open market, in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. The 2022 Share Repurchase Program is subject to market conditions and other factors, and does not obligate us to repurchase any dollar amount or number of our Class A Common Stock and the program may be extended, modified, suspended or discontinued at any time, without prior notice.

No shares of Class A Common Stock have been repurchased to date.

53

Item 6. Exhibits.

Furnish the exhibits required by Item 601 of Regulation S-K (§ 229.601 of this chapter).

Exhibit Number	Description
3.1	Certificate of Incorporation of the E2open Parent Holdings, Inc. (incorporated by reference to Exhibit 3.2 of E2open Parent Holdings, Inc.’s Form 8-K (File No. 001-39272) filed with the SEC on February 10, 2021).
3.2	Amendment to the Certificate of Incorporation of E2open Parent Holdings, Inc. (incorporated by reference to Exhibit 3.3 of E2open Parent Holdings, Inc.'s Form S-1 (File No. 333-259562) filed with the SEC on September 15, 2021).
3.3	Bylaws of the E2open Parent Holdings, Inc. (incorporated by reference to Exhibit 3.3 of E2open Parent Holdings, Inc.’s Form 8-K (File 001-39272) filed with the SEC of February 10, 2021).
31.1*	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File

* Filed herewith.

† Schedules to this exhibit have been omitted pursuant to Item 601(b)(2) of Registration S-K. The Registrant hereby agrees to furnish a copy of any omitted schedules to the Commission upon request

54

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	E2open Parent Holdings, Inc.
Date: October 11, 2022	By:	/s/ Michael A. Farlekas
		Michael A. Farlekas
		Chief Executive Officer
Date: October 11, 2022	By:	/s/ Marje Armstrong
		Marje Armstrong
		Chief Financial Officer

55

EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO RULES 13a-14(a) AND 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Michael A. Farlekas, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of E2open Parent Holdings, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 11, 2022	By:	/s/ Michael A. Farlekas
	Name:	Michael A. Farlekas
	Title:	Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

PURSUANT TO RULES 13a-14(a) AND 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Marje Armstrong, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of E2open Parent Holdings, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 11, 2022	By:	/s/ Marje Armstrong
	Name:	Marje Armstrong
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

In connection with the Quarterly Report of E2open Parent Holdings, Inc. (the “Company”) on Form 10-Q for the period ending August 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: October 11, 2022	By:	/s/ Michael A. Farlekas
	Name:	Michael A. Farlekas
	Title:	Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

In connection with the Quarterly Report of E2open Parent Holdings, Inc. (the “Company”) on Form 10-Q for the period ending August 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: October 11, 2022	By:	/s/ Marje Armstrong
	Name:	Marje Armstrong
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Aug. 31, 2022	Oct. 05, 2022
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2022
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Registrant Name	E2open Parent Holdings, Inc.
Entity Central Index Key	0001800347
Entity File Number	001-39272
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	86-1874570
Entity Address, Address Line One	9600 Great Hills Trail
Entity Address, Address Line Two	Suite 300E
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78759
City Area Code	866
Local Phone Number	432-6736
Document Quarterly Report	true
Document Transition Report	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--02-28
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		302,254,586
Class A ordinary shares
Document Information [Line Items]
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	ETWO
Security Exchange Name	NYSE
Warrants
Document Information [Line Items]
Title of 12(b) Security	Warrants to purchase one share of Class A Common Stock at an exercise price of $11.50
Trading Symbol	ETWO-WT
Security Exchange Name	NYSE

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022	May 31, 2021
Assets
Cash and cash equivalents	$ 98,056	$ 155,481
Restricted cash	17,404	19,073
Accounts receivable - net of allowance of $5,308 and $3,055 as of August 31, 2022 and February 28, 2022, respectively	154,772	155,341
Prepaid expenses and other current assets	30,527	26,243
Total current assets	300,759	356,138
Long-term investments	185	208
Goodwill	3,292,660	3,756,871
Intangible assets, net	1,136,109	1,181,390
Property and equipment, net	76,913	65,937
Operating lease right-of-use assets	24,839	28,102
Other noncurrent assets	20,771	16,809
Total assets	4,852,236	5,405,455
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities	115,465	131,246
Incentive program payable	17,404	19,073
Deferred revenue	177,068	190,992
Payable to Logistyx sellers	57,625
Current portion of notes payable	10,978	89,097
Current portion of operating lease obligations	8,106	7,652
Current portion of financing lease obligations	2,117	2,307
Total current liabilities	388,763	440,367
Long-term deferred revenue	2,650	1,141
Operating lease obligations	19,960	21,202
Financing lease obligations	74	1,950
Notes payable	1,046,397	863,577
Tax receivable agreement liability	60,429	66,590
Warrant liability	46,525	67,139
Contingent consideration	34,108	45,568
Deferred taxes	257,733	413,038
Other noncurrent liabilities	779	712
Total liabilities	1,857,418	1,921,284
Commitments and Contingencies (Note 27)
Stockholders' Equity
Additional paid-in capital	3,370,315	3,362,219
Accumulated other comprehensive loss	(91,681)	(19,019)
Accumulated deficit	(535,020)	(154,976)
Treasury stock, at cost: 176,654 shares	(2,473)	(2,473)
Total E2open Parent Holdings, Inc. equity	2,741,172	3,185,782
Noncontrolling interest	253,646	298,389
Total stockholders' equity	2,994,818	3,484,171	$ 2,311,521
Total liabilities and stockholders' equity	4,852,236	5,405,455
Class A ordinary shares
Stockholders' Equity
Common stock	31	31
Class V common stock
Stockholders' Equity
Common stock	0	0
Series B-1 common stock
Stockholders' Equity
Common stock	0	0
Series B-2 common stock
Stockholders' Equity
Common stock	$ 0	$ 0

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022
Accounts receivable, allowance	$ 5,308	$ 3,055
Treasury stock, shares	176,654
Class A ordinary shares
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	2,500,000,000	2,500,000,000
Common stock, shares issued	302,199,373	301,536,621
Common stock, shares outstanding	302,022,719	301,359,967
Class V common stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	42,747,890	42,747,890
Common stock, shares issued	33,192,007	33,560,839
Common stock, shares outstanding	33,192,007	33,560,839
Series B-1 common stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	9,000,000	9,000,000
Common stock, shares issued	94	94
Common stock, shares outstanding	94	94
Series B-2 common stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	4,000,000	4,000,000
Common stock, shares issued	3,372,184	3,372,184
Common stock, shares outstanding	3,372,184	3,372,184

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Revenue
Total revenue	$ 160,676	$ 78,079	$ 321,057	$ 144,406
Cost of Revenue
Amortization of acquired intangible assets	24,566	12,338	49,467	23,849
Total cost of revenue	83,251	39,551	161,932	77,710
Gross Profit	77,425	38,528	159,125	66,696
Operating Expenses
Research and development	25,587	16,208	48,149	31,909
Sales and marketing	22,745	11,174	46,900	23,688
General and administrative	23,355	13,401	43,701	27,118
Acquisition-related expenses	5,580	7,174	12,344	16,952
Amortization of acquired intangible assets	21,023	3,543	42,558	7,373
Goodwill impairment	514,816		514,816
Total operating expenses	613,106	51,500	708,468	107,040
Loss from operations	(535,681)	(12,972)	(549,343)	(40,344)
Other income (expense)
Interest and other expense, net	(18,049)	(6,332)	(33,462)	(11,235)
Change in tax receivable agreement liability	8,062	(637)	6,392	(3,136)
Gain (loss) from change in fair value of contingent consideration	7,260	(16,780)	11,460	(90,040)
Total other income (expenses)	12,432	(5,022)	5,004	(145,627)
Loss before income tax provision	(523,249)	(17,994)	(544,339)	(185,971)
Income tax benefit (expense)	113,664	(5,994)	122,133	(7,372)
Net loss	(409,585)	(23,988)	(422,206)	(193,343)
Less: Net loss attributable to noncontrolling interest	(40,897)	(3,471)	(42,162)	(30,568)
Net loss attributable to E2open Parent Holdings, Inc.	$ (368,688)	$ (20,517)	$ (380,044)	$ (162,775)
Weighted average common shares outstanding:
Basic	301,898	195,148	301,635	191,099
Diluted	301,898	195,148	301,635	191,099
Net loss attributable to E2open Parent Holdings, Inc. common shareholders per share:
Basic	$ (1.22)	$ (0.11)	$ (1.26)	$ (0.85)
Diluted	$ (1.22)	$ (0.11)	$ (1.26)	$ (0.85)
Warrants
Other income (expense)
Gain (loss) from change in fair value of warrant liability	$ 15,159	$ 18,727	$ 20,614	$ (41,216)
Subscriptions
Revenue
Total revenue	131,621	61,725	261,168	112,759
Cost of Revenue
Cost of Revenue	36,302	16,246	69,436	32,754
Professional Services and Other
Revenue
Total revenue	29,055	16,354	59,889	31,647
Cost of Revenue
Cost of Revenue	$ 22,383	$ 10,967	$ 43,029	$ 21,107

XML

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (409,585)	$ (23,988)	$ (422,206)	$ (193,343)
Other comprehensive loss, net:
Net foreign currency translation loss, net of tax of $27,654 as of August 31, 2022	(41,755)	(6,523)	(72,455)	(5,048)
Net deferred losses on cash flow hedges	(207)		(207)
Total other comprehensive loss, net	(41,962)	(6,523)	(72,662)	(5,048)
Comprehensive loss	(451,547)	(30,511)	(494,868)	(198,391)
Less: Comprehensive loss attributable to noncontrolling interest	(45,076)	(4,505)	(49,418)	(31,366)
Comprehensive loss attributable to E2open Parent Holdings, Inc.	$ (406,471)	$ (26,006)	$ (445,450)	$ (167,025)

XML

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) $ in Thousands	6 Months Ended
	Aug. 31, 2022 USD ($)
Statement of Comprehensive Income [Abstract]
Foreign currency translation (loss) income, tax	$ 27,654

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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Accumulated Deficit)	Treasury Stock	Parent	Noncontrolling Interest
Balance at Feb. 28, 2021	$ 2,477,358	$ 19	$ 2,071,206	$ 2,388	$ 10,800		$ 2,084,413	$ 392,945
Share-based compensation	2,043		2,043				2,043
Other comprehensive income (loss)	1,475			1,475			1,475
Net loss	(169,355)				(142,258)		(142,258)	(27,097)
Balance at May. 31, 2021	2,311,521	19	2,073,249	3,863	(131,458)		1,945,673	365,848
Balance at Feb. 28, 2021	2,477,358	19	2,071,206	2,388	10,800		2,084,413	392,945
Other comprehensive income (loss)	(5,048)
Net loss	(193,343)
Balance at Aug. 31, 2021	2,434,732	20	2,272,139	(2,660)	(151,975)	$ (2,473)	2,115,051	319,681
Balance at May. 31, 2021	2,311,521	19	2,073,249	3,863	(131,458)		1,945,673	365,848
Share-based compensation	2,509		2,509				2,509
Business Combination purchase price adjustment	2,965		1,666				1,666	1,299
Conversion of Common Units to Common Stock	(16,767)		27,228				27,228	(43,995)
Conversion of Series B-1 Shares to Common Stock	172,527	1	174,999			(2,473)	172,527
Impact of common unit conversion on tax receivable agreement	(7,512)		(7,512)				(7,512)
Other comprehensive income (loss)	(6,523)			(6,523)			(6,523)
Net loss	(23,988)				(20,517)		(20,517)	(3,471)
Balance at Aug. 31, 2021	2,434,732	20	2,272,139	(2,660)	(151,975)	(2,473)	2,115,051	319,681
Balance at Feb. 28, 2022	3,484,171	31	3,362,219	(19,019)	(154,976)	(2,473)	3,185,782	298,389
Share-based compensation	3,188		3,188				3,188
Conversion of Common Units to Common Stock			195				195	(195)
Vesting of restricted stock awards, net of shares withheld for taxes	(1,330)		(1,330)				(1,330)
Other comprehensive income (loss)	(30,700)			(30,700)			(30,700)
Net loss	(12,621)				(11,356)		(11,356)	(1,265)
Balance at May. 31, 2022	3,442,708	31	3,364,272	(49,719)	(166,332)	(2,473)	3,145,779	296,929
Balance at Feb. 28, 2022	3,484,171	31	3,362,219	(19,019)	(154,976)	(2,473)	3,185,782	298,389
Vesting of restricted stock awards, net of shares withheld for taxes	(1,254)
Other comprehensive income (loss)	(72,662)
Net loss	(422,206)
Balance at Aug. 31, 2022	2,994,818	31	3,370,315	(91,681)	(535,020)	(2,473)	2,741,172	253,646
Balance at May. 31, 2022	3,442,708	31	3,364,272	(49,719)	(166,332)	(2,473)	3,145,779	296,929
Share-based compensation	5,154		5,154				5,154
Conversion of Common Units to Common Stock	(1,397)		989				989	(2,386)
Vesting of restricted stock awards, net of shares withheld for taxes	76		76				76
Impact of common unit conversion on tax receivable agreement	(176)		(176)				(176)
Other comprehensive income (loss)	(41,962)			(41,962)			(41,962)
Net loss	(409,585)				(368,688)		(368,688)	(40,897)
Balance at Aug. 31, 2022	$ 2,994,818	$ 31	$ 3,370,315	$ (91,681)	$ (535,020)	$ (2,473)	$ 2,741,172	$ 253,646

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Aug. 31, 2022	May 31, 2022	Aug. 31, 2021	May 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Cash flows from operating activities
Net loss	$ (409,585)	$ (12,621)	$ (23,988)	$ (169,355)	$ (422,206)	$ (193,343)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization					107,380	41,000
Amortization of deferred commissions					1,838	410
Provision for credit losses					266	303
Amortization of debt issuance costs					2,487	1,334
Amortization of operating lease right-of-use assets					3,960	3,742
Share-based compensation					8,342	4,552
Deferred income taxes					(133,632)	4,450
Right-of-use assets impairment charge					2,376
Goodwill impairment charge	514,816				514,816
Change in tax receivable agreement liability	(8,062)		637		(6,392)	3,136
(Gain) loss from change in fair value of contingent consideration	(7,260)		16,780		(11,460)	90,040
Loss (gain) on disposal of property and equipment					162	(236)
Changes in operating assets and liabilities:
Accounts receivable					5,610	44,785
Prepaid expenses and other current assets					257	(6,401)
Other noncurrent assets					(2,493)	(3,232)
Accounts payable and accrued liabilities					(15,726)	(1,453)
Incentive program payable					(1,669)	(2,272)
Deferred revenue					(23,162)	20,083
Changes in other liabilities					(7,976)	(6,630)
Net cash provided by operating activities					2,164	41,484
Cash flows from investing activities
Payments for acquisitions - net of cash acquired					(124,168)
Capital expenditures					(31,557)	(17,372)
Minority investment in private firm					(3,000)
Net cash used in investing activities					(158,725)	(17,372)
Cash flows from financing activities
Proceeds from PIPE financing						280,000
Proceeds from indebtedness					190,000
Repayments of indebtedness					(85,857)	(1,582)
Repayments of financing lease obligations					(2,213)	(5,902)
Repurchase of common stock						(2,473)
Repurchase of common units					(1,397)	(16,767)
Payments of debt issuance costs					(4,766)
Net cash provided by financing activities					95,767	253,276
Effect of exchange rate changes on cash and cash equivalents					1,700	(1,244)
Net (decrease) increase in cash, cash equivalents and restricted cash					(59,094)	276,144
Cash, cash equivalents and restricted cash at beginning of period		$ 174,554		$ 207,542	174,554	207,542	$ 207,542
Cash, cash equivalents and restricted cash at end of period	115,460		483,686		115,460	483,686	174,554
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	98,056		473,133		98,056	473,133	155,481
Restricted cash	17,404		10,553		17,404	10,553
Total cash, cash equivalents and restricted cash	115,460		483,686		115,460	483,686	$ 174,554
Warrants
Adjustments to reconcile net loss to net cash from operating activities:
(Gain) loss from change in fair value of warrant liability	$ (15,159)		$ (18,727)		$ (20,614)	$ 41,216

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Organization and Basis of Presentation

6 Months Ended

Aug. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

1. Organization and Basis of Presentation

Organization and Description of Business

CC Neuberger Principal Holdings I (CCNB1) was a blank check company incorporated in the Cayman Islands on January 14, 2020 for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. CCNB1’s sponsor was CC Neuberger Principal Holdings I Sponsor LLC, a Delaware limited liability company (Sponsor). CCNB1 became a public company on April 28, 2020 through an initial public offering (IPO).

On February 4, 2021 (Closing Date), CCNB1 and E2open Holdings, LLC and its operating subsidiaries (E2open Holdings) completed a business combination (Business Combination) contemplated by the definitive Business Combination Agreement entered into on October 14, 2020 (Business Combination Agreement). In connection with the finalization of the Business Combination, CCNB1 changed its name to “E2open Parent Holdings, Inc.” (E2open) and changed its jurisdiction of incorporation from the Cayman Islands to the State of Delaware (Domestication).

Immediately following the Domestication, various entities merged with and into E2open, with E2open as the surviving company. Additionally, E2open Holdings became a subsidiary of E2open with the equity interests of E2open Holdings held by E2open and existing owners of E2open Holdings. The existing owners of E2open Holdings are considered noncontrolling interests in the condensed consolidated financial statements.

We are headquartered in Austin, Texas. We are a leading provider of cloud-based, end-to-end omni-channel and supply chain management software. Our software combines networks, data and applications to provide a deeply embedded, mission-critical platform that allows clients to optimize their supply chain by accelerating growth, reducing costs, increasing visibility and driving improved resiliency. Given the business-critical nature of our solutions, we maintain deep, long-term relationships with our clients across a wide range of end-markets, including technology, consumer, industrial and transportation, among others.

Basis of Presentation

These unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. Investments in other companies are carried at cost. See Note 10, Investments for additional information. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended August 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending February 28, 2023. For further information, refer to the consolidated financial statements and notes thereto included in our 2022 Form 10-K.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. Such management estimates include allowance for credit losses, goodwill and other long-lived assets, estimates of standalone selling price of performance obligations for revenue contracts with multiple performance obligations, share-based compensation, valuation allowances for deferred tax assets and uncertain tax positions, tax receivable agreement liability, warrants, contingent consideration and the accounting for business combinations. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates.

Reclassifications

During the second quarter of fiscal 2023, we began reporting deferred income taxes as a separate line as part of operating activities in the Condensed Consolidated Statements of Cash Flows. As a result, we reclassed $4.5 million from the change in other liabilities to deferred income taxes for the six months ended August 31, 2021.

Seasonality

Our quarterly operating results have fluctuated in the past and are expected to fluctuate in the future due to a variety of factors, many of which are outside of our control, including seasonality in our business as a result of client budget cycles and customary European vacation schedules, with higher sales typically in the third and fourth fiscal quarters. As a result, our past results may not be indicative of our future performance and comparing our operating results on a period-to-period basis may not be meaningful.

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Accounting Standards

6 Months Ended

Aug. 31, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

Accounting Standards

2. Accounting Standards

Recent Accounting Guidance Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting to simplify the accounting for contract modifications made to replace LIBOR or other reference rates that are expected to be discontinued because of the reference rate reform. The guidance provides optional expediates and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criterion are met. The optional expedients and exceptions can be applied to contract modifications made until December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in ASU 2021-01 are elective and apply to our debt instruments that may be modified as a result of the reference rate reform. We are continuing to evaluate these standards, as well as the timing of the transition of various rates in our debt instruments affected by reference rate reform.

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Acquisitions

6 Months Ended

Aug. 31, 2022

Business Combinations [Abstract]

Acquisitions

3. Acquisitions

Logistyx Acquisition

On March 2, 2022, E2open, LLC acquired all of the issued and outstanding membership interests of Logistyx for a purchase price of $185 million, with an estimated fair value of $183.4 million, including $90 million paid in cash at closing (Logistyx Acquisition). An additional $95 million, subject to standard working capital adjustments and other contractual provisions, was paid in two installments on May 31, 2022 and September 1, 2022. We had the option to finance the remaining payments, at our discretion, through cash or a combination of cash and Class A Common Stock. The May 31, 2022 payment of $37.4 million was paid in cash. The final payment for the Logistyx Acquisition of $57.6 million was due on August 29, 2022; however, the parties agreed to extend the payment to September 1, 2022 due to the finalization of the working capital adjustments and other contractual provisions. See Note 29, Subsequent Events for additional information.

The Logistyx Acquisition was accounted for as a business combination under ASC 805, Business Combinations.

The following summarizes the consideration paid for the Logistyx Acquisition.

($ in thousands)	Fair Value
Cash consideration to Logistyx at fair value	$	153,090
Cash repayment of debt		29,777
Cash paid for seller transaction costs		489
Estimated consideration paid for the Logistyx Acquisition	$	183,356

We recorded the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their fair values as of March 2, 2022. The preliminary purchase price allocation is as follows:

($ in thousands)	Preliminary Purchase Price Allocation			Adjustments (3)			Updated Preliminary Purchase Price Allocation
Cash and cash equivalents	$	1,563		$	—		$	1,563
Account receivable, net		5,332			—			5,332
Other current assets		3,335			—			3,335
Property and equipment, net		144			—			144
Intangible assets		67,200			(400	)		66,800
Goodwill (1)		125,896			400			126,296
Non-current assets		619			—			619
Accounts payable		(5,897	)		—			(5,897	)
Current liabilities		(3,931	)		—			(3,931	)
Deferred revenue (2)		(10,747	)		—			(10,747	)
Non-current liabilities		(158	)		—			(158	)
Total assets acquired and liabilities assumed	$	183,356		$	—		$	183,356

(1)Goodwill represents the excess of the purchase price over the estimated fair value of the identifiable net assets acquired in the Logistyx Acquisition. Goodwill associated with the Logistyx Acquisition is deductible for tax purposes at the U.S. entity level.

(2)The deferred revenue was recorded under ASC 606 in accordance with ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers; therefore, a reduction in deferred revenues related to the estimated fair values of the acquired deferred revenues was not required.

(3)The adjustments primarily relate to the change in fair value of the intangible assets due to a change in the deferred revenue.

The fair value of the intangible assets is as follows:

($ in thousands)	Useful Lives	Fair Value
Trade name	1	$	500
Developed technology (1)	6.4		33,500
Client relationships (2)	13		32,000
Backlog (3)	2.5		800
Total intangible assets		$	66,800

(1)The developed technology represents technology developed by Logistyx and acquired by E2open, which was valued using the multi-period excess earnings method, a form of the income approach considering technology migration.

(2)The client relationships represent the existing client relationships of Logistyx and acquired by E2open that was estimated by applying the with-and-without methodology, a form of the income approach.

(3)The backlog represents the present value of future cash flows from contracts with clients where service has not been performed and billing has not occurred.

The preliminary allocation of the purchase price is based on preliminary valuations performed to determine the fair value of the net assets as of March 2, 2022. This allocation is subject to revision as the assessment is based on preliminary information subject to refinement.

We incurred $3.6 million ($0.7 million as of February 28, 2022) of expenses directly related to the Logistyx Acquisition through August 31, 2022 which are included in acquisition-related expense in the Condensed Consolidated Statements of Operations. Included in these expenses were $1.6 million acquisition-related advisory fees which were incurred on March 2, 2022. At the closing of the Logistyx Acquisition, we paid $0.5 million of acquisition-related advisory fees and other expenses related to the Logistyx Acquisition on behalf of Logistyx. These expenses were part of the purchase price consideration and not recognized as expense in our or Logistyx's Condensed Consolidated Statements of Operations.

BluJay Acquisition

On May 27, 2021, we entered into a Purchase Agreement with the BluJay Sellers to acquire all of the outstanding equity of BluJay. On September 1, 2021 (Acquisition Date), we completed the acquisition of BluJay (BluJay Acquisition). The BluJay Acquisition was accounted for as a business combination under ASC 805, Business Combinations.

The cash consideration in the BluJay Acquisition was provided by $380.0 million in proceeds from the issuance of an incremental term loan, $300.0 million in PIPE financing from institutional investors for the purchase of an aggregate of 28,909,022 shares of our Class A Common Stock and cash on hand.

The following summarizes the consideration paid for the BluJay Acquisition.

($ in thousands)	Fair Value
Equity consideration paid to BluJay (1)	$	730,854
Cash consideration to BluJay		350,658
Preference share consideration paid to BluJay (2)		86,190
Cash repayment of debt		334,483
Cash paid for seller transaction costs		26,686
Estimated consideration paid for the BluJay Acquisition	$	1,528,871

(1)Equity consideration paid to BluJay equity holders consisted of the following:

(In thousands, except per share data)	Consideration
Common shares subject to sales restriction		72,383
Fair value per share	$	10.097
Equity consideration paid to BluJay	$	730,854

(2)Represents the liability and dividends owed related to the BluJay preference shares at the date of the acquisition.

We recorded the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their fair values as of the Acquisition Date and adjusted certain items as noted below. The final purchase price allocation is as follows:

($ in thousands)	Preliminary Purchase Price Allocation			Adjustments (4)			Final Purchase Price Allocation
Cash and cash equivalents	$	23,773		$	—		$	23,773
Account receivable, net		33,834			(12	)		33,822
Other current assets		10,352			865			11,217
Property and equipment, net		6,503			—			6,503
Operating lease right-of-use assets		9,018			—			9,018
Intangible assets		484,800			—			484,800
Goodwill (1)		1,152,084			(2,218	)		1,149,866
Non-current assets		2,200			(2,016	)		184
Accounts payable		(11,773	)		143			(11,630	)
Current liabilities (2)		(33,530	)		10,652			(22,878	)
Deferred revenue (3)		(39,283	)		—			(39,283	)
Deferred taxes		(101,936	)		(7,414	)		(109,350	)
Non-current liabilities		(7,171	)		—			(7,171	)
Total assets acquired and liabilities assumed	$	1,528,871		$	—		$	1,528,871

(1)Goodwill represents the excess of the purchase price over the estimated fair value of the identifiable net assets acquired in the BluJay Acquisition. Goodwill associated with the BluJay Acquisition is not deductible for tax purposes.

(2)Current liabilities include a $2.7 million deferred acquisition liability that was acquired related to a prior acquisition by BluJay. The deferred acquisition liability was a fixed amount that was determined at the closing of the acquisition and payable after a certain period of time. The deferred acquisition liability was paid in December 2021.

(3)The deferred revenue was recorded under ASC 606 in accordance with ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers; therefore, a reduction in deferred revenues related to the estimated fair values of the acquired deferred revenues was not required.

(4)The adjustments primarily relate to the jurisdictional netting of income taxes, impact of a tax rate change on the deferred balance and the reinstatement of income tax receivables along with the true-up of accrued liabilities.

The fair value of the intangible assets is as follows:

($ in thousands)	Useful Lives	Fair Value
Trade name	1	$	3,800
Developed technology (1)	5.9		301,000
Client relationships (2)	3		180,000
Total intangible assets		$	484,800

(1)The developed technology represents technology developed by BluJay and acquired by E2open, which was valued using the multi-period excess earnings method, a form of the income approach considering technology migration.

(2)The client relationships represent the existing client relationships of BluJay and acquired by E2open that was estimated by applying the with-and-without methodology, a form of the income approach.

We incurred $33.7 million of expenses directly related to the BluJay Acquisition during the year ended February 28, 2022, which are included in acquisition-related expense in the Condensed Consolidated Statements of Operations. Included in these expenses were $13.4 million acquisition-related advisory fees which were incurred on the Acquisition Date. In addition, we paid $10.4 million of debt issuance costs associated with the $380.0 million incremental term loan on the Acquisition Date which were capitalized and recorded as a reduction of the outstanding debt balances. At the closing of the BluJay Acquisition, we paid $7.1 million in fees related to the $300.0 million PIPE financing which were recorded as a reduction to the proceeds from the issuance of Class A Common Stock in the Condensed Consolidated Statements of Stockholders' Equity. Additionally, we paid $26.7 million of acquisition-related advisory fees and other expenses related to the BluJay Acquisition on behalf of BluJay. These expenses were part of the purchase price consideration and not recognized as expense in our or BluJay's Condensed Consolidated Statements of Operations.

Additionally, the Investor Rights Agreement was amended and restated to add certain of BluJay's existing stockholders as parties, including certain affiliates of Francisco Partners and Temasek, as well as include a six-month lock-up period from September 1, 2021 through February 28, 2022 for certain equity holders of E2open and BluJay. The Investor Rights Agreement also provides Francisco Partners and Temasek the right to nominate one member each to our board of directors. Mr. Deep Shah, nominated by Francisco Partners, and Mr. Martin Fichtner, nominated by Temasek, became new directors on September 1, 2021.

Unaudited Pro Forma Operating Results

The following unaudited pro forma combined financial information presents the results of operations as if the BluJay and Logistyx acquisitions happened as of March 1, 2021. The unaudited pro forma results may not necessarily reflect actual results of operations that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma results reflect the step-up amortization adjustments for the fair value of intangible assets acquired, the elimination of historical interest expense incurred by BluJay and Logistyx on its debt and the incurrence of interest expense related to the issuance of debt in connection with the BluJay and Logistyx acquisitions, transaction expenses, nonrecurring post-combination compensation expense and the related adjustment to the income tax provision.

	Three Months Ended			Six Months Ended
($ in millions)	August 31, 2021			August 31, 2021
Total revenue	$	136.4		$	260.0
Net loss		(45.7	)		(257.7	)
Less: Net loss attributable to noncontrolling interest		(5.3	)		(29.1	)
Net loss attributable to E2open Parent Holdings, Inc.	$	(40.4	)	$	(228.6	)

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Liquidity and Capital Resources

6 Months Ended

Aug. 31, 2022

Liquidity And Capital Resources [Abstract]

Liquidity and Capital Resources

4. Liquidity and Capital Resources

We measure liquidity in terms of our ability to fund the cash requirements of our business operations, including working capital, capital expenditure needs, contractual obligations and other commitments, with cash flows from operations and other sources of funding. Current working capital needs relate mainly to employee compensation and benefits, as well as interest, debt repayments, capital expenditures and operating expenses. Our ability to expand and grow our business will depend on many factors, including working capital needs and the evolution of operating cash flows.

We had $98.1 million in cash and cash equivalents as of August 31, 2022. We believe our existing cash and cash equivalents, cash provided by operating activities, and, if necessary, the borrowing capacity of up to $155.0 million available under our 2021 Revolving Credit Facility (see Note 13, Notes Payable) will be sufficient to meet our working capital, debt repayment and capital expenditure requirements for at least the next twelve months.

In the future, we may enter into arrangements to acquire or invest in complementary businesses. To facilitate these acquisitions or investments, we may seek additional equity or debt financing.

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Accounts Receivable

6 Months Ended

Aug. 31, 2022

Receivables [Abstract]

Accounts Receivable

5. Accounts Receivable

Accounts receivable, net consisted of the following:

($ in thousands)	August 31, 2022			February 28, 2022
Accounts receivable	$	134,644		$	143,799
Unbilled receivables		25,436			14,597
Less: Allowance for credit losses		(5,308	)		(3,055	)
Accounts receivable, net	$	154,772		$	155,341

Unbilled receivables represent revenue recognized for performance obligations that have been satisfied but for which amounts have not been billed, which we also refer to as contract assets.

The allowance for credit losses was comprised of the following:

($ in thousands)	Amount
Balance, February 28, 2021	$	(908	)
BluJay Acquisition		(1,779	)
Additions		(1,917	)
Write-offs		1,549
Balance, February 28, 2022		(3,055	)
Logistyx Acquisition		(267	)
Additions		(2,436	)
Write-offs		450
Balance, August 31, 2022	$	(5,308	)

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Prepaid and Other Current Assets

6 Months Ended

Aug. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid and Other Current Assets

6. Prepaid and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

($ in thousands)	August 31, 2022		February 28, 2022
Prepaid software and hardware license and maintenance fees	$	12,023	$	6,022
Income and other taxes receivable		5,279		4,544
Prepaid insurance		4,267		3,401
Deferred commissions		3,666		2,867
Prepaid marketing		1,407		1,124
Security deposits		1,483		1,044
Other prepaid expenses and other current assets		2,402		7,241
Total prepaid expenses and other current assets	$	30,527	$	26,243

Amortization of software licenses held under financing leases is included in cost of revenue and operating expenses. Prepaid maintenance, services and insurance are expensed over the term of the underlying agreements.

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Goodwill

6 Months Ended

Aug. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

7. Goodwill

During the fourth quarter of each fiscal year, we assess our goodwill for potential impairment. This impairment testing is applied more frequently if we become aware of events or circumstances since the last impairment testing that might call into question whether the current balances are fairly recorded. During the second quarter of fiscal 2023, the market price of our Class A common stock and market capitalization declined significantly. This decline resulted in us determining that a triggering event occurred and an interim goodwill impairment assessment was performed.

We performed a qualitative "Step 0" goodwill impairment assessment during the second quarter of fiscal 2023 which indicated that a quantitative "Step 1" impairment analysis needed to be performed as well. The fair value of E2open was determined using a discounted cash flow method, guideline public company method and guideline transaction method using an income -based and market-based approach.

We calculated the fair value of E2open under three different methods: discounted cash flow method, guideline public company method and guideline transaction method. The discounted cash flow method is based on the present value of estimated future cash flows which were based on management's estimates of revenue growth rates and net operating income margins, taking into consideration market and industry conditions. The discount rate used was based on the weighted-average cost of capital adjusted for the risk, size premium and business-specific characteristics related to the business's ability to execute on the projected cash flows. Under the guideline public company method, the fair value was based on forward-looking earnings multiples derived from comparable publicly traded companies with similar market position and size. The unobservable inputs used to measure the fair value included projected revenue growth rates, the weighted average cost of capital, the normalized working capital level, capital expenditures assumptions, profitability projections, control premium, the determination of appropriate market comparison companies and terminal growth rates. Under the guideline transaction method, the fair value was based on pricing multiples derived from recently sold companies with similar characteristics to ours. The three approaches generated similar results and indicated that the fair value of E2open's equity and goodwill was less than its carrying amount. Therefore, in the second quarter of fiscal 2023, we recognized an impairment charge of $514.8 million to goodwill.

The following table presents the changes in goodwill:

($ in thousands)	Amount
Balance, February 28, 2021	$	2,628,646
Business Combination purchase price adjustment (1)		407
BluJay Acquisition (2)		1,155,321
Currency translation adjustment		(27,503	)
Balance, February 28, 2022		3,756,871
BluJay Acquisition adjustment (2)		(5,455	)
Logistyx Acquisition (3)		126,296
Impairment charge		(514,816	)
Currency translation adjustment		(70,236	)
Balance, August 31, 2022	$	3,292,660

(1)Consists of the post-closing adjustment of consideration and associated tax adjustments required as part of the merger transaction pursuant to Section 3.5 of the Business Combination Agreement. On July 6, 2021, we issued additional Class A Common Stock and Common Units valued at $3.0 million in total pro rata to the various parties who received consideration in February 2021 at the closing of the Business Combination in the form of shares of Class A Common Stock, Common Units and cash. Additional tax adjustments were required during the third quarter of fiscal year 2022.

(2)Represents the goodwill acquired in the BluJay Acquisition as of September 1, 2021 and subsequent purchase price adjustments. See Note 3, Acquisitions for additional information.

(3)Represents the goodwill acquired in the Logistyx Acquisition as of March 2, 2022 and subsequent purchase price adjustments. See Note 3, Acquisitions for additional information.

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Intangible Assets, Net

6 Months Ended

Aug. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

8. Intangible Assets, Net

Intangible assets, net consisted of the following:

	August 31, 2022
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortized			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	110,000	$	—		$	110,000
Definite-lived:
Client relationships	13.8		498,644		(80,778	)		417,866
Technology	7.3		685,517		(120,291	)		565,226
Content library	10.0		50,000		(7,872	)		42,128
Trade name	1.0		3,710		(3,461	)		249
Backlog	2.5		800		(160	)		640
Total definite-lived			1,238,671		(212,562	)		1,026,109
Total intangible assets		$	1,348,671	$	(212,562	)	$	1,136,109

	February 28, 2022
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortized			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	109,998	$	—		$	109,998
Definite-lived:
Client relationships	13.6		476,584		(45,467	)		431,117
Technology	7.3		666,160		(72,414	)		593,746
Content library	10.0		50,000		(5,372	)		44,628
Trade name	1.0		3,705		(1,804	)		1,901
Total definite-lived			1,196,449		(125,057	)		1,071,392
Total intangible assets		$	1,306,447	$	(125,057	)	$	1,181,390

The e2open trade name is indefinite-lived. Acquired trade names are definite-lived as over time we rebrand acquired products and services as e2open.

During the three months ended August 31, 2022, gross client relationships and technology were reduced by $0.3 million and $0.1 million, respectively, due to the Logistyx purchase price adjustments.

Amortization of intangible assets is recorded in cost of revenue and operating expenses in the Condensed Consolidated Statements of Operations. We recorded amortization expense related to intangible assets of $45.6 million and $15.9 million for the three months ended August 31, 2022 and 2021, respectively. We recorded amortization expense related to intangible assets of $92.1 million and $31.2 million for the six months ended August 31, 2022 and 2021, respectively.

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Property and Equipment, Net

6 Months Ended

Aug. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

9. Property and Equipment, Net

Property and equipment, net consisted of the following:

($ in thousands)	August 31, 2022			February 28, 2022
Computer equipment	$	46,667		$	33,228
Software		54,667			43,821
Furniture and fixtures		3,437			3,509
Leasehold improvements		10,599			9,067
Gross property and equipment		115,370			89,625
Less accumulated depreciation and amortization		(38,457	)		(23,688	)
Property and equipment, net	$	76,913		$	65,937

Computer equipment and software include assets held under financing leases. Amortization of assets held under financing leases is included in depreciation expense. See Note 25, Leases for additional information regarding our financing leases.

Depreciation expense was $8.5 million and $4.9 million for the three months ended August 31, 2022 and 2021, respectively. Depreciation expense was $15.4 million and $9.8 million for the six months ended August 31, 2022 and 2021, respectively.

We had capitalized software costs of $28.2 million and $20.9 million as of August 31, 2022 and February 28, 2022, respectively. We recognized $1.4 million and $0.6 million of amortized capitalized software development costs for the three months ended August 31, 2022 and 2021, respectively, and $2.2 million and $1.2 million for the six months ended August 31, 2022 and 2021, respectively

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Investments

6 Months Ended

Aug. 31, 2022

Schedule of Investments [Abstract]

Investments

10. Investments

On February 4, 2022, we made a minority investment of $2.5 million in a private firm focused on supply chain financing. We made the required second investment of $2.5 million on May 5, 2022 along with $0.5 million of transaction fees.

This minority investment does not have a readily determinable fair value; therefore, we elected the measurement alternative for our minority investment. The investment is measured at cost, less impairment and adjusted for qualifying observable price changes and recorded in other noncurrent assets in the Condensed Consolidated Balance Sheets.

We regularly evaluate the carrying value of our investment for impairment and whether any events or circumstances are identified that would significantly harm the fair value of the investment. In the event a decline in fair value is less than the investment’s carrying value, we will record an impairment charge in other income (expense) in the Condensed Consolidated Statements of Operations. We have not recorded any impairment charges related to this minority investment.

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Accounts Payable and Accrued Liabilities

6 Months Ended

Aug. 31, 2022

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities

11. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:

($ in thousands)	August 31, 2022		February 28, 2022
Accrued compensation	$	33,988	$	63,101
Accrued severance and retention		3,600		1,909
Trade accounts payable		39,409		33,158
Accrued professional services		4,003		5,440
Restructuring liability		280		778
Taxes payable		12,463		2,702
Interest payable		5,818		2,398
Client deposits		2,284		2,214
Other		13,620		19,546
Total accounts payable and accrued liabilities	$	115,465	$	131,246

In the 2022 Form 10-K, $0.8 million of accrued expenses related to accrued severance and retention were reflected in accrued compensation. These amounts have been reclassified to accrued severance and retention to correspond to the current year presentation. See Note 18, Severance and Exit Costs for additional information.

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Tax Receivable Agreement

6 Months Ended

Aug. 31, 2022

Tax Receivable Agreement [Abstract]

Tax Receivable Agreement

12. Tax Receivable Agreement

E2open Holdings entered into a Tax Receivable Agreement with selling equity holders of E2open Holdings that requires us to pay 85% of the tax savings that are realized because of increases in the tax basis in E2open Holdings' assets. This increase is either from the sale or exchange of the Common Units for shares of Class A Common Stock and cash, as well as from tax benefits attributable to payments under the Tax Receivable Agreement. We will retain the benefit of the remaining 15% of these cash savings. The Tax Receivable Agreement will continue until all such tax benefits have been utilized or expired unless E2open Holdings exercises its right to terminate the Tax Receivable Agreement for an amount representing the present value of anticipated future tax benefits under the Tax Receivable Agreement or certain other accelerated events occur.

Quarterly tax distributions will be paid to the holders of Common Units on a pro rata basis based upon an agreed upon formula related to the taxable income of E2open Holdings allocable to holders of Common Units. Generally, these tax distributions will be computed based on the Company’s estimate of taxable income of E2open Holdings allocable to each holder of Common Units (based on certain assumptions), multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate prescribed for a U.S. corporation organized under the laws of the State of Delaware, taking into account all jurisdictions in which the Company is required to file income tax returns together with the relevant apportionment information and the character of E2open Holdings’ income, subject to various adjustments.

Significant inputs and assumptions were used to preliminarily estimate the future expected payments including the timing of the realization of the tax benefits, a tax rate of 24.1% and an imputed interest rate of 7% based on our cost of debt plus an incremental premium. Changes in any of these or other factors are expected to impact the timing and amount of gross payments. The fair value of these obligations will be accreted to the amount of the gross expected obligation. In addition, if E2open Holdings were to exercise its right to terminate the Tax Receivable Agreement or certain other acceleration events occur, E2open Holdings will be required to make immediate cash payments. Such cash payments will be equal to the present value of the assumed future realized tax benefits based on a set of assumptions and using an agreed upon discount rate, as defined in the Tax Receivable Agreement. The early termination payment may be made significantly in advance of the actual realization, if any, of those future tax benefits. Such payments will be calculated based on certain assumptions, including that E2open Holdings has sufficient taxable income to utilize the full amount of any tax benefits subject to the Tax Receivable Agreement over the period specified therein. The payments that E2open Holdings will be required to make will generally reduce the amount of the overall cash flow that might have otherwise been available, but we expect the cash tax savings we will realize from the utilization of the related tax benefits will exceed the amount of any required payments.

Pursuant to ASC 805, Business Combination and relevant tax law, we have calculated the fair value of the tax receivable agreement payments related to the transaction at the acquisition date and identified the timing of the utilization of the tax attributes. Under ASC 805, the Tax Receivable Agreement liability, as of the acquisition date, will be revalued at the end of each reporting period with the gain or loss as well as the associated interest reflected in the change in tax receivable agreement liability in the Condensed Consolidated Statements of Operations in the period in which the event occurred. Interest will accrue on the tax receivable agreement liability at a rate of LIBOR plus 100 basis points. In addition, under ASC 450, Contingencies transactions with partnership unit holders after the acquisition date will result in additional Tax Receivable Agreement liabilities that are recorded on a gross undiscounted basis.

The Tax Receivable Agreement liability was $60.4 million and $66.6 million as of August 31, 2022 and February 28, 2022, respectively. The discount rate used for the ASC 805 calculation was 9.5% and 8.2% as of August 31, 2022 and February 28, 2022, respectively, based on our cost of debt plus an incremental premium. During the three months ended August 31, 2022 and 2021, a gain of $8.1 million and a loss of $0.6 million, respectively, was recorded as a change in the tax receivable agreement liability related to the ASC 805 discounted liability. During the six months ended August 31, 2022 and 2021, a gain of $6.4 million and a loss of $3.1 million, respectively, was recorded as a change in the tax receivable agreement liability related to the ASC 805 discounted liability. During the six months ended August 31, 2022 and 2021, the Tax Receivable Agreement liability under ASC 450 increased by $0.2 million and $10.1 million.

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Notes Payable

6 Months Ended

Aug. 31, 2022

Debt Disclosure [Abstract]

Notes Payable

13. Notes Payable

Notes payable outstanding were as follows:

($ in thousands)	August 31, 2022			February 28, 2022
2021 Term Loan	$	1,083,681		$	899,163
2021 Revolving Credit Facility		—			80,000
Other notes payable		17			47
Total notes payable		1,083,698			979,210
Less unamortized debt issuance costs		(26,323	)		(26,536	)
Total notes payable, net		1,057,375			952,674
Less current portion		(10,978	)		(89,097	)
Notes payable, less current portion, net	$	1,046,397		$	863,577

2021 Term Loan and Revolving Credit Facility

On February 4, 2021, E2open, LLC, our subsidiary, entered into a credit agreement (Credit Agreement) that provided for $525.0 million in term loans (2021 Term Loan) and $75.0 million in commitments for revolving credit loans (2021 Revolving Credit Facility) with a $15.0 million letter of credit sublimit. On September 1, 2021, the 2021 Credit Agreement was amended to include a $380.0 million incremental term loan, an increase in the letter of credit sublimit from $15.0 million to $30.0 million and an increase in the 2021 Revolving Credit Facility from $75.0 million to $155.0 million. On April 6, 2022, the 2021 Credit Agreement was amended to include a $190.0 million incremental term loan.

The 2021 Revolving Credit Facility will mature on February 4, 2026. E2open, LLC can request increases in the revolving commitments and additional term loan facilities, in minimum amounts of $2.0 million for each facility. Principal payments are due on the Credit Agreement the last day of each February, May, August and November commencing August 2021. The Credit Agreement was payable in quarterly installments of $1.3 million beginning in August 2021; however, the payments were increased to $2.3 million with the addition of the incremental term loan beginning in November 2021. The payment increased to $2.7 million with the addition of the $190.0 million incremental term loan beginning in May 2022. The Credit Agreement is payable in full on February 4, 2028.

The proceeds from the $190.0 incremental term loan were used to repay the $80.0 million outstanding balance under the 2021 Revolving Credit Facility incurred to finance the initial payment for the Logistyx Acquisition. The additional cash was used to pay the $37.4 million payment due to Logistyx in May 2022 and for general corporate purposes.

The Credit Agreement is guaranteed by E2open Intermediate, LLC, our subsidiary, and certain wholly owned subsidiaries of E2open, LLC, as guarantors, and is supported by a security interest in substantially all of the guarantors’ personal property and assets. The Credit Agreement contains certain customary events of default, representations and warranties as well as affirmative and negative covenants.

As of August 31, 2022 and February 28, 2022, the 2021 Term Loan had a variable interest rate of 5.86% and 4.00%, respectively. There were no outstanding borrowings, no letters of credit and $155.0 million available borrowing capacity under the 2021 Revolving Credit Facility as of August 31, 2022. There were $80.0 million borrowings outstanding at an interest rate of 5.25%, no letters of credit and $75.0 million available borrowing capacity under the 2021 Revolving Credit Facility as of February 28, 2022. We were in compliance with the First Lien Leverage Ratio for the Credit Agreement as of August 31, 2022 and February 28, 2022.

See Note 29, Subsequent Events for information regarding borrowings under our 2021 Revolving Credit Facility.

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Contingent Consideration

6 Months Ended

Aug. 31, 2022

Contingent Consideration [Abstract]

Contingent Consideration

14. Contingent Consideration

Business Combination

The contingent consideration liability is due to the issuance of Series B-1 and B-2 common stock and Series 1 restricted common units (RCUs) and Series 2 RCUs of E2open Holdings as part of the Business Combination. These shares and units were issued on a proportional basis to each holder of Class A shares in CCNB1 and Common Units of E2open Holdings. These restricted shares and Common Units are treated as a contingent consideration liability under ASC 805 and valued at fair market value. The contingent consideration liability was recorded at fair value on the acquisition date and will be remeasured at each reporting date and adjusted if necessary. Any gain or loss recognized from the remeasurement will be recorded in gain (loss) from the change in fair value of contingent consideration on the Condensed Consolidated Statements of Operations as a nonoperating income (expense) as the change in fair value is not part of our core operating activities.

The contingent consideration liability was $34.1 million and $45.6 million as of August 31, 2022 and February 28, 2022, respectively. The fair value remeasurements resulted in a gain of $7.3 million and loss of $13.0 million for the three months ended August 31, 2022 and 2021, respectively. The fair value remeasurements resulted in a gain of $11.5 million and loss of $76.4 million for the six months ended August 31, 2022 and 2021, respectively.

The 8,120,367 shares of Series B-1 common stock, including the Sponsor Side Letter shares noted below, automatically convert into our Class A Common Stock on a one-to-one basis upon the occurrence of the first day on which the 5-day VWAP of our Class A Common Stock is equal to at least $13.50 per share; provided, however, that the reference to $13.50 per share shall be decreased by the aggregate per share amount of dividends actually paid in respect of a share of Class A Common Stock following the closing of the Business Combination.

As of June 8, 2021, the 5-day VWAP of our Class A Common Stock exceeded $13.50 per share which was the triggering event for the Series B-1 common stock to automatically convert into our Class A Common Stock on a one-to-one basis. As such, 8,120,273 shares of Series B-1 common stock converted into 8,120,273 shares of Class A Common Stock. There were 94 shares of Series B-1 common stock pending conversion as of August 31, 2022.

There were 3,372,184 shares of Series B-2 common stock outstanding as of August 31, 2022 and February 28, 2022. The Series B-2 common stock will automatically convert into our Class A Common Stock on a one-to-one basis upon the occurrence of the first day on which the 20-day VWAP is equal to at least $15.00 per share; provided, however, that the reference to $15.00 per share shall be decreased by the aggregate per share amount of dividends actually paid in respect of a share of Class A Common Stock following the closing of the Business Combination.

Similar to the Series B-1 common stock, the 4,379,557 shares of Series 1 RCUs vest and become Common Units of E2open Holdings at such time as the 5-day VWAP of the Class A Common Stock is at least $13.50 per share; however, the $13.50 per share threshold will be decreased by the aggregate amount of dividends per share paid following the closing of the Business Combination.

As of June 8, 2021, the 5-day VWAP of our Class A Common Stock exceeded $13.50 per share which was the triggering event for the Series 1 RCUs to vest and become Common Units of E2open Holdings. As such, 4,379,557 Series 1 RCUs became 4,379,557 Common Units of E2open Holdings along with entitling the holders of the newly vested common units to 4,379,557 shares of Class V Common Stock. Catch-Up Payments were not required as a result of the Series 1 RCU vesting.

There were 2,627,724 shares of Series 2 RCUs outstanding as of August 31, 2022 and February 28, 2022. Similar to the Series B-2 common stock, the Series 2 RCUs will vest (a) at such time as the 20-day VWAP of the Class A Common Stock is at least $15.00 per share; however, the $15.00 per share threshold will be decreased by the aggregate amount of dividends per share paid following the closing of the Business Combination; (b) upon the consummation of a qualifying change of control of us or the Sponsor and (c) upon the qualifying liquidation defined in the limited liability company agreement.

Upon the conversion of an RCU, the holder of such RCU will be entitled to receive a payment equal to the amount of ordinary distributions paid on an E2open Holdings unit from the Closing Date through (but not including) the date such RCU converts into an E2open Holdings unit. If any of the RCUs do not vest on or before the 10-year anniversary of the Closing Date, such units will be canceled for no consideration, and will not be entitled to receive any Catch-Up Payments.

We have not paid any dividends to date and do not expect to in the future.

Sponsor Side Letter

In connection with the execution of the Business Combination Agreement, the Sponsor, certain investors and CCNB1’s Independent Directors entered into the Sponsor Side Letter Agreement with CCNB1. Under the Sponsor Side Letter Agreement, 2,500,000 Class B ordinary shares of CCNB1 held by the Sponsor and CCNB1’s Independent Directors automatically converted into 2,500,000 shares of Series B-1 Common Stock, which, collectively, are referred to as the Restricted Sponsor Shares. The vesting conditions of the shares of Series B-1 Common Stock mirror the Series 1 RCUs.

These restricted shares were treated as a contingent consideration liability under ASC 805 and valued at fair market value. The contingent consideration liability was recorded at fair value on the acquisition date and remeasured at each reporting date and adjusted if necessary. Any gain or loss recognized from the remeasurements was recorded in gain (loss) from the change in fair value of contingent consideration on the Condensed Consolidated Statements of Operations as a nonoperating income (expense) as the change in fair value was not part of our core operating activities.

As of June 8, 2021, the 5-day VWAP of our Class A Common Stock exceeded $13.50 per share which was the triggering event for the Series B-1 common stock to automatically convert into our Class A Common Stock on a one-to-one basis. The fair value remeasurements through June 8, 2021 resulted in a loss of $3.8 million and $13.7 million for the three and six months ended August 31, 2021.

15. Financial Instruments

We recognize derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and provide qualitative and quantitative disclosures about such derivatives. We have international operations that expose us to potentially adverse movements in foreign currency exchange rates. To reduce our exposure to foreign currency rate changes on forecasted operating expenses, we enter into hedges in the form of foreign currency forward contracts related changes in the U.S. dollar/foreign currency relationship. We do not use foreign currency forward contracts for speculative or trading purposes. Our derivative contracts are governed by an International Swaps and Derivatives Association master agreement that generally include standard netting arrangements.

We are exposed to credit loss in the event of non-performance by counterparties to our derivative contracts. We actively monitor our exposure to credit risk, enter into foreign exchange forward contracts with high credit quality financial institutions and mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. We have not experienced any instances of non-performance by any counterparties.

The assets or liabilities associated with the forward contracts are recorded at fair value in prepaid expenses and other current assets, other noncurrent assets, accounts payable and accrued liabilities or other noncurrent liabilities in the Condensed Consolidated Balance Sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. The cash flow impact upon settlement of the derivate contracts will be included in net cash from operating activities in the Condensed Consolidated Statements of Cash Flows.

Cash Flow Hedging Activities

Our foreign exchange forward contracts are designed and qualify as cash flow hedges. The contracts currently hedge the U.S. dollar/Indian Rupee relationship with the duration of these forward contracts ranging from one-month to 24-months at inception. These contracts cover a portion of our spend in Indian Rupee. We have not hedged our exposure to revenue or expenses in other currencies.

To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes in future cash flows on the hedged transactions. The related gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (loss) in stockholders' equity and reclassified into operating expenses when the hedge is settled. As of August 31, 2022, our foreign exchange forward contracts have durations of approximately 24 months or less.

Our exposure to the market gains or losses will vary over time as a function of currency exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments.

The following table represents the Condensed Consolidated Balance Sheets location and amount of derivative instrument fair values:

($ in thousands)	August 31, 2022
Accounts payable and accrued liabilities	$	(125	)
Other noncurrent liabilities		(82	)

We report our foreign exchange forward contract assets and liabilities on a net basis in the Condensed Consolidated Balance Sheets when a master-netting arrangement exists between us and the counterparty to the contract. A standard master netting agreement exists between us and the counterparty to the foreign exchange forward contract entered into in August 2022. The agreement allows for multiple transaction payment netting and none of the netting arrangements involve collateral. As of August 31, 2022, all of the foreign exchange forward contracts are in a liability position.

See Note 22, Other Comprehensive Loss for additional information regarding our cash flow hedges.

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Financial Instruments

6 Months Ended

Aug. 31, 2022

Investments, All Other Investments [Abstract]

Financial Instruments

15. Financial Instruments

We recognize derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and provide qualitative and quantitative disclosures about such derivatives. We have international operations that expose us to potentially adverse movements in foreign currency exchange rates. To reduce our exposure to foreign currency rate changes on forecasted operating expenses, we enter into hedges in the form of foreign currency forward contracts related changes in the U.S. dollar/foreign currency relationship. We do not use foreign currency forward contracts for speculative or trading purposes. Our derivative contracts are governed by an International Swaps and Derivatives Association master agreement that generally include standard netting arrangements.

We are exposed to credit loss in the event of non-performance by counterparties to our derivative contracts. We actively monitor our exposure to credit risk, enter into foreign exchange forward contracts with high credit quality financial institutions and mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. We have not experienced any instances of non-performance by any counterparties.

The assets or liabilities associated with the forward contracts are recorded at fair value in prepaid expenses and other current assets, other noncurrent assets, accounts payable and accrued liabilities or other noncurrent liabilities in the Condensed Consolidated Balance Sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the foreign currency forward contract and whether it is designated and qualifies for hedge accounting. The cash flow impact upon settlement of the derivate contracts will be included in net cash from operating activities in the Condensed Consolidated Statements of Cash Flows.

Cash Flow Hedging Activities

Our foreign exchange forward contracts are designed and qualify as cash flow hedges. The contracts currently hedge the U.S. dollar/Indian Rupee relationship with the duration of these forward contracts ranging from one-month to 24-months at inception. These contracts cover a portion of our spend in Indian Rupee. We have not hedged our exposure to revenue or expenses in other currencies.

To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes in future cash flows on the hedged transactions. The related gains or losses resulting from changes in fair value of these hedges is initially reported, net of tax, as a component of other comprehensive income (loss) in stockholders' equity and reclassified into operating expenses when the hedge is settled. As of August 31, 2022, our foreign exchange forward contracts have durations of approximately 24 months or less.

Our exposure to the market gains or losses will vary over time as a function of currency exchange rates. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments.

The following table represents the Condensed Consolidated Balance Sheets location and amount of derivative instrument fair values:

($ in thousands)	August 31, 2022
Accounts payable and accrued liabilities	$	(125	)
Other noncurrent liabilities		(82	)

We report our foreign exchange forward contract assets and liabilities on a net basis in the Condensed Consolidated Balance Sheets when a master-netting arrangement exists between us and the counterparty to the contract. A standard master netting agreement exists between us and the counterparty to the foreign exchange forward contract entered into in August 2022. The agreement allows for multiple transaction payment netting and none of the netting arrangements involve collateral. As of August 31, 2022, all of the foreign exchange forward contracts are in a liability position.

See Note 22, Other Comprehensive Loss for additional information regarding our cash flow hedges.

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Fair Value Measurement

6 Months Ended

Aug. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Fair Value Measurement

16. Fair Value Measurement

Our financial instruments include cash and cash equivalents; investments; accounts receivable, net; accounts payable; acquisition-related obligations; notes payable; and financing lease obligations. Accounts receivable, net; accounts payable; and acquisition-related obligations are stated at their carrying value, which approximates fair value, due to their short maturity. We measure our cash equivalents and investments at fair value, based on an exchange or exit price which represents the amount that would be received for an asset sale or an exit price, or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants. We estimate the fair value for notes payable and financing lease obligations by discounting the future cash flows of the related note and lease payments. As of August 31, 2022 and February 28, 2022, the fair value of the cash and cash equivalents, restricted cash, notes payable and financing lease obligations approximates their recorded values.

The following tables set forth details about our investments:

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
August 31, 2022
Asset-backed securities	$	162	$	23	$	—	$	185
February 28, 2022
Asset-backed securities	$	162	$	46	$	—	$	208

Observable inputs are based on market data obtained from independent sources. Unobservable inputs reflect our assessment of the assumptions market participants would use to value certain financial instruments. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

Our assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy are summarized as follows:

	August 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Asset-backed securities	$	—	$	185	$	—	$	185
Total investments		—		185		—		185
Total assets	$	—	$	185	$	—	$	185
Liabilities:
Forward currency contracts	$	—	$	207	$	—	$	207
Tax receivable agreement liability		—		—		43,876		43,876
Warrant liability		18,078		—		28,447		46,525
Contingent consideration		—		—		34,108		34,108
Total liabilities	$	18,078	$	207	$	106,431	$	124,716

	February 28, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market	$	4	$	—	$	—	$	4
Total cash equivalents		4		—		—		4
Investments:
Asset-backed securities		—		208		—		208
Total investments		—		208		—		208
Total assets	$	4	$	208	$	—	$	212
Liabilities:
Tax receivable agreement liability	$	—	$	—	$	50,268	$	50,268
Warrant liability		27,324		—		39,815		67,139
Contingent consideration		—		—		45,568		45,568
Total liabilities	$	27,324	$	—	$	135,651	$	162,975

Contingent Consideration

The following table provides a reconciliation of the beginning and ending balances of acquisition related accrued earn-outs and contingent consideration using significant unobservable inputs (Level 3) from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	45,568		$	152,808
Conversion to Class A Common Stock		—			(175,000	)
Cash payments		—			(2,000	)
(Gain) loss from fair value of contingent consideration		(11,460	)		69,760
End of period	$	34,108		$	45,568

The change in the fair value of the earn-out is recorded in acquisition-related expenses while the change in the fair value of the contingent consideration is recorded in gain (loss) from change in fair value of contingent consideration in the Condensed Consolidated Statements of Operations.

Tax Receivable Agreement

Our tax receivable agreement liability is measured under both ASC 805 at fair value on a recurring basis using significant unobservable inputs (Level 3) and ASC 450 at book value. The following table provides a reconciliation of the portion of the tax receivable agreement liability measured at fair value under Level 3 from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	50,268		$	50,114
Loss from fair value of tax receivable agreement liability		(6,392	)		154
End of period	$	43,876		$	50,268

The change in the fair value of the tax receivable agreement liability is recorded in change in tax receivable agreement liability in the Condensed Consolidated Statements of Operations.

Warrants

Our warrant liability is measured at fair value on a recurring basis using active market quoted prices (Level 1) and significant unobservable inputs (Level 3). The following table provides a reconciliation of the warrant liability from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	67,139		$	68,772
Gain from fair value of warrant liability		(20,614	)		(1,633	)
End of period	$	46,525		$	67,139

The change in the fair value of the warrant liability is recorded in gain (loss) from change in fair value of warrant liability in the Condensed Consolidated Statements of Operations.

The fair values of our Level 1 financial instruments, which are traded in active markets, are based on quoted market prices for identical instruments. The fair values of our Level 2 financial instruments are based on quoted market prices for comparable instruments or model-driven valuations using observable market data or inputs corroborated by observable market data.

Our earn-out liabilities and contingent consideration are valued using a Monte Carlo simulation model. The assumptions used in preparing these models include estimates such as volatility, contractual terms, discount rates, dividend yield and risk-free interest rates. These valuation models use unobservable market input, and therefore the liabilities are classified as Level 3.

Our public warrants are valued using active market quoted prices, which are Level 1 inputs. The private placement warrants are valued using a binomial pricing model when the warrants are subject to the make-whole table, or otherwise are valued using a Black-Scholes pricing model. The Forward Purchase Warrants are valued utilizing observable market prices for public shares and warrants, relative to the present value of contractual cash proceeds. The assumptions used in preparing these models include estimates such as volatility, contractual terms, discount rates, dividend yield, expiration dates and risk-free interest rates. These valuation models use unobservable market input, and therefore the liability is classified as both Level 1 and Level 3.

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Revenue

6 Months Ended

Aug. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

17. Revenue

We primarily generate revenue from the sale of subscriptions and professional services. We recognize revenue when the client contract and associated performance obligations have been identified, transaction price has been determined and allocated to the performance obligations in the contract, and performance obligations have been satisfied. We recognize revenue net of any taxes collected from clients, which are subsequently remitted to governmental authorities. Other revenue is recognized when the service is delivered to the client.

Total Revenue by Geographic Locations

Revenue by geographic regions consisted of the following:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Americas	$	135,797	$	74,902	$	270,632	$	138,220
Europe		18,985		1,298		38,929		2,622
Asia Pacific		5,894		1,879		11,496		3,564
Total revenue	$	160,676	$	78,079	$	321,057	$	144,406

Revenues by geography are determined based on the region of our contracting entity, which may be different than the region of the client. Americas revenue attributed to the United States was 83% and 96% during the three and six months ended August 31, 2022 and 2021, respectively. No other country represented more than 10% of total revenue during these periods.

During the three months ended August 31, 2022 and 2021, we recorded a $0.1 million and $14.2 million reduction to revenue to amortize the deferred revenue fair value adjustment that resulted from the purchase price allocation in the Business Combination, respectively. During the six months ended August 31, 2022 and 2021, we recorded a $0.2 million and $36.7 million reduction to revenue to amortize the deferred revenue fair value adjustment, respectively. With the early adoption of ASU 2021-08, a fair value adjustment to deferred revenue is no longer required; therefore, an adjustment to deferred revenue was not made for the BluJay or Logistyx acquisitions.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied. It includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods and does not include contracts where the client is not committed. The client is not considered committed when they are able to terminate for convenience without payment of a substantive penalty under the contract. Additionally, as a practical expedient of ASC 606, Revenue from Contracts with Customers, we have not disclosed the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. As of August 31, 2022 and February 28, 2022, approximately $732.9 million and $767.9 million of revenue was expected to be recognized from remaining performance obligations, respectively. These amounts are expected to be recognized within the next five years.

Contract Assets and Liabilities

Contract assets primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. Contract assets were $25.4 million and $14.6 million as of August 31, 2022 and February 28, 2022, respectively. Contract liabilities consist of deferred revenue which includes billings in excess of revenue recognized related to subscription contracts and professional services. Deferred revenue is recognized as revenue when we perform under the contract. Deferred revenue was $179.7 million and $192.1 million as of August 31, 2022 and February 28, 2022, respectively. Revenue recognized during the three and six months ended August 31, 2022, included in deferred revenue on the Condensed Consolidated Balance Sheets as of February 28, 2022, was $38.4 million and $96.3 million, respectively.

As of February 4, 2021, a fair value adjustment of $60.7 million was recorded to reduce our deferred revenue to its fair value as part of the Business Combination. As deferred revenue is recognized, any fair value adjustment related to the deferred revenue is also recognized as a reduction to revenue. As of August 31, 2022 and February 28, 2022, the fair value adjustment to reduce deferred revenue as part of the Business Combination was $0.2 million and $0.5 million, respectively. With the early adoption of ASU 2021-08, a fair value adjustment to deferred revenue is no longer required; therefore, an adjustment to deferred revenue was not made for the BluJay and Logistyx acquisitions.

Sales Commissions

With the adoption of ASC 606 and ASC 340-40, Contracts with Customers as of March 1, 2019, we began deferring and amortizing sales commissions that are incremental and directly related to obtaining client contracts.

Amortization expense of $1.0 million and $0.2 million was recorded in sales and marketing expense in the Condensed Consolidated Statements of Operations for the three months ended August 31, 2022 and 2021, respectively. Amortization expense of $1.8 million and $0.4 million was recorded in sales and marketing expense for the six months ended August 31, 2022 and 2021, respectively. Certain sales commissions that would have an amortization period of less than one year are expensed as incurred in sales and marketing expense. As of August 31, 2022 and February 28, 2022, we had a total of $13.3 million and $12.2 million of capitalized sales commissions included in prepaid expenses and other current assets and other noncurrent assets in the Condensed Consolidated Balance Sheets, respectively.

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Severance and Exit Costs

6 Months Ended

Aug. 31, 2022

Restructuring and Related Activities [Abstract]

Severance and Exit Costs

18. Severance and Exit Costs

In connection with acquisitions, we conduct pre and post-acquisition related operational reviews to reallocate resources to strategic areas of the business. The operational reviews resulted in workforce reductions, lease obligations related to properties that were vacated and other expenses. Severance and exit costs included in acquisition-related expenses in the Condensed Consolidated Statements of Operations were as follows:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Severance	$	1,868	$	614	$	3,690	$	654
Lease exits		126		494		235		816
Total severance and exit costs	$	1,994	$	1,108	$	3,925	$	1,470

In addition, during the second quarter of fiscal 2023, we accrued $0.8 million in severance expense related an executive who left the company. The expense is recorded in general and administrative expense in the Condensed Consolidated Statements of Operations and in the Condensed Consolidated Balance Sheets in accounts payable and accrued liabilities in the accrued severance and retention liability. The severance payment will be paid during the third quarter of fiscal 2023.

Included in accounts payable and accrued liabilities as of August 31, 2022 and February 28, 2022 was a restructuring liability balance, primarily consisting of lease related obligations, of $0.3 million and $0.8 million, respectively, and a restructuring severance liability of $3.6 million and $1.9 million, respectively, which also includes the executive severance accrual noted above. We expect these amounts to be substantially paid within the next 12 months.

The following table reflects the changes in the severance and exit cost accruals from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	2,687		$	1,988
Payments		(3,061	)		(7,302	)
Impairment of right-of-use assets		(421	)		(580	)
Expenses		4,675			8,581
End of period	$	3,880		$	2,687

In the 2022 Form 10-K, $0.8 million of accrued expenses related to accrued severance and retention were reflected in accrued compensation. This amount has been reclassified to accrued severance and retention to correspond to the current year presentation.

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Warrants

6 Months Ended

Aug. 31, 2022

Warrants and Rights Note Disclosure [Abstract]

Warrants

19. Warrants

As of August 31, 2022 and February 28, 2022, there were an aggregate of 29,079,872 warrants outstanding, which include the public warrants, private placement warrants and Forward Purchase Warrants. Each warrant entitles its holders to purchase one share of Class A Common Stock at an exercise price of $11.50 per share. The private placement warrants became exercisable with the Domestication. The Forward Purchase Warrants became exercisable upon effectiveness of our Form S-1 which was initially filed on March 5, 2021 and deemed effective on March 29, 2021. The public warrants became exercisable on April 28, 2021. The public warrants, private placement warrants and Forward Purchase Warrants expire five years after the Closing Date, or earlier upon redemption or liquidation. Once the warrants became exercisable, we have the option to redeem the outstanding warrants when various conditions are met, such as specific stock prices, as detailed in the specific warrant agreements. However, the 10,280,000 private placement warrants are nonredeemable so long as they are held by our Sponsor or its permitted transferees. The warrants are recorded as a liability in warrant liability on the Condensed Consolidated Balance Sheets with a balance of $46.5 million and $67.1 million as of August 31, 2022 and February 28, 2022, respectively. During the three months ended August 31, 2022 and 2021, a gain of $15.2 million and $18.7 million was recognized in gain (loss) from change in fair value of the warrant liability in the Condensed Consolidated Statements of Operations, respectively. During the six months ended August 31, 2022 and 2021, a gain of $20.6 million and loss of $41.2 million was recognized in gain (loss) from change in fair value of the warrant liability, respectively.

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Stockholders' Equity

6 Months Ended

Aug. 31, 2022

Stockholders' Equity Note [Abstract]

Stockholders' Equity

20. Stockholders’ Equity

Class A Common Stock

We are authorized to issue 2,500,000,000 Class A common stock with a par value of $0.0001 per share. Holders of our Class A Common Stock are entitled to one vote for each share. As of August 31, 2022 and February 28, 2022, there were 302,199,373 and 301,536,621 shares of Class A Common Stock issued, respectively, and 302,022,719 and 301,359,967 shares of Class A Common Stock outstanding, respectively.

Class V Common Stock

We were authorized to issue 40,000,000 Class V common stock with a par value of $0.0001 per share. As of August 19, 2021, the number of shares authorized for issuance was increased to 42,747,890 Class V common stock with a par value of $0.0001. These shares have no economic value but entitle the holder to one vote per share. As of August 31, 2022 and February 28, 2022, there were 33,192,007 and 33,560,839 shares of Class V Common Stock issued and outstanding, respectively, and 9,555,883 and 9,187,051 shares of Class V Common Stock held in treasury, respectively.

The holders of Common Units participate in net income or loss allocations and distributions of E2open Holdings. They are also entitled to Class V common stock on a one for one basis to their Common Units which in essence allows each holder one vote per Common Unit.

The following table reflects the changes in our outstanding stock:

	Class A		Class V			Series B-1		Series B-2
Balance, February 28, 2022		301,359,967		33,560,839			94		3,372,184
Conversion of Common Units (1)		149,941		(368,832	)		—		—
Vesting of restricted awards, net of shares     withheld for taxes (2)		512,811		—			—		—
Balance, August 31, 2022		302,022,719		33,192,007			94		3,372,184

(1)Class A Common Stock issued for the conversion of Common Units settled in stock. During the six months ended August 31, 2022, we paid $1.4 million in cash for the repurchase of 218,891 Common Units that were converted into cash instead of stock at our option. Class V Common Stock are retired on a one-for-one basis when Common Units are converted into Class A Common Stock or settled in cash.

(2)The Class A Common Stock withheld for taxes revert back to the 2021 Incentive Plan, as defined below, and are used for future grants.

Share Repurchase Program

On January 20, 2022, the board of directors approved a $100.0 million share repurchase program (2022 Share Repurchase Program). Stock repurchases may be made from time to time in the open market, in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. The 2022 Share Repurchase Program is subject to market conditions and other factors, and does not obligate us to repurchase any dollar amount or number of our Class A Common Stock and the program may be extended, modified, suspended or discontinued at any time, without prior notice.

We will record all share repurchases based on the trade date. Shares of our Class A Common Stock repurchased under the 2022 Share Repurchase Program are typically recorded as treasury stock, at cost, but may from time to time be retired.

No shares of Class A Common Stock have been repurchased to date.

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Noncontrolling Interests

6 Months Ended

Aug. 31, 2022

Noncontrolling Interest [Abstract]

Noncontrolling Interests

21. Noncontrolling Interests

Noncontrolling interest represents the portion of E2open Holdings that we control and consolidate but do not own. As of August 31, 2022 and February 28, 2022, the noncontrolling interests represent a 9.9% and 10.0% ownership in E2open Holdings, respectively.

Generally, Common Units participate in net income or loss allocations and distributions and entitle their holder to the right, subject to the terms set forth in the limited liability agreement, to require E2open Holdings to redeem all or a portion of the Common Units held by such participant. At our option, we may satisfy this redemption with cash or by exchanging Class V Common Stock for Class A Common Stock on a one-for-one basis.

During the three months ended August 31, 2022, 124,941 Common Units were converted into Class A Common Stock with a value of $1.0 million based off the 5-day VWAP. During the six months ended August 31, 2022, 149,941 Common Units were converted into Class A Common Stock with a value of $1.2 million based off the 5-day VWAP. A total of 218,891 Common Units were settled in cash of $1.4 million during the three and six months ended August 31, 2021. This activity resulted in a decrease to noncontrolling interests of $2.4 million and $2.6 million during the three and six months ended August 31, 2022, respectively.

As of August 31, 2022 and February 28, 2022, there were a total of 33.2 million and 33.6 million Common Units held by participants of E2open Holdings, respectively.

We follow the guidance issued by the FASB regarding the classification and measurement of redeemable securities. Accordingly, we have determined that the Common Units meet the requirements to be classified as permanent equity.

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Other Comprehensive Loss Income

6 Months Ended

Aug. 31, 2022

Statement of Other Comprehensive Income [Abstract]

Other Comprehensive Loss Income

22. Other Comprehensive Loss

We did not reclass any items to the Condensed Consolidated Statements of Operations from accumulated other comprehensive loss during the three and six months ended August 31, 2022 and 2021.

Accumulated other comprehensive loss in the equity section of our Condensed Consolidated Balance Sheets includes:

($ in thousands)	Foreign Currency Translation Adjustment			Unrealized Holding Gains (Losses) on Derivatives			Total
Balance, February 28, 2022	$	(19,019	)	$	—		$	(19,019	)
Other comprehensive loss		(100,109	)		(207	)		(100,316	)
Tax effects		27,654						27,654
Other comprehensive loss		(72,455	)		(207	)		(72,662	)
Balance, August 31, 2022	$	(91,474	)	$	(207	)	$	(91,681	)

Accumulated foreign currency translation adjustments are reclassified to net income (loss) when realized upon sale or upon complete, or substantially complete, liquidation of the investment in the foreign entity.

See Note 15, Financial Instruments for additional information related to our derivative instruments.

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Earnings Per Share

6 Months Ended

Aug. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

23. Earnings Per Share

Basic earnings per share is calculated as net loss divided by the average number of shares of common stock outstanding. Diluted earnings per share assumes, when dilutive, the issuance of the net incremental shares from options and restricted shares. The following is a reconciliation of the denominators of the basic and diluted per share computations for net loss:

	Three Months Ended August 31,						Six Months Ended August 31,
(in thousands, except per share data)	2022			2021			2022			2021
Net loss per share:
Numerator - basic:
Net loss per share:	$	(409,585	)	$	(23,988	)	$	(422,206	)	$	(193,343	)
Less: Net loss attributable to noncontrolling interests		(40,897	)		(3,471	)		(42,162	)		(30,568	)
Net loss attributable to E2open Parent Holdings, Inc.     - basic	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Numerator - diluted:
Net loss attributable to E2open Parent Holdings, Inc.     - basic	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Add: Net loss and tax effect attributable to noncontrolling     interests		—			—			—			—
Net loss attributable to E2open Parent Holdings, Inc.     - diluted	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Denominator - basic:
Weighted average shares outstanding - basic		301,898			195,148			301,635			191,099
Net loss per share - basic	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)
Denominator - diluted:
Weighted average shares outstanding - basic		301,898			195,148			301,635			191,099
Weighted average effect of dilutive securities:
Shares related to Common Units		—			—			—			—
Weighted average shares outstanding - diluted		301,898			195,148			301,635			191,099
Diluted net loss per common share	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)

Potential common shares issuable to employee or directors upon exercise or conversion of shares under our share-based compensation plans and upon exercise of warrants are excluded from the computation of diluted earnings per common share when the effect would be anti-dilutive. All potential common shares are anti-dilutive in periods of net loss available to common stockholders.

The following table summarizes the weighted-average potential common shares excluded from diluted loss per common share as their effect would be anti-dilutive:

	Three Months Ended August 31,				Six Months Ended August 31,
	2022		2021		2022		2021
Shares related to Series B-1 common stock		94		86		94		43
Shares related to Series B-2 common stock		3,372,184		3,372,184		3,372,184		3,372,184
Shares related to restricted common units Series 2		2,627,724		2,627,724		2,627,724		2,627,724
Shares related to warrants (1)		29,079,872		29,079,972		29,079,872		29,079,972
Shares related to Common Units		33,364,002		38,670,936		33,461,877		37,153,808
Shares related to options		4,833,446		2,583,320		3,562,837		2,583,320
Share related to performance based restricted stock		2,267,887		1,009,995		2,038,782		560,375
Shares related to time based restricted stock		3,262,797		1,048,641		2,454,587		581,431
Units/Shares excluded from the dilution computation		78,808,006		78,392,858		76,597,957		75,958,857

(1)The warrants include the public warrants, private placement warrants and Forward Purchase Warrants.

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Share-Based Compensation

6 Months Ended

Aug. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

24. Share-Based Compensation

2021 Incentive Plan

The E2open Parent Holdings, Inc. 2021 Omnibus Incentive Plan (2021 Incentive Plan) became effective on the Closing Date with the approval of CCNB1’s shareholders and board of directors. The 2021 Incentive Plan allows us to make equity and equity-based incentive awards to officers, employees, directors and consultants. There were 15,000,000 shares of Class A Common Stock reserved for issuance under the 2021 Incentive Plan as of February 28, 2022. The "evergreen" provision of the 2021 Incentive Plan provides for an annual automatic increase to the number of shares of Class A Common Stock available under the plan. As of March 1, 2022, an additional 4,849,684 shares were reserved for issuance under the "evergreen " provision. Shares issued under the 2021 Incentive Plan can be granted as stock options, restricted stock awards, restricted stock units, performance stock awards, cash awards and other equity-based awards. No award may vest earlier than the first anniversary of the date of grant, expect under limited conditions.

Our board of directors have approved the grant of options and RSUs under the 2021 Incentive Plan.

The fiscal year 2022 options were performance based and measured based on obtaining an organic growth target over a one-year period with a quarter of the options vesting at the end of the performance period and the remaining options vesting equally over the following three years. The fiscal year 2023 options are performance based and measured based on obtaining an organic growth, adjusted EBITDA and net booking targets over a one-year period with a quarter of the options vesting at the end of the performance period and the remaining options vesting equally over the following three years. Our executive officers and senior management are granted these performance based options. The performance target is set at 100% at the grant date, and the probability of meeting the performance target is remeasured each quarter over the performance period and adjusted if needed. The performance target for the options granted during May 2021 was finalized in April 2022 above 100% and adjusted accordingly. As of August 31, 2022, there were 4,259,741 unvested performance based options.

The RSUs are either performance based or time based. The fiscal year 2022 performance based RSUs were measured based on obtaining an organic growth target over a one-year period with a quarter of the RSUs vesting at the end of the performance period and the remaining RSU's vesting equally over the following three years. The fiscal year 2023 performance based RSUs are measured based on obtaining an organic growth, adjusted EBITDA and net bookings target over a one-year period with a quarter of the RSUs vesting at the end of the performance period and the remaining RSU's vesting equally over the following three years. The performance target is set at 100% at the date of grant, and the probability of meeting the performance target is remeasured each quarter over the performance period and adjusted if needed. The performance target for the performance based RSUs granted during May 2021 was finalized in April 2022 above 100% and adjusted accordingly. The time based RSUs for executive officers, senior management and employees vest ratably over a three-year period while the time based RSUs for non-employee directors of our board of directors have a one-year vesting period. As of August 31, 2022, there were 2,186,081 performance based RSUs and 3,069,013 time based RSUs that were vested or expected to vest with a total intrinsic value of $35.3 million. Performance based RSUs of 74,089 have vested but have not been released as of August 31, 2022. Time based RSUs of 45,513 have vested but have not been released as of August 31, 2022.

As of August 31, 2022, there were 9,806,788 shares of Class A Common Stock available for grant under the 2021 Incentive Plan.

As previously disclosed in our 2022 Form 10-K in Item 9B., Other Information, our former Chief Financial Officer entered into a Transition Agreement in which all of his outstanding stock awards accelerated vesting to August 31, 2022. Additionally, the exercise period for his options was extended from 90 days to one year with exercises permitted through August 31, 2023.

Activity under the 2021 Incentive Plan related to options was as follows:

	Number of Shares (in thousands)			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)
Balance, February 28, 2022		2,524		$	9.83		9.0
Granted		3,275			7.76
Forfeited/Expired		(966	)		9.85
Balance, August 31, 2022		4,833		$	8.42		8.9
Vested and exercisable as of August 31, 2022		573		$	9.82		5.4

	Number of Shares (in thousands)		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)
Balance, February 28, 2021		—	$	—		—
Granted		2,583		9.86
Balance, August 31, 2021		2,583	$	9.86		9.5

As of August 31, 2022, there was $8.2 million of unrecognized compensation cost related to unvested options. The aggregate intrinsic value of outstanding stock option awards and the vested and exercisable stock option awards was zero as of August 31, 2022 since our Class A Common Stock price was less than the exercise price of the stock option awards.

Activity under the 2021 Incentive Plan related to RSUs was as follows:

	Number of Units (in thousands)			Weighted Average Grant Date Fair Value Per Unit		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2022		2,103		$	12.47		2.7
Granted		3,925			8.06
Added by performance factor		300			12.87
Released		(665	)		12.16
Canceled and forfeited		(408	)		10.50
Balance, August 31, 2022		5,255		$	9.32		2.7

	Number of Units (in thousands)			Weighted Average Grant Date Fair Value Per Unit		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2021		—		$	—		—
Granted		2,105			12.84
Forfeited		(47	)		12.87
Balance, August 31, 2021		2,058		$	12.84		3.1

As of August 31, 2022, there was $37.1 million of unrecognized compensation cost related to unvested RSUs. The aggregate intrinsic value of the RSUs was $35.3 million as of August 31, 2022 which is the outstanding RSUs valued at the closing price of our Class A Common Stock on August 31, 2022.

See Note 29, Subsequent Events for information regarding time based RSUs granted during the third quarter of fiscal 2023.

The estimated grant-date fair values of the options granted during the six months ended August 31, 2022 were calculated using the Black-Scholes option-pricing valuation model, based on the following assumptions:

Expected term (in years)	6.25
Expected equity price volatility	44.17%
Risk-free interest rate	2.91%
Expected dividend yield	0%

The table below sets forth the functional classification in the Condensed Consolidated Statements of Operations of our equity-based compensation expense:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Cost of revenue	$	90	$	257	$	311	$	457
Research and development		764		374		1,243		697
Sales and marketing		909		478		1,659		760
General and administrative		3,391		1,400		5,129		2,638
Total share-based compensation	$	5,154	$	2,509	$	8,342	$	4,552

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Leases

6 Months Ended

Aug. 31, 2022

Leases [Abstract]

Leases

25. Leases

We account for leases in accordance with ASC 842, Leases, which requires lessees to recognize lease liabilities and ROU assets on the balance sheet for most operating leases. We made the accounting policy election not to apply the recognition provisions of ASC 842 to short-term leases which are leases with a lease term of 12 months or less. Instead, we recognize the lease payments for short-term leases on a straight-line basis over the lease term. We currently do not have any short-term leases.

Operating lease liabilities reflect our obligation to make future lease payments for real estate locations. Lease terms are comprised of contractual terms. Payments are discounted using the rate we would pay to borrow amounts equal to the lease payments over the lease term (our incremental borrowing rate). We do not separate lease and non-lease components for contracts in which we are the lessee. ROU assets are measured based on lease liabilities adjusted for incentives and timing differences between operating lease expense and payments, recognized on a straight-line basis over the lease term. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Common area maintenance and other executory costs are the main components of variable lease payments. Operating and variable lease expenses are recorded in general and administrative expense in the Condensed Consolidated Statements of Operations.

Real Estate Leases

We lease our primary office space under non-cancelable operating leases with various expiration dates through June 2030. Many of our leases have an option to be extended from two to five years, and several of the leases give us the right to cancel early with proper notification. Additionally, we have three subleases of our office leases as of August 31, 2022.

Several of the operating lease agreements require us to provide security deposits. As of August 31, 2022, and February 28, 2022, lease deposits were $3.8 million and $3.6 million, respectively. The deposits are generally refundable at the expiration of the lease, assuming all obligations under the lease agreement have been met. Deposits are included in prepaid and other current assets and other noncurrent assets in the Condensed Consolidated Balance Sheets.

During the second quarter of fiscal 2023, we incurred a $2.4 million impairment on our operating lease right-of-use assets and leasehold improvements due to vacating four locations with the intent to sublease them. The impairment was recorded in general and administrative expense in the Condensed Consolidated Statements of Operations.

Vehicle Leases

We lease vehicles under non-cancelable operating lease arrangements which have various expiration dates through July 2026. We do not have the right to purchase the vehicles at the end of the lease term.

Equipment Leases

We purchase certain equipment under non-cancelable financing lease arrangements which are primarily related to software and computer equipment and which have various expiration dates through October 2023. We have the right to purchase the software and computer equipment anytime during the lease or upon lease completion.

Balance Sheet Presentation

The following tables presents the amounts and classifications of our estimated ROU assets, net and lease liabilities:

($ in thousands)	Balance Sheet Location	August 31, 2022		February 28, 2022
Operating lease right-of-use assets	Operating lease right-of-use assets	$	24,839	$	28,102
Finance lease right-of-use asset	Property and equipment, net		2,746		3,719
Total right-of-use assets		$	27,585	$	31,821

($ in thousands)	Balance Sheet Location	August 31, 2022		February 28, 2022
Operating lease liability - current	Current portion of operating lease obligations	$	8,106	$	7,652
Operating lease liability	Operating lease obligations		19,960		21,202
Finance lease liability - current	Current portion of finance lease obligations		2,117		2,307
Finance lease liability	Finance lease obligations		74		1,950
Total lease liabilities		$	30,257	$	33,111

Lease Cost and Cash Flows

The following table summarizes our total lease cost:

	Three Months Ended August 31,						Six Months Ended August 31,
($ in thousands)	2022			2021			2022			2021
Finance lease cost:
Amortization of right-of-use asset	$	567		$	398		$	1,178		$	1,591
Interest on lease liability		56			287			126			417
Finance lease cost		623			685			1,304			2,008
Operating lease cost:
Operating lease cost		1,894			1,143			3,266			2,492
Variable lease cost		1,204			1,178			3,300			1,979
Sublease income		(208	)		(359	)		(436	)		(533	)
Operating net lease cost		2,890			1,962			6,130			3,938
Total net lease cost	$	3,513		$	2,647		$	7,434		$	5,946

We currently do not have any short-term leases.

Supplemental cash flow information related to leases was as follows:

	Six Months Ended August 31,
($ in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	5,067	$	3,197

The following table presents the weighted-average remaining lease terms and discount rates of our leases:

	Six Months Ended August 31,
	2022			2021
Weighted-average remaining lease term (in years):
Finance lease		0.90			1.98
Operating lease		4.08			5.20
Weighted-average discount rate:
Finance lease		9.20	%		9.20	%
Operating lease		4.68	%		4.43	%

Lease Liability Maturity Analysis

The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities as of August 31, 2022:

($ in thousands)	Operating Leases			Finance Leases
September 2022 - February 2023	$	4,728		$	228
2024		8,810			2,105
2025		6,970			—
2026		4,641			—
2027		3,293			—
Thereafter		2,798			—
Total		31,240			2,333
Less: Present value discount		(3,174	)		(142	)
Lease liabilities	$	28,066		$	2,191

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Income Taxes

6 Months Ended

Aug. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

26. Income Taxes

We calculate the provision for income taxes during interim periods by applying an estimate of the forecasted annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding discrete items) for the reporting period. Our provision for income taxes was a benefit of $113.7 million, or 21.7%, for the three months ended August 31, 2022 compared to an expense of $6.0 million, or 33.3%, for the three months ended August 31, 2021. Our provision for income taxes for the six months ended August 31, 2022 was a benefit of $122.1 million, or 22.4%, compared to an expense of $7.4 million, or 4.0%, for the six months ended August 31, 2021.

The loss before income taxes of $523.2 million and $544.3 million for the three and six months ended August 31, 2022, respectfully, resulted in a $113.7 million and $122.1 million income tax benefit, respectively. These benefits primarily resulted from the goodwill impairment taken in the second fiscal quarter of 2023. Additionally, the increase in the tax benefit was due to changes in book losses in certain jurisdictions for which no benefit can be recognized, changes in the impact of book income and losses of affiliates on the carrying amount of our partnership investment and changes in the mark-to-market gains and losses on certain contingent liabilities.

As of August 31, 2022 and February 28, 2022, total gross unrecognized tax benefits were $2.6 million. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of August 31, 2022 and February 28, 2022, the total amount of gross interest and penalties accrued was less than $0.1 million which is classified as other noncurrent liabilities in the Condensed Consolidated Balance Sheets.

Inflation Reduction Act of 2022

On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (IRA), which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. The alternative minimum tax and excise tax are effective in taxable years beginning after December 31, 2022. The alternative minimum tax would not be applicable in our next fiscal year since it is based on a three-year average annual adjusted financial statement income in excess of $1 billion. We will evaluate any impact related to the excise tax on net stock repurchases based on our relative activity.

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Commitments and Contingencies

6 Months Ended

Aug. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

27. Commitments and Contingencies

From time to time, we are subject to contingencies that arise in the ordinary course of business. We record an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We do not currently believe the resolution of any such contingencies will have a material adverse effect upon our Condensed Consolidated Balance Sheets, Statements of Operations or Statements of Cash Flows.

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Supplemental Cash Flow Information

6 Months Ended

Aug. 31, 2022

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

28. Supplemental Cash Flow Information

Supplemental cash flow information and non-cash investing and financing activities are as follows:

	Six Months Ended August 31,
(In thousands)	2022		2021
Supplemental cash flow information - Cash paid for:
Interest	$	23,241	$	10,504
Income taxes		2,584		824
Non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued liabilities		4,521		1,435
Right-of-use assets obtained in exchange for operating lease obligations		2,762		23,008
Shares withheld for taxes on vesting of restricted stock		1,254		—
Conversion of Common Units to Class A Common Stock		1,185		27,228
Conversion of Series B1 common stock to Class A Common Stock		—		175,000
Business Combination purchase price adjustment		—		2,965

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Subsequent Events

6 Months Ended

Aug. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

29. Subsequent Events

On August 15, 2022, E2open, LLC and the sellers of Logistyx agreed to extend the final payment to September 1, 2022 allowing both parties to finalize working capital adjustments and other contractual provisions. On September 1, 2022, E2open, LLC made a cash payment of $54.0 million to Logistyx for the final payment for the Logistyx Acquisition which reflected a working capital adjustment of $3.6 million. The Logistyx sellers have disputed the working capital adjustment pursuant to the terms of the Membership Interest Purchase Agreement and the parties are in the process of negotiating in good faith to come to a resolution.

During September 2022, we borrowed an aggregate of $25.0 million under our 2021 Revolving Credit Facility at a weighted average interest rate of 5.64%. All the funds will be used for general operating activities.

During fiscal 2023, our board approved a company-wide share-based compensation program under our 2021 Incentive Plan. Under the program, approximately 3,800 employees will be eligible to receive an annual stock award subject to board approval as part of their annual compensation package. As part of the fiscal 2023 annual compensation package, our board approved a grant on October 1, 2022 of 1,653,982 time based RSUs to the employees who did not receive an equity grant in May 2022. For those employees based in China, 182,513 cash-settled RSUs were granted. The time based and cash-settled RSUs will vest ratably over a three-year period.

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Organization and Basis of Presentation (Policies)

6 Months Ended

Aug. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

These unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. Investments in other companies are carried at cost. See Note 10, Investments for additional information. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended August 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending February 28, 2023. For further information, refer to the consolidated financial statements and notes thereto included in our 2022 Form 10-K.

Use of Estimates

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. Such management estimates include allowance for credit losses, goodwill and other long-lived assets, estimates of standalone selling price of performance obligations for revenue contracts with multiple performance obligations, share-based compensation, valuation allowances for deferred tax assets and uncertain tax positions, tax receivable agreement liability, warrants, contingent consideration and the accounting for business combinations. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates.

Reclassifications

Reclassifications

During the second quarter of fiscal 2023, we began reporting deferred income taxes as a separate line as part of operating activities in the Condensed Consolidated Statements of Cash Flows. As a result, we reclassed $4.5 million from the change in other liabilities to deferred income taxes for the six months ended August 31, 2021.

Seasonality

Seasonality

Our quarterly operating results have fluctuated in the past and are expected to fluctuate in the future due to a variety of factors, many of which are outside of our control, including seasonality in our business as a result of client budget cycles and customary European vacation schedules, with higher sales typically in the third and fourth fiscal quarters. As a result, our past results may not be indicative of our future performance and comparing our operating results on a period-to-period basis may not be meaningful.

Recently Adopted Accounting Guidance and Recent Accounting Guidance Not Yet Adopted

Recent Accounting Guidance Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting to simplify the accounting for contract modifications made to replace LIBOR or other reference rates that are expected to be discontinued because of the reference rate reform. The guidance provides optional expediates and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criterion are met. The optional expedients and exceptions can be applied to contract modifications made until December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in ASU 2021-01 are elective and apply to our debt instruments that may be modified as a result of the reference rate reform. We are continuing to evaluate these standards, as well as the timing of the transition of various rates in our debt instruments affected by reference rate reform.

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Acquisitions (Tables)

6 Months Ended

Aug. 31, 2022

Business Acquisition [Line Items]

Summary of Unaudited Pro Forma Information

The following unaudited pro forma combined financial information presents the results of operations as if the BluJay and Logistyx acquisitions happened as of March 1, 2021. The unaudited pro forma results may not necessarily reflect actual results of operations that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma results reflect the step-up amortization adjustments for the fair value of intangible assets acquired, the elimination of historical interest expense incurred by BluJay and Logistyx on its debt and the incurrence of interest expense related to the issuance of debt in connection with the BluJay and Logistyx acquisitions, transaction expenses, nonrecurring post-combination compensation expense and the related adjustment to the income tax provision.

	Three Months Ended			Six Months Ended
($ in millions)	August 31, 2021			August 31, 2021
Total revenue	$	136.4		$	260.0
Net loss		(45.7	)		(257.7	)
Less: Net loss attributable to noncontrolling interest		(5.3	)		(29.1	)
Net loss attributable to E2open Parent Holdings, Inc.	$	(40.4	)	$	(228.6	)

Logistyx Technologies, LLC

Business Acquisition [Line Items]

Summary of Estimated Fair Value of Business Combination and Consideration Paid for Acquisition

The following summarizes the consideration paid for the Logistyx Acquisition.

($ in thousands)	Fair Value
Cash consideration to Logistyx at fair value	$	153,090
Cash repayment of debt		29,777
Cash paid for seller transaction costs		489
Estimated consideration paid for the Logistyx Acquisition	$	183,356

Schedule of Allocation of Purchase Price

The preliminary purchase price allocation is as follows:

($ in thousands)	Preliminary Purchase Price Allocation			Adjustments (3)			Updated Preliminary Purchase Price Allocation
Cash and cash equivalents	$	1,563		$	—		$	1,563
Account receivable, net		5,332			—			5,332
Other current assets		3,335			—			3,335
Property and equipment, net		144			—			144
Intangible assets		67,200			(400	)		66,800
Goodwill (1)		125,896			400			126,296
Non-current assets		619			—			619
Accounts payable		(5,897	)		—			(5,897	)
Current liabilities		(3,931	)		—			(3,931	)
Deferred revenue (2)		(10,747	)		—			(10,747	)
Non-current liabilities		(158	)		—			(158	)
Total assets acquired and liabilities assumed	$	183,356		$	—		$	183,356

(1)Goodwill represents the excess of the purchase price over the estimated fair value of the identifiable net assets acquired in the Logistyx Acquisition. Goodwill associated with the Logistyx Acquisition is deductible for tax purposes at the U.S. entity level.

(2)The deferred revenue was recorded under ASC 606 in accordance with ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers; therefore, a reduction in deferred revenues related to the estimated fair values of the acquired deferred revenues was not required.

(3)The adjustments primarily relate to the change in fair value of the intangible assets due to a change in the deferred revenue.

Summary of Fair Value of Intangible Assets

The fair value of the intangible assets is as follows:

($ in thousands)	Useful Lives	Fair Value
Trade name	1	$	500
Developed technology (1)	6.4		33,500
Client relationships (2)	13		32,000
Backlog (3)	2.5		800
Total intangible assets		$	66,800

(1)The developed technology represents technology developed by Logistyx and acquired by E2open, which was valued using the multi-period excess earnings method, a form of the income approach considering technology migration.

(2)The client relationships represent the existing client relationships of Logistyx and acquired by E2open that was estimated by applying the with-and-without methodology, a form of the income approach.

(3)The backlog represents the present value of future cash flows from contracts with clients where service has not been performed and billing has not occurred.

BluJay

Business Acquisition [Line Items]

Summary of Estimated Fair Value of Business Combination and Consideration Paid for Acquisition

The following summarizes the consideration paid for the BluJay Acquisition.

($ in thousands)	Fair Value
Equity consideration paid to BluJay (1)	$	730,854
Cash consideration to BluJay		350,658
Preference share consideration paid to BluJay (2)		86,190
Cash repayment of debt		334,483
Cash paid for seller transaction costs		26,686
Estimated consideration paid for the BluJay Acquisition	$	1,528,871

(1)Equity consideration paid to BluJay equity holders consisted of the following:

(In thousands, except per share data)	Consideration
Common shares subject to sales restriction		72,383
Fair value per share	$	10.097
Equity consideration paid to BluJay	$	730,854

(2)Represents the liability and dividends owed related to the BluJay preference shares at the date of the acquisition.

Schedule of Allocation of Purchase Price

The final purchase price allocation is as follows:

($ in thousands)	Preliminary Purchase Price Allocation			Adjustments (4)			Final Purchase Price Allocation
Cash and cash equivalents	$	23,773		$	—		$	23,773
Account receivable, net		33,834			(12	)		33,822
Other current assets		10,352			865			11,217
Property and equipment, net		6,503			—			6,503
Operating lease right-of-use assets		9,018			—			9,018
Intangible assets		484,800			—			484,800
Goodwill (1)		1,152,084			(2,218	)		1,149,866
Non-current assets		2,200			(2,016	)		184
Accounts payable		(11,773	)		143			(11,630	)
Current liabilities (2)		(33,530	)		10,652			(22,878	)
Deferred revenue (3)		(39,283	)		—			(39,283	)
Deferred taxes		(101,936	)		(7,414	)		(109,350	)
Non-current liabilities		(7,171	)		—			(7,171	)
Total assets acquired and liabilities assumed	$	1,528,871		$	—		$	1,528,871

(1)Goodwill represents the excess of the purchase price over the estimated fair value of the identifiable net assets acquired in the BluJay Acquisition. Goodwill associated with the BluJay Acquisition is not deductible for tax purposes.

(2)Current liabilities include a $2.7 million deferred acquisition liability that was acquired related to a prior acquisition by BluJay. The deferred acquisition liability was a fixed amount that was determined at the closing of the acquisition and payable after a certain period of time. The deferred acquisition liability was paid in December 2021.

(3)The deferred revenue was recorded under ASC 606 in accordance with ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers; therefore, a reduction in deferred revenues related to the estimated fair values of the acquired deferred revenues was not required.

(4)The adjustments primarily relate to the jurisdictional netting of income taxes, impact of a tax rate change on the deferred balance and the reinstatement of income tax receivables along with the true-up of accrued liabilities.

Summary of Fair Value of Intangible Assets

The fair value of the intangible assets is as follows:

($ in thousands)	Useful Lives	Fair Value
Trade name	1	$	3,800
Developed technology (1)	5.9		301,000
Client relationships (2)	3		180,000
Total intangible assets		$	484,800

(1)The developed technology represents technology developed by BluJay and acquired by E2open, which was valued using the multi-period excess earnings method, a form of the income approach considering technology migration.

(2)The client relationships represent the existing client relationships of BluJay and acquired by E2open that was estimated by applying the with-and-without methodology, a form of the income approach.

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Accounts Receivable (Tables)

6 Months Ended

Aug. 31, 2022

Receivables [Abstract]

Schedule of Accounts Receivable, Net

Accounts receivable, net consisted of the following:

($ in thousands)	August 31, 2022			February 28, 2022
Accounts receivable	$	134,644		$	143,799
Unbilled receivables		25,436			14,597
Less: Allowance for credit losses		(5,308	)		(3,055	)
Accounts receivable, net	$	154,772		$	155,341

Schedule of Allowance for Credit Losses

The allowance for credit losses was comprised of the following:

($ in thousands)	Amount
Balance, February 28, 2021	$	(908	)
BluJay Acquisition		(1,779	)
Additions		(1,917	)
Write-offs		1,549
Balance, February 28, 2022		(3,055	)
Logistyx Acquisition		(267	)
Additions		(2,436	)
Write-offs		450
Balance, August 31, 2022	$	(5,308	)

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Prepaid and Other Current Assets (Tables)

6 Months Ended

Aug. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

($ in thousands)	August 31, 2022		February 28, 2022
Prepaid software and hardware license and maintenance fees	$	12,023	$	6,022
Income and other taxes receivable		5,279		4,544
Prepaid insurance		4,267		3,401
Deferred commissions		3,666		2,867
Prepaid marketing		1,407		1,124
Security deposits		1,483		1,044
Other prepaid expenses and other current assets		2,402		7,241
Total prepaid expenses and other current assets	$	30,527	$	26,243

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Goodwill (Tables)

6 Months Ended

Aug. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes In Goodwill

The following table presents the changes in goodwill:

($ in thousands)	Amount
Balance, February 28, 2021	$	2,628,646
Business Combination purchase price adjustment (1)		407
BluJay Acquisition (2)		1,155,321
Currency translation adjustment		(27,503	)
Balance, February 28, 2022		3,756,871
BluJay Acquisition adjustment (2)		(5,455	)
Logistyx Acquisition (3)		126,296
Impairment charge		(514,816	)
Currency translation adjustment		(70,236	)
Balance, August 31, 2022	$	3,292,660

(1)Consists of the post-closing adjustment of consideration and associated tax adjustments required as part of the merger transaction pursuant to Section 3.5 of the Business Combination Agreement. On July 6, 2021, we issued additional Class A Common Stock and Common Units valued at $3.0 million in total pro rata to the various parties who received consideration in February 2021 at the closing of the Business Combination in the form of shares of Class A Common Stock, Common Units and cash. Additional tax adjustments were required during the third quarter of fiscal year 2022.

(2)Represents the goodwill acquired in the BluJay Acquisition as of September 1, 2021 and subsequent purchase price adjustments. See Note 3, Acquisitions for additional information.

(3)Represents the goodwill acquired in the Logistyx Acquisition as of March 2, 2022 and subsequent purchase price adjustments. See Note 3, Acquisitions for additional information.

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Intangible Assets, Net (Tables)

6 Months Ended

Aug. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Net

Intangible assets, net consisted of the following:

	August 31, 2022
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortized			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	110,000	$	—		$	110,000
Definite-lived:
Client relationships	13.8		498,644		(80,778	)		417,866
Technology	7.3		685,517		(120,291	)		565,226
Content library	10.0		50,000		(7,872	)		42,128
Trade name	1.0		3,710		(3,461	)		249
Backlog	2.5		800		(160	)		640
Total definite-lived			1,238,671		(212,562	)		1,026,109
Total intangible assets		$	1,348,671	$	(212,562	)	$	1,136,109

	February 28, 2022
($ in thousands)	Weighted Average Useful Life	Cost		Accumulated Amortized			Net
Indefinite-lived:
Trademark / Trade name	Indefinite	$	109,998	$	—		$	109,998
Definite-lived:
Client relationships	13.6		476,584		(45,467	)		431,117
Technology	7.3		666,160		(72,414	)		593,746
Content library	10.0		50,000		(5,372	)		44,628
Trade name	1.0		3,705		(1,804	)		1,901
Total definite-lived			1,196,449		(125,057	)		1,071,392
Total intangible assets		$	1,306,447	$	(125,057	)	$	1,181,390

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Property and Equipment, Net (Tables)

6 Months Ended

Aug. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following:

($ in thousands)	August 31, 2022			February 28, 2022
Computer equipment	$	46,667		$	33,228
Software		54,667			43,821
Furniture and fixtures		3,437			3,509
Leasehold improvements		10,599			9,067
Gross property and equipment		115,370			89,625
Less accumulated depreciation and amortization		(38,457	)		(23,688	)
Property and equipment, net	$	76,913		$	65,937

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Accounts Payable and Accrued Liabilities (Tables)

6 Months Ended

Aug. 31, 2022

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:

($ in thousands)	August 31, 2022		February 28, 2022
Accrued compensation	$	33,988	$	63,101
Accrued severance and retention		3,600		1,909
Trade accounts payable		39,409		33,158
Accrued professional services		4,003		5,440
Restructuring liability		280		778
Taxes payable		12,463		2,702
Interest payable		5,818		2,398
Client deposits		2,284		2,214
Other		13,620		19,546
Total accounts payable and accrued liabilities	$	115,465	$	131,246

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Notes Payable (Tables)

6 Months Ended

Aug. 31, 2022

Debt Disclosure [Abstract]

Schedule of Notes Payable Outstanding

Notes payable outstanding were as follows:

($ in thousands)	August 31, 2022			February 28, 2022
2021 Term Loan	$	1,083,681		$	899,163
2021 Revolving Credit Facility		—			80,000
Other notes payable		17			47
Total notes payable		1,083,698			979,210
Less unamortized debt issuance costs		(26,323	)		(26,536	)
Total notes payable, net		1,057,375			952,674
Less current portion		(10,978	)		(89,097	)
Notes payable, less current portion, net	$	1,046,397		$	863,577

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Financial Instruments (Tables)

6 Months Ended

Aug. 31, 2022

Investments, All Other Investments [Abstract]

Condensed Consolidated Balance Sheets Location and Amount of Derivative Instrument Fair Values

The following table represents the Condensed Consolidated Balance Sheets location and amount of derivative instrument fair values:

($ in thousands)	August 31, 2022
Accounts payable and accrued liabilities	$	(125	)
Other noncurrent liabilities		(82	)

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Fair Value Measurement (Tables)

6 Months Ended

Aug. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Summary of Investments

The following tables set forth details about our investments:

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
August 31, 2022
Asset-backed securities	$	162	$	23	$	—	$	185
February 28, 2022
Asset-backed securities	$	162	$	46	$	—	$	208

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

Our assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy are summarized as follows:

	August 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Asset-backed securities	$	—	$	185	$	—	$	185
Total investments		—		185		—		185
Total assets	$	—	$	185	$	—	$	185
Liabilities:
Forward currency contracts	$	—	$	207	$	—	$	207
Tax receivable agreement liability		—		—		43,876		43,876
Warrant liability		18,078		—		28,447		46,525
Contingent consideration		—		—		34,108		34,108
Total liabilities	$	18,078	$	207	$	106,431	$	124,716

	February 28, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market	$	4	$	—	$	—	$	4
Total cash equivalents		4		—		—		4
Investments:
Asset-backed securities		—		208		—		208
Total investments		—		208		—		208
Total assets	$	4	$	208	$	—	$	212
Liabilities:
Tax receivable agreement liability	$	—	$	—	$	50,268	$	50,268
Warrant liability		27,324		—		39,815		67,139
Contingent consideration		—		—		45,568		45,568
Total liabilities	$	27,324	$	—	$	135,651	$	162,975

Reconciliation of Beginning and Ending Balances of Acquisition Related Accrued Earn-Outs Using Significant Unobservable Inputs (Level 3)

The following table provides a reconciliation of the beginning and ending balances of acquisition related accrued earn-outs and contingent consideration using significant unobservable inputs (Level 3) from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	45,568		$	152,808
Conversion to Class A Common Stock		—			(175,000	)
Cash payments		—			(2,000	)
(Gain) loss from fair value of contingent consideration		(11,460	)		69,760
End of period	$	34,108		$	45,568

Reconciliation of Liability Measured at Fair Value

The following table provides a reconciliation of the portion of the tax receivable agreement liability measured at fair value under Level 3 from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	50,268		$	50,114
Loss from fair value of tax receivable agreement liability		(6,392	)		154
End of period	$	43,876		$	50,268

The following table provides a reconciliation of the warrant liability from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	67,139		$	68,772
Gain from fair value of warrant liability		(20,614	)		(1,633	)
End of period	$	46,525		$	67,139

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Revenue (Tables)

6 Months Ended

Aug. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue by Geographic Region

Revenue by geographic regions consisted of the following:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Americas	$	135,797	$	74,902	$	270,632	$	138,220
Europe		18,985		1,298		38,929		2,622
Asia Pacific		5,894		1,879		11,496		3,564
Total revenue	$	160,676	$	78,079	$	321,057	$	144,406

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Severance and Exit Costs (Tables)

6 Months Ended

Aug. 31, 2022

Restructuring and Related Activities [Abstract]

Schedule of Severance and Exit Costs Included in Acquisitions

Severance and exit costs included in acquisition-related expenses in the Condensed Consolidated Statements of Operations were as follows:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Severance	$	1,868	$	614	$	3,690	$	654
Lease exits		126		494		235		816
Total severance and exit costs	$	1,994	$	1,108	$	3,925	$	1,470

Schedule of Changes in Severance and Exit Costs Accruals

The following table reflects the changes in the severance and exit cost accruals from March 1, 2022 through August 31, 2022 and March 1, 2021 through February 28, 2022:

($ in thousands)	August 31, 2022			February 28, 2022
Beginning of period	$	2,687		$	1,988
Payments		(3,061	)		(7,302	)
Impairment of right-of-use assets		(421	)		(580	)
Expenses		4,675			8,581
End of period	$	3,880		$	2,687

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Stockholders' Equity (Tables)

6 Months Ended

Aug. 31, 2022

Stockholders' Equity Note [Abstract]

Schedule of Changes in Outstanding Stock

The following table reflects the changes in our outstanding stock:

	Class A		Class V			Series B-1		Series B-2
Balance, February 28, 2022		301,359,967		33,560,839			94		3,372,184
Conversion of Common Units (1)		149,941		(368,832	)		—		—
Vesting of restricted awards, net of shares     withheld for taxes (2)		512,811		—			—		—
Balance, August 31, 2022		302,022,719		33,192,007			94		3,372,184

(1)Class A Common Stock issued for the conversion of Common Units settled in stock. During the six months ended August 31, 2022, we paid $1.4 million in cash for the repurchase of 218,891 Common Units that were converted into cash instead of stock at our option. Class V Common Stock are retired on a one-for-one basis when Common Units are converted into Class A Common Stock or settled in cash.

(2)The Class A Common Stock withheld for taxes revert back to the 2021 Incentive Plan, as defined below, and are used for future grants.

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Other Comprehensive Loss Income (Tables)

6 Months Ended

Aug. 31, 2022

Statement of Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Loss in Equity Section of Condensed Consolidated Balance Sheets

Accumulated other comprehensive loss in the equity section of our Condensed Consolidated Balance Sheets includes:

($ in thousands)	Foreign Currency Translation Adjustment			Unrealized Holding Gains (Losses) on Derivatives			Total
Balance, February 28, 2022	$	(19,019	)	$	—		$	(19,019	)
Other comprehensive loss		(100,109	)		(207	)		(100,316	)
Tax effects		27,654						27,654
Other comprehensive loss		(72,455	)		(207	)		(72,662	)
Balance, August 31, 2022	$	(91,474	)	$	(207	)	$	(91,681	)

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Earnings Per Share (Tables)

6 Months Ended

Aug. 31, 2022

Earnings Per Share [Abstract]

Summary of Basic and Diluted Per Share Computations for Net Income (Loss)

The following is a reconciliation of the denominators of the basic and diluted per share computations for net loss:

	Three Months Ended August 31,						Six Months Ended August 31,
(in thousands, except per share data)	2022			2021			2022			2021
Net loss per share:
Numerator - basic:
Net loss per share:	$	(409,585	)	$	(23,988	)	$	(422,206	)	$	(193,343	)
Less: Net loss attributable to noncontrolling interests		(40,897	)		(3,471	)		(42,162	)		(30,568	)
Net loss attributable to E2open Parent Holdings, Inc.     - basic	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Numerator - diluted:
Net loss attributable to E2open Parent Holdings, Inc.     - basic	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Add: Net loss and tax effect attributable to noncontrolling     interests		—			—			—			—
Net loss attributable to E2open Parent Holdings, Inc.     - diluted	$	(368,688	)	$	(20,517	)	$	(380,044	)	$	(162,775	)
Denominator - basic:
Weighted average shares outstanding - basic		301,898			195,148			301,635			191,099
Net loss per share - basic	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)
Denominator - diluted:
Weighted average shares outstanding - basic		301,898			195,148			301,635			191,099
Weighted average effect of dilutive securities:
Shares related to Common Units		—			—			—			—
Weighted average shares outstanding - diluted		301,898			195,148			301,635			191,099
Diluted net loss per common share	$	(1.22	)	$	(0.11	)	$	(1.26	)	$	(0.85	)

Summary of Weighted Average Potential Common Shares Excluded from Diluted Loss Per Common Share

The following table summarizes the weighted-average potential common shares excluded from diluted loss per common share as their effect would be anti-dilutive:

	Three Months Ended August 31,				Six Months Ended August 31,
	2022		2021		2022		2021
Shares related to Series B-1 common stock		94		86		94		43
Shares related to Series B-2 common stock		3,372,184		3,372,184		3,372,184		3,372,184
Shares related to restricted common units Series 2		2,627,724		2,627,724		2,627,724		2,627,724
Shares related to warrants (1)		29,079,872		29,079,972		29,079,872		29,079,972
Shares related to Common Units		33,364,002		38,670,936		33,461,877		37,153,808
Shares related to options		4,833,446		2,583,320		3,562,837		2,583,320
Share related to performance based restricted stock		2,267,887		1,009,995		2,038,782		560,375
Shares related to time based restricted stock		3,262,797		1,048,641		2,454,587		581,431
Units/Shares excluded from the dilution computation		78,808,006		78,392,858		76,597,957		75,958,857

(1)The warrants include the public warrants, private placement warrants and Forward Purchase Warrants.

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Share-Based Compensation (Tables)

6 Months Ended

Aug. 31, 2022

Schedule of Functional Classification in the Condensed Consolidated Statements of Operations

The table below sets forth the functional classification in the Condensed Consolidated Statements of Operations of our equity-based compensation expense:

	Three Months Ended August 31,				Six Months Ended August 31,
($ in thousands)	2022		2021		2022		2021
Cost of revenue	$	90	$	257	$	311	$	457
Research and development		764		374		1,243		697
Sales and marketing		909		478		1,659		760
General and administrative		3,391		1,400		5,129		2,638
Total share-based compensation	$	5,154	$	2,509	$	8,342	$	4,552

2021 Incentive Plan

Summary of Option Plan Activity

Activity under the 2021 Incentive Plan related to options was as follows:

	Number of Shares (in thousands)			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)
Balance, February 28, 2022		2,524		$	9.83		9.0
Granted		3,275			7.76
Forfeited/Expired		(966	)		9.85
Balance, August 31, 2022		4,833		$	8.42		8.9
Vested and exercisable as of August 31, 2022		573		$	9.82		5.4

	Number of Shares (in thousands)		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)
Balance, February 28, 2021		—	$	—		—
Granted		2,583		9.86
Balance, August 31, 2021		2,583	$	9.86		9.5

Schedule of Restricted Equity Plan

Activity under the 2021 Incentive Plan related to RSUs was as follows:

	Number of Units (in thousands)			Weighted Average Grant Date Fair Value Per Unit		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2022		2,103		$	12.47		2.7
Granted		3,925			8.06
Added by performance factor		300			12.87
Released		(665	)		12.16
Canceled and forfeited		(408	)		10.50
Balance, August 31, 2022		5,255		$	9.32		2.7

	Number of Units (in thousands)			Weighted Average Grant Date Fair Value Per Unit		Weighted Average Remaining Recognition Period (in years)
Balance, February 28, 2021		—		$	—		—
Granted		2,105			12.84
Forfeited		(47	)		12.87
Balance, August 31, 2021		2,058		$	12.84		3.1

Summary of Estimated Grant-Date Fair Values Assumptions

The estimated grant-date fair values of the options granted during the six months ended August 31, 2022 were calculated using the Black-Scholes option-pricing valuation model, based on the following assumptions:

Expected term (in years)	6.25
Expected equity price volatility	44.17%
Risk-free interest rate	2.91%
Expected dividend yield	0%

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Leases (Tables)

6 Months Ended

Aug. 31, 2022

Leases [Abstract]

Classifications of Estimated ROU Assets, Net and Lease Liabilities

The following tables presents the amounts and classifications of our estimated ROU assets, net and lease liabilities:

($ in thousands)	Balance Sheet Location	August 31, 2022		February 28, 2022
Operating lease right-of-use assets	Operating lease right-of-use assets	$	24,839	$	28,102
Finance lease right-of-use asset	Property and equipment, net		2,746		3,719
Total right-of-use assets		$	27,585	$	31,821

($ in thousands)	Balance Sheet Location	August 31, 2022		February 28, 2022
Operating lease liability - current	Current portion of operating lease obligations	$	8,106	$	7,652
Operating lease liability	Operating lease obligations		19,960		21,202
Finance lease liability - current	Current portion of finance lease obligations		2,117		2,307
Finance lease liability	Finance lease obligations		74		1,950
Total lease liabilities		$	30,257	$	33,111

Summary of Lease Cost

The following table summarizes our total lease cost:

	Three Months Ended August 31,						Six Months Ended August 31,
($ in thousands)	2022			2021			2022			2021
Finance lease cost:
Amortization of right-of-use asset	$	567		$	398		$	1,178		$	1,591
Interest on lease liability		56			287			126			417
Finance lease cost		623			685			1,304			2,008
Operating lease cost:
Operating lease cost		1,894			1,143			3,266			2,492
Variable lease cost		1,204			1,178			3,300			1,979
Sublease income		(208	)		(359	)		(436	)		(533	)
Operating net lease cost		2,890			1,962			6,130			3,938
Total net lease cost	$	3,513		$	2,647		$	7,434		$	5,946

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

	Six Months Ended August 31,
($ in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	5,067	$	3,197

Weighted-average Remaining Lease Terms and Discount Rates of Leases

The following table presents the weighted-average remaining lease terms and discount rates of our leases:

	Six Months Ended August 31,
	2022			2021
Weighted-average remaining lease term (in years):
Finance lease		0.90			1.98
Operating lease		4.08			5.20
Weighted-average discount rate:
Finance lease		9.20	%		9.20	%
Operating lease		4.68	%		4.43	%

Undiscounted Future Cash Flows Utilized in Calculation of Lease Liabilities

Lease Liability Maturity Analysis

The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities as of August 31, 2022:

($ in thousands)	Operating Leases			Finance Leases
September 2022 - February 2023	$	4,728		$	228
2024		8,810			2,105
2025		6,970			—
2026		4,641			—
2027		3,293			—
Thereafter		2,798			—
Total		31,240			2,333
Less: Present value discount		(3,174	)		(142	)
Lease liabilities	$	28,066		$	2,191

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Supplemental Cash Flow Information (Tables)

6 Months Ended

Aug. 31, 2022

Supplemental Cash Flow Elements [Abstract]

Schedule of Supplemental Cash Flow Information and Non-cash Investing and Financing activities

Supplemental cash flow information and non-cash investing and financing activities are as follows:

	Six Months Ended August 31,
(In thousands)	2022		2021
Supplemental cash flow information - Cash paid for:
Interest	$	23,241	$	10,504
Income taxes		2,584		824
Non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued liabilities		4,521		1,435
Right-of-use assets obtained in exchange for operating lease obligations		2,762		23,008
Shares withheld for taxes on vesting of restricted stock		1,254		—
Conversion of Common Units to Class A Common Stock		1,185		27,228
Conversion of Series B1 common stock to Class A Common Stock		—		175,000
Business Combination purchase price adjustment		—		2,965

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Organization and Basis of Presentation (Additional Information) (Details) $ in Millions	6 Months Ended
	Aug. 31, 2021 USD ($)
Adjustment
Reclassification [Line Items]
Reclassifications from other liabilities to deferred income taxes	$ 4.5

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Acquisitions - Additional Information (Details) - USD ($) $ in Thousands					3 Months Ended		6 Months Ended			12 Months Ended	18 Months Ended
	Aug. 15, 2022	May 31, 2022	Mar. 02, 2022	Sep. 01, 2021	Aug. 31, 2022	Aug. 31, 2021	Sep. 01, 2022	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022	Aug. 31, 2022	Aug. 29, 2022	Apr. 06, 2022
Business Acquisition [Line Items]
Proceeds from PIPE financing									$ 280,000
Line of credit facility, additional borrowing amount													$ 190,000
Purchase agreement description								The Investor Rights Agreement also provides Francisco Partners and Temasek the right to nominate one member each to our board of directors. Mr. Deep Shah, nominated by Francisco Partners, and Mr. Martin Fichtner, nominated by Temasek, became new directors on September 1, 2021
Investor rights agreement, amendment, description								Additionally, the Investor Rights Agreement was amended and restated to add certain of BluJay's existing stockholders as parties, including certain affiliates of Francisco Partners and Temasek, as well as include a six-month lock-up period from September 1, 2021 through February 28, 2022 for certain equity holders of E2open and BluJay.
Investor rights agreement, additional lock-up period				6 months
Acquisition-related expenses					$ 5,580	$ 7,174		$ 12,344	$ 16,952
Logistyx Technologies, LLC
Business Acquisition [Line Items]
Business combination, purchase price			$ 185,000
Estimated fair value			183,400
Cash payment		$ 37,400	90,000				$ 95,000
Reaming acquisition payment due												$ 57,600
Business combination extend payment date	Sep. 01, 2022							Sep. 01, 2022
Expenses related to business combination										$ 700	$ 3,600
Acquisition-related expenses			1,600
Logistyx Technologies, LLC | Advisory Fees and Other Expenses Member
Business Acquisition [Line Items]
Acquisition-related expenses			$ 500
BluJay TopCo Limited
Business Acquisition [Line Items]
Expenses related to business combination										$ 33,700
Acquisition-related expenses				$ 13,400
BluJay TopCo Limited | Pipe Investment
Business Acquisition [Line Items]
Business combination debt issuance cost				7,100
BluJay TopCo Limited | E2open Holdings, LLC
Business Acquisition [Line Items]
Business combination debt issuance cost				10,400
BluJay TopCo Limited | Advisory Fees and Other Expenses Member
Business Acquisition [Line Items]
Acquisition-related expenses				26,700
Purchase Agreement | 2021 Term Loan
Business Acquisition [Line Items]
Line of credit facility, additional borrowing amount				380,000
Purchase Agreement | Class A ordinary shares | Pipe Investment
Business Acquisition [Line Items]
Proceeds from PIPE financing				$ 300,000
Stock issued during period shares acquisitions				28,909,022

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Acquisitions - Summary of Consideration Paid for Acquisition (Details) - USD ($) $ in Thousands	Mar. 02, 2022	Sep. 01, 2021
Logistyx Technologies, LLC
Business Acquisition [Line Items]
Cash consideration	$ 153,090
Cash repayment of debt	29,777
Cash paid for seller transaction costs	489
Estimated consideration paid	$ 183,356
BluJay TopCo Limited
Business Acquisition [Line Items]
Equity consideration paid to BluJay		$ 730,854
Cash consideration		350,658
Preference share consideration paid to BluJay		86,190
Cash repayment of debt		334,483
Cash paid for seller transaction costs		26,686
Estimated consideration paid		$ 1,528,871

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Acquisitions - Schedule of Preliminary and Final Purchase Price Allocation (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Mar. 02, 2022	Feb. 28, 2022	Sep. 01, 2021	Feb. 28, 2021
Business Acquisition [Line Items]
Goodwill	$ 3,292,660		$ 3,756,871		$ 2,628,646
Logistyx Technologies, LLC
Business Acquisition [Line Items]
Cash and cash and equivalents		$ 1,563
Account receivable, net		5,332
Other current assets		3,335
Property and equipment, net		144
Intangible assets		66,800
Goodwill		126,296
Non-current assets		619
Accounts payable		(5,897)
Current liabilities		(3,931)
Deferred taxes		(10,747)
Non-current liabilities		(158)
Total assets acquired and liabilities assumed		183,356
Logistyx Technologies, LLC | Preliminary Purchase Price Allocation
Business Acquisition [Line Items]
Cash and cash and equivalents		1,563
Account receivable, net		5,332
Other current assets		3,335
Property and equipment, net		144
Intangible assets		67,200
Goodwill		125,896
Non-current assets		619
Accounts payable		(5,897)
Current liabilities		(3,931)
Deferred revenue		(10,747)
Non-current liabilities		(158)
Total assets acquired and liabilities assumed		183,356
Logistyx Technologies, LLC | Adjustments
Business Acquisition [Line Items]
Intangible assets		(400)
Goodwill		$ 400
BluJay TopCo Limited
Business Acquisition [Line Items]
Cash and cash and equivalents				$ 23,773
Account receivable, net				33,822
Other current assets				11,217
Property and equipment, net				6,503
Operating lease right-of-use assets				9,018
Intangible assets				484,800
Goodwill				1,149,866
Non-current assets				184
Accounts payable				(11,630)
Current liabilities				(22,878)
Deferred revenue				(39,283)
Deferred taxes				(109,350)
Non-current liabilities				(7,171)
Total assets acquired and liabilities assumed				1,528,871
BluJay TopCo Limited | Preliminary Purchase Price Allocation
Business Acquisition [Line Items]
Cash and cash and equivalents				23,773
Account receivable, net				33,834
Other current assets				10,352
Property and equipment, net				6,503
Operating lease right-of-use assets				9,018
Intangible assets				484,800
Goodwill				1,152,084
Non-current assets				2,200
Accounts payable				(11,773)
Current liabilities				(33,530)
Deferred revenue				(39,283)
Deferred taxes				(101,936)
Non-current liabilities				(7,171)
Total assets acquired and liabilities assumed				1,528,871
BluJay TopCo Limited | Adjustments
Business Acquisition [Line Items]
Account receivable, net				(12)
Other current assets				865
Goodwill				(2,218)
Non-current assets				(2,016)
Accounts payable				143
Current liabilities				10,652
Deferred taxes				$ (7,414)

XML

Acquisitions - Schedule of Preliminary and Final Purchase Price Allocation (Parenthetical) (Details) $ in Millions	Sep. 01, 2021 USD ($)
Business Combinations [Abstract]
Deferred acquisition liability	$ 2.7

XML

Acquisitions - Schedule of Fair Value of Intangible Assets (Details) - USD ($) $ in Thousands			6 Months Ended	12 Months Ended
	Mar. 02, 2022	Sep. 01, 2021	Aug. 31, 2022	Feb. 28, 2022
Trade Name
Business Acquisition [Line Items]
Weighted Average Useful Lives			1 year	1 year
Client Relationships
Business Acquisition [Line Items]
Weighted Average Useful Lives			13 years 9 months 18 days	13 years 7 months 6 days
Backlog
Business Acquisition [Line Items]
Weighted Average Useful Lives			2 years 6 months
Logistyx Technologies, LLC
Business Acquisition [Line Items]
Fair value of intangible assets	$ 66,800
Logistyx Technologies, LLC | Trade Name
Business Acquisition [Line Items]
Weighted Average Useful Lives	1 year
Fair value of intangible assets	$ 500
Logistyx Technologies, LLC | Developed Technology
Business Acquisition [Line Items]
Weighted Average Useful Lives	6 years 4 months 24 days
Fair value of intangible assets	$ 33,500
Logistyx Technologies, LLC | Client Relationships
Business Acquisition [Line Items]
Weighted Average Useful Lives	13 years
Fair value of intangible assets	$ 32,000
Logistyx Technologies, LLC | Backlog
Business Acquisition [Line Items]
Weighted Average Useful Lives	2 years 6 months
Fair value of intangible assets	$ 800
BluJay TopCo Limited
Business Acquisition [Line Items]
Fair value of intangible assets		$ 484,800
BluJay TopCo Limited | Trade Name
Business Acquisition [Line Items]
Weighted Average Useful Lives		1 year
Fair value of intangible assets		$ 3,800
BluJay TopCo Limited | Developed Technology
Business Acquisition [Line Items]
Weighted Average Useful Lives		5 years 10 months 24 days
Fair value of intangible assets		$ 301,000
BluJay TopCo Limited | Client Relationships
Business Acquisition [Line Items]
Weighted Average Useful Lives		3 years
Fair value of intangible assets		$ 180,000

XML

Acquisitions - Summary of Equity Consideration Paid to Equity Holders (Details) - BluJay TopCo Limited $ / shares in Units, shares in Thousands, $ in Thousands	Sep. 01, 2021 USD ($) $ / shares shares
Business Acquisition [Line Items]
Common shares subject to sales restriction | shares	72,383
Fair value per share | $ / shares	$ 10.097
Equity consideration paid to BluJay | $	$ 730,854

XML

Acquisitions - Summary of Unaudited Pro Forma Information (Details) - Logistyx Technologies LLC and BluJay TopCo Limited - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Aug. 31, 2021	Aug. 31, 2021
Business Acquisition [Line Items]
Total revenue	$ 136.4	$ 260.0
Net loss	(45.7)	(257.7)
Less: Net loss attributable to noncontrolling interest	(5.3)	(29.1)
Net loss attributable to E2open Parent Holdings, Inc.	$ (40.4)	$ (228.6)

XML

Liquidity and Capital Resources - Additional Information (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022	Aug. 31, 2021
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 98,056	$ 155,481	$ 473,133
Maximum borrowing capacity available under its revolving credit facility	$ 155,000

XML

Accounts Receivable - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022	Feb. 28, 2021
Receivables [Abstract]
Accounts receivable	$ 134,644	$ 143,799
Unbilled receivables	25,436	14,597
Less: Allowance for credit losses	(5,308)	(3,055)	$ (908)
Accounts receivable, net	$ 154,772	$ 155,341

XML

Accounts Receivable - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Aug. 31, 2022	Feb. 28, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	$ (3,055)	$ (908)
Additions	(2,436)	(1,917)
Write-offs	450	1,549
Balance	(5,308)	(3,055)
BluJay Acquisition
Financing Receivable, Allowance for Credit Loss [Line Items]
Acquisition		$ (1,779)
Logistyx Acquisition
Financing Receivable, Allowance for Credit Loss [Line Items]
Acquisition	$ (267)

XML

Prepaid and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid software and hardware license and maintenance fees	$ 12,023	$ 6,022
Income and other taxes receivable	5,279	4,544
Prepaid insurance	4,267	3,401
Deferred commissions	3,666	2,867
Prepaid marketing	1,407	1,124
Security deposits	1,483	1,044
Other prepaid expenses and other current assets	2,402	7,241
Total prepaid expenses and other current assets	$ 30,527	$ 26,243

XML

Goodwill - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Aug. 31, 2022	Aug. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment charge	$ 514,816	$ 514,816

XML

Goodwill - Schedule of Changes In Goodwill (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended	12 Months Ended
		Aug. 31, 2022	Aug. 31, 2022	Feb. 28, 2022
Goodwill [Line Items]
Beginning balance			$ 3,756,871	$ 2,628,646
Business Combination purchase price adjustment	[1]			407
Impairment charge		$ (514,816)	(514,816)
Currency translation adjustment			(70,236)	(27,503)
Ending balance		$ 3,292,660	3,292,660	3,756,871
BluJay Acquisition
Goodwill [Line Items]
Goodwill acquisition adjustment	[2]		(5,455)
Acquisitions	[2]			$ 1,155,321
Logistyx Acquisition
Goodwill [Line Items]
Acquisitions	[3]		$ 126,296

[1] Consists of the post-closing adjustment of consideration and associated tax adjustments required as part of the merger transaction pursuant to Section 3.5 of the Business Combination Agreement. On July 6, 2021, we issued additional Class A Common Stock and Common Units valued at $3.0 million in total pro rata to the various parties who received consideration in February 2021 at the closing of the Business Combination in the form of shares of Class A Common Stock, Common Units and cash. Additional tax adjustments were required during the third quarter of fiscal year 2022.

[2] Represents the goodwill acquired in the BluJay Acquisition as of September 1, 2021 and subsequent purchase price adjustments. See Note 3, Acquisitions for additional information.

[3] Represents the goodwill acquired in the Logistyx Acquisition as of March 2, 2022 and subsequent purchase price adjustments. See Note 3, Acquisitions for additional information.

XML

Goodwill - Schedule of Changes In Goodwill (Parenthetical) (Details) $ in Millions	Jul. 06, 2021 USD ($)
Class A Ordinary Shares
Goodwill [Line Items]
Additional shares issued as part of the post-closing adjustment of consideration	$ 3.0

XML

Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Aug. 31, 2022	Feb. 28, 2022
Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, Cost	$ 1,238,671	$ 1,196,449
Definite-lived intangible assets, Accumulated Amortized	(212,562)	(125,057)
Definite-lived intangible assets, Net	1,026,109	1,071,392
Total intangible assets, Cost	1,348,671	1,306,447
Total intangible assets, Net	$ 1,136,109	$ 1,181,390
Client Relationships
Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Useful Lives	13 years 9 months 18 days	13 years 7 months 6 days
Definite-lived intangible assets, Cost	$ 498,644	$ 476,584
Definite-lived intangible assets, Accumulated Amortized	(80,778)	(45,467)
Definite-lived intangible assets, Net	$ 417,866	$ 431,117
Technology
Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Useful Lives	7 years 3 months 18 days	7 years 3 months 18 days
Definite-lived intangible assets, Cost	$ 685,517	$ 666,160
Definite-lived intangible assets, Accumulated Amortized	(120,291)	(72,414)
Definite-lived intangible assets, Net	$ 565,226	$ 593,746
Content Library
Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Useful Lives	10 years	10 years
Definite-lived intangible assets, Cost	$ 50,000	$ 50,000
Definite-lived intangible assets, Accumulated Amortized	(7,872)	(5,372)
Definite-lived intangible assets, Net	$ 42,128	$ 44,628
Trade Name
Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Useful Lives	1 year	1 year
Definite-lived intangible assets, Cost	$ 3,710	$ 3,705
Definite-lived intangible assets, Accumulated Amortized	(3,461)	(1,804)
Definite-lived intangible assets, Net	$ 249	$ 1,901
Backlog
Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Useful Lives	2 years 6 months
Definite-lived intangible assets, Cost	$ 800
Definite-lived intangible assets, Accumulated Amortized	(160)
Definite-lived intangible assets, Net	$ 640
Trademark / Trade name
Finite Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	Indefinite	Indefinite
Indefinite-lived intangible assets	$ 110,000	$ 109,998

XML

Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization expense	$ 45.6	$ 15.9	$ 92.1	$ 31.2
Client Relationships
Finite-Lived Intangible Assets [Line Items]
Decrease in intangible assets due to purchase price adjustments	0.3
Technology
Finite-Lived Intangible Assets [Line Items]
Decrease in intangible assets due to purchase price adjustments	$ 0.1

XML

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022
Property Plant And Equipment [Line Items]
Gross property and equipment	$ 115,370	$ 89,625
Less accumulated depreciation and amortization	(38,457)	(23,688)
Property and equipment, net	76,913	65,937
Computer Equipment
Property Plant And Equipment [Line Items]
Gross property and equipment	46,667	33,228
Software
Property Plant And Equipment [Line Items]
Gross property and equipment	54,667	43,821
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Gross property and equipment	3,437	3,509
Leasehold Improvements
Property Plant And Equipment [Line Items]
Gross property and equipment	$ 10,599	$ 9,067

XML

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 8.5	$ 4.9	$ 15.4	$ 9.8
Capitalized software costs	28.2		28.2		$ 20.9
Amortization of capitalized software development costs	$ 1.4	$ 0.6	$ 2.2	$ 1.2

XML

Investments - Additional Information (Details) - USD ($)			6 Months Ended
	May 05, 2022	Feb. 04, 2022	Aug. 31, 2022
Schedule of Investments [Line Items]
Payments made to acquire minority investment		$ 2,500,000	$ 3,000,000
Minority investment, required second investment amount	$ 2,500,000
Impairment charges			$ 0
Transaction fees
Schedule of Investments [Line Items]
Minority investment, required second investment amount	$ 500,000

XML

Accounts Payable and Accrued Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022
Payables and Accruals [Abstract]
Accrued compensation	$ 33,988	$ 63,101
Accrued severance and retention	3,600	1,909
Trade accounts payable	39,409	33,158
Accrued professional services	4,003	5,440
Restructuring liability	280	778
Taxes payable	12,463	2,702
Interest payable	5,818	2,398
Client deposits	2,284	2,214
Other	13,620	19,546
Total accounts payable and accrued liabilities	$ 115,465	$ 131,246

XML

Accounts Payable and Accrued Liabilities - Additional Information (Details) - USD ($) $ in Millions	Aug. 31, 2022	Feb. 28, 2022
Payables and Accruals [Abstract]
Accrued expenses related to accrued severance and retention reflected in accrued compensation	$ 0.8	$ 0.8

XML

Tax Receivable Agreement - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Tax Receivable Agreement [Line Items]
Tax savings rate			85.00%
Tax rate			24.10%
Business combination tax receivable agreement retain tax benefit remaining of cash saving	15.00%		15.00%
Imputed interest rate			7.00%
Tax receivable agreement liability	$ 60,429		$ 60,429		$ 66,590
Business combination discount rate for ASC 805 calculation	9.50%		9.50%		8.20%
Increase in ASC 450 liability			$ 200	$ 10,100
Change in tax receivable agreement liability	$ 8,100	$ (600)	$ 6,400	$ (3,100)
LIBOR
Tax Receivable Agreement [Line Items]
Basis points			1.00%

XML

Notes Payable - Schedule of Notes Payable Outstanding (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022
Debt Instrument [Line Items]
Total notes payable	$ 1,083,698	$ 979,210
Less unamortized debt issuance costs	(26,323)	(26,536)
Total notes payable, net	1,057,375	952,674
Less current portion	(10,978)	(89,097)
Notes payable, less current portion, net	1,046,397	863,577
Notes Payable | Other Notes Payable
Debt Instrument [Line Items]
Total notes payable	17	47
Notes Payable | 2021 Term Loan
Debt Instrument [Line Items]
Total notes payable	1,083,681	899,163
Notes Payable | 2021 Revolving Credit Facility
Debt Instrument [Line Items]
Total notes payable	$ 0	$ 80,000

XML

Notes Payable - Additional Information (Details) - USD ($) $ in Thousands			1 Months Ended	6 Months Ended		9 Months Ended
	Apr. 06, 2022	Feb. 04, 2021	May 31, 2022	Aug. 31, 2022	Aug. 31, 2021	Nov. 30, 2021	Feb. 28, 2022	Sep. 01, 2021
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity				$ 155,000
Line of credit, sublimit		$ 15,000
Line of credit facility, additional borrowing amount	$ 190,000
Repayment of outstanding balance				$ 85,857	$ 1,582
Logistyx Acquisition
Debt Instrument [Line Items]
Additional cash payment due			$ 37,400
2021 Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity		75,000					$ 80,000	$ 155,000
Line of credit, sublimit		15,000						30,000
Line of credit facility, mature date				Feb. 04, 2026
Repayment of outstanding balance	80,000
Line of credit, available borrowing capacity				$ 155,000			$ 75,000
Interest rate							5.25%
2021 Term Loan
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity		525,000					$ 0
Line of credit, frequency of payments				quarterly
Line of credit, installments amount	2,700	1,300				$ 2,300
Line of credit facility, mature date				Feb. 04, 2028
Line of credit, minimum additional borrowing amount		$ 2,000
Interest rate				5.86%			4.00%
2021 Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, additional borrowing amount	$ 190,000							$ 380,000

XML

Contingent Consideration - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended		9 Months Ended
	Jun. 08, 2021	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Nov. 30, 2021	Feb. 28, 2022
Business Acquisition Contingent Consideration [Line Items]
Contingent consideration liability		$ 34,100		$ 34,100			$ 45,600
Contingent consideration liability remeasured gain		7,300		11,500
Contingent consideration liability remeasured loss			$ 13,000		$ 76,400
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability		$ (7,260)	16,780	$ (11,460)	90,040
Share price per share shall be decreased if dividends paid to class A common stock						$ 13.50
Fair value remeasurements loss			$ 3,800		$ 13,700
RCUs
Business Acquisition Contingent Consideration [Line Items]
Vesting period				10 years
Series B-1 common stock
Business Acquisition Contingent Consideration [Line Items]
Common stock, shares outstanding		8,120,367		8,120,367
Common Stock Conversion Features				the Series B-1 common stock to automatically convert into our Class A Common Stock on a one-to-one basis
Conversion of Stock Shares Waiting to be Converted				94
Share price per share shall be decreased if dividends paid to class A common stock				$ 13.50
Conversion of Stock, Shares Converted	8,120,273
Series B-1 common stock | Sponsor Side Letter Agreement | CC Neuberger Principal Holdings I Sponsor LLC and Independent Directors
Business Acquisition Contingent Consideration [Line Items]
Conversion of Stock, Shares Issued				2,500,000
Series B-2 common stock
Business Acquisition Contingent Consideration [Line Items]
Common stock, shares outstanding		3,372,184		3,372,184			3,372,184
Common Stock Conversion Features				The Series B-2 common stock will automatically convert into our Class A Common Stock on a one-to-one basis
Common Stock Minimum Conversion Price Per Share Equal To Volume Weighted Average Price Of Class A Common Stock				$ 15.00
Share price per share shall be decreased if dividends paid to class A common stock				$ 15.00
Common Class V [Member]
Business Acquisition Contingent Consideration [Line Items]
Number Of Common StockSharesVesting							4,379,557
Common Stock Conversion Features				They are also entitled to Class V common stock on a one for one basis to their Common Units which in essence allows each holder one vote per Common Unit.
Series 1 RCUs
Business Acquisition Contingent Consideration [Line Items]
Common stock, shares outstanding		4,379,557		4,379,557
Number Of Common StockSharesVesting		4,379,557		4,379,557
Number of days volume-weighted average price				5 days
Share price per share shall be decreased if dividends paid to class A common stock				$ 13.50
Conversion of Stock, Shares Issued				4,379,557
Series 2 RCUs
Business Acquisition Contingent Consideration [Line Items]
Common stock, shares outstanding		2,627,724		2,627,724			2,627,724
Common Stock Minimum Conversion Price Per Share Equal To Volume Weighted Average Price Of Class A Common Stock				$ 15.00
Share price per share shall be decreased if dividends paid to class A common stock				$ 15.00
Class A Common Stock
Business Acquisition Contingent Consideration [Line Items]
Number of days volume-weighted average price	5 days			5 days
Common Stock Minimum Conversion Price Per Share Equal To Volume Weighted Average Price Of Class A Common Stock	$ 13.50			$ 13.50
Conversion of Stock, Shares Issued	8,120,273
Class A Common Stock | Sponsor Side Letter Agreement
Business Acquisition Contingent Consideration [Line Items]
Number of days volume-weighted average price	5 days
Common Stock Minimum Conversion Price Per Share Equal To Volume Weighted Average Price Of Class A Common Stock	$ 13.50
Class B Common Stock | Sponsor Side Letter Agreement | CC Neuberger Principal Holdings I Sponsor LLC and Independent Directors
Business Acquisition Contingent Consideration [Line Items]
Conversion of Stock, Shares Converted				2,500,000

XML

Financial Instruments - Additional Information (Details) - Cash Flow Hedges - Foreign Exchange Forward Contracts	6 Months Ended
	Aug. 31, 2022
Minimum
Derivative [Line Items]
Derivative term of contract at inception	1 month
Maximum
Derivative [Line Items]
Derivative term of contract at inception	24 months
Derivative term of contract	24 months

XML

Financial Instruments - Condensed Consolidated Balance Sheets Location and Amount of Derivative Instrument Fair Values (Details) $ in Thousands	Aug. 31, 2022 USD ($)
Accounts Payable and Accrued Liabilities
Derivatives, Fair Value [Line Items]
Amount of derivative instrument fair values	$ (125)
Other Noncurrent Liabilities
Derivatives, Fair Value [Line Items]
Amount of derivative instrument fair values	$ (82)

XML

Fair Value Measurement - Summary of Investments (Details) - Asset-backed Securities - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022
Marketable Securities [Line Items]
Cost	$ 162	$ 162
Gross Unrealized Gains	23	46
Fair Value	$ 185	$ 208

XML

Fair Value Measurement - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total cash equivalents		$ 4
Total investments	$ 185	208
Total assets	185	212
Total liabilities	124,716	162,975
Money Market
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total cash equivalents		4
Asset-backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total investments	185	208
Forward Currency Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	207
Tax Receivable Agreement Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	43,876	50,268
Warrant Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	46,525	67,139
Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	34,108	45,568
Fair Value, Inputs, Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total cash equivalents		4
Total assets		4
Total liabilities	18,078	27,324
Fair Value, Inputs, Level 1 | Money Market
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total cash equivalents		4
Fair Value, Inputs, Level 1 | Warrant Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	18,078	27,324
Fair Value, Inputs, Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total investments	185	208
Total assets	185	208
Total liabilities	207
Fair Value, Inputs, Level 2 | Asset-backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total investments	185	208
Fair Value, Inputs, Level 2 | Forward Currency Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	207
Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	106,431	135,651
Fair Value, Inputs, Level 3 | Tax Receivable Agreement Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	43,876	50,268
Fair Value, Inputs, Level 3 | Warrant Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	28,447	39,815
Fair Value, Inputs, Level 3 | Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities	$ 34,108	$ 45,568

XML

Fair Value Measurement - Reconciliation of Beginning and Ending Balances of Acquisition Related Accrued Earn-Outs Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
(Gain) loss from fair value of contingent consideration	$ (7,260)	$ 16,780	$ (11,460)	$ 90,040
Fair Value, Inputs, Level 3
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning of period			45,568	$ 152,808	$ 152,808
Conversion to Class A Common Stock					(175,000)
Cash payments					(2,000)
(Gain) loss from fair value of contingent consideration			(11,460)		69,760
End of period	$ 34,108		$ 34,108		$ 45,568

XML

Fair Value Measurement - Reconciliation of Liability Measured at Fair Value (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Aug. 31, 2022	Feb. 28, 2022
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning of period	$ 45,568	$ 152,808
End of period	34,108	45,568
Tax Receivable Agreement Liability
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning of period	50,268	50,114
(Gain) loss from change in fair value of liability	6,392	154
End of period	43,876	50,268
Warrants
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning of period	67,139	68,772
(Gain) loss from change in fair value of liability	(20,614)	(1,633)
End of period	$ 46,525	$ 67,139

XML

Revenue - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Disaggregation Of Revenue [Line Items]
Total revenue	$ 160,676	$ 78,079	$ 321,057	$ 144,406
Americas
Disaggregation Of Revenue [Line Items]
Total revenue	135,797	74,902	270,632	138,220
Europe
Disaggregation Of Revenue [Line Items]
Total revenue	18,985	1,298	38,929	2,622
Asia Pacific
Disaggregation Of Revenue [Line Items]
Total revenue	$ 5,894	$ 1,879	$ 11,496	$ 3,564

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Revenue - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 04, 2021	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Disaggregation Of Revenue [Line Items]
Total revenue		$ 160,676	$ 78,079	$ 321,057	$ 144,406
Reduction in deferred revenues	$ 60,700			200		$ 500
Contract with customer asset		25,400		25,400		14,600
Deferred revenue		179,700		179,700		192,100
Deferred revenue, revenue recognized		38,400		96,300
Subscriptions
Disaggregation Of Revenue [Line Items]
Total revenue		131,621	61,725	261,168	112,759
Sales and Marketing Expense
Disaggregation Of Revenue [Line Items]
Amortization expense		1,000	200	1,800	400
Prepaid Expenses and Other Current Assets and Other Noncurrent Assets [Member]
Disaggregation Of Revenue [Line Items]
Capitalized sales commissions		13,300		13,300		$ 12,200
Americas
Disaggregation Of Revenue [Line Items]
Total revenue		135,797	74,902	270,632	138,220
Europe
Disaggregation Of Revenue [Line Items]
Total revenue		18,985	1,298	38,929	2,622
Asia Pacific
Disaggregation Of Revenue [Line Items]
Total revenue		5,894	1,879	11,496	3,564
Revenue
Disaggregation Of Revenue [Line Items]
Reduction in deferred revenues		$ 100	$ 14,200	$ 200	$ 36,700
Revenue | Geographic Concentration | United States
Disaggregation Of Revenue [Line Items]
Concentration risk percentage		83.00%	96.00%	83.00%	96.00%

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Revenue - Additional Information1 (Details) - USD ($) $ in Millions	Aug. 31, 2022	Feb. 28, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-03-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue remaining performance obligation amount		$ 767.9
Revenue remaining performance obligation expected period		5 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-09-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue remaining performance obligation amount	$ 732.9
Revenue remaining performance obligation expected period	5 years

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Severance and Exit Costs - Schedule of Severance and Exit Costs Included in Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Restructuring and Related Activities [Abstract]
Severance	$ 1,868	$ 614	$ 3,690	$ 654
Lease exits	126	494	235	816
Total severance and exit costs	$ 1,994	$ 1,108	$ 3,925	$ 1,470

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Severance and Exit Costs - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Restructuring Cost And Reserve [Line Items]
Severance expense	$ 1,868	$ 614	$ 3,690	$ 654
Accrued expenses related to accrued severance and retention reflected in accrued compensation	800		800		$ 800
Restructuring Liability
Restructuring Cost And Reserve [Line Items]
Accounts payable and accrued liabilities	300		300		800
Restructuring Severance Liability
Restructuring Cost And Reserve [Line Items]
Accounts payable and accrued liabilities	3,600		$ 3,600		$ 1,900
Executive
Restructuring Cost And Reserve [Line Items]
Severance expense	$ 800

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Severance and Exit Costs - Schedule of Changes in Severance and Exit Costs Accruals (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Aug. 31, 2022	Feb. 28, 2022
Restructuring and Related Activities [Abstract]
Beginning of period	$ 2,687	$ 1,988
Payments	(3,061)	(7,302)
Impairment of right-of-use assets	(421)	(580)
Expenses	4,675	8,581
End of period	$ 3,880	$ 2,687

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Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Class Of Warrant Or Right [Line Items]
Warrants outstanding	29,079,872		29,079,872		29,079,872
Warrant exercise price per share	$ 11.50		$ 11.50
Warrants expiration term	5 years		5 years
Warrant liability	$ 46,525		$ 46,525		$ 67,139
Warrants
Class Of Warrant Or Right [Line Items]
(Gain) loss from change in fair value of warrant liability	$ (15,159)	$ (18,727)	$ (20,614)	$ 41,216
Public Warrant
Class Of Warrant Or Right [Line Items]
Warrants exercisable date			Apr. 28, 2021
Private Placement
Class Of Warrant Or Right [Line Items]
Warrants outstanding	10,280,000		10,280,000

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Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Aug. 31, 2022 Vote $ / shares shares	Feb. 28, 2022 $ / shares shares	Jan. 20, 2022 USD ($)	Aug. 19, 2021 $ / shares shares	Aug. 18, 2021 shares
Class of Stock [Line Items]
Share repurchase program, authorized amount | $			$ 100.0
Class A ordinary shares
Class of Stock [Line Items]
Common stock, shares authorized	2,500,000,000	2,500,000,000
Common stock, par value | $ / shares	$ 0.0001	$ 0.0001
Common shares, votes per share | Vote	1
Common stock, shares issued	302,199,373	301,536,621
Common stock, shares outstanding	302,022,719	301,359,967
Number of shares repurchase during the period	0
Class V common stock
Class of Stock [Line Items]
Common stock, shares authorized	42,747,890	42,747,890		42,747,890	40,000,000
Common stock, par value | $ / shares	$ 0.0001	$ 0.0001		$ 0.0001
Common stock, shares issued	33,192,007	33,560,839
Common stock, shares outstanding	33,192,007	33,560,839
Common stock voting rights, description	These shares have no economic value but entitle the holder to one vote per share
Common stock, terms of conversion, description	They are also entitled to Class V common stock on a one for one basis to their Common Units which in essence allows each holder one vote per Common Unit.
Treasury shares	9,555,883	9,187,051

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Stockholders' Equity - Schedule of Changes in Outstanding Stock (Details) - shares			6 Months Ended
		Jun. 08, 2021	Aug. 31, 2022
Class A Common Stock
Class of Stock [Line Items]
Common stock, shares outstanding			301,359,967
Conversion of stock, shares issued		8,120,273
Conversion of Common Units	[1]		149,941
Vesting of restricted awards, net of shares withheld for taxes	[2]		512,811
Common stock, shares, outstanding			302,022,719
Class V
Class of Stock [Line Items]
Common stock, shares outstanding			33,560,839
Conversion of Common Units	[1]		(368,832)
Common stock, shares, outstanding			33,192,007
Series B-1
Class of Stock [Line Items]
Common stock, shares outstanding			94
Conversion of stock, shares converted		(8,120,273)
Common stock, shares, outstanding			94
Series B-2
Class of Stock [Line Items]
Common stock, shares outstanding			3,372,184
Common stock, shares, outstanding			3,372,184

[1] Class A Common Stock issued for the conversion of Common Units settled in stock. During the six months ended August 31, 2022, we paid $1.4 million in cash for the repurchase of 218,891 Common Units that were converted into cash instead of stock at our option. Class V Common Stock are retired on a one-for-one basis when Common Units are converted into Class A Common Stock or settled in cash.

[2] The Class A Common Stock withheld for taxes revert back to the 2021 Incentive Plan, as defined below, and are used for future grants.

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Stockholders' Equity - Schedule of Changes in Outstanding Stock (Parenthetical) (Details) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Class of Stock [Line Items]
Payment in cash for repurchase of stock		$ 2,473
Common Units
Class of Stock [Line Items]
Repurchase of common units	218,891
Payment in cash for repurchase of stock	$ 1,400

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Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Jun. 08, 2021	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Minority Interest [Line Items]
Number of common units settled in cash			218,891		218,891
Cash payment for redemption of Common Units			$ 1.4		$ 1.4
Decrease to noncontrolling interests		$ 2.4		$ 2.6
Class A ordinary shares
Minority Interest [Line Items]
Conversion of stock, shares issued	8,120,273
E2open Holdings, LLC
Minority Interest [Line Items]
Noncontrolling interest percentage		9.90%		9.90%		10.00%
Noncontrolling interest number of common units held by participants		33,200,000		33,200,000		33,600,000
E2open Holdings, LLC | Class A ordinary shares
Minority Interest [Line Items]
Conversion of stock, shares issued		124,941		1
Conversion of stock, amount issued		$ 1.0		$ 1.2
E2open Holdings, LLC | Class A ordinary shares | Convertible Common Stock
Minority Interest [Line Items]
Conversion of stock, shares issued				149,941
E2open Holdings, LLC | Class V common stock
Minority Interest [Line Items]
Conversion of stock, shares issued				1

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Other Comprehensive Loss Income - Accumulated Other Comprehensive Loss in Equity Section of Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Aug. 31, 2022	May 31, 2022	Aug. 31, 2021	May 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Begining Balance		$ (19,019)			$ (19,019)
Other comprehensive loss					(100,316)
Tax effects					27,654
Total other comprehensive loss, net	$ (41,962)	(30,700)	$ (6,523)	$ 1,475	(72,662)	$ (5,048)
Ending Balance	(91,681)				(91,681)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Begining Balance		$ (19,019)			(19,019)
Other comprehensive loss					(100,109)
Tax effects					27,654
Total other comprehensive loss, net					(72,455)
Ending Balance	(91,474)				(91,474)
Unrealized Holding Gains (Losses) on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive loss					(207)
Total other comprehensive loss, net					(207)
Ending Balance	$ (207)				$ (207)

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Earnings Per Share - Summary of Basic and Diluted Per Share Computations for Net Income (Loss) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Aug. 31, 2022	May 31, 2022	Aug. 31, 2021	May 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Numerator - basic:
Net loss	$ (409,585)	$ (12,621)	$ (23,988)	$ (169,355)	$ (422,206)	$ (193,343)
Less: Net loss attributable to noncontrolling interest	(40,897)		(3,471)		(42,162)	(30,568)
Net loss attributable to E2open Parent Holdings, Inc.	(368,688)		(20,517)		(380,044)	(162,775)
Numerator - diluted:
Net loss attributable to E2open Parent Holdings, Inc. - basic	(368,688)		(20,517)		(380,044)	(162,775)
Net loss attributable to E2open Parent Holdings, Inc. - diluted	$ (368,688)		$ (20,517)		$ (380,044)	$ (162,775)
Denominator - basic:
Weighted average shares outstanding - basic	301,898		195,148		301,635	191,099
Net loss per share - basic	$ (1.22)		$ (0.11)		$ (1.26)	$ (0.85)
Denominator - diluted:
Weighted average shares outstanding - basic	301,898		195,148		301,635	191,099
Weighted average shares outstanding - diluted	301,898		195,148		301,635	191,099
Diluted net loss per common share	$ (1.22)		$ (0.11)		$ (1.26)	$ (0.85)

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Earnings Per Share - Summary of Weighted Average Potential Common Shares Excluded from Diluted Loss Per Common Shares (Details) - shares		3 Months Ended		6 Months Ended
		Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation		78,808,006	78,392,858	76,597,957	75,958,857
Series B-1
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation		94	86	94	43
Series B-2
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation		3,372,184	3,372,184	3,372,184	3,372,184
Restricted Common Units Series 2
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation		2,627,724	2,627,724	2,627,724	2,627,724
Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation		29,079,872	29,079,972	29,079,872	29,079,972
Common Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation	[1]	33,364,002	38,670,936	33,461,877	37,153,808
Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation		4,833,446	2,583,320	3,562,837	2,583,320
Performance Based Restricted Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation		2,267,887	1,009,995	2,038,782	560,375
Time Based Restricted Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Units/Shares excluded from the dilution computation		3,262,797	1,048,641	2,454,587	581,431

[1] The warrants include the public warrants, private placement warrants and Forward Purchase Warrants.

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Share-Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended	6 Months Ended		12 Months Ended
	May 31, 2022	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022	Mar. 01, 2022	Feb. 28, 2021
Minimum
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Performance target percentage	100.00%
Performance Based Restricted Stock Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of unvested shares		2,186,081
Share vested but not been released		74,089
RSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Vesting period		10 years
Total intrinsic value of vested or expected to vest shares		$ 35,300,000
RSUs | Minimum
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Performance target percentage		100.00%
RSUs | Time-Based Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of shares, vested or expected to vest		3,069,013
Share vested but not been released		45,513
Performance Based Options
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Options outstanding		4,259,741
Senior Management
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Organic growth target		1 year		1 year
Vesting period		3 years		3 years
Performance target percentage		100.00%
Executives, Senior Management and Employees | Time-Based Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Vesting period		3 years
Executives, Senior Management and Employees | Performance Based Restricted Stock Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Organic growth target		1 year		1 year
Vesting period		3 years		3 years
Performance target percentage		100.00%
Non-Employee Directors | Time-Based Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Vesting period		1 year
Chief Financial Officer
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock awards accelerated vesting term		As previously disclosed in our 2022 Form 10-K in Item 9B., Other Information, our former Chief Financial Officer entered into a Transition Agreement in which all of his outstanding stock awards accelerated vesting to August 31, 2022. Additionally, the exercise period for his options was extended from 90 days to one year with exercises permitted through August 31, 2023
Class A ordinary shares | RSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Intrinsic value of outstanding stock option awards		$ 35,300,000
2021 Incentive Plan
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Options available for grant		3,275,000	2,583,000
Options outstanding		4,833,000	2,583,000	2,524,000
Unrecognized compensation cost		$ 8,200,000
Intrinsic value of outstanding stock option awards		0
Aggregate intrinsic value of vested and exercisable stock option		0
2021 Incentive Plan | RSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized compensation cost		$ 37,100,000
Number of unvested shares		5,255,000	2,058,000	2,103,000		0
2021 Incentive Plan | Class A ordinary shares
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Common stock reserved for issuance				15,000,000
Shares available for grant		9,806,788
2021 Evergreen Incentive Plan
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Common stock reserved for issuance					4,849,684

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Share-Based Compensation - Summary of Activity under the 2021 Incentive Plan Related to Options (Details) - 2021 Incentive Plan - $ / shares shares in Thousands	6 Months Ended		12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of Shares, Beginning balance	2,524
Number of Shares, Granted	3,275	2,583
NUmber of shares, Forfeited/Expired	(966)
Number of Shares, Ending balance	4,833	2,583	2,524
Number of Shares, Vested and exercisable	573
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted Average Exercise Price Per Share, Beginning balance	$ 9.83
Weighted Average Exercise Price Per Share, Granted	7.76	$ 9.86
Weighted Average Exercise Price Per Share, Forfeited/Expired	9.85
Weighted Average Exercise Price Per Share, Ending balance	8.42	$ 9.86	$ 9.83
Weighted Average Exercise Price Per Share, Vested and exercisable	$ 9.82
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term (in years)	8 years 10 months 24 days	9 years 6 months	9 years
Weighted Average Remaining Contractual Term (in years), Vested and exercisable	5 years 4 months 24 days

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Share-Based Compensation - Schedule of Activity under the 2021 Incentive Plan Related to RSUs (Details) - 2021 Incentive Plan - RSUs - $ / shares shares in Thousands	6 Months Ended		12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of Shares, Beginning balance	2,103	0	0
Number of Shares, Granted	3,925	2,105
Number of shares, Added by performance factor	300
Number of Shares, Released	(665)
Number of Shares, Forfeited	(408)	(47)
Number of Shares, Ending balance	5,255	2,058	2,103
Number of Shares, Awards not vested, Beginning balance	$ 12.47	$ 0	$ 0
Weighted Average Market Value Per Share, Granted	8.06	12.84
Weighted Average Market Value Per Share, Added by performance factor	12.87
Weighted Average Market Value Per Share, Released	12.16
Weighted Average Market Value Per Share, Forfeited	10.50	12.87
Weighted Average Market Value Per Share, Ending balance	$ 9.32	$ 12.84	$ 12.47
Weighted Average Remaining Contractual Term (in years)	2 years 8 months 12 days	3 years 1 month 6 days	2 years 8 months 12 days

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Share-Based Compensation - Summary of Estimated Grant-Date Fair Values Assumptions (Details)	6 Months Ended
	Aug. 31, 2022
Share-Based Payment Arrangement [Abstract]
Expected term (in years)	6 years 3 months
Expected equity price volatility	44.17%
Risk-free interest rate	2.91%
Expected dividend yield	0.00%

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Share-Based Compensation - Schedule of Functional Classification in the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	$ 5,154	$ 2,509	$ 8,342	$ 4,552
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	90	257	311	457
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	764	374	1,243	697
Sales and Marketing Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	909	478	1,659	760
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based and unit-based compensation	$ 3,391	$ 1,400	$ 5,129	$ 2,638

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Leases - Additional Information (Details) $ in Millions	3 Months Ended	6 Months Ended
	Aug. 31, 2022 USD ($) Sublease	Aug. 31, 2022 USD ($) Sublease	Feb. 28, 2022 USD ($)
Lessee Lease Description [Line Items]
Operating lease expiration date		2030-06
Operating lease, existence of option to extend		true
Number of subleases | Sublease	3	3
Lease deposit	$ 3.8	$ 3.8	$ 3.6
Impairment on operating lease right-of-use assets	2.4
Impairment of leasehold improvements	$ 2.4
Financing lease expiration date		2023-10
Vehicle
Lessee Lease Description [Line Items]
Operating lease expiration date		2026-07
Minimum
Lessee Lease Description [Line Items]
Operating lease extended term		2 years
Maximum
Lessee Lease Description [Line Items]
Operating lease extended term		5 years

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Leases - Classifications of Estimated ROU Assets, Net and Lease Liabilities (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Feb. 28, 2022
Lease, Cost [Abstract]
Right-of-use (ROU) operating asset	$ 24,839	$ 28,102
Finance lease right-of-use asset	$ 2,746	$ 3,719
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property and equipment, net	Property and equipment, net
Total right-of-use assets	$ 27,585	$ 31,821
Operating lease liability - current	8,106	7,652
Operating lease liability	19,960	21,202
Finance lease liability - current	2,117	2,307
Finance lease liability	74	1,950
Total lease liabilities	$ 30,257	$ 33,111

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Leases - Summary of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021
Finance lease cost:
Amortization of right-of-use asset	$ 567	$ 398	$ 1,178	$ 1,591
Interest on lease liability	56	287	126	417
Finance lease cost	623	685	1,304	2,008
Operating lease cost:
Operating lease cost	1,894	1,143	3,266	2,492
Variable lease cost	1,204	1,178	3,300	1,979
Sublease income	(208)	(359)	(436)	(533)
Operating net lease cost	2,890	1,962	6,130	3,938
Total net lease cost	$ 3,513	$ 2,647	$ 7,434	$ 5,946

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Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$ 5,067	$ 3,197

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Leases - Weighted-average Remaining Lease Terms and Discount Rates of Leases (Details)	Aug. 31, 2022	Aug. 31, 2021
Leases [Abstract]
Weighted-average remaining lease term (in years): Finance lease	10 months 24 days	1 year 11 months 23 days
Weighted-average remaining lease term (in years): Operating lease	4 years 29 days	5 years 2 months 12 days
Weighted-average discount rate: Finance lease	9.20%	9.20%
Weighted-average discount rate: Operating lease	4.68%	4.43%

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Leases - Undiscounted Future Cash Flows Utilized in Calculation of Lease Liabilities (Details) $ in Thousands	Aug. 31, 2022 USD ($)
Operating Leases
June 2022 - Febuary 2023	$ 4,728
2024	8,810
2025	6,970
2026	4,641
2027	3,293
Thereafter	2,798
Total	31,240
Less: Present value discount	(3,174)
Lease liabilities	28,066
Finance Leases
June 2023 - Febuary 2024	228
2024	2,105
2025	0
2026	0
2027	0
Thereafter	0
Total	2,333
Less: Present value discount	(142)
Lease liabilities	$ 2,191

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Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Feb. 28, 2022
Income Tax Disclosure [Line Items]
Income tax benefit (expense)	$ 113,664	$ (5,994)	$ 122,133	$ (7,372)
Tax rate	21.70%	33.30%	22.40%	4.00%
Loss before income tax provision	$ 523,249	$ 17,994	$ 544,339	$ 185,971
Gross unrecognized tax benefits	2,600		$ 2,600		$ 2,600
Inflation reduction act term			On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (IRA), which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. The alternative minimum tax and excise tax are effective in taxable years beginning after December 31, 2022. The alternative minimum tax would not be applicable in our next fiscal year since it is based on a three-year average annual adjusted financial statement income in excess of $1 billion. We will evaluate any impact related to the excise tax on net stock repurchases based on our relative activity.
Maximum
Income Tax Disclosure [Line Items]
Unrecognized tax benefits, gross interest and penalties accrued	$ 100		$ 100		$ 100

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Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information and Non-cash Investing and Financing activities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2022	May 31, 2022	Aug. 31, 2022	Aug. 31, 2021
Supplemental Cash Flow Information [Abstract]
Interest			$ 23,241	$ 10,504
Income taxes			2,584	824
Non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued liabilities			4,521	1,435
Right-of-use assets obtained in exchange for operating lease obligations			2,762	23,008
Shares withheld for taxes on vesting of restricted stock	$ (76)	$ 1,330	1,254
Conversion of Common Units to Class A Common Stock			$ 1,185	27,228
Conversion of Series B1 common stock to Class A Common Stock				175,000
Business Combination purchase price adjustment				$ 2,965

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Subsequent Events - Additional Information (Details) $ in Millions						6 Months Ended
	Oct. 01, 2022 Employee shares	Sep. 01, 2022 USD ($)	Aug. 15, 2022	May 31, 2022 USD ($)	Mar. 02, 2022 USD ($)	Sep. 01, 2022 USD ($)	Aug. 31, 2022 USD ($) shares	Aug. 31, 2021 shares	Sep. 30, 2022 USD ($)	Feb. 28, 2022 USD ($)	Sep. 01, 2021 USD ($)	Feb. 04, 2021 USD ($)
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity							$ 155.0
RSUs
Subsequent Event [Line Items]
Vesting period							10 years
2021 Incentive Plan | RSUs
Subsequent Event [Line Items]
Number of awards granted | shares							3,925,000	2,105,000
2021 Revolving Credit Facility
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity										$ 80.0	$ 155.0	$ 75.0
Logistyx Technologies, LLC
Subsequent Event [Line Items]
Business combination extend payment date			Sep. 01, 2022				Sep. 01, 2022
Cash payment				$ 37.4	$ 90.0	$ 95.0
Subsequent Event | 2021 Incentive Plan
Subsequent Event [Line Items]
Number of employees eligible to receive annual stock award | Employee	3,800
Subsequent Event | 2021 Incentive Plan | Time-Based Units | RSUs | Employees [Member]
Subsequent Event [Line Items]
Number of awards granted | shares	1,653,982
Subsequent Event | 2021 Incentive Plan | Cash-Settled Units | RSUs
Subsequent Event [Line Items]
Number of awards granted | shares	182,513
Subsequent Event | 2021 Incentive Plan | Time Cased and Cash-Settled Units
Subsequent Event [Line Items]
Vesting period	3 years
Subsequent Event | 2021 Revolving Credit Facility
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity									$ 25.0
Weighted average interest rate									5.64%
Subsequent Event | Logistyx Technologies, LLC
Subsequent Event [Line Items]
Cash payment		$ 54.0
Business combination working capital adjustment		$ 3.6